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<P STYLE="text-align: center; margin-top: 0; margin-bottom: 0"><B>As filed with the Securities and Exchange Commission on April 15, 2020</B></P>

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

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

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

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

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

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

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

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

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

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

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DEAC NV Merger Corp.</B></P>

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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 33%; padding-right: 3pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; border-bottom: Black 0.5pt solid"><B>Nevada</B></P></TD>
    <TD STYLE="width: 1%; padding-right: 3pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 32%; padding-right: 3pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; border-bottom: Black 0.5pt solid"><B>6770</B></P></TD>
    <TD STYLE="width: 1%; padding-right: 3pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 33%; padding-right: 3pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; border-bottom: Black 0.5pt solid"><B>84-4052441</B></P></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 3pt; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">(State or other jurisdiction of <BR>
incorporation or organization)</FONT></TD>
    <TD STYLE="padding-right: 3pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-right: 3pt; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">(Primary Standard Industrial <BR>
Classification Code Number)</FONT></TD>
    <TD STYLE="padding-right: 3pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-right: 3pt; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">(I.R.S. Employer <BR>
Identification No.)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2121 Avenue of the Stars, Suite 2300</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Los Angeles, CA 90067</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(310) 209-7280</B></P>

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2121 Avenue of the Stars, Suite 2300</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Los Angeles, CA 90067</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(310) 209-7280</B></P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 10pt"><I></I></FONT></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: 34%; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Joel L. Rubinstein<BR>
Jonathan P. Rochwarger<BR>
Elliott M. Smith<BR>
Winston &amp; Strawn LLP<BR>
200 Park Avenue<BR>
New York, New York 10166<BR>
Tel: (212) 294-6700</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%">
        <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">&nbsp;</P></TD>
    <TD STYLE="vertical-align: top; width: 31%; padding-bottom: 12pt; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Scott D. Miller<BR>
Sullivan &amp; Cromwell LLP<BR>
125 Broad Street<BR>
New York, New York 10004<BR>
Tel: (212) 558-4000</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%">
        <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">&nbsp;</P></TD>
    <TD STYLE="vertical-align: top; width: 33%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>R. Stanton Dodge</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DraftKings Inc.</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>222 Berkeley Street, 5th Floor</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Boston, Massachusetts 02116</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&#8203;</B></P></TD></TR>
</TABLE>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Approximate date of commencement of proposed
sale to the public</B>: From time to time after this Registration Statement becomes effective.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">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: Times New Roman, Times, Serif"><FONT STYLE="font-family: Wingdings">&#120;</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If this form is filed to register additional
securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act
registration statement number of the earlier effective registration statement for the same offering. <FONT STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Wingdings">&#168;</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">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 STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Wingdings">&#168;</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">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 STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Wingdings">&#168;</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company.
See the definitions of &ldquo;large accelerated filer,&rdquo; &ldquo;accelerated filer,&rdquo; &ldquo;smaller reporting company,&rdquo;
and &ldquo;emerging growth company&rdquo; in Rule 12b-2 of the Exchange Act.</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 20%"><FONT STYLE="font-size: 10pt">Large accelerated filer</FONT></TD>
    <TD STYLE="width: 49%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Wingdings">&#168;</FONT></FONT></TD>
    <TD STYLE="width: 26%"><FONT STYLE="font-size: 10pt">Accelerated filer</FONT></TD>
    <TD STYLE="width: 5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Wingdings">&#168;</FONT></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">Non-accelerated filer</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Wingdings">&#120;</FONT></FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Smaller reporting company</FONT></TD>
    <TD><FONT STYLE="font-family: Wingdings">&#120;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Emerging growth company</FONT></TD>
    <TD><FONT STYLE="font-family: Wingdings">&#120;</FONT></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-indent: 0.5in">If an emerging growth company, indicate
by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial
accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. <FONT STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Wingdings">&#120;</FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><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 COLSPAN="17" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">CALCULATION OF REGISTRATION FEE</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold; border-bottom: Black 1pt solid"><B>Title of Each Class of Securities to be Registered<SUP>(1)</SUP></B>&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><B>Amount </B><BR> <B>to be Registered <SUP>(2)</SUP></B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Proposed Maximum <BR> Offering Price<BR> Per Share</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Proposed Maximum <BR> Aggregate <BR> Offering Price</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><B>Amount of </B><BR> <B>Registration Fee<SUP>(3)</SUP></B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 44%; font-size: 10pt; text-align: left; padding-left: 0.25in">Class A common stock</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">30,471,352</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left"><SUP>(4)</SUP></TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">14.00</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left"><SUP>(5)</SUP></TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">426,598,928</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left"><SUP>(5)</SUP></TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">55,372.54</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0.25in">Class A common stock underlying convertible notes</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">11,254,479</TD><TD STYLE="font-size: 10pt; text-align: left"><SUP>(6)</SUP></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">14.00</TD><TD STYLE="font-size: 10pt; text-align: left"><SUP>(5)</SUP></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">157,562,706</TD><TD STYLE="font-size: 10pt; text-align: left"><SUP>(5)</SUP></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">20,451.64</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0.25in">Warrants to purchase Class A common stock</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">3,000,000</TD><TD STYLE="font-size: 10pt; text-align: left"><SUP>(7)</SUP></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left"><SUP>(8)</SUP></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 0.25in">Class A common stock underlying warrants</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">3,000,000</TD><TD STYLE="font-size: 10pt; text-align: left"><SUP>(9)</SUP></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">11.50</TD><TD STYLE="font-size: 10pt; text-align: left"><SUP>(10)</SUP></TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">34,500,000</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">4,478.10</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; padding-bottom: 1pt">Totals</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">618,661,634</TD><TD STYLE="border-bottom: Black 1pt solid; padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">80,302.28</TD><TD STYLE="border-bottom: Black 1pt solid; padding-bottom: 1pt; font-size: 10pt; text-align: left"><SUP>(11)</SUP></TD></TR>
</TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(1)</TD><TD>All securities being registered will be issued by DEAC NV Merger Corp. (&ldquo;DEAC Nevada&rdquo;), a Nevada corporation and
wholly-owned subsidiary of Diamond Eagle Acquisition Corp., a Delaware corporation (&ldquo;DEAC&rdquo;) in connection with DEAC&rsquo;s
previously announced initial business combination (the &ldquo;Business Combination&rdquo;) with DEAC Nevada, DraftKings Inc. (&ldquo;DK&rdquo;
or &ldquo;DraftKings&rdquo;) and SBTech (Global) Limited (&ldquo;SBT&rdquo; or &ldquo;SBTech&rdquo;), pursuant to which DEAC intends
to merge with and into DEAC Nevada, with DEAC Nevada surviving the merger (the &ldquo;reincorporation&rdquo;). Upon consummation
of the reincorporation and the Business Combination, DEAC Nevada will be renamed DraftKings Inc. (referred to, both upon the reincorporation
and subsequent to such change of name, as &ldquo;New DraftKings&rdquo;). In connection with the closing of the Business Combination,
all issued and outstanding shares of DEAC&rsquo;s Class A common stock, par value $0.0001 per share (&ldquo;DEAC Class A common
stock&rdquo;) will be exchanged, on a one-for-one basis, for shares of New DraftKings&rsquo; Class A common stock, par value $0.0001
per share (&ldquo;New DraftKings Class A common stock&rdquo;). Similarly, all of DEAC&rsquo;s outstanding warrants will become
warrants to acquire shares of New DraftKings Class A common stock on the same terms as DEAC&rsquo;s currently outstanding warrants.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(2)</TD><TD>Pursuant to Rule 416 under the Securities Act of 1933, as amended (the &ldquo;Securities Act&rdquo;), the registrant is also
registering an indeterminate number of additional shares of Class A common stock that may become issuable as a result of any stock
dividend, stock split, recapitalization or other similar transaction.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(3)</TD><TD>Calculated by multiplying the proposed maximum aggregate offering price of securities to be registered by 0.0001298.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(4)</TD><TD>Represents the resale of 30,471,352 shares of New DraftKings Class A common stock that will be issued upon the exchange of
30,471,352 shares of DEAC Class A common stock to be issued to certain institutions and accredited investors in a private placement
(the &ldquo;Private Placement&rdquo;) upon the closing of the Business Combination.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(5)</TD><TD>Pursuant to Rule 457(c) under the Securities Act, and solely for the purpose of calculating the registration fee, the proposed
maximum offering price is $14.00, which is the average of the high and low prices of shares of DEAC Class A common stock on April
13, 2020 (such date being within five business days of the date that this registration statement was filed with the U.S. Securities
and Exchange Commission (the &ldquo;SEC&rdquo;)) on The Nasdaq Capital Market.</TD></TR></TABLE>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(6)</TD><TD>Represents the resale of 11,254,479 shares of New DraftKings Class A common stock that will be issued upon the exchange of
11,254,479 shares of DEAC Class A common stock to be issued to holders of the subordinated convertible promissory notes of DK (the
 &ldquo;Convertible Notes&rdquo;) immediately prior to the reincorporation.</TD></TR></TABLE>



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


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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(7)</TD><TD>Represents the resale of 3,000,000 warrants to purchase shares of DEAC Class A common stock that will be issued in the Private
Placement, which will, in connection with the closing of the Business Combination, become warrants to acquire shares of New DraftKings
Class A common stock on the same terms as DEAC&rsquo;s currently outstanding warrants (the &ldquo;PIPE Warrants&rdquo;).</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(8)</TD><TD>In accordance with Rule 457(i), the entire registration fee for the PIPE Warrants is allocated to the shares of common stock
underlying the PIPE Warrants, and no separate fee is payable for the PIPE Warrants.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(9)</TD><TD>Represents the resale of 3,000,000 shares of New DraftKings Class A common stock issuable upon exercise of the PIPE Warrants.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(10)</TD><TD>Estimated solely for the purpose of the calculation of the registration fee pursuant to Rule 457(g), based on the exercise
price of the warrants.</TD></TR></TABLE>

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


<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(11)</TD><TD>Pursuant to Rule 457(p), the registrant is offsetting the registration fee due under this registration statement by $65,587.19,
which represents the portion of the registration fee previously paid with respect to securities that had previously been included
in the registrant&rsquo;s registration statement on Form S-4 (Registration Statement No. 333-235805) initially filed with the
SEC on January 6, 2020.</TD></TR></TABLE>



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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><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 or until this registration statement shall become effective on such date as the Commission, acting pursuant to said
Section 8(a), may determine.</B></P>

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

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

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

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

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<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>EXPLANATORY NOTE</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This registration statement registers the
resale of securities to be issued in a private placement in connection with the consummation of the proposed business combination
(the &ldquo;Business Combination&rdquo;) between Diamond Eagle Acquisition Corp. (&ldquo;DEAC&rdquo;), DEAC NV Merger Corp. (&ldquo;DEAC
Nevada&rdquo;), a wholly-owned subsidiary of DEAC, DraftKings Inc. (&ldquo;DK&rdquo; or &ldquo;DraftKings&rdquo;) and SBTech (Global)
Limited (&ldquo;SBT&rdquo; or &ldquo;SBTech&rdquo;). The shares of Class A common stock registered pursuant to this registration
statement will not be entitled to vote at the special meeting of DEAC&rsquo;s stockholders to be held to approve the Business Combination,
and will not receive any proceeds from the trust account established in connection with DEAC&rsquo;s initial public offering in
the event DEAC does not consummate an initial business combination by the May 14, 2021 deadline in its amended and restated certificate
of incorporation.</P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; color: red"><B>SUBJECT TO COMPLETION, DATED
APRIL 15, 2020</B></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"><B>PRELIMINARY PROSPECTUS</B></P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>44,725,831 Shares of Class A Common Stock<BR>
3,000,000 Warrants</B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This prospectus relates to the resale
from time to time of certain securities to be issued pursuant to the terms of those certain subscription agreements and
convertible notes entered into in connection with the proposed business combination (the &ldquo;Business Combination&rdquo;)
by and among Diamond Eagle Acquisition Corp. (&ldquo;DEAC&rdquo;), DEAC NV Merger Corp. (&ldquo;we,&rdquo; &ldquo;us,&rdquo;
 &ldquo;our,&rdquo; or &ldquo;DEAC Nevada&rdquo;), a wholly owned subsidiary of DEAC, DraftKings Inc. (&ldquo;DK&rdquo; or
 &ldquo;DraftKings&rdquo;), SBTech (Global) Limited (&ldquo;SBT&rdquo; or &ldquo;SBTech&rdquo;), DEAC Merger Sub
Inc.(&ldquo;Merger Sub&rdquo;), the shareholders of SBT who are party thereto (the &ldquo;SBT Sellers&rdquo;) and the SBT
Sellers&rsquo; Representative. In connection with the Business Combination, DEAC will merge with and into DEAC Nevada, with
DEAC Nevada surviving the merger (the &ldquo;reincorporation&rdquo;). Upon consummation of the reincorporation and the
Business Combination described herein, we will be renamed DraftKings Inc. (referred to, both upon the reincorporation and
subsequent to such change of name, as &ldquo;New DraftKings&rdquo;). In connection with the closing of the Business
Combination, the currently issued and outstanding shares of DEAC&rsquo;s Class A common stock, par value $0.0001 per share
(&ldquo;DEAC Class A common stock&rdquo;), will be exchanged, on a one-for-one basis, for shares of New DraftKings Class A
common stock, par value $0.0001 per share (&ldquo;New DraftKings Class A common stock&rdquo;). Similarly, all of DEAC&rsquo;s
outstanding warrants will become warrants to acquire shares of New DraftKings Class A common stock on the same terms as
DEAC&rsquo;s currently outstanding warrants. Accordingly, all references in this prospectus to &ldquo;Class A common
stock&rdquo; refer to shares of New DraftKings Class A common stock, which will be issued at the closing of the Business
Combination in exchange for all issued and outstanding shares of DEAC Class A common stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As described herein, the selling securityholders
named in this prospectus or their permitted transferees (collectively, the &ldquo;Selling Securityholders&rdquo;), may sell from
time to time up to (i) 30,471,352 shares of Class A common stock that will be issued to certain institutions in connection with
the closing of the Business Combination (the &ldquo;Private Placement&rdquo;), (ii) 3,000,000 shares of Class A common stock underlying
the warrants to purchase shares of Class A common stock that will be issued in the Private Placement (the &ldquo;PIPE Warrants&rdquo;),
(iii) 11,254,479 shares of Class A common stock to be issued to the holders of the subordinated convertible promissory notes of
DK (the &ldquo;Convertible Notes&rdquo;) and (iv) 3,000,000 PIPE Warrants.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We will bear all costs, expenses and
fees in connection with the registration of the Class A common stock and the warrants (collectively, the
 &ldquo;securities&rdquo;) and will not receive any proceeds from the sale of the securities. The Selling Securityholders will
bear all commissions and discounts, if any, attributable to their respective sales of the securities.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Upon the consummation of the Business Combination,
the Company&rsquo;s Class A common stock and warrants are expected trade on The Nasdaq Global Market (&ldquo;Nasdaq&rdquo;) under
the proposed symbols &ldquo;DKNG&rdquo; and &ldquo;DKNGW,&rdquo; respectively.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Investing in our securities involves
risks that are described in the &ldquo;Risk Factors&rdquo; section beginning on page 11 of this prospectus.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Neither the Securities and Exchange Commission
nor any state securities commission has approved or disapproved of the securities to be issued under this prospectus 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: 0pt 0; text-indent: 0.5in">&nbsp;</P>



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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>The date of this prospectus is &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2020.</B></P>

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

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

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">TABLE OF
CONTENTS</P>

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



<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%">
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="width: 90%; text-align: left"><A HREF="#b_001">SELECTED DEFINITIONS</A></TD>
    <TD STYLE="width: 10%; text-align: right"><A HREF="#b_001">ii</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#b_002">CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS</A></TD>
    <TD STYLE="text-align: right"><A HREF="#b_002">v</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><A HREF="#b_003">SUMMARY OF THE PROSPECTUS</A></TD>
    <TD STYLE="text-align: right"><A HREF="#b_003">1</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#b_004">SELECTED HISTORICAL FINANCIAL INFORMATION OF DEAC</A></TD>
    <TD STYLE="text-align: right"><A HREF="#b_004">5</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><A HREF="#b_005">SELECTED HISTORICAL FINANCIAL INFORMATION OF DRAFTKINGS</A></TD>
    <TD STYLE="text-align: right"><A HREF="#b_005">6</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#b_006">SELECTED HISTORICAL FINANCIAL INFORMATION OF SBT</A></TD>
    <TD STYLE="text-align: right"><A HREF="#b_006">8</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><A HREF="#b_007">SUMMARY UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION</A></TD>
    <TD STYLE="text-align: right"><A HREF="#b_007">9</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#b_008">COMPARATIVE HISTORICAL AND UNAUDITED PRO FORMA PER SHARE FINANCIAL INFORMATION</A></TD>
    <TD STYLE="text-align: right"><A HREF="#b_008">10</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><A HREF="#b_009">RISK FACTORS</A></TD>
    <TD STYLE="text-align: right"><A HREF="#b_009">11</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#b_010">USE OF PROCEEDS</A></TD>
    <TD STYLE="text-align: right"><A HREF="#b_010">49</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><A HREF="#b_011">UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION</A></TD>
    <TD STYLE="text-align: right"><A HREF="#b_011">50</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#b_012">NOTES TO THE UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS</A></TD>
    <TD STYLE="text-align: right"><A HREF="#b_012">57</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><A HREF="#b_013">DEAC&rsquo;s MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</A></TD>
    <TD STYLE="text-align: right"><A HREF="#b_013">66</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#b_014">BUSINESS OF DRAFTKINGS AND SBTECH</A></TD>
    <TD STYLE="text-align: right"><A HREF="#b_014">70</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><A HREF="#b_015">DRAFTKINGS&rsquo; INDUSTRY</A></TD>
    <TD STYLE="text-align: right"><A HREF="#b_015">96</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#b_016">DRAFTKINGS&rsquo; MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</A></TD>
    <TD STYLE="text-align: right"><A HREF="#b_016">101</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><A HREF="#b_017">SBT&rsquo;S MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</A></TD>
    <TD STYLE="text-align: right"><A HREF="#b_017">122</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#b_018">MANAGEMENT</A></TD>
    <TD STYLE="text-align: right"><A HREF="#b_018">130</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><A HREF="#b_019">EXECUTIVE COMPENSATION</A></TD>
    <TD STYLE="text-align: right"><A HREF="#b_019">139</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#b_020">DESCRIPTION OF SECURITIES</A></TD>
    <TD STYLE="text-align: right"><A HREF="#b_020">150</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><A HREF="#b_021">BENEFICIAL OWNERSHIP OF SECURITIES</A></TD>
    <TD STYLE="text-align: right"><A HREF="#b_021">164</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#b_022">SELLING SECURITYHOLDERS</A></TD>
    <TD STYLE="text-align: right"><A HREF="#b_022">168</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><A HREF="#b_023">CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS</A></TD>
    <TD STYLE="text-align: right"><A HREF="#b_023">172</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#b_024">UNITED STATES FEDERAL INCOME TAX CONSIDERATIONS</A></TD>
    <TD STYLE="text-align: right"><A HREF="#b_024">177</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><A HREF="#b_025">PLAN OF DISTRIBUTION</A></TD>
    <TD STYLE="text-align: right"><A HREF="#b_025">182</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#b_026">LEGAL MATTERS</A></TD>
    <TD STYLE="text-align: right"><A HREF="#b_026">186</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><A HREF="#b_027">EXPERTS</A></TD>
    <TD STYLE="text-align: right"><A HREF="#b_027">186</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#b_028">WHERE YOU CAN FIND MORE INFORMATION</A></TD>
    <TD STYLE="text-align: right"><A HREF="#b_028">186</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><A HREF="#b_029">INDEX TO FINANCIAL STATEMENTS</A></TD>
    <TD STYLE="text-align: right"><A HREF="#b_029">F-1</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">You should rely only on the information contained in this prospectus.
No one has been authorized to provide you with information that is different from that contained in this prospectus. This prospectus
is dated as of the date set forth on the cover hereof. You should not assume that the information contained in this prospectus
is accurate as of any date other than that date.</P>

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

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

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="b_001"></A>SELECTED
DEFINITIONS</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;BCA&rdquo; or &ldquo;Business Combination Agreement&rdquo; refers to the Business Combination Agreement, dated as of
December 22, 2019, as amended on April 7, 2020, by and among DEAC, DraftKings, SBT, the SBT Sellers party thereto, the SBT Sellers&rsquo;
Representative, DEAC Nevada and Merger Sub.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;Board&rdquo; refers to DEAC&rsquo;s board of directors, DraftKings&rsquo; board of directors or New DraftKings&rsquo;
board of directors, as the context suggests.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;Business Combination&rdquo; refers to the transactions contemplated by the BCA.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;Class A common stock&rdquo; refers to shares of DEAC Class A common stock or to shares of New DraftKings Class A common
stock, which will be issued upon the exchange of shares of DEAC Class A common stock, as the context suggests.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;Closing&rdquo; refers to the closing of the Business Combination.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;Closing Date&rdquo; refers to the date on which the Closing actually occurs.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;Continental&rdquo; refers to Continental Stock Transfer &amp; Trust Company, the transfer agent, warrant agent and escrow
agent of DEAC.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;Convertible Notes&rdquo; refers to those certain subordinated convertible notes, issued by DraftKings on or after December
16, 2019 to certain investors in an aggregate principal amount of approximately $109.2 million.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;DEAC&rdquo; refers to Diamond Eagle Acquisition Corp., a Delaware corporation.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;DEAC Class A common stock&rdquo; refers to the shares of Class A common stock, par value $0.0001 per share, of DEAC.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;DEAC Class B common stock&rdquo; refers to the shares of Class B common stock, par value $0.0001 per share, of DEAC.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;DEAC Founder Group&rdquo; refers to Eagle Equity Partners, LLC, Harry E. Sloan, Jeff Sagansky and Eli Baker.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;DEAC Nevada&rdquo; refers to DEAC NV Merger Corp., a Nevada corporation.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;DEAC Shares&rdquo; refers to shares of DEAC Class A common stock and shares of DEAC Class B common stock.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;DEAC Stockholders&rdquo; refers to, collectively, holders of shares of DEAC Class A common stock and holders of shares
of DEAC Class B common stock, but does not include the PIPE Investors or the holders of the Convertible Notes.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;dollars&rdquo; or &ldquo;$&rdquo; refers to U.S. dollars.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;DraftKings&rdquo; refers to DraftKings Inc., a Delaware corporation.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;founder shares&rdquo; refers to shares of DEAC Class B common stock initially purchased by our Sponsor and Harry Sloan
in a private placement prior to DEAC&rsquo;s initial public offering and the shares of Class A common stock that will be issued
upon the automatic conversion of those shares in connection with the Closing.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;Merger Sub&rdquo; refers to DEAC Merger Sub Inc., a Delaware corporation.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;New DraftKings&rdquo; refers to DEAC Nevada following its name change to DraftKings Inc. New DraftKings will be a Nevada
corporation and the combined company following the consummation of the Business Combination.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;New DraftKings Class A common stock&rdquo; refers to the shares of Class A common stock, par value $0.0001 per share,
of New DraftKings.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;New DraftKings Class B common stock&rdquo; refers to the shares of Class B common stock, par value $0.0001 per share,
of New DraftKings.</TD></TR></TABLE>

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;Nasdaq&rdquo; refers to The Nasdaq Capital Market, the exchange in which DEAC&rsquo;s securities are listed on, or The
Nasdaq Global Market, the exchange in which New DraftKings&rsquo; securities will be listed on, as the context suggests.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;PIPE Investors&rdquo; refers to certain institutional and accredited investors who are party to the Subscription Agreements.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;PIPE Warrants&rdquo; refers to the 3.0 million redeemable warrants issued in the Private Placement, each of which is
exercisable for one share of DEAC Class A common stock at an exercise price of $11.50 per share, in accordance with its terms,
and will, upon the Closing, become warrants to acquire shares of New DraftKings Class A common stock on the same terms as DEAC&rsquo;s
currently outstanding warrants.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;Private Placement&rdquo; refers to the issuance of an aggregate of 30,471,352 shares of DEAC Class A common stock and
the PIPE Warrants pursuant to the Subscription Agreements to the PIPE Investors immediately before the Closing, at a purchase price
of&thinsp;$10.00 per share.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;private placement warrants&rdquo; refers to the 6,333,334 warrants initially issued to DEAC&rsquo;s Sponsor and Harry
Sloan in a private placement simultaneously with the closing of DEAC&rsquo;s initial public offering, each of which is exercisable
for one share of DEAC Class A common stock at an exercise price of $11.50 per share, in accordance with its terms.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;Proposed Charter&rdquo; refers to the proposed amended and restated articles of incorporation of New DraftKings, which
will be effective upon consummation of the Business Combination.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;Proxy Statement&rdquo; refers to the definitive proxy statement filed with the SEC by DEAC Nevada on April 15, 2020
in connection with the Business Combination.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;public shares&rdquo; refers to shares of DEAC Class A common stock sold as part of the units in DEAC&rsquo;s initial
public offering (whether they were purchased in that offering or thereafter in the open market), which will become shares of New
DraftKings Class A common stock in connection with the Closing.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;public stockholders&rdquo; refers to the holders of DEAC&rsquo;s public shares, including DEAC&rsquo;s initial stockholders
and management team to the extent DEAC&rsquo;s initial stockholders and/or members of DEAC&rsquo;s management team purchase public
shares, provided that each initial stockholder&rsquo;s and member of DEAC&rsquo;s management team&rsquo;s status as a &ldquo;public
stockholder&rdquo; will only exist with respect to such public shares.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;public warrants&rdquo; refers to the warrants to purchase shares of DEAC Class A common stock sold as part of the units
in DEAC&rsquo;s initial public offering, each of which is exercisable for one share of DEAC Class A common stock at an exercise
price of&thinsp;$11.50 per share, in accordance with its terms (whether they were purchased in that offering or thereafter in the
open market), and will, upon the Closing, become warrants to acquire shares of New DraftKings Class A common stock on the same
terms as DEAC&rsquo;s currently outstanding warrants.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;reincorporation&rdquo; refers to the change of DEAC&rsquo;s jurisdiction of incorporation from Delaware to Nevada in
connection with the Business Combination through the merger of DEAC with and into DEAC Nevada, with DEAC Nevada surviving the merger,
pursuant to the terms and subject to the conditions of the Reincorporation Merger Agreement.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;Reincorporation Merger Agreement&rdquo; refers to the Agreement and Plan of Merger, dated as of March 12, 2020, by and
between DEAC and DEAC Nevada.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;SBT&rdquo; or &ldquo;SBTech&rdquo; refers to SBTech (Global) Limited, a company limited by shares, originally incorporated
in Gibraltar and continued as a company under the Isle of Man Companies Act 2006, with registration number 014119V.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;SBT Sellers&rdquo; refers to each of the holders of capital stock of SBT party to the BCA.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;SBT Sellers&rsquo; Representative&rdquo; refers to Shalom Meckenzie in his capacity as representative of the SBT Sellers
under the BCA.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;SBT shares&rdquo; refers to the ordinary shares, par value $0.10 per share, of SBT.</TD></TR></TABLE>



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

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;SEC&rdquo; refers to the U.S. Securities and Exchange Commission.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;Sponsor&rdquo; refers to Eagle Equity Partners, LLC, a Delaware limited liability company controlled by Jeff Sagansky
and Eli Baker.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;Special Meeting&rdquo; refers to the special meeting of DEAC Stockholders initially convened on April 9, 2020 at 10:00
a.m., New York City Time, at the offices of Winston &amp; Strawn LLP, located at 200 Park Avenue, New York, New York 10166 and
reconvened on April 23, 2020 at 10:00 a.m. in virtual format via www.cstproxy.com/diamondeagleacquisitioncorp/sm2020 to vote on matters relating to the Business
Combination.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>&ldquo;Subscription Agreements&rdquo; refers to the subscription agreements, dated December 22, 2019, between DEAC and the
PIPE Investors, pursuant to which DEAC has agreed to issue an aggregate of 30,471,352 shares of DEAC Class A common stock plus
3.0 million PIPE Warrants to the PIPE Investors immediately before the Closing at a purchase price of&#8201;$10.00 per share. In
connection with the Closing of the Business Combination, the currently issued and outstanding shares of DEAC Class A common stock
will be exchanged, on a one-for-one basis, for shares of New DraftKings Class A common stock and all of DEAC&rsquo;s outstanding
warrants will become warrants to acquire shares of New DraftKings Class A common stock on the same terms as DEAC&rsquo;s currently
outstanding warrants.</TD></TR></TABLE>

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

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

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="b_002"></A>CAUTIONARY
NOTE REGARDING FORWARD-LOOKING STATEMENTS</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The statements contained in this prospectus
that are not purely historical are forward-looking statements. Our forward-looking statements include, but are not limited to,
statements regarding our or our management team&rsquo;s expectations, hopes, beliefs, intentions or strategies regarding the future.
The information included in this prospectus in relation to DraftKings has been provided by DraftKings and its management team,
and the information included in this prospectus in relation to SBT has been provided by SBT and its management. Forward-looking
statements include statements relating to each of DraftKings&rsquo; and SBT&rsquo;s management teams&rsquo; expectations, hopes,
beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other
characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The
words &ldquo;anticipate,&rdquo; &ldquo;believe,&rdquo; &ldquo;continue,&rdquo; &ldquo;could,&rdquo; &ldquo;estimate,&rdquo; &ldquo;expect,&rdquo;
 &ldquo;intends,&rdquo; &ldquo;may,&rdquo; &ldquo;might,&rdquo; &ldquo;plan,&rdquo; &ldquo;possible,&rdquo; &ldquo;potential,&rdquo;
 &ldquo;predict,&rdquo; &ldquo;project,&rdquo; &ldquo;should,&rdquo; &ldquo;would&rdquo; and similar expressions may identify forward-looking
statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in
this prospectus may include, for example, statements about:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>DEAC&rsquo;s ability to complete the Business Combination, or, if DEAC does not consummate the Business Combination, any other
initial business combination;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD><TD>satisfaction of conditions to the Business Combination, including the availability of at least $400 million of cash in DEAC&rsquo;s
trust account (and/or from other specified sources, if necessary), after giving effect to redemptions of public shares, if any;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD><TD>the occurrence of any event, change or other circumstances that could give rise to the termination of the BCA;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD><TD>the ability to obtain and/or maintain the listing of the shares of Class A common stock on Nasdaq following the Business Combination;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD><TD>New DraftKings&rsquo; ability to raise financing in the future;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD><TD>New DraftKings&rsquo; success in retaining or recruiting, or changes required in, officers, key employees or directors following
the Business Combination;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD><TD>DEAC&rsquo;s directors and officers potentially having conflicts of interest with our business or in approving the Business
Combination, as a result of which they would then receive expense reimbursements;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD><TD>factors relating to the business, operations and financial performance of DraftKings and SBT, including:</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD><TD>New DraftKings&rsquo; ability to effectively compete in the global entertainment and gaming industries;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD><TD>New DraftKings&rsquo; ability to successfully acquire and integrate new operations;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD><TD>New DraftKings&rsquo; ability to obtain and maintain licenses with gaming authorities;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD><TD>New DraftKings&rsquo; inability to recognize deferred tax assets and tax loss carryforwards;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD><TD>market conditions and global and economic factors beyond DraftKings&rsquo; and SBT&rsquo;s control, including the potential
adverse effects of the ongoing global coronavirus (COVID-19) pandemic;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD><TD>intense competition and competitive pressures from other companies worldwide in the industries in which the combined company
will operate;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD><TD>litigation and the ability to adequately protect New DraftKings&rsquo; intellectual property rights; and</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD><TD>other factors detailed herein under the section entitled &ldquo;<I>Risk Factors.</I>&rdquo;</TD></TR></TABLE>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">These forward-looking statements are based
on information available as of the date of this prospectus, and current expectations, forecasts and assumptions, and involve a
number of judgments, risks and uncertainties. Important factors could cause actual results to differ materially from those indicated
or implied by forward-looking statements such as those contained in documents we have filed with the U.S. Securities and Exchange
Commission. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date,
we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they
were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities
laws.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As a result of a number of known and unknown
risks and uncertainties, our actual results or performance may be materially different from those expressed or implied by these
forward-looking statements. For a discussion of the risks involved in our business and investing in our common stock, see the section
entitled &ldquo;Risk Factors.&rdquo;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Should one or more of these risks or uncertainties
materialize, or should any of the underlying assumptions prove incorrect, actual results may vary in material respects from those
expressed or implied by these forward-looking statements. You should not place undue reliance on these forward-looking statements.</P>

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

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

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

<DIV STYLE="padding-right: 5pt; padding-left: 5pt; border: Black 1pt solid">

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="b_003"></A>SUMMARY
OF THE PROSPECTUS</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>This summary highlights selected information
from this prospectus and does not contain all of the information that is important to you in making an investment decision. This
summary is qualified in its entirety by the more detailed information included in this prospectus. Before making your investment
decision with respect to our securities, you should carefully read this entire prospectus, including the information under &ldquo;Risk
Factors,&rdquo; &ldquo;DEAC&rsquo;s Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations,&rdquo;
 &ldquo;DraftKings&rsquo; Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations,&rdquo; &ldquo;SBT&rsquo;s
Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations,&rdquo; and the financial statements
included elsewhere in this prospectus.</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Unless otherwise indicated or the context
otherwise requires, references in this prospectus to &ldquo;we,&rdquo; &ldquo;our&rdquo; &ldquo;us&rdquo; and other similar terms
refer to DEAC, DEAC Nevada or New DraftKings, as the context suggests.</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Information About the Parties to the Business Combination</B></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Diamond Eagle Acquisition Corp., a Delaware
corporation, is a blank check company whose business purpose is to effect a merger, capital stock exchange, asset acquisition,
stock purchase, reorganization or similar business combination with one or more businesses. If DEAC does not consummate the Business
Combination, the shares of common stock and warrants contemplated by this prospectus will not be issued.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DEAC Nevada is a wholly-owned subsidiary
of DEAC formed for the purpose of effecting the Business Combination and the reincorporation. DEAC Nevada was incorporated under
the Nevada Revised Statutes (&ldquo;NRS&rdquo;) on December&nbsp;13, 2019. DEAC Nevada owns no material assets and does not operate
any business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Pursuant to the terms and subject to the
conditions of the Business Combination Agreement, among other things, DEAC will merge with and into DEAC Nevada with DEAC Nevada
surviving the merger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DraftKings Inc., a Delaware corporation,
is a digital sports entertainment and gaming company. DraftKings provides users with daily fantasy sports, sports betting and iGaming
opportunities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">SBTech is headquartered in the Isle of Man.
Its principal business activities involve the design and development of sports betting and casino gaming platform software for
online and retail sportsbook and casino gaming products.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-style: normal">Business Combination</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection with the Business Combination,
(i) DEAC will change its jurisdiction of incorporation to Nevada by merging with and into DEAC Nevada, with DEAC Nevada surviving
the merger and changing its name to &ldquo;DraftKings Inc.&rdquo; (referred to in this prospectus as &ldquo;New DraftKings&rdquo;),
(ii) following the reincorporation, DEAC Merger Sub Inc., a wholly-owned subsidiary of DEAC, will merge with and into DraftKings,
with DraftKings surviving the merger (the &ldquo;DK Merger&rdquo;) and (iii) immediately following the DK Merger, New DraftKings
will acquire all of the issued and outstanding share capital of SBT. Upon consummation of the foregoing transactions, DraftKings
and SBT will be wholly-owned subsidiaries of New DraftKings. In connection with the closing of the Business Combination, the currently
issued and outstanding shares of DEAC Class A common stock will be exchanged, on a one-for-one basis, for shares of New DraftKings
Class A common stock. Similarly, all of DEAC&rsquo;s outstanding warrants will become warrants to acquire shares of New DraftKings
Class A common stock on the same terms as DEAC&rsquo;s currently outstanding warrants.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In order to satisfy the minimum proceeds
condition in the BCA that DEAC has at least $400 million in cash at the Closing, DEAC entered into the Subscription Agreements
with the PIPE Investors, pursuant to which, among other things, DEAC agreed to issue and sell in private placements an aggregate
of 30,471,352 shares of DEAC Class A common stock to the PIPE Investors for $10.00 per share, plus the issuance by DEAC to the
PIPE Investors of an aggregate of 3.0 million warrants to purchase shares of DEAC Class A common stock, which warrants are identical
to DEAC&rsquo;s public warrants. The Private Placement is expected to close immediately prior to the Closing. In connection with
the Closing, pursuant to the Reincorporation Merger Agreement, all of the issued and outstanding shares of DEAC Class A common
stock, including the shares of DEAC Class A common stock issued to the PIPE Investors, will be exchanged, on a one-for-one basis,
for shares of New DraftKings Class A common stock. In addition, all of DEAC&rsquo;s outstanding warrants will become warrants
to acquire shares of New DraftKings Class A common stock on the same terms as DEAC&rsquo;s currently outstanding warrants.</P>



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

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

</DIV>

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

<DIV STYLE="padding-right: 5pt; padding-left: 5pt; border: Black 1pt solid">

<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"><B><I>The Convertible Notes</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On and after December 16, 2019, DraftKings
issued subordinated convertible promissory notes to certain investors in an aggregate principal amount of approximately $109.2
million (the &ldquo;Convertible Notes&rdquo;). Pursuant to the terms of the Convertible Notes, the outstanding principal and accrued
interest on the Convertible Notes will convert immediately prior to the reincorporation into shares of DEAC Class A common stock,
at a price per share equal to the price per share paid by the PIPE Investors in the Private Placement. The shares of DEAC Class
A common stock issued upon conversion of the Convertible Notes will be converted into shares of New DraftKings Class A common stock
upon consummation of the reincorporation and the Business Combination.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DEAC Nevada&rsquo;s principal executive
offices are located at 2121 Avenue of the Stars, Suite 2300, Los Angeles, CA 90067, and its telephone number is (310) 209-7280.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DEAC Nevada is a Nevada corporation. The
following diagrams depict DEAC Nevada&rsquo;s organizational structure currently and following the Closing, respectively.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><IMG SRC="tm2015692-1_s1img001.jpg" ALT="">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><IMG SRC="tm2015692-1_s1img002.jpg" ALT="">&nbsp;</P>

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

</DIV>

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

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

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

<DIV STYLE="padding-right: 5pt; padding-left: 5pt; border: Black 1pt solid">

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

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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; width: 37%; font-size: 10pt; text-indent: 0">Issuer</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="padding: 0; width: 62%; text-indent: 0">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">DEAC NV Merger Corp., to be renamed DraftKings Inc. upon consummation
        of the Business Combination</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Securities that may be offered and sold from time to time by
        the Selling Securityholders named herein:</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class A common stock</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">44,725,831 (including (i) 30,471,352 shares of Class A common
        stock to be issued in the Private Placement, (ii) 3,000,000 shares of Class A common stock issuable upon exercise of the PIPE Warrants
        and (iii) 11,254,479 shares of Class A common stock to be issued upon conversion of the Convertible Notes)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Warrants</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">3,000,000 PIPE Warrants</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Class A common stock issued and outstanding prior to the consummation
        of the Business Combination and any exercise of warrants</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">50,000,000<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>1</SUP></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Class A common stock to be issued and outstanding after
the consummation of the Business Combination (assuming no redemptions and excluding shares issuable upon exercise of outstanding
warrants)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>2</SUP></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">313,077,942</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">Use of proceeds</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">All of the shares of Class A common stock and warrants (including
        the shares of Class A common stock underlying such warrants) offered by the Selling Securityholders pursuant to this prospectus
        will be sold by the Selling Securityholders for their respective accounts. We will not receive any of the proceeds from these sales.
        We will receive up to an aggregate of approximately $34,500,000 from the exercise of the PIPE Warrants, assuming the exercise in
        full of all the PIPE Warrants for cash. We expect to use the net proceeds from the exercise of the PIPE Warrants for general corporate
        purposes, which may include acquisitions and other business opportunities and the repayment of indebtedness. Our management will
        have broad discretion over the use of proceeds from the exercise of the PIPE Warrants.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Market for our shares of Class A common stock and warrants</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Upon the Closing we expect our Class A shares and warrants will
        be listed on The Nasdaq Global Market. After resale, the PIPE Warrants will also trade under the same CUSIP and ticker symbol as
        the public warrants.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
</TABLE>



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

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

<!-- Field: Rule-Page --><DIV STYLE="margin-top: 0; margin-bottom: 0; width: 25%"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>1
</SUP></FONT>Represents the number of currently issued and outstanding shares of DEAC Class A common stock and DEAC Class B common
stock. In connection with the reincorporation and the Closing, (i) the currently issued and outstanding shares of DEAC Class B
common stock will convert on a one-for-one basis into shares of DEAC Class A common stock and (ii) the then currently issued and
outstanding shares of DEAC Class A common stock will be exchanged, on a one-for-one basis, for shares of New DraftKings&rsquo;
Class A common stock. As of the date of this prospectus, DEAC Nevada had one share of Class A common stock issued and outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>2</SUP></FONT>
Represents the number of shares of New DraftKings Class A common stock outstanding at Closing assuming that none of DEAC&rsquo;s
public stockholders exercise their redemption rights in connection with the Special Meeting. <I>See</I> &ldquo;Beneficial Ownership
of Securities&rdquo; for more information. Excludes 6,000,000 shares of Class A common stock held in escrow, which may be released
to the Sponsor and Harry E. Sloan (the &ldquo;DEAC Founders&rdquo;), the current equityholders of DraftKings (the &ldquo;DK Equityholders&rdquo;)
and the SBT Sellers subject to the achievement of certain stock price targets.</P>



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

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

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

</DIV>

<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-indent: 75.15pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 75.15pt">&nbsp;</P>

<DIV STYLE="padding-right: 5pt; padding-left: 5pt; border: Black 1pt solid">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 75.15pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 75.15pt"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5pt; width: 37%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Nasdaq Ticker Symbols</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD>
    <TD STYLE="padding-left: 5pt; width: 63%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&ldquo;DEAC&rdquo; and &ldquo;DEACW&rdquo; and, after the Business
        Combination, &ldquo;DKNG&rdquo; and &ldquo;DKNGW&rdquo;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5pt">Risk Factors</TD>
    <TD STYLE="padding-left: 5pt">Any investment in the securities offered hereby is speculative and involves a high degree of risk. You should carefully consider the information set forth under &ldquo;Risk Factors&rdquo; on page 11 of this prospectus.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 75.15pt">&nbsp;</P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 75.15pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 75.15pt"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 75.15pt">&nbsp;</P>

<DIV STYLE="padding-right: 5pt; padding-left: 5pt; border: Black 1pt solid">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 75.15pt">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="b_004"></A>SELECTED
HISTORICAL FINANCIAL INFORMATION OF DEAC</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DEAC&rsquo;s consolidated statement of operations
data for the period from March 27, 2019 (date of inception) to December 31, 2019 and balance sheet data as of December 31, 2019
is derived from DEAC&rsquo;s audited consolidated financial statements included elsewhere in this prospectus.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The information is only a summary and should
be read in conjunction with DEAC&rsquo;s consolidated financial statements and related notes and &ldquo;<I>DEAC&rsquo;s Management&rsquo;s
Discussion and Analysis of Financial Condition and Results of Operations</I>&rdquo; contained elsewhere herein. The historical
results included below and elsewhere in this prospectus are not indicative of the future performance of DEAC.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold; border-bottom: Black 1pt solid">Statement of Operations Data</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">For the Period<BR> from<BR> March 27, 2019<BR> (inception) to<BR> December 31, 2019</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap; font-size: 10pt; font-weight: bold">&#8203;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD><TD STYLE="white-space: nowrap; font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; font-size: 10pt; font-weight: bold; text-align: center">(in actual dollars and shares)</TD><TD STYLE="white-space: nowrap; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold">Revenue</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 84%; font-size: 10pt; text-align: left; padding-bottom: 1pt">General and administrative expenses</TD><TD STYLE="width: 2%; font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 13%; border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">1,857,305</TD><TD STYLE="width: 1%; padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; font-size: 10pt; text-align: left">Loss from operations</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(1,857,305</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Other income&#8201;-&#8201;interest on Trust Account</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">5,111,208</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Provision for income tax</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(944,494</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">Net income</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">$</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right">2,309,409</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; font-size: 10pt; text-align: left">Weighted average Class A common stock outstanding</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">40,000,000</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">Basic and diluted net income per share, Class A</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">0.09</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; font-size: 10pt; text-align: left">Weighted average Class B common stock outstanding</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">10,010,045</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">Basic and diluted net loss per share, Class B</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">(0.15</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
</TABLE>


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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold; border-bottom: Black 1pt solid">Balance Sheet Data</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31, 2019</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold">&#8203;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center">(in actual dollars)</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 84%; font-size: 10pt; text-align: left">Total assets</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 13%; font-size: 10pt; text-align: right">404,771,673</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Total liabilities</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">15,493,133</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Total shareholders&rsquo; equity and Class A common shares subject to possible redemptions</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">389,278,540</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

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

</DIV>

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

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

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<DIV STYLE="padding-right: 5pt; padding-left: 5pt; border: Black 1pt solid">

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="b_005"></A>SELECTED
HISTORICAL FINANCIAL INFORMATION OF DRAFTKINGS</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following table shows selected historical
financial information of DraftKings for the periods and as of the dates indicated.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The selected historical financial information
of DraftKings as of December 31, 2019 and 2018, and for the years ended December 31, 2019, 2018 and 2017 was derived from the audited
historical consolidated financial statements of DraftKings included elsewhere in this prospectus.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following selected historical financial
information should be read together with the consolidated financial statements and accompanying notes and &ldquo;<I>DraftKings&rsquo;
Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations</I>&rdquo; appearing elsewhere in this
prospectus. The selected historical financial information in this section is not intended to replace DraftKings&rsquo; consolidated
financial statements and the related notes. DraftKings&rsquo; historical results are not necessarily indicative of DraftKings&rsquo;
future results.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>As explained elsewhere in this prospectus,
the financial information contained in this section relates to DraftKings, prior to and without giving pro forma effect to the
impact of the Business Combination and, as a result, the results reflected in this section may not be indicative of the results
of New DraftKings going forward. See the section entitled &ldquo;Unaudited Pro Forma Condensed Combined Financial Information&rdquo;
included elsewhere in this prospectus.</I></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.25in">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold">&#8203;&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">For the year ended December 31,</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold; border-bottom: Black 1pt solid">Statement of Operations Data</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2019</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2018</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2017</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold">&#8203;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="font-size: 10pt; font-weight: bold; text-align: center">(in thousands)</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 61%; font-size: 10pt; font-weight: bold">Revenue</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">323,410</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">226,277</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">191,844</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Total costs and expenses</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">469,955</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">303,058</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">265,042</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; font-size: 10pt; text-align: left">Loss from operations</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(146,545</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(76,781</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(73,198</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Other income (expense):</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&#8203;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&#8203;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&#8203;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; font-size: 10pt; text-align: left">Interest income (expense), net</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,348</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">666</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(1,541</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; font-size: 10pt; text-align: left">Gain on initial equity method investment</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">3,000</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; font-size: 10pt; text-align: left">Other expense, net</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(607</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0in; font-size: 10pt; text-align: left">Income Tax Provision</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">58</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">105</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">210</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0in; font-size: 10pt; text-align: left; padding-bottom: 1pt">Loss from equity method investment</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">479</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 2.5pt">Net Loss</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: right">(142,734</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: right">(76,220</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: right">(75,556</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; font-weight: bold; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">Statement of Cash Flows Data</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Net cash provided by (used in) operating activities</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(78,880</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(45,579</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(88,437</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Net cash provided by (used in) investing activities</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(42,271</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(26,672</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(7,715</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Net cash provided by (used in) financing activities</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">79,776</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">140,892</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">118,531</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>


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

</DIV>

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

<DIV STYLE="padding-right: 5pt; padding-left: 5pt; border: Black 1pt solid">

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.25in">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">As of December 31,</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold; border-bottom: Black 1pt solid">Balance Sheet Data</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2019</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2018</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold">&#8203;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-size: 10pt; font-weight: bold; text-align: center">(in thousands)</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 74%; font-size: 10pt; text-align: left">Total assets</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">330,725</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">299,393</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Total liabilities</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">380,305</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">223,343</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Total redeemable convertible preferred stock and stockholders&rsquo; deficit</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(49,580</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">76,050</TD><TD STYLE="font-size: 10pt; text-align: left">&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"><B>Key Performance Indicators </B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DraftKings&rsquo; reports the following
financial and operational key performance indicators, which are used by management to assess its performance:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Adjusted EBITDA</I></B>. DraftKings&rsquo;
defines and calculates Adjusted EBITDA as net loss before the impact of interest income or expense, income tax expense and depreciation
and amortization, as further adjusted for the following items: stock-based compensation, transaction-related costs, litigation,
settlement and related costs and certain other non-recurring, non-cash and non-core items. See &ldquo;<I>DraftKings&rsquo; Management&rsquo;s
Discussion and Analysis of Financial Condition and Results of Operations&#8201;-&#8201;Non-GAAP Information</I>&rdquo; for important
information about the limitations of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net loss, the most directly comparable
financial measure calculated in accordance with U.S. GAAP.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Monthly Unique Payers (&ldquo;MUPs&rdquo;)</I></B>.
We define MUPs as the number of unique paid users (&ldquo;payers&rdquo;) per month who had a paid engagement (<I>i.e.</I>, participated
in a real-money DFS contest, sports betting or casino game) across one or more of our product offerings via our platform. For reported
periods longer than one month, we average the MUPs for the months in the reported period.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">A &ldquo;unique paid user&rdquo; or &ldquo;unique
payer&rdquo; is any person who had one or more paid engagements via our platform during the period (<I>i.e.</I>, a user that participates
in a paid engagement across each of our product offerings counts as a single unique payer for the period). This measure does not
include users who have not played with funds deposited in their wallet on our platform. We exclude users who have made a deposit
but have not yet had a paid engagement. Unique payers or unique paid users include users who have participated in a paid engagement
with promotional incentives, which are fungible with other funds deposited in their wallets on our platform; the number of these
users included in MUPs has not been material to date and a substantial majority of such users are repeat users who have had paid
engagements both prior to and after receiving incentives.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Average Revenue per MUP (ARPMUP)</I></B>.
We define and calculate ARPMUP as the average monthly revenue for a reporting period, divided by MUPs (<I>i.e.</I>, the average
number of unique payers) for the same period.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following table presents our key performance
indicators for the periods indicated:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.25in">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;&#8203;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Year ended December 31,</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold">&#8203;&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2019</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2018</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2017</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 61%; font-size: 10pt; text-align: left">Adjusted EBITDA <I>(dollars in thousands)</I><FONT STYLE="font-size: 10pt"><SUP>(1)</SUP></FONT></TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">(98,640</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">)</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">(58,850</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">)</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">(48,884</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Monthly Unique Payers (MUPs) <I>(in thousands)</I><FONT STYLE="font-size: 10pt"><SUP>(2)</SUP></FONT></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">684</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">601</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">574</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Average Revenue per MUP (ARPMUP) <I>(in whole dollars)</I><FONT STYLE="font-size: 10pt"><SUP>(2)</SUP></FONT></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">39</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">31</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">28</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(1)</TD><TD>Adjusted EBITDA is a non-GAAP financial measure. See <I>&ldquo;DraftKings&rsquo; Management&rsquo;s Discussion and Analysis
of Financial Condition and Results of Operations&#8201;-&#8201;Non-GAAP Information&rdquo;</I> below for our definition of and
additional information about Adjusted EBITDA and reconciliation to net loss, the most directly comparable U.S. GAAP financial measure.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(2)</TD><TD>For important information about how we use our MUPs and ARPMUP, see <I>&ldquo;DraftKings&rsquo; Management&rsquo;s Discussion
and Analysis of Financial Condition and Results of Operations&#8201;-&#8201;Our Business Model&#8201;-&#8201;Growing Our User Base.&rdquo;</I>
Our business is seasonal and our results of operations and key performance indicators may not be comparable between fiscal quarters
or between comparative year-over-year periods. See <I>&ldquo;DraftKings&rsquo; Management&rsquo;s Discussion and Analysis of Financial
Condition and Results of Operations&#8201;-&#8201;Quarterly Performance Trend and Seasonality.&rdquo;</I></TD></TR></TABLE>

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

</DIV>

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

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

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

<DIV STYLE="padding-right: 5pt; padding-left: 5pt; border: Black 1pt solid">

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="b_006"></A>SELECTED
HISTORICAL FINANCIAL INFORMATION OF SBT</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following table shows selected historical
financial information of SBTech for the periods and as of the dates indicated.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The selected historical financial information
of SBTech as of December 31, 2019 and 2018, and for the years ended December 31, 2019, 2018 and 2017 was derived from the audited
historical consolidated financial statements of SBTech included elsewhere in this prospectus.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following selected historical financial
information should be read together with the consolidated financial statements and accompanying notes and &ldquo;<I>SBT&rsquo;s
Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations</I>&rdquo; appearing elsewhere in this
prospectus. The selected historical financial information in this section is not intended to replace SBTech&rsquo;s consolidated
financial statements and the related notes. SBTech&rsquo;s historical results are not necessarily indicative of SBTech&rsquo;s
future results.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>As explained elsewhere in this prospectus,
the financial information contained in this section relates to SBTech, as prepared in accordance with International Financial Reporting
Standards and presented in Euros, prior to and without giving pro forma effect to the impact of the Business Combination and, as
a result, the results reflected in this section may not be indicative of the results of New DraftKings going forward. See the section
entitled &ldquo;Unaudited Pro Forma Condensed Combined Financial Information&rdquo; included elsewhere in this prospectus.</I></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold">&#8203;&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">For the year ended December 31,</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold; border-bottom: Black 1pt solid">Statement of Operations Data</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2019</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2018</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2017</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold">&#8203;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="font-size: 10pt; font-weight: bold; text-align: center">(in thousands)</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 61%; font-size: 10pt; font-weight: bold">Revenue</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&euro;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">96,857</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&euro;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">94,147</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&euro;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">66,087</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Total costs and expenses</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">90,820</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">66,560</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">49,393</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; font-size: 10pt; text-align: left">Operating income</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&euro;</TD><TD STYLE="font-size: 10pt; text-align: right">6,037</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&euro;</TD><TD STYLE="font-size: 10pt; text-align: right">27,587</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&euro;</TD><TD STYLE="font-size: 10pt; text-align: right">16,694</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Other income:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&#8203;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&#8203;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&#8203;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; font-size: 10pt; text-align: left">Financial income</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">23</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">97</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">37</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; font-size: 10pt; text-align: left">Financial expenses</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">846</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">340</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">177</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; font-size: 10pt; text-align: left; padding-bottom: 1pt">Income tax expense</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">638</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">565</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">264</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 2.5pt"><B>Net profit</B></TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"><B>&euro;</B></TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><B>4,576</B></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"><B>&euro;</B></TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><B>26,779</B></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left"><B>&euro;</B></TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: right"><B>16,290</B></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; font-weight: bold; text-align: left"><B>&nbsp;</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">Statement of Cash Flows Data</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Net cash provided by (used in) operating activities</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&euro;</TD><TD STYLE="font-size: 10pt; text-align: right">19,525</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&euro;</TD><TD STYLE="font-size: 10pt; text-align: right">30,949</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&euro;</TD><TD STYLE="font-size: 10pt; text-align: right">18,260</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Net cash provided by (used in) investing activities</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(18,399</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(17,384</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(14,307</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Net cash provided by (used in) financing activities</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(13,537</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(1,184</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">190</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>


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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;<FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">As of December 31,</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold; border-bottom: Black 1pt solid">Balance Sheet Data</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2019</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2018</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold">&#8203;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-size: 10pt; font-weight: bold; text-align: center">(in thousands)</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 74%; font-size: 10pt; text-align: left">Total assets</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&euro;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">98,853</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&euro;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">72,656</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Total liabilities</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">45,976</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">14,207</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Total equity</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">52,877</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">58,449</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>


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<DIV STYLE="padding-right: 5pt; padding-left: 5pt; border: Black 1pt solid">

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="b_007"></A>SUMMARY
UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following summary unaudited pro forma
condensed combined financial data (the &ldquo;summary pro forma data&rdquo;) gives effect to the Business Combination contemplated
by the Business Combination Agreement described in the section entitled &ldquo;<I>Unaudited Pro Forma Condensed Combined Financial
Information.</I>&rdquo; The merger between DraftKings and Merger Sub will be accounted for as a reverse recapitalization, with
no goodwill or other intangible assets recorded, in accordance with U.S. GAAP. Under this method of accounting, DEAC will be treated
as the &ldquo;acquired&rdquo; company for financial reporting purposes. Accordingly, for accounting purposes, the Reverse Recapitalization
will be treated as the equivalent of DraftKings issuing stock for the net assets of DEAC, accompanied by a recapitalization. The
net assets of DEAC will be stated at historical cost, with no goodwill or other intangible assets recorded. Operations prior to
the Reverse Recapitalization will be those of DraftKings. The SBTech Acquisition will be treated as a business combination under
Financial Accounting Standards Board&rsquo;s ASC 805, and will be accounted for using the acquisition method of accounting. DraftKings
will record the fair value of assets acquired and liabilities assumed from SBTech. The summary unaudited pro forma condensed combined
balance sheet data as of December 31, 2019 gives pro forma effect to the Business Combination as if it had occurred on December
31, 2019. The summary unaudited pro forma condensed combined statement of operations data for the year ended December 31, 2019
give pro forma effect to the Business Combination as if it had occurred on January 1, 2019.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The summary pro forma data have been derived
from, and should be read in conjunction with, the unaudited pro forma condensed combined financial information of the combined
company appearing elsewhere in this prospectus and the accompanying notes. The unaudited pro forma condensed combined financial
information is based upon, and should be read in conjunction with, the historical consolidated financial statements of DEAC, DraftKings
and SBTech and related notes included in this prospectus. The summary pro forma data have been presented for informational purposes
only and are not necessarily indicative of what the combined company&rsquo;s financial position or results of operations actually
would have been had the Business Combination been completed as of the dates indicated. In addition, the summary pro forma data
do not purport to project the future financial position or operating results of the combined company.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following table presents summary pro
forma data after giving effect to the Business Combination, assuming two redemption scenarios as follows:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><B>Assuming No Redemptions</B>: This presentation assumes that no public stockholders of DEAC exercise redemption rights with
respect to their public shares for a pro rata share of the funds in the trust account.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><B>Assuming Maximum Redemptions</B>: This presentation assumes that stockholders holding 30,564,789 DEAC public shares will
exercise their redemption rights for their pro rata share (approximately $10.10 per share) of the funds in DEAC&rsquo;s trust account.
This scenario gives effect to DEAC&rsquo;s public share redemptions of 30,564,789 shares for aggregate redemption payments of $308.7
million. The Business Combination Agreement includes as a condition to closing the Business Combination that, at the Closing, DEAC
will have a minimum of $400.0 million in cash comprising (i) the cash held in the trust account after giving effect to DEAC share
redemptions and (ii) proceeds from the Private Placement, provided that DraftKings and SBTech are entitled to waive that condition.
After giving effect to the proceeds from the Private Placement, approximately $95.3 million would be needed from the trust account
in order to meet the Minimum Proceeds Condition of $400.0 million.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font-size: 10pt"><FONT STYLE="font-size: 10pt">&nbsp;<B>&#8203;</B></FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Pro Forma<BR> Combined<BR> (Assuming No<BR> Redemptions)</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Pro Forma<BR> Combined<BR> (Assuming<BR> Maximum<BR> Redemptions)</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font-size: 10pt; font-weight: bold">&#8203;&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-size: 10pt; font-weight: bold; text-align: center">(in thousands, except share and per<BR>
 share data)</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font-size: 10pt; font-weight: bold">Summary Unaudited Pro Forma Condensed Combined Statement of Operations Data
    Year Ended December 31, 2019</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: right">&#8203;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: right">&#8203;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; width: 74%; font-size: 10pt">Revenue</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">431,834</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">431,834</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font-size: 10pt; text-align: left">Net loss per share&#8201;-&#8201;basic and diluted</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">(0.42</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">(0.46</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font-size: 10pt; text-align: left">Weighted-average Class A shares outstanding&#8201;-&#8201;basic and diluted</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">336,631,006</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">306,066,216</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font-size: 10pt; font-weight: bold; text-align: left">Summary Unaudited Pro Forma Condensed Combined Balance Sheet
Data as of December 31, 2019</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font-size: 10pt; text-align: left">Total assets</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">1,622,021</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">1,323,346</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font-size: 10pt; text-align: left">Total liabilities</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">363,770</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">363,770</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font-size: 10pt; text-align: left">Total equity</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,258,251</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">959,576</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in">&nbsp;</P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in">&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>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<DIV STYLE="padding-right: 5pt; padding-left: 5pt; border: Black 1pt solid">

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="b_008"></A>COMPARATIVE
HISTORICAL AND UNAUDITED PRO FORMA PER SHARE FINANCIAL INFORMATION</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following table sets forth historical
comparative share information for DEAC, DraftKings and SBT and unaudited pro forma combined share information after giving effect
to the Business Combination, assuming two redemption scenarios as follows:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><B>Assuming No Redemptions</B>: This presentation assumes that no public stockholders of DEAC exercise redemption rights with
respect to their public shares for a pro rata share of the funds in the trust account.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><B>Assuming Maximum Redemptions</B>: This presentation assumes that stockholders holding 30,564,789 DEAC public shares will
exercise their redemption rights for their pro rata share (approximately $10.10 per share) of the funds in DEAC&rsquo;s trust account.
This scenario gives effect to DEAC&rsquo;s public share redemptions of 30,564,789 shares for aggregate redemption payments of $308.7
million. The Business Combination Agreement includes as a condition to closing the Business Combination that, at the Closing, DEAC
will have a minimum of $400.0 million in cash comprising (i) the cash held in the trust account after giving effect to DEAC share
redemptions and (ii) proceeds from the Private Placement, provided that DraftKings and SBT are entitled to waive that condition.
After giving effect to the proceeds from the Private Placement, approximately $95.3 million would be needed from the trust account
in order to meet the Minimum Proceeds Condition of $400.0 million.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The pro forma book value information reflects
the Business Combination as if it had occurred on December 31, 2019. The weighted average shares outstanding and net earnings per
share information reflect the Business Combination as if it had occurred on January 1, 2019.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This information is only a summary and should
be read together with the selected historical financial information summary included elsewhere in this prospectus, and the historical
financial statements of DEAC, DraftKings, and SBT and related notes. The unaudited pro forma combined per share information of
DEAC, DraftKings, and SBT is derived from, and should be read in conjunction with, the unaudited pro forma condensed combined financial
statements and related notes included elsewhere in this prospectus.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The unaudited pro forma combined earnings
per share information below does not purport to represent the earnings per share which would have occurred had the companies been
combined during the periods presented, nor earnings per share for any future date or period.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font-size: 10pt; font-weight: bold">&#8203;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Combined Pro Forma</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font-size: 10pt; font-weight: bold">&#8203;&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Diamond<BR> Eagle<BR> (Historical)</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Pro Forma<BR> Combined<BR> (Assuming No<BR> Redemption)</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Pro Forma<BR> Combined<BR> (Assuming<BR> Maximum<BR> Redemption)</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font-size: 10pt; font-weight: bold">As of and for the Year ended December 31, 2019</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; width: 61%; font-size: 10pt">Book Value per share<FONT STYLE="font-size: 10pt"><SUP>(1)</SUP></FONT></TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">0.10</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">3.74</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">3.14</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font-size: 10pt; text-align: left">Weighted average shares outstanding of Class A common stock&#8201;- basic and diluted</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">40,000,000</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">336,631,006</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">306,066,216</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font-size: 10pt; text-align: left">Weighted average shares outstanding of Class B common stock&#8201;- basic and diluted</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">10,010,045</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&#8203;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&#8203;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font-size: 10pt; text-align: left">Net income per share of Class A common stock&#8201;- basic and diluted</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">0.09</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&#8203;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&#8203;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font-size: 10pt; text-align: left">Net loss per share of Class B common stock&#8201;- basic and diluted</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">(0.15</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&#8203;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&#8203;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font-size: 10pt; text-align: left">Net loss per share of Class A common stock&#8201;- basic and diluted</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&#8203;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">(0.42</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">(0.46</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Book
value per share = (Total equity excluding preferred shares)/shares outstanding.</P>

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

</DIV>

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

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

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="b_009"></A>RISK FACTORS</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>An investment in our securities involves
a high degree of risk. You should carefully consider the risks described below before making an investment decision. Our business,
prospects, financial condition, or operating results could be harmed by any of these risks, as well as other risks not currently
known to us or that we currently consider immaterial. The trading price of our securities could decline due to any of these risks,
and, as a result, you may lose all or part of your investment.</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Risk Factors Relating to the Business and Industry of New
DraftKings</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Competition within the broader entertainment industry
is intense and our existing and potential users may be attracted to competing forms of entertainment such as television, movies
and sporting events, as well as other entertainment and gaming options on the Internet. If our offerings do not continue to be
popular, our business could be harmed.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">New DraftKings will operate in the
global entertainment and gaming industries within the broader entertainment industry with its business-to-consumer offerings
such as DFS, Sportsbook and iGaming, and its business-to-business offerings through the SBT platform. Our users will face a
vast array of entertainment choices. Other forms of entertainment, such as television, movies, sporting events and in-person
casinos, are more well established and may be perceived by our users to offer greater variety, affordability, interactivity
and enjoyment. We will compete with these other forms of entertainment for the discretionary time and income of our users. If
we are unable to sustain sufficient interest in our recently launched sports betting and iGaming platforms in comparison to
other forms of entertainment, including new forms of entertainment, our business model may not continue to be viable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The specific industries in which New DraftKings
will operate are characterized by dynamic customer demand and technological advances, and there is intense competition among online
gaming and entertainment providers. A number of established, well-financed companies producing online gaming and/or interactive
entertainment products and services compete with our offerings, and other well-capitalized companies may introduce competitive
services. Such competitors may spend more money and time on developing and testing products and services, undertake more extensive
marketing campaigns, adopt more aggressive pricing or promotional policies or otherwise develop more commercially successful products
or services than ours, which could negatively impact our business. Our competitors may also develop products, features, or services
that are similar to ours or that achieve greater market acceptance. Such competitors may also undertake more far-reaching and successful
product development efforts or marketing campaigns, or may adopt more aggressive pricing policies. Furthermore, new competitors,
whether licensed or not, may enter the iGaming industry. There has also been considerable consolidation among competitors in the
entertainment and gaming industries and such consolidation and future consolidation could result in the formation of larger competitors
with increased financial resources and altered cost structures, which may enable them to offer more competitive products, gain
a larger market share, expand offerings and broaden their geographic scope of operations. If we are not able to maintain or improve
our market share, or if our offerings do not continue to be popular, our business could suffer.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Economic downturns and political and market conditions
beyond our control could adversely affect our business, financial condition and results of operations.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our financial performance will be subject
to global and U.S. economic conditions and their impact on levels of spending by users and advertisers. Economic recessions have
had, and may continue to have, far reaching adverse consequences across many industries, including the global entertainment and
gaming industries, which may adversely affect our business and financial condition. In the past decade, global and U.S. economies
have experienced tepid growth following the financial crisis in 2008&#8201;&ndash;&#8201;2009 and there appears to be an increasing
risk of a recession due to international trade and monetary policy and other changes. If the national and international economic
recovery slows or stalls, these economies experience another recession or any of the relevant regional or local economies suffers
a downturn, we may experience a material adverse effect on our business, financial condition, results of operations or prospects.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition, changes in general market,
economic and political conditions in domestic and foreign economies or financial markets, including fluctuation in stock markets
resulting from, among other things, trends in the economy as a whole may reduce users&rsquo; disposable income and advertisers&rsquo;
budgets. Any one of these changes could have a material adverse effect on our business, financial condition, results of operations
or prospects.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Reductions in discretionary consumer spending could have
an adverse effect on our business, financial condition, results of operations and prospects.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our business will be particularly sensitive
to reductions from time to time in discretionary consumer spending. Demand for entertainment and leisure activities, including
gaming, can be affected by changes in the economy and consumer tastes, both of which are difficult to predict and beyond our control.
Unfavorable changes in general economic conditions, including recessions, economic slowdowns, sustained high levels of unemployment,
and rising prices or the perception by consumers of weak or weakening economic conditions, may reduce our users&rsquo; disposable
income or result in fewer individuals engaging in entertainment and leisure activities, such as daily fantasy sports, sports betting
and iGaming. As a result, we cannot ensure that demand for our offerings will remain constant. Adverse developments affecting economies
throughout the world, including a general tightening of availability of credit, decreased liquidity in certain financial markets,
increased interest rates, foreign exchange fluctuations, increased energy costs, acts of war or terrorism, transportation disruptions,
natural disasters, declining consumer confidence, sustained high levels of unemployment or significant declines in stock markets,
as well as concerns regarding pandemics, epidemics and the spread of contagious diseases, could lead to a further reduction in
discretionary spending on leisure activities, such as daily fantasy sports and gaming.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">For example, the recent outbreak of the
novel coronavirus (&ldquo;COVID-19&rdquo;), a virus causing potentially deadly respiratory tract infections originating in China,
has negatively affected economic conditions regionally as well as globally and has caused a reduction in consumer spending. Efforts
to contain the effect of the virus have included travel restrictions and restrictions on public gatherings. Many businesses have
eliminated non-essential travel and canceled in-person events to reduce instances of employees and others being exposed to large
public gatherings, and governments across the United States have restricted business activities and strongly encouraged, instituted
orders or otherwise restricted individuals from leaving their home. These efforts have intensified significantly in recent weeks
and are likely to expand further. To date, sports seasons and sporting events in multiple countries, including in the United States,
have been canceled or postponed and large public gatherings have been banned. These changes have reduced customers&rsquo; use of,
and spending on, our product offerings, and have caused us to issue refunds for canceled events and retail casinos where we have
a branded Sportsbook have closed. These changes have significantly impacted our business, and may materially impact our financial
condition and results of operations depending on the length of time that these disruptions exist and whether the sports seasons
and sporting events will ultimately be suspended, postponed, or canceled. Relatedly, if a large number of our employees and/or
a subset of our key employees and executives are impacted by COVID-19, DraftKings&rsquo; ability to continue to operate effectively
may be negatively impacted. The ultimate severity of the coronavirus outbreak is uncertain at this time and therefore we cannot
predict the full impact it may have on our end markets and our operations; however, the effect on our results could be material
and adverse. Any significant or prolonged decrease in consumer spending on entertainment or leisure activities could adversely
affect the demand for our offerings, reducing our cash flows and revenues, and thereby materially harming our business, financial
condition, results of operations and prospects.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We may experience fluctuations in our operating results,
which make our future results difficult to predict and could cause our operating results to fall below expectations.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DraftKings&rsquo; quarterly financial results
have fluctuated in the past and we expect New DraftKings financial results to fluctuate in the future. These fluctuations may be
due to a variety of factors, some of which are outside of our control and may not fully reflect the underlying performance of our
business.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">New DraftKings&rsquo; financial
results in any given quarter may be influenced by numerous factors, many of which we are unable to predict or are outside of
our control, including the impact of seasonality and our betting results, and the other risks and uncertainties set forth
herein. In particular our betting operations will have significant exposure to, and may be materially impacted by, sporting
events and seasons, which can result in short-term volatility in betting win margins and user engagement, thus impacting
revenues. While DraftKings has been able to forecast revenues from its daily fantasy sports business with greater precision
than for new offerings, we cannot provide assurances that consumers will engage with our DFS platform on a consistent basis.
Consumer engagement in our daily fantasy sports, sports betting and iGaming services may decline or fluctuate as a result of
a number of factors, including the popularity of the underlying sports, the user&rsquo;s level of satisfaction with our
platforms, our ability to improve and innovate, our ability to adapt our platform, outages and disruptions of online
services, the services offered by our competitors, our marketing and advertising efforts or declines in consumer activity
generally as a result of economic downturns, among others. Any decline or fluctuation in the recurring portion of our
business may have a negative impact on our business, financial condition, results of operations or prospects.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In our iGaming product offering, operator
losses are limited per stake to a maximum payout. When looking at bets across a period of time, however, these losses can potentially
be significant. Our quarterly financial results may also fluctuate based on whether we pay out any jackpots to our iGaming users
during the relevant quarter. As part of our iGaming offering, we offer progressive jackpot games. Each time a progressive jackpot
game is played, a portion of the amount wagered by the user is contributed to the jackpot for that specific game or group of games.
Once a jackpot is won, the progressive jackpot is reset with a predetermined base amount. While we maintain a provision for these
progressive jackpots, the cost of the progressive jackpot payout would be a cash outflow for the business in the period in which
it is won with a potentially significant adverse effect on our financial condition and cash flows. Because winning is underpinned
by a random mechanism, we cannot predict with absolute certainty when a jackpot will be won. In addition, DraftKings does not insure
against random outcomes or jackpot wins.</P>

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

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

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<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"><B><I>Our projections will be subject to significant risks,
assumptions, estimates and uncertainties, including assumptions regarding future legislation and changes in regulations, both inside
and outside of the United States. As a result, our projected revenues, market share, expenses and profitability may differ materially
from our expectations.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">New DraftKings will operate in rapidly changing
and competitive industries and our projections will be subject to the risks and assumptions made by management with respect to
our industries. Operating results are difficult to forecast because they generally depend on our assessment of the timing of adoption
of future legislation and regulations by different states, which are uncertain. Furthermore, if we invest in the development of
new products or distribution channels that do not achieve significant commercial success, whether because of competition or otherwise,
we may not recover the often substantial &ldquo;up front&rdquo; costs of developing and marketing those products and distribution
channels, or recover the opportunity cost of diverting management and financial resources away from other products or distribution
channels.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Additionally, as described above under &ldquo;&mdash;&nbsp;<I>Reductions
in discretionary consumer spending could have an adverse effect on our business</I>,&nbsp;<I>financial condition, results of operations
and prospects,</I>&rdquo; our business may be affected by reductions in consumer spending from time to time as a result of a number
of factors which may be difficult to predict. This may result in decreased revenue levels, and we may be unable to adopt measures
in a timely manner to compensate for any unexpected shortfall in income. This inability could cause our operating results in a
given quarter to be higher or lower than expected. If actual results differ from our estimates, analysts may negatively react and
our stock price could be materially impacted.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We will have a new business model, which will make it
difficult for us to forecast our financial results, create uncertainty as to how investors will evaluate our prospects, and increase
the risk that we will not be successful.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DraftKings was incorporated in 2011
and began operating the DFS product offering in 2012. DraftKings expanded from its DFS product offering to include Sportsbook
and iGaming product offerings in 2018. New DraftKings will have a new business model, and new offerings, including a sports
betting technology platform. Accordingly, it will be difficult for us to forecast our future financial results, and it will
be uncertain how our new business model will affect investors&rsquo; perceptions and expectations, which can be idiosyncratic
and vary widely, with respect to our prospects. Additionally, as a result of the Business Combination, we will be the only
vertically integrated U.S.-based sports betting and online gaming company and it may be difficult for investors to evaluate
our business due to the lack of similarly situated competitors. Furthermore, our new business model may not be successful.
Consequently, you should not rely upon DraftKings&rsquo; past quarterly financial results as indicators of our future
financial performance, and our financial results and stock price may be negatively affected.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>DraftKings has a history of losses and we may continue
to incur losses in the future.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Since DraftKings was incorporated in 2011,
it has experienced net losses and negative cash flows from operations. DraftKings experienced net losses of $143 million, $76&nbsp;million
and $76&nbsp;million in the&nbsp;years ended December&nbsp;31, 2019, 2018 and 2017, respectively. We may continue to experience
losses in the future, and we cannot assure you that we will achieve profitability. We may continue to incur significant losses
in future periods. We expect our operating expenses to increase in the future as we expand our operations. Furthermore, as a public
company, we will incur additional legal, accounting and other expenses that DraftKings did not incur as a private company. If our
revenue does not grow at a greater rate than our expenses, we will not be able to achieve or maintain profitability. We may incur
significant losses in the future for many reasons, including the other risks and uncertainties described in this &#8203;prospectus.
Additionally, we may encounter unforeseen expenses, operating delays, or other unknown factors that may result in losses in future
periods. If our expenses exceed our revenue, our business may be negatively impacted and we may never achieve or maintain profitability.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our results of operations may fluctuate due to seasonality
and other factors and, therefore, our periodic operating results will not be guarantees of future performance.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our DFS and Sportsbook operations may fluctuate
due to seasonal trends and other factors. We believe that significant sporting events such as the playoffs and championship games,
tend to impact, among other things, revenues from operations, key metrics and customer activity, and as such, DraftKings&rsquo;
historical revenues generally have been highest in the fourth quarter. A majority of DraftKings&rsquo; current sports betting and
DFS revenue is and will continue to be generated from bets placed on, or contests relating to, the National Football League and
the National Basketball Association, each of which have their own respective off-seasons, which may cause decreases in our future
revenues during such periods. New DraftKings&rsquo; revenues may also be affected by the scheduling of major sporting events that
do not occur annually, such as the World Cup, or the cancellation of sporting events and races. In addition, certain individuals
or teams advancing or failing to advance and their scores and other results within specific tournaments, games or events may impact
New DraftKings&rsquo; financial performance.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The success, including win or hold rates, of existing
or future sports betting and iGaming products depends on a variety of factors and is not completely controlled by us.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The sports betting and iGaming industries
are characterized by an element of chance. Accordingly, DraftKings employs theoretical win rates to estimate what a certain type
of sports bet or iGame, on average, will win or lose in the long run. Net win is impacted by variations in the hold&nbsp;percentage
(the ratio of net win to total amount wagered), or actual outcome, on our iGames and sports betting we offer to our users. DraftKings
uses the hold&nbsp;percentage as an indicator of an iGame&rsquo;s or sports bet&rsquo;s performance against its expected outcome.
Although each iGame or sports bet generally performs within a defined statistical range of outcomes, actual outcomes may vary for
any given period. In addition to the element of chance, win rates (hold&nbsp;percentages) may also (depending on the game involved)
be affected by the spread of limits and factors that are beyond our control, such as a user&rsquo;s skill, experience and behavior,
the mix of games played, the financial resources of users, the volume of bets placed and the amount of time spent gambling. As
a result of the variability in these factors, the actual win rates on our online iGames and sports bets may differ from the theoretical
win rates we have estimated and could result in the winnings of our iGame&rsquo;s or sports bet&rsquo;s users exceeding those anticipated.
The variability of win rates (hold rates) also have the potential to negatively impact our financial condition, results of operations,
and cash flows.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our success also depends in part on
our ability to anticipate and satisfy user preferences in a timely manner. As we will operate in a dynamic environment
characterized by rapidly changing industry and legal standards, our products will be subject to changing consumer preferences
that cannot be predicted with certainty. We will need to continually introduce new offerings and identify future product
offerings that complement our existing platforms, respond to our users&rsquo; needs and improve and enhance our existing
platforms to maintain or increase our user engagement and growth of our business. We may not be able to compete effectively
unless our product selection keeps up with trends in the digital sports entertainment and gaming industries in which we
compete, or trends in new gaming products.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We will rely on information technology and other systems
and platforms, and any failures, errors, defects or disruptions in our systems or platforms could diminish our brand and reputation,
subject us to liability, disrupt our business, affect our ability to scale our technical infrastructure and adversely affect our
operating results and growth prospects. Our games and other software applications and systems, and the third-party platforms upon
which they are made available could contain undetected errors.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our technology infrastructure will be critical
to the performance of our platform and offerings and to user satisfaction. We devote significant resources to network and data
security to protect our systems and data. However, our systems may not be adequately designed with the necessary reliability and
redundancy to avoid performance delays or outages that could be harmful to our business. We cannot assure you that the measures
we take to prevent or hinder cyber-attacks and protect our systems, data and user information and to prevent outages, data or information
loss, fraud and to prevent or detect security breaches, including a disaster recovery strategy for server and equipment failure
and back-office systems and the use of third parties for certain cybersecurity services, will provide absolute security. DraftKings
and SBT have experienced, and we may in the future experience, website disruptions, outages and other performance problems due
to a variety of factors, including infrastructure changes, human or software errors and capacity constraints. Such disruptions
have not had a material impact on either company, individually or in the aggregate; however, future disruptions from unauthorized
access to, fraudulent manipulation of, or tampering with our computer systems and technological infrastructure, or those of third
parties, could result in a wide range of negative outcomes, each of which could materially adversely affect our business, financial
condition, results of operations and prospects.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Additionally, our products may contain errors,
bugs, flaws or corrupted data, and these defects may only become apparent after their launch. If a particular product offering
is unavailable when users attempt to access it or navigation through our platforms is slower than they expect, users may be unable
to place their bets or set their line-ups in time and may be less likely to return to our platforms as often, if at all. Furthermore,
programming errors, defects and data corruption could disrupt our operations, adversely affect the experience of our users, harm
our reputation, cause our users to stop utilizing our platforms, divert our resources and delay market acceptance of our offerings,
any of which could result in legal liability to us or harm our business, financial condition, results of operations and prospects.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If our user base and engagement continue
to grow, and the amount and types of offerings continue to grow and evolve, we will need an increasing amount of technical infrastructure,
including network capacity and computing power, to continue to satisfy our users&rsquo; needs. Such infrastructure expansion may
be complex, and unanticipated delays in completing these projects or availability of components may lead to increased project costs,
operational inefficiencies, or interruptions in the delivery or degradation of the quality of our offerings. In addition, there
may be issues related to this infrastructure that are not identified during the testing phases of design and implementation, which
may only become evident after we have started to fully use the underlying equipment or software, that could further degrade the
user experience or increase our costs. As such, New DraftKings could fail to continue to effectively scale and grow our technical
infrastructure to accommodate increased demands. In addition, our business may be subject to interruptions, delays or failures
resulting from adverse weather conditions, other natural disasters, power loss, terrorism, cyber-attacks, public health emergencies
(such as the coronavirus) or other catastrophic events.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We believe that if our users have a negative
experience with our offerings, or if our brand or reputation is negatively affected, users may be less inclined to continue or
resume utilizing our products or recommend our platform to other potential users. As such, a failure or significant interruption
in our service would harm our reputation, business and operating results.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Despite our security measures, our information
technology and infrastructure may be vulnerable to attacks by hackers or breached due to employee error, malfeasance or other
disruptions. Any such breach could compromise our networks and the information stored there could be accessed, publicly
disclosed, lost or stolen. Any such access, disclosure or other loss of information could result in legal claims or
proceedings, liability under laws that protect the privacy of personal information, and regulatory penalties, disruption of
our operations and the services we provide to users, damage to our reputation, and a loss of confidence in our products and
services, which could adversely affect our business.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The secure maintenance and transmission
of user information is a critical element of our operations. Our information technology and other systems that maintain and transmit
user information, or those of service providers, business partners or employee information may be compromised by a malicious third-party
penetration of our network security, or that of a third-party service provider or business partner, or impacted by intentional
or unintentional actions or inactions by our employees, or those of a third-party service provider or business partner. As a result,
our users&rsquo; information may be lost, disclosed, accessed or taken without our guests&rsquo; consent. We have experienced cyber-attacks,
attempts to breach our systems and other similar incidents in the past. For example, we have been and expect that we will continue
to be subject to attempts to gain unauthorized access to or through our information systems or those we develop for our customers,
whether by our employees or third parties, including cyber-attacks by computer programmers and hackers who may develop and deploy
viruses, worms or other malicious software programs. To date these attacks have not had a material impact on our operations or
financial results, but we cannot provide assurance that they will not have a material impact in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We rely on encryption and authentication
technology licensed from third parties in an effort to securely transmit confidential and sensitive information, including credit
card numbers. Advances in computer capabilities, new technological discoveries or other developments may result in the whole or
partial failure of this technology to protect transaction data or other confidential and sensitive information from being breached
or compromised. In addition, websites are often attacked through compromised credentials, including those obtained through phishing
and credential stuffing. Our security measures, and those of our third-party service providers, may not detect or prevent all attempts
to breach our systems, denial-of-service attacks, viruses, malicious software, break-ins, phishing attacks, social engineering,
security breaches or other attacks and similar disruptions that may jeopardize the security of information stored in or transmitted
by our websites, networks and systems or that we or such third parties otherwise maintain, including payment card systems, which
may subject us to fines or higher transaction fees or limit or terminate our access to certain payment methods. We and such third
parties may not anticipate or prevent all types of attacks until after they have already been launched. Further, techniques used
to obtain unauthorized access to or sabotage systems change frequently and may not be known until launched against us or our third-party
service providers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition, security breaches can also
occur as a result of non-technical issues, including intentional or inadvertent breaches by our employees or by third parties.
These risks may increase over time as the complexity and number of technical systems and applications we use also increases. Breaches
of our security measures or those of our third-party service providers or cybersecurity incidents could result in unauthorized
access to our sites, networks and systems; unauthorized access to and misappropriation of user information, including users&rsquo;
personally identifiable information, or other confidential or proprietary information of ourselves or third parties; viruses, worms,
spyware or other malware being served from our sites, networks or systems; deletion or modification of content or the display of
unauthorized content on our sites; interruption, disruption or malfunction of operations; costs relating to breach remediation,
deployment of additional personnel and protection technologies, response to governmental investigations and media inquiries and
coverage; engagement of third-party experts and consultants; litigation, regulatory action and other potential liabilities. In
the past, we have experienced social engineering, phishing, malware and similar attacks and threats of denial-of-service attacks,
none of which to date has been material to our business; however, such attacks could in the future have a material adverse effect
on our operations. If any of these breaches of security should occur and be material, our reputation and brand could be damaged,
our business may suffer, we could be required to expend significant capital and other resources to alleviate problems caused by
such breaches, and we could be exposed to a risk of loss, litigation or regulatory action and possible liability. We cannot guarantee
that recovery protocols and backup systems will be sufficient to prevent data loss. Actual or anticipated attacks may cause us
to incur increasing costs, including costs to deploy additional personnel and protection technologies, train employees and engage
third-party experts and consultants.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition, any party who is able to illicitly
obtain a user&rsquo;s password could access the user&rsquo;s transaction data or personal information, resulting in the perception
that our systems are insecure. Any compromise or breach of our security measures, or those of our third-party service providers,
could violate applicable privacy, data protection, data security, network and information systems security and other laws and cause
significant legal and financial exposure, adverse publicity and a loss of confidence in our security measures, which could have
a material adverse effect on our business, financial condition, results of operations and prospects. We continue to devote significant
resources to protect against security breaches or we may need to in the future to address problems caused by breaches, including
notifying affected subscribers and responding to any resulting litigation, which in turn, diverts resources from the growth and
expansion of our business.</P>

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

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

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<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"><B><I>DraftKings primarily relies, and we will rely, on Amazon
Web Services to deliver our offerings to users on our platform and any disruption of or interference with our use of Amazon Web
Services could adversely affect our business, financial condition, results of operations and prospects.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DraftKings currently hosts its sports betting,
iGaming and daily fantasy sports platforms and supports its operations using Amazon Web Services (&ldquo;AWS&rdquo;), a third-party
provider of cloud infrastructure services. New DraftKings will continue to rely on AWS in addition to those service providers used
by SBT. We do not, and will not, have control over the operations of the facilities or infrastructure of the third-party service
providers that we use. Such third parties&rsquo; facilities are vulnerable to damage or interruption from natural disasters, cybersecurity
attacks, terrorist attacks, power outages and similar events or acts of misconduct. Our platform&rsquo;s continuing and uninterrupted
performance will be critical to our success. DraftKings has experienced, and we expect that in the future we will experience, interruptions,
delays and outages in service and availability from these third-party service providers from time to time due to a variety of factors,
including infrastructure changes, human or software errors, website hosting disruptions and capacity constraints. In addition,
any changes in these third parties&rsquo; service levels may adversely affect our ability to meet the requirements of our users.
Since our platform&rsquo;s continuing and uninterrupted performance is critical to our success, sustained or repeated system failures
would reduce the attractiveness of our offerings. It may become increasingly difficult to maintain and improve our performance,
especially during peak usage times, as we expand and the usage of our offerings increases. Any negative publicity arising from
these disruptions could harm our reputation and brand and may adversely affect the usage of our offerings.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our commercial agreement with AWS will remain
in effect until terminated by AWS or us. AWS may only terminate the agreement for convenience after complying with the contractual
30&nbsp;day prior notice requirement, except for extraordinary circumstances as laid out in AWS standard terms. AWS may also terminate
the agreement for cause upon a breach of the agreement or for failure to pay amounts due, in each case, subject to AWS providing
prior written notice and a 30-day cure period. In the event that our agreement with AWS is terminated or we add additional cloud
infrastructure service providers, such as the one currently used by SBT, we may experience significant costs or downtime in connection
with the transfer to, or the addition of, new cloud infrastructure service providers. Although alternative providers could host
our platform on a substantially similar basis to AWS, transitioning the cloud infrastructure currently hosted by AWS to alternative
providers could potentially be disruptive and we could incur significant one-time costs.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Any of the above circumstances or events
may harm our reputation and brand, reduce the availability or usage of our platform, lead to a significant loss of revenue, increase
our costs and impair our ability to attract new users, any of which could adversely affect our business, financial condition and
results of operations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We rely on third-party providers to validate the identity
and identify the location of our users, and if such providers fail to perform adequately, provide accurate information or we do
not maintain business relationships with them, our business, financial condition and results of operations could be adversely affected.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">There is no guarantee that the
third-party geolocation and identity verification systems that we rely on will perform adequately, or be effective. We rely
on our geolocation and identity verification systems to ensure we are in compliance with certain laws and regulations, and
any service disruption to those systems would prohibit us from operating our platform, and would adversely affect our
business. Additionally, incorrect or misleading geolocation and identity verification data with respect to current or
potential users received from third-party service providers may result in us inadvertently allowing access to our offerings
to individuals who should not be permitted to access them, or otherwise inadvertently deny access to individuals who should
be able to access our offerings, in each case based on inaccurate identity or geographic location determination. Our
third-party geolocation services provider relies on its ability to obtain information necessary to determine geolocation from
mobile devices, operating systems, and other sources. Changes, disruptions or temporary or permanent failure to access such
sources by our third-party services providers may result in their inability to accurately determine the location of our
users. Moreover, our inability to maintain our existing contracts with third-party services providers, or to replace them
with equivalent third parties, may result in our inability to access geolocation and identity verification data necessary for
our day-to-day operations. If any of these risks materializes, we may be subject to disciplinary action, fines, lawsuits, and
our business, financial condition and results of operations could be adversely affected.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our platform contains third-party open source software
components, and failure to comply with the terms of the underlying open source software licenses could restrict our ability to
provide our offerings.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our platform contains software modules licensed
to us by third-party authors under &ldquo;open source&rdquo; licenses. Use and distribution of open source software may entail
greater risks than use of third-party commercial software, as open source licensors generally do not provide support, warranties,
indemnification or other contractual protections regarding infringement claims or the quality of the code. In addition, the public
availability of such software may make it easier for others to compromise our platform.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Some open source licenses contain requirements
that we make available source code for modifications or derivative works we create based upon the type of open source software
we use, or grant other licenses to our intellectual property. If we combine our proprietary software with open source software
in a certain manner, we could, under certain open source licenses, be required to release the source code of our proprietary software
to the public. This would allow our competitors to create similar offerings with lower development effort and time and ultimately
could result in a loss of our competitive advantages. Alternatively, to avoid the public release of the affected portions of our
source code, we could be required to expend substantial time and resources to re-engineer some or all of our software.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Although we monitor our use of open source
software to avoid subjecting our platform to conditions we do not intend, the terms of many open source licenses have not been
interpreted by U.S. or foreign courts, and there is a risk that these licenses could be construed in a way that could impose unanticipated
conditions or restrictions on our ability to provide or distribute our platform. From time to time, there have been claims challenging
the ownership of open source software against companies that incorporate open source software into their solutions. As a result,
we could be subject to lawsuits by parties claiming ownership of what we believe to be open source software. Moreover, we cannot
assure you that our processes for controlling our use of open source software in our platform will be effective. If we are held
to have breached or failed to fully comply with all the terms and conditions of an open source software license, we could face
infringement or other liability, or be required to seek costly licenses from third parties to continue providing our offerings
on terms that are not economically feasible, to re-engineer our platform, to discontinue or delay the provision of our offerings
if re-engineering could not be accomplished on a timely basis or to make generally available, in source code form, our proprietary
code, any of which could adversely affect our business, financial condition and results of operations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We rely on third-party payment processors to process deposits
and withdrawals made by our users into the platform, and if we cannot manage our relationships with such third parties and other
payment-related risks, our business, financial condition and results of operations could be adversely affected.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We rely on a limited number of
third-party payment processors to process deposits and withdrawals made by our users into our platform. If any of our
third-party payment processors terminates its relationship with us or refuses to renew its agreement with us on commercially
reasonable terms, we would need to find an alternate payment processor, and may not be able to secure similar terms or
replace such payment processor in an acceptable time frame. Further, the software and services provided by our third-party
payment processors may not meet our expectations, contain errors or vulnerabilities, be compromised or experience outages.
Any of these risks could cause us to lose our ability to accept online payments or other payment transactions or make timely
payments to users on our platform, any of which could make our platform less trustworthy and convenient and adversely affect
our ability to attract and retain our users.</P>

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

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

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<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-indent: 0.5in">Nearly all of our payments are made by credit
card, debit card or through other third-party payment services, which subjects us to certain regulations and to the risk of fraud.
We may in the future offer new payment options to users that may be subject to additional regulations and risks. We are also subject
to a number of other laws and regulations relating to the payments we accept from our users, including with respect to money laundering,
money transfers, privacy and information security. If we fail to comply with applicable rules and regulations, we may be subject
to civil or criminal penalties, fines and/or higher transaction fees and may lose our ability to accept online payments or other
payment card transactions, which could make our offerings less convenient and attractive to our users. If any of these events were
to occur, our business, financial condition and results of operations could be adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">For example, if we are deemed to be a money
transmitter as defined by applicable regulation, we could be subject to certain laws, rules and regulations enforced by multiple
authorities and governing bodies in the United States and numerous state and local agencies who may define money transmitter differently.
For example, certain states may have a more expansive view of who qualifies as a money transmitter. Additionally, outside of the
United States, we could be subject to additional laws, rules and regulations related to the provision of payments and financial
services, and if we expand into new jurisdictions, the foreign regulations and regulators governing our business that we are subject
to will expand as well. If we are found to be a money transmitter under any applicable regulation and we are not in compliance
with such regulations, we may be subject to fines or other penalties in one or more jurisdictions levied by federal or state or
local regulators, including state Attorneys General, as well as those levied by foreign regulators. In addition to fines, penalties
for failing to comply with applicable rules and regulations could include criminal and civil proceedings, forfeiture of significant
assets or other enforcement actions. We could also be required to make changes to our business practices or compliance programs
as a result of regulatory scrutiny.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Additionally, our payment processors require
us to comply with payment card network operating rules, which are set and interpreted by the payment card networks. The payment
card networks could adopt new operating rules or interpret or reinterpret existing rules in ways that might prohibit us from providing
certain offerings to some users, be costly to implement or difficult to follow. We have agreed to reimburse our payment processors
for fines they are assessed by payment card networks if we or the users on our platform violate these rules. Any of the foregoing
risks could adversely affect our business, financial condition and results of operations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We rely on other third-party sports data providers for
real-time and accurate data for sporting events, and if such third parties do not perform adequately or terminate their relationships
with us, our costs may increase and our business, financial condition and results of operations could be adversely affected.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DraftKings and SBT rely on third-party sports
data providers such as SportRadar and BetGenius to obtain accurate information regarding schedules, results, performance and outcomes
of sporting events. We rely on this data to determine when and how bets are settled or how users rank in their fantasy contests.
DraftKings and SBT have experienced, and we may continue to experience, errors in this data feed which may result in us incorrectly
settling bets or ranking users in their contests. If we cannot adequately resolve the issue with our users, our users may have
a negative experience with our offerings, our brand or reputation may be negatively affected and our users may be less inclined
to continue or resume utilizing our products or recommend our platform to other potential users. As such, a failure or significant
interruption in our service would harm our reputation, business and operating results.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Furthermore, if any of our sports data partners
terminates its relationship with us or refuses to renew its agreement with us on commercially reasonable terms, we would need to
find an alternate provider, and may not be able to secure similar terms or replace such providers in an acceptable time frame.
Any of these risks could increase our costs and adversely affect our business, financial condition and results of operations. Further,
any negative publicity related to any of our third-party partners, including any publicity related to regulatory concerns, could
adversely affect our reputation and brand, and could potentially lead to increased regulatory or litigation exposure.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We rely on other third-party service providers and if
such third parties do not perform adequately or terminate their relationships with us, our costs may increase and our business,
financial condition and results of operations could be adversely affected.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our success depends in part on our relationships
with other third-party service providers. For example, we rely on third parties for content delivery, load balancing and protection
against distributed denial-of-service attacks. If those providers do not perform adequately, our users may experience issues or
interruptions with their experiences. Furthermore, if any of our partners terminates its relationship with us or refuses to renew
its agreement with us on commercially reasonable terms, we would need to find an alternate provider, and may not be able to secure
similar terms or replace such providers in an acceptable time frame. We also rely on other software and services supplied by third
parties, such as communications and internal software, and our business may be adversely affected to the extent such software and
services do not meet our expectations, contain errors or vulnerabilities, are compromised or experience outages. Any of these risks
could increase our costs and adversely affect our business, financial condition and results of operations. Further, any negative
publicity related to any of our third-party partners, including any publicity related to regulatory concerns, could adversely affect
our reputation and brand, and could potentially lead to increased regulatory or litigation exposure.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We incorporate technology from third parties
into our platform. We cannot be certain that our licensors are not infringing the intellectual property rights of others or that
the suppliers and licensors have sufficient rights to the technology in all jurisdictions in which we may operate. Some of our
license agreements may be terminated by our licensors for convenience. If we are unable to obtain or maintain rights to any of
this technology because of intellectual property infringement claims brought by third parties against our suppliers and licensors
or against us, or if we are unable to continue to obtain the technology or enter into new agreements on commercially reasonable
terms, our ability to develop our platform containing that technology could be severely limited and our business could be harmed.
Additionally, if we are unable to obtain necessary technology from third parties, we may be forced to acquire or develop alternate
technology, which may require significant time and effort and may be of lower quality or performance standards. This would limit
and delay our ability to provide new or competitive offerings and increase our costs. If alternate technology cannot be obtained
or developed, we may not be able to offer certain functionality as part of our offerings, which could adversely affect our business,
financial condition and results of operations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>If we fail to detect fraud or theft, including by our
users and employees, our reputation may suffer which could harm our brand and reputation and negatively impact our business, financial
condition and results of operations and can subject us to investigations and litigation.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We have in the past incurred, and may in
the future incur, losses from various types of financial fraud, including use of stolen or fraudulent credit card data, claims
of unauthorized payments by a user and attempted payments by users with insufficient funds. Bad actors use increasingly sophisticated
methods to engage in illegal activities involving personal information, such as unauthorized use of another person&rsquo;s identity,
account information or payment information and unauthorized acquisition or use of credit or debit card details, bank account information
and mobile phone numbers and accounts. Under current credit card practices, we may be liable for use of funds on our platform with
fraudulent credit card data, even if the associated financial institution approved the credit card transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Acts of fraud may involve various tactics,
including collusion. Successful exploitation of our systems could have negative effects on our product offerings, services and
user experience and could harm our reputation. Failure to discover such acts or schemes in a timely manner could result in harm
to our operations. In addition, negative publicity related to such schemes could have an adverse effect on our reputation, potentially
causing a material adverse effect on our business, financial condition, results of operations and prospects. In the event of the
occurrence of any such issues with our existing platform or product offerings, substantial engineering and marketing resources
and management attention, may be diverted from other projects to correct these issues, which may delay other projects and the achievement
of our strategic objectives.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition, any misappropriation of, or
access to, users&rsquo; or other proprietary information or other breach of our information security could result in legal claims
or legal proceedings, including regulatory investigations and actions, or liability for failure to comply with privacy and information
security laws, including for failure to protect personal information or for misusing personal information, which could disrupt
our operations, force us to modify our business practices, damage our reputation and expose us to claims from our users, regulators,
employees and other persons, any of which could have an adverse effect on our business, financial condition, results of operations
and prospects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Despite measures we have taken to detect
and reduce the occurrence of fraudulent or other malicious activity on our platform, we cannot guarantee that any of our measures
will be effective or will scale efficiently with our business. Our failure to adequately detect or prevent fraudulent transactions
could harm our reputation or brand, result in litigation or regulatory action and lead to expenses that could adversely affect
our business, financial condition and results of operations.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>If Internet and other technology-based service providers
experience service interruptions, our ability to conduct our business may be impaired and our business, financial condition and
results of operations could be adversely affected.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">A substantial portion of our network infrastructure
is provided by third parties, including Internet service providers and other technology-based service providers. See &ldquo;&mdash;&nbsp;<I>DraftKings
primarily relies, and we will rely, on Amazon Web Services to deliver our offerings to users on our platform and any disruption
of or interference with our use of Amazon Web Services could adversely affect our business, financial condition, results of operations
and prospects.</I>&rdquo; We require technology-based service providers to implement cyber-attack-resilient systems and processes.
However, if Internet service providers experience service interruptions, including because of cyber-attacks, or due to an event
causing an unusually high volume of Internet use (such as a pandemic or public health emergency), communications over the Internet
may be interrupted and impair our ability to conduct our business. Internet service providers and other technology-based service
providers may in the future roll out upgraded or new mobile or other telecommunications services, such as 5G or 6G services, which
may not be successful and thus may impact the ability of our users to access our platform or offerings in a timely fashion or at
all. In addition, our ability to process e-commerce transactions depends on bank processing and credit card systems. To prepare
for system problems, we continuously seek to strengthen and enhance our current facilities and the capabilities of our system infrastructure
and support. Nevertheless, there can be no assurance that the Internet infrastructure or our own network systems will continue
to be able to meet the demand placed on us by the continued growth of the Internet, the overall online gaming industry and our
users. Any difficulties these providers face, including the potential of certain network traffic receiving priority over other
traffic (<I>i</I>.<I>e</I>., lack of net neutrality), may adversely affect our business, and we exercise little control over these
providers, which increases our vulnerability to problems with the services they provide. Any system failure as a result of reliance
on third parties, such as network, software or hardware failure, including as a result of cyber-attacks, which causes a loss of
our users&rsquo; property or personal information or a delay or interruption in our online services and products and e-commerce
services, including our ability to handle existing or increased traffic, could result in a loss of anticipated revenue, interruptions
to our platform and offerings, cause us to incur significant legal, remediation and notification costs, degrade the customer experience
and cause users to lose confidence in our offerings, any of which could have a material adverse effect on our business, financial
condition, results of operations and prospects.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We rely on strategic relationships with casinos, tribes
and horse-tracks in order to be able to offer our products in certain jurisdictions. If we cannot establish and manage such relationships
with such partners, our business, financial condition and results of operations could be adversely affected.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Under some states&rsquo; sports
betting laws, online sports betting is limited to a finite number of retail operators, such as casinos, tribes or tracks, who
own a &ldquo;skin&rdquo; or &ldquo;skins&rdquo; under that state&rsquo;s law. A &ldquo;skin&rdquo; is a legally-authorized
license from a state to offer online sports betting services provided by a casino. The &ldquo;skin&rdquo; provides a market
access opportunity for mobile operators to operate in the jurisdiction pending licensure and other required approvals by the
state&rsquo;s regulator. The entities that control those &ldquo;skins&rsquo;, and the numbers of&#8201; &ldquo;skins&rdquo;
available, are typically determined by a state&rsquo;s sports betting law. In most of the jurisdictions in which we offer
sports betting and iGaming, we currently rely on a casino, tribe or track in order to get a &ldquo;skin.&rdquo; These
 &ldquo;skins&rdquo; are what allows us to gain access to jurisdictions where online operators are required to have a retail
relationship. If we cannot establish, renew or manage our relationships, our relationships could terminate and we would not
be allowed to operate in those jurisdictions until we enter into new ones. As a result, our business, financial condition and
results of operations could be adversely affected.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our growth will depend, in part, on the success of our
strategic relationships with third parties. Overreliance on certain third parties, or our inability to extend existing relationships
or agree to new relationships may cause unanticipated costs for us and impact our financial performance in the future.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DraftKings relies, and we expect to continue
to rely, on relationships with sports leagues and teams, professional athletes and athlete organizations, advertisers, casinos
and other third parties in order to attract users to our platform. These relationships along with providers of online services,
search engines, social media, directories and other websites and ecommerce businesses direct consumers to the DraftKings platform.
In addition, many of the parties with whom we have advertising arrangements provide advertising services to other companies, including
other fantasy sports and gaming platforms with whom we compete. While we believe there are other third parties that could drive
users to our platform, adding or transitioning to them may disrupt our business and increase our costs. In the event that any of
DraftKings&rsquo; existing relationships or our future relationships fails to provide services to us in accordance with the terms
of our arrangement, or at all, and we are not able to find suitable alternatives, this could impact our ability to attract consumers
cost effectively and harm our business, financial condition, results of operations and prospects.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our growth prospects may suffer if we are unable to develop
successful offerings or if we fail to pursue additional offerings. In addition, if we fail to make the right investment decisions
in our offerings and technology platform, we may not attract and retain key users and our revenue and results of operations may
decline.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DraftKings was founded in 2011 with a singular
focus on the DFS industry and has primarily focused its efforts in the last eight&nbsp;years on growing the DFS product offering.
DraftKings recently expanded its product offerings to include its Sportsbook and iGaming offerings. DraftKings has rapidly expanded
and we anticipate expanding further as new product offerings mature and as we pursue our growth strategies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The industries in which we operate are subject
to rapid and frequent changes in standards, technologies, products and service offerings, as well as in customer demands and expectations
and regulations. We must continuously make decisions regarding which offerings and technology to invest in to meet customer demand
in compliance with evolving industry standards and regulatory requirements and must continually introduce and successfully market
new and innovative technologies, offerings and enhancements to remain competitive and effectively stimulate customer demand, acceptance
and engagement. Our ability to engage, retain, and increase our user base and to increase our revenue will depend heavily on our
ability to successfully create new offerings, both independently and together with third parties. We may introduce significant
changes to our existing platforms and offerings or develop and introduce new and unproven products, with which we have little or
no prior development or operating experience. The process of developing new offerings and systems is inherently complex and uncertain,
and new offerings may not be well received by users, even if well-reviewed and of high quality. If we are unable to develop technology
and products that address users&rsquo; needs or enhance and improve our existing platforms and offerings in a timely manner, that
could have a material adverse effect on our business, financial condition, results of operations and prospects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Although we intend to continue
investing in our research and development efforts, if new or enhanced offerings fail to engage our users or partners, we may
fail to attract or retain users or to generate sufficient revenue, operating margin, or other value to justify our
investments, any of which may seriously harm our business. In addition, management may not properly ascertain or assess the
risks of new initiatives, and subsequent events may alter the risks that were evaluated at the time we decided to execute any
new initiative. Creating additional offerings can also divert our management&rsquo;s attention from other business issues and
opportunities. Even if our new offerings attain market acceptance, those new offerings could exploit the market share of our
existing product offerings or share of our users&rsquo; wallets in a manner that could negatively impact their ecosystem.
Furthermore, such expansion of our business increases the complexity of our business and places a significant strain on our
management, operations, technical systems and financial resources and we may not recover the often-substantial up-front costs
of developing and marketing new offerings, or recover the opportunity cost of diverting management and financial resources
away from other offerings. In the event of continued growth of our operations, products or in the number of third-party
relationships, we may not have adequate resources, operationally, technologically or otherwise to support such growth and the
quality of our platforms, offerings or our relationships with third parties could suffer. In addition, failure to effectively
identify, pursue and execute new business initiatives, or to efficiently adapt our processes and infrastructure to meet the
needs of our innovations, may adversely affect our business, financial condition, results of operations and prospects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Any new offerings may also require our users
to utilize new skills to use our platform. This could create a lag in adoption of new offerings and new user additions related
to any new offerings. To date, new offerings and enhancements on our existing platforms have not hindered our user growth or engagement,
but that may be the result of a large portion of our user base being in a younger demographic and more willing to invest the time
to learn to use our products most effectively. To the extent that future users, including those in older demographics, are less
willing to invest the time to learn to use our products, and if we are unable to make our products easier to learn to use, our
user growth or engagement could be affected, and our business could be harmed. We may develop new products that increase user engagement
and costs without increasing revenue.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Additionally, we may make bad or unprofitable
decisions regarding these investments. If new or existing competitors offer more attractive offerings, we may lose users or users
may decrease their spending on our platforms. New customer demands, superior competitive offerings, new industry standards or changes
in the regulatory environment could render our existing offerings unattractive, unmarketable or obsolete and require us to make
substantial unanticipated changes to our platforms or business model. Our failure to adapt to a rapidly changing market or evolving
customer demands could harm our business, financial condition, results of operations and prospects.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our growth will depend on our ability to attract and retain
users, and the loss of our users, failure to attract new users in a cost-effective manner, or failure to effectively manage our
growth could adversely affect our business, financial condition, results of operations and prospects.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our ability to achieve growth in revenue
in the future will depend, in large part, upon our ability to attract new users to our offerings, retain existing users of our
offerings and reactivate users in a cost-effective manner. Achieving growth in our community of users may require us to increasingly
engage in sophisticated and costly sales and marketing efforts, which may not make sense in terms of return on investment. We expect
to use a variety of free and paid marketing channels, in combination with compelling offers and exciting games to achieve our objectives.
For paid marketing, we intend to leverage a broad array of advertising channels, including television, radio, social media platforms,
such as Facebook, Instagram, Twitter and Snap, affiliates and paid and organic search, and other digital channels, such as mobile
display. If the search engines on which we rely modify their algorithms, change their terms around gaming, or if the prices at
which we may purchase listings increase, then our costs could increase, and fewer users may click through to our website. If links
to our website are not displayed prominently in online search results, if fewer users click through to our website, if our other
digital marketing campaigns are not effective, of it the costs of attracting users using any of our current methods significantly
increase, then our ability to efficiently attract new users could be reduced, our revenue could decline and our business, financial
condition and results of operations could be harmed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition, our ability to increase the
number of users of our offerings will depend on continued user adoption of DFS, Sportsbook and iGaming. Growth in the DFS, Sportsbook
and iGaming industries and the level of demand for and market acceptance of our product offerings will be subject to a high degree
of uncertainty. We cannot assure that consumer adoption of our product offerings will continue or exceed current growth rates,
or that the industry will achieve more widespread acceptance.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Additionally, as technological or regulatory
standards change and we modify our platform to comply with those standards, we may need users to take certain actions to continue
playing, such as performing age verification checks or accepting new terms and conditions. Users may stop using our product offerings
at any time, including if the quality of the user experience on our platform, including our support capabilities in the event of
a problem, does not meet their expectations or keep pace with the quality of the customer experience generally offered by competitive
offerings.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our core values of focusing on our users first and acting
for the long term may conflict with the short-term interests of our business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">One of our operating principles is to put
our users first, which we believe is essential to our success and serves the best, long-term interests of our company and our stakeholders.
Therefore, we have made in the past and we may make in the future, certain investments or changes in strategy that we think will
benefit our users, even if our decision negatively impacts our operating results in the short term.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>DraftKings&rsquo; business model depends upon the continued
compatibility between the DraftKings app and the major mobile operating systems and upon third-party platforms for the distribution
of the DraftKings&rsquo; product offerings. If Google Play or the Apple App Store prevent users from downloading our apps or block
advertising from being delivered to our users, our ability to grow our revenue, profitability and prospects may be adversely affected.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The substantial majority of DraftKings&rsquo;
users access its DFS, Sportsbook and iGaming product offerings primarily on mobile devices, and we believe that this will continue
to be increasingly important to New DraftKings&rsquo; long-term success. DraftKings&rsquo; business model depends upon the continued
compatibility between the DraftKings app and the major mobile operating systems. Third parties with whom DraftKings does not have
any formal relationships control the design of mobile devices and operating systems. These parties frequently introduce new devices,
and from time to time they may introduce new operating systems or modify existing ones. Network carriers may also impact the ability
to download apps or access specified content on mobile devices.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition, DraftKings relies upon third-party
platforms for distribution of its product offerings. The DFS product offering is delivered as a free application through both the
Apple App Store and the Google Play Store and is also accessible via mobile and traditional websites. The Sportsbook and iGaming
product offerings are primarily distributed through the Apple App Store and a traditional website. The Google Play store and Apple
App Store are global application distribution platforms and the main distribution channels for the DraftKings&rsquo; app. As such,
the promotion, distribution and operation of the DraftKings&rsquo; app are subject to the respective distribution platforms&rsquo;
standard terms and policies for application developers, which are very broad and subject to frequent changes and interpretation.
Furthermore, the distribution platforms may not enforce their standard terms and policies for application developers consistently
and uniformly across all applications and with all publishers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">There is no guarantee that popular mobile
devices will start or continue to support or feature our product offerings, or that mobile device users will continue to use our
product offerings rather than competing products. DraftKings is, and we will continue to be, dependent on the interoperability
of our platforms with popular mobile operating systems, technologies, networks and standards that we do not control, such as the
Android and iOS operating systems, and any changes, bugs, technical or regulatory issues in such systems, our relationships with
mobile manufacturers and carriers, or in their terms of service or policies that degrade our offerings&rsquo; functionality, reduce
or eliminate our ability to distribute our offerings, give preferential treatment to competitive products, limit our ability to
deliver high quality offerings, or impose fees or other charges related to delivering our offerings, could adversely affect our
product usage and monetization on mobile devices.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Moreover, DraftKings&rsquo; products
require high-bandwidth data capabilities in order to place time-sensitive bets. If the growth of high-bandwidth capabilities,
particularly for mobile devices, is slower than we expect, our user growth, retention, and engagement may be seriously
harmed. Additionally, to deliver high-quality content over mobile cellular networks, DraftKings&rsquo; product offerings must
work well with a range of mobile technologies, systems, networks, regulations, and standards that DraftKings does not
control. In particular, any future changes to the iOS or Android operating systems may impact the accessibility, speed,
functionality, and other performance aspects of our platforms, which issues are likely to occur in the future from time to
time. In addition, the adoption of any laws or regulations that adversely affect the growth, popularity, or use of the
Internet, including laws governing Internet neutrality, could decrease the demand for our products and increase our cost of
doing business. Specifically, any laws that would allow mobile providers in the United States to impede access to content, or
otherwise discriminate against content providers like us, such as providing for faster or better access to our competitors,
over their data networks, could have a material adverse effect on our business, financial condition, results of operations
and prospects.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Furthermore, we may not successfully cultivate
relationships with key industry participants or develop product offerings that operate effectively with these technologies, systems,
networks, regulations, or standards. If it becomes more difficult for our users to access and use our platform on their mobile
devices, if our users choose not to access or use our platform on their mobile devices, or if our users choose to use mobile products
that do not offer access to our platform, our user growth, retention, and engagement could be seriously harmed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition, if any of the third-party platforms
used for distribution of our product offerings were to limit or disable advertising on their platforms, either because of technological
constraints or because the owner of these distribution platforms wished to impair our ability to serve ads on them, our ability
to generate revenue could be harmed. Also, technologies may be developed that can block the display of our ads. These changes could
materially impact the way we do business, and if we or our advertising partners are unable to quickly and effectively adjust to
those changes, there could be an adverse effect on our business, financial condition, results of operations or prospects.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We may require additional capital to support our growth
plans, and such capital may not be available on terms acceptable to us, if at all. This could hamper our growth and adversely affect
our business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We intend to make significant investments
to support our business growth and may require additional funds to respond to business challenges, including the need to develop
new offerings and features or enhance our existing platform, improve our operating infrastructure or acquire complementary businesses,
personnel and technologies. Accordingly, we may need to engage in equity or debt financings to secure additional funds. Our ability
to obtain additional capital, if and when required, will depend on our business plans, investor demand, our operating performance,
capital markets conditions and other factors. If we raise additional funds by issuing equity, equity-linked or debt securities,
those securities may have rights, preferences or privileges senior to the rights of our currently issued and outstanding equity
or debt, and our existing shareholders may experience dilution. If New DraftKings is unable to obtain additional capital when required,
or on satisfactory terms, our ability to continue to support our business growth or to respond to business opportunities, challenges
or unforeseen circumstances could be adversely affected, and our business may be harmed.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We may invest in or acquire other businesses, and our
business may suffer if we are unable to successfully integrate acquired businesses into our company or otherwise manage the growth
associated with multiple acquisitions.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As part of its business strategy,
DraftKings has made, and New DraftKings intends to continue to make, acquisitions as opportunities arise to add new or
complementary businesses, products, brands or technologies. In some cases, the costs of such acquisitions may be substantial,
including as a result of professional fees and due diligence efforts. There is no assurance that the time and resources
expended on pursuing a particular acquisition will result in a completed transaction, or that any completed transaction will
ultimately be successful. In addition, we may be unable to identify suitable acquisition or strategic investment
opportunities, or may be unable to obtain any required financing or regulatory approvals, and therefore may be unable to
complete such acquisitions or strategic investments on favorable terms, if at all. We may decide to pursue acquisitions with
which our investors may not agree and we cannot assure investors that any acquisition or investment will be successful or
otherwise provide a favorable return on investment. In addition, acquisitions and the integration thereof require significant
time and resources and place significant demands on our management, as well as on our operational and financial
infrastructure. In addition, if we fail to successfully close transactions or integrate new teams, or integrate the products
and technologies associated with these acquisitions into our company, our business could be seriously harmed. Acquisitions
may expose us to operational challenges and risks, including:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: center"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">the ability to profitably
manage acquired businesses or successfully integrate the acquired businesses&rsquo; operations, personnel, financial reporting,
accounting and internal controls, technologies and products into the New DraftKings&rsquo; business;</FONT></TD>
</TR>                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           <TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: center"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">increased indebtedness and
the expense of integrating acquired businesses, including significant administrative, operational, economic, geographic or cultural
challenges in managing and integrating the expanded or combined operations;</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: center"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">entry into jurisdictions or
acquisition of products or technologies with which we have limited or no prior experience, and the potential of increased competition
with new or existing competitors as a result of such acquisitions;</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: center"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">diversion of management&rsquo;s
attention and the over-extension of our operating infrastructure and our management systems, information technology systems, and
internal controls and procedures, which may be inadequate to support growth;</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: center"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">the ability to fund our capital
needs and any cash flow shortages that may occur if anticipated revenue is not realized or is delayed, whether by general economic
or market conditions, or unforeseen internal difficulties; and</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: center"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">the ability to retain or hire
qualified personnel required for expanded operations.</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: center"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Our acquisition strategy may
not succeed if we are unable to remain attractive to target companies or expeditiously close transactions. Issuing shares of Class&nbsp;A
common stock to fund an acquisition would cause economic dilution to existing stockholders. If we develop a reputation for being
a difficult acquirer or having an unfavorable work environment, or target companies view our Class&nbsp;A common stock unfavorably,
we may be unable to consummate key acquisition transactions essential to our corporate strategy and our business may be seriously
harmed.</FONT></TD></TR>
</TABLE>

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

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

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<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"><B><I>We may invest or spend the proceeds of the Business Combination
in ways with which the investors may not agree or in ways which may not yield a return.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our management will have considerable discretion
in the application of the net proceeds of the Business Combination, and our shareholders will not have the opportunity to approve
how the proceeds are being used. If the net proceeds are used for corporate purposes that do not result in an increase to the value
of our business, our stock price could decline.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>DraftKings is party to pending litigation in various jurisdictions
and with various plaintiffs and we may be subject to future litigation in the operation of our business. An adverse outcome in
one or more proceedings could adversely affect our business.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As a growing company with expanding operations,
DraftKings and SBT in the past have been parties to, and New DraftKings may in the future increasingly face the risk of, claims,
lawsuits, and other proceedings involving competition and antitrust, intellectual property, privacy, consumer protection, accessibility
claims, securities, tax, labor and employment, commercial disputes, services and other matters. See &ldquo;<I>Business of DraftKings
and SBTech&#8201;&mdash;&#8201;Legal Proceedings</I>.&rdquo; Litigation to defend us against claims by third parties, or to enforce
any rights that we may have against third parties, may be necessary, which could result in substantial costs and diversion of our
resources, causing a material adverse effect on our business, financial condition, results of operations and prospects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Any litigation to which we are a party
may result in an onerous or unfavorable judgment that may not be reversed upon appeal, or in payments of substantial monetary
damages or fines, the posting of bonds requiring significant collateral, letters of credit or similar instruments, or we may
decide to settle lawsuits on similarly unfavorable terms. These proceedings could also result in reputational harm, criminal
sanctions, consent decrees or orders preventing us from offering certain products or requiring a change in our business
practices in costly ways or requiring development of non-infringing or otherwise altered products or technologies. Litigation
and other claims and regulatory proceedings against us could result in unexpected disciplinary actions, expenses and
liabilities, which could have a material adverse effect on our business, financial condition, results of operations and
prospects.</P>

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

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

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<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"><B><I>Our business will be subject to a variety of U.S. and
foreign laws, many of which are unsettled and still developing and which could subject us to claims or otherwise harm our business.
Any change in existing regulations or their interpretation, or the regulatory climate applicable to our products and services,
or changes in tax rules and regulations or interpretation thereof related to our products and services, could adversely impact
our ability to operate our business as currently conducted or as we seek to operate in the future, which could have a material
adverse effect on our financial condition and results of operations.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We are generally subject to laws and regulations
relating to fantasy sports, sports betting and iGaming in the jurisdictions in which we conduct our business or in some circumstances,
of those jurisdictions in which we offer our services or those are available, as well as the general laws and regulations that
apply to all e-commerce businesses, such as those related to privacy and personal information, tax and consumer protection. These
laws and regulations vary from one jurisdiction to another and future legislative and regulatory action, court decisions or other
governmental action, which may be affected by, among other things, political pressures, attitudes and climates, as well as personal
biases, may have a material impact on our operations and financial results. In particular, some jurisdictions have introduced regulations
attempting to restrict or prohibit online gaming, while others have taken the position that online gaming should be licensed and
regulated and have adopted or are in the process of considering legislation and regulations to enable that to happen. Additionally
some jurisdictions in which we may operate could presently be unregulated or partially regulated and therefore more susceptible
to the enactment or change of laws and regulations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DraftKings offers its DFS product offering
in 22 states that have adopted legislation permitting online fantasy sports. In those states that currently require a license or
registration, DraftKings has either obtained the appropriate license or registration, has obtained a provisional license, or is
operating pursuant to a grandfathering clause that allows operation pending the availability of licensing applications and subsequent
grant of a license. DraftKings also has three foreign licenses and operates under those licenses in eight countries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DraftKings operates in 21 states and one
country, Canada, that do not have fantasy sports-specific laws or regulations. In those jurisdictions, our business may be subject
to future legislative and regulatory action, court decisions or other governmental action that could alter or eliminate our ability
to operate. On February 6, 2020, a state intermediate appellate court in New York determined in a split decision that a law specifically
authorizing paid fantasy sports contests in New York violated the New York constitution. This decision is currently stayed; however,
if upheld, it could jeopardize our ability to operate our DFS offering in New York. In addition, in certain states in which DraftKings
operates, including Texas, Illinois and Florida, the applicable office of the Attorney General has issued an adverse legal opinion
regarding DFS. In the event that one of those Attorneys General decides to take action on the opinion from their office, we may
have to withdraw our operations from such state, 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: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In May&nbsp;2018, the U.S. Supreme
Court struck down as unconstitutional the Professional and Amateur Sports Protection Act of 1992 (&ldquo;PASPA&rdquo;). This
decision has the effect of lifting federal restrictions on sports betting and thus allows states to determine by themselves
the legality of sports betting. Since the repeal of PASPA, several states (including Washington D.C.) have legalized online
sports betting. To the extent new real money gaming or sports betting jurisdictions are established or expanded, we cannot
guarantee that we will be successful in penetrating such new jurisdictions or expanding our business or user base in line
with the growth of existing jurisdictions. If we are unable to effectively develop and operate directly or indirectly within
these new jurisdictions or if our competitors are able to successfully penetrate geographic jurisdictions that we cannot
access or where we face other restrictions, there could be a material adverse effect on our business, operating results and
financial condition. Our failure to obtain or maintain the necessary regulatory approvals in jurisdictions, whether
individually or collectively, would have a material adverse effect on our business. See &ldquo;<I>Business of DraftKings and
SBTech&#8201;&mdash;&#8201;Government Regulation.</I>&rdquo; To expand into new jurisdictions, we may need to be licensed and
obtain approvals of our product offerings. This is a time-consuming process that can be extremely costly. Any delays in
obtaining or difficulty in maintaining regulatory approvals needed for expansion within existing jurisdictions or into new
jurisdictions can negatively affect our opportunities for growth, including the growth of our customer base, or delay our
ability to recognize revenue from our offerings in any such jurisdictions.</P>

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

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

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<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-indent: 0.5in">Future legislative and regulatory action,
and court decisions or other governmental action, may have a material impact on our operations and financial results. Governmental
authorities could view us as having violated local laws, despite our efforts to obtain all applicable licenses or approvals. There
is also a risk that civil and criminal proceedings, including class actions brought by or on behalf of prosecutors or public entities
or incumbent monopoly providers, or private individuals, could be initiated against us, Internet service providers, credit card
and other payment processors, advertisers and others involved in the DFS, sports betting and iGaming industries. Such potential
proceedings could involve substantial litigation expense, penalties, fines, seizure of assets, injunctions or other restrictions
being imposed upon us or our licensees or other business partners, while diverting the attention of key executives. Such proceedings
could have a material adverse effect on our business, financial condition, results of operations and prospects, as well as impact
our reputation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">There can be no assurance that legally enforceable
legislation will not be proposed and passed in jurisdictions relevant or potentially relevant to our business to prohibit, legislate
or regulate various aspects of the DFS, iGaming and sports betting industries (or that existing laws in those jurisdictions will
not be interpreted negatively). Compliance with any such legislation may have a material adverse effect on our business, financial
condition and results of operations, either as a result of our determination that a jurisdiction should be blocked, or because
a local license or approval may be costly for us or our business partners to obtain and/or such licenses or approvals may contain
other commercially undesirable conditions.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our growth prospects depend on the legal status of real-money
gaming in various jurisdictions, predominantly within the United States, which is an initial area of focus, and legalization may
not occur in as many states as we expect, or may occur at a slower pace than we anticipate. Additionally, even if jurisdictions
legalize real money gaming, this may be accompanied by legislative or regulatory restrictions and/or taxes that make it impracticable
or less attractive to operate in those jurisdictions, or the process of implementing regulations or securing the necessary licenses
to operate in a particular jurisdiction may take longer than we anticipate, which could adversely affect our future results of
operations and make it more difficult to meet our expectations for financial performance.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">A number of states have legalized, or are
currently considering legalizing, real money gaming, and our business, financial condition, results of operations and prospects
are significantly dependent upon legalization of real money gaming. Our business plan is partially based upon the legalization
of real money gaming for a specific&nbsp;percent of the population on a yearly basis and the legalization may not occur as we have
anticipated. Additionally, if a large number of additional states or the federal government enact real money gaming legislation
and we are unable to obtain, or are otherwise delayed in obtaining the necessary licenses to operate online sports betting or iGaming
websites in U.S. jurisdictions where such games are legalized, our future growth in online sports betting and iGaming could be
materially impaired.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As we enter into new jurisdictions, states
or the federal government may legalize real money gaming in a manner that is unfavorable to us. As a result, we may encounter legal,
regulatory and political challenges that are difficult or impossible to foresee and which could result in an unforeseen adverse
impact on planned revenues or costs associated with the new opportunity. For example, certain states require us to have a relationship
with a land-based, licensed casino for online Sportsbook access, which tends to increase our costs of revenue. States that have
established state-run monopolies may limit opportunities for private sector participants like us. States also impose substantial
tax rates on online sports betting and iGaming revenue, in addition to sales taxes in certain jurisdictions and a federal excise
tax of 25 basis points on the amount of each wager. As most state product taxes apply to various measures of modified gross profit,
tax rates, whether federal- or state-based, that are higher than we expect will make it more costly and less desirable for us to
launch in a given jurisdiction, while tax increases in any of our existing jurisdictions may adversely impact our profitability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Therefore, even in cases in which a jurisdiction
purports to license and regulate DFS, sports betting or iGaming, the licensing and regulatory regimes can vary considerably in
terms of their business-friendliness and at times may be intended to provide incumbent operators with advantages over new licensees.
Therefore, some &ldquo;liberalized&rdquo; regulatory regimes are considerably more commercially attractive than others.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Failure to comply with regulatory requirements in a particular
jurisdiction, or the failure to successfully obtain a license or permit applied for in a particular jurisdiction, could impact
our ability to comply with licensing and regulatory requirements in other jurisdictions, or could cause the rejection of license
applications or cancelation of existing licenses in other jurisdictions, or could cause financial institutions, online and mobile
platforms, advertisers and distributors to stop providing services to us which we rely upon to receive payments from, or distribute
amounts to, our users, or otherwise to deliver and promote our services.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Compliance with the various regulations
applicable to fantasy sports and real money gaming is costly and time-consuming. Regulatory authorities at the non-U.S., U.S. federal,
state and local levels have broad powers with respect to the regulation and licensing of fantasy sports and real money gaming operations
and may revoke, suspend, condition or limit our fantasy sports or real money gaming licenses, impose substantial fines on us and
take other actions, any one of which could have a material adverse effect on our business, financial condition, results of operations
and prospects. These laws and regulations are dynamic and subject to potentially differing interpretations, and various legislative
and regulatory bodies may expand current laws or regulations or enact new laws and regulations regarding these matters. We will
strive to comply with all applicable laws and regulations relating to our business. It is possible, however, that these requirements
may be interpreted and applied in a manner that is inconsistent from one jurisdiction to another and may conflict with other rules.
Non-compliance with any such law or regulations could expose us to claims, proceedings, litigation and investigations by private
parties and regulatory authorities, as well as substantial fines and negative publicity, each of which may materially and adversely
affect our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Any fantasy sports or real money gaming
license could be revoked, suspended or conditioned at any time. The loss of a license in one jurisdiction could trigger the loss
of a license or affect our eligibility for such a license in another jurisdiction, and any of such losses, or potential for such
loss, could cause us to cease offering some or all of our offerings in the impacted jurisdictions. We may be unable to obtain or
maintain all necessary registrations, licenses, permits or approvals, and could incur fines or experience delays related to the
licensing process, which could adversely affect our operations. Our delay or failure to obtain or maintain licenses in any jurisdiction
may prevent us from distributing our offerings, increasing our customer base and/or generating revenues. We cannot assure you that
we will be able to obtain and maintain the licenses and related approvals necessary to conduct our DFS, Sportsbook and iGaming
operations. Any failure to maintain or renew our existing licenses, registrations, permits or approvals could have a material adverse
effect on our business, financial condition, results of operations and prospects.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our growth prospects and market potential will depend
on our ability to obtain licenses to operate in a number of jurisdictions and if we fail to obtain such licenses our business,
financial condition, results of operations and prospects could be impaired.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our ability to grow our business will depend
on our ability to obtain and maintain licenses to offer our product offerings in a large number of jurisdictions or in heavily
populated jurisdictions. If we fail to obtain and maintain licenses in large jurisdictions or in a greater number of mid-market
jurisdictions, this may prevent us from expanding the footprint of our product offerings, increasing our user base and/or generating
revenues. We cannot be certain that we will be able to obtain and maintain licenses and related approvals necessary to conduct
our DFS, Sportsbook and iGaming operations. Any failure to obtain and maintain licenses, registrations, permits or approvals could
have a material adverse effect on our business, financial condition, results of operations and prospects.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>DraftKings and SBT have been the subject of governmental
investigations and inquiries with respect to the operation of their businesses and we could be subject to future governmental investigations
and inquiries, legal proceedings and enforcement actions. Any such investigation, inquiry, proceeding or action, could adversely
affect our business.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DraftKings and SBT have received formal
and informal inquiries from time to time, from government authorities and regulators, including tax authorities and gaming regulators,
regarding compliance with laws and other matters, and we may receive such inquiries in the future, particularly as we grow and
expand our operations. Violation of existing or future regulations, regulatory orders or consent decrees could subject us to substantial
monetary fines and other penalties that could negatively affect our financial condition and results of operations. In addition,
it is possible that future orders issued by, or inquiries or enforcement actions initiated by, government or regulatory authorities
could cause us to incur substantial costs, expose us to unanticipated liability or penalties, or require us to change our business
practices in a manner materially adverse to our business.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Participation in the sports betting industry will expose
us to trading, liability management and pricing risk. We may experience lower than expected profitability and potentially significant
losses as a result of a failure to determine accurately the odds in relation to any particular event and/or any failure of its
sports risk management processes.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DraftKings&rsquo; fixed-odds betting products
involve betting where winnings are paid on the basis of the stake placed and the odds quoted. Odds are determined with the objective
of providing an average return to the bookmaker over a large number of events and therefore, over the long term, our gross win&nbsp;percentage
has remained fairly constant. However, there can be significant variation in gross win&nbsp;percentage event-by-event and day-by-day.
DraftKings has systems and controls that seek to reduce the risk of daily losses occurring on a gross-win basis, but there can
be no assurance that these will be effective in reducing our exposure, and consequently our exposure to this risk in the future.
As a result, in the short term, there is less certainty of generating a positive gross win, and we may experience (and DraftKings
has from time to time experienced) significant losses with respect to individual events or betting outcomes, in particular if large
individual bets are placed on an event or betting outcome or series of events or betting outcomes. Odds compilers and risk managers
are capable of human error, thus even allowing for the fact that a number of betting products are subject to capped pay-outs, significant
volatility can occur. In addition, it is possible that there may be such a high volume of trading during any particular period
that even automated systems would be unable to address and eradicate all risks. Any significant losses on a gross-win basis could
have a material adverse effect on our business, financial condition and results of operations. In addition, if a jurisdiction where
we hold or wish to apply for a license imposes a high turnover tax for betting (as opposed to a gross-win tax), this too would
impact profitability, particularly with high value/low margin bets, and likewise have a material adverse effect on our business.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Palpable (obvious) errors in Sportsbook odds making occasionally
occur in the normal course of business, sometimes for large liabilities. While it is a worldwide standard business practice to
void bets associated with palpable errors or to correct the odds, there is no guarantee regulators will approve voiding palpable
errors moving forward in every case.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DraftKings&rsquo; Sportsbook offers a huge
spectrum of betting markets across dozens of sports, and the odds are set through a combination of algorithmic and manual odds
making. Bet acceptance is also a combination of automatic and manual acceptance. In some cases, the odds offered on the website
constitute an obvious error. Examples of such errors are inverted lines between teams, or odds that are significantly different
from the true odds of the outcome in a way that all reasonable persons would agree is an error. It is commonplace virtually worldwide
for operators to void bets associated with such palpable errors, and in most mature jurisdictions these bets can be voided without
regulatory approval at operator discretion. In the U.S., it is unclear long term if state-by-state regulators will consistently
approve voids or re-setting odds to correct odds on such bets. In some cases, we require regulatory approval to void palpable errors
ahead of time. If regulators were to not allow voiding of bets associated with large obvious errors in odds making, New DraftKings
could be subject to covering significant liabilities.</P>

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>DraftKings follows the industry practice of restricting
and managing betting limits at the individual customer level based on individual customer profiles and risk level to the enterprise;
however there is no guarantee that states will allow operators such as DraftKings to limit on the individual customer level.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Similar to a credit card company managing
individual risk on the customer level through credit limits, it is customary for sports betting operators to manage customer betting
limits at the individual level to manage enterprise risk levels. DraftKings believes this practice is beneficial overall, because
if it were not possible, the betting options would be restricted globally and limits available to customers would be much lower
to insulate overall risk due to the existence of a very small segment of highly sophisticated syndicates and algorithmic bettors,
or bettors looking to take advantage of site errors and omissions. We believe virtually all operators balance taking reasonable
action from all customers against the risk of individual customers significantly harming the business viability. We cannot assure
you that all state legislation and regulators will always allow operators to execute limits at the individual customer level, or
at their sole discretion.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Negative events or negative media coverage relating to,
or a declining popularity of, daily fantasy sports, sports betting, the underlying sports or athletes, online sports betting or
iGaming in particular, or other negative coverage may adversely impact our ability to retain or attract users, which could have
an adverse impact on our business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Public opinion can significantly influence
our business. Unfavorable publicity regarding us, for example, our product changes, product quality, litigation, or regulatory
activity, or regarding the actions of third parties with whom we have relationships or the underlying sports (including declining
popularity of the sports or athletes) could seriously harm our reputation. In addition, a negative shift in the perception of sports
betting and iGaming by the public or by politicians, lobbyists or others could affect future legislation of sports betting and
iGaming, which could cause jurisdictions to abandon proposals to legalize sports betting and iGaming, thereby limiting the number
of jurisdictions in which we can operate. Furthermore, illegal betting activity by athletes could result in negative publicity
for our industry and could harm our brand reputation. Negative public perception could also lead to new restrictions on or to the
prohibition of iGaming or sports betting in jurisdictions in which we currently operate. Such negative publicity could also adversely
affect the size, demographics, engagement, and loyalty of our customer base and result in decreased revenue or slower user growth
rates, which could seriously harm our business.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We may have difficulty accessing the service of banks,
credit card issuers and payment processing services providers, which may make it difficult to sell our products and services.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Although financial institutions and payment
processors are permitted to provide services to us and others in our industry, banks, credit card issuers and payment processing
service providers may be hesitant to offer banking and payment processing services to real money gaming and fantasy sports businesses.
Consequently, those businesses involved in our industry, including DraftKings, may encounter difficulties in establishing and maintaining
banking and payment processing relationships with a full scope of services and generating market rate interest. If we were unable
to maintain DraftKings&rsquo; bank accounts or our users were unable to use their credit cards, bank accounts or e-wallets to make
deposits and withdrawals from our platforms it would make it difficult for us to operate our business, increase our operating costs,
and pose additional operational, logistical and security challenges which could result in an inability to implement our business
plan.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The requirements of being a public company may strain
our resources and divert management&rsquo;s attention, and the increases in legal, accounting and compliance expenses that will
result from the Business Combination may be greater than we anticipate.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As a result of the Business
Combination New DraftKings will become a public company, and as such (and particularly after we are no longer an
 &ldquo;emerging growth company&rdquo;), will incur significant legal, accounting and other expenses that DraftKings and SBT
did not incur as private companies. We will be subject to the reporting requirements of the Exchange Act, and will be
required to comply with the applicable requirements of the Sarbanes-Oxley Act and the Dodd-Frank Wall Street Reform and
Consumer Protection Act, as well as the rules and regulations subsequently implemented by the SEC and the listing standards
of The Nasdaq Stock Market, including changes in corporate governance practices and the establishment and maintenance of
effective disclosure and financial controls. Compliance with these rules and regulations can be burdensome. Our management
and other personnel will need to devote a substantial amount of time to these compliance initiatives. Moreover, these rules
and regulations will increase DraftKings&rsquo; and SBT&rsquo;s historical legal and financial compliance costs and will make
some activities more time-consuming and costly. For example, we expect that these rules and regulations may make it more
difficult and more expensive for us to obtain director and officer liability insurance than DraftKings and SBT obtained as
private companies, and could also make it more difficult for us to attract and retain qualified members of our Board as
compared to DraftKings and SBT as private companies. In particular, we expect to incur significant expenses and devote
substantial management effort toward ensuring compliance with the requirements of Section&nbsp;404 of the Sarbanes-Oxley Act,
which will increase when we are no longer an &ldquo;emerging growth company.&rdquo; We will need to hire additional
accounting and financial staff, and engage outside consultants, all with appropriate public company experience and technical
accounting knowledge and maintain an internal audit function, which will increase our operating expenses. Moreover, we could
incur additional compensation costs in the event that we decide to pay cash compensation closer to that of other public
companies, which would increase our general and administrative expenses and could materially and adversely affect our
profitability. We are evaluating these rules and regulations, and cannot predict or estimate the amount of additional costs
we may incur or the timing of such costs.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>As private companies, DraftKings and SBT have not been
required to document and test their internal controls over financial reporting nor has their management been required to certify
the effectiveness of their internal controls and their auditors have not been required to opine on the effectiveness of their internal
control over financial reporting. Failure to maintain adequate financial, information technology and management processes and controls
could result in material weaknesses which could lead to errors in our financial reporting, which could adversely affect our business.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DraftKings and SBT have not been required
to document and test their internal controls over financial reporting nor has their management been required to certify the effectiveness
of their internal controls and their auditors have not been required to opine on the effectiveness of their internal control over
financial reporting. Similarly, as an &ldquo;emerging growth company,&rdquo; DEAC has so far been exempt from the SEC&rsquo;s internal
control reporting requirements. New DraftKings may lose its emerging growth company status and become subject to the SEC&rsquo;s
internal control over financial reporting management and auditor attestation requirements in the year in which it is deemed to
be a large accelerated filer, which would occur once it is subject to Exchange Act reporting requirements for 12&nbsp;months, has
filed at least one SEC annual report and the market value of its common equity held by non-affiliates exceeds $700&nbsp;million
as of the end of the prior fiscal year&rsquo;s second fiscal quarter. We expect that New DraftKings will be subject to the SEC&rsquo;s
internal control reporting and attestation requirements with respect to its annual report on Form 10-K for the year ended December
31, 2021. Additionally, we expect New DraftKings&rsquo; independent registered public accounting firm will be required to formally
attest to the effectiveness of New DraftKings&rsquo; internal controls over financial reporting commencing with New DraftKings&rsquo;
second annual report on Form 10-K (i.e. for the year ended December&nbsp;31, 2021). New DraftKings may not be able to complete
its evaluation, testing and any required remediation in a timely fashion. In addition, New DraftKings&rsquo; current controls and
any new controls that it develops may become inadequate because of poor design and changes in its business, including increased
complexity resulting from any international expansion. Any failure to implement and maintain effective internal controls over financial
reporting could adversely affect the results of assessments by its independent registered public accounting firm and their attestation
reports.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If New DraftKings is unable to certify the
effectiveness of its internal controls, or if New DraftKings&rsquo; internal controls have a material weakness, New DraftKings
may not detect errors timely, its consolidated financial statements could be misstated, it could be subject to regulatory scrutiny
and a loss of confidence by stakeholders, which could harm New DraftKings&rsquo; business and adversely affect the market price
of New DraftKings common stock.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Continued growth and success will depend on the performance
of the current and future employees of DraftKings and SBT, including certain key employees. Recruitment and retention of these
individuals is vital to growing our business and meeting our business plans. The loss of any of our key executives or other key
employees could harm our business.</I></B></P>



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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We will depend on a limited number of
key personnel to manage and operate our business, including DraftKings&rsquo; co-founders, our Chief Financial Officer and
our Chief Legal Officer. The leadership of the current executive officers of DraftKings has been a critical element of
DraftKings&rsquo; success and the departure, death or disability of any one of our executive officers or other extended or
permanent loss of any of their services, or any negative market or industry perception with respect to any of them or their
loss, could have a material adverse effect on our business. We are the beneficiary of a $2&nbsp;million key man insurance
policy covering our Chief Executive Officer, but we are not protected by key man or similar life insurance covering other
executive officers or members of senior management.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition, certain of DraftKings and SBT&rsquo;s
other employees have made significant contributions to their growth and success. We believe our success and our ability to compete
and grow will depend in large part on the efforts and talents of our employees and on our ability to retain highly skilled personnel.
The competition for these types of personnel is intense and we compete with other potential employers for the services of our employees.
As a result, we may not succeed in retaining the executives and other key employees that we need. Employees, particularly analysts
and engineers, are in high demand, and we devote significant resources to identifying, hiring, training, successfully integrating
and retaining these employees. We cannot provide assurance that we will be able to attract or retain such highly qualified personnel
in the future. In addition, the loss of employees or the inability to hire additional skilled employees as necessary could result
in significant disruptions to our business, and the integration of replacement personnel could be time-consuming and expensive
and cause additional disruptions to our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">All Named Executive Officers (as defined
below) are employees-at-will and only one Named Executive Officer has an employment agreement with DraftKings. Prior to the completion
of the Business Combination, New DraftKings may enter into employment agreements with certain of its key executive officers, including
the remaining Named Executive Officers. We cannot assure you that any such agreements with New DraftKings will be executed, which
may make it more difficult to retain the services of certain of the executive officers. The unexpected loss of services of one
or more of these key employees could have a material adverse effect on our business, financial condition, results of operations
and prospects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Additionally, as we grow and develop the
infrastructure of a public company, we may find it difficult to maintain DraftKings&rsquo; entrepreneurial, innovative and team-based
culture. Our retention and recruiting may require significant increases in compensation expense as we transition to a public company,
which would adversely affect our results of operation. Moreover, there may also be disparities of wealth between those of our employees
who were employees of DraftKings or SBT prior to the Business Combination and those who join us after the Closing, which may harm
our culture and relations among employees.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If we do not succeed in attracting, hiring,
and integrating excellent personnel, or retaining and motivating existing personnel, we may be unable to grow effectively and our
business could be seriously harmed.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>In some jurisdictions our key executives, certain employees
or other individuals related to the business will be subject to licensing or compliance requirements. Failure by such individuals
to obtain the necessary licenses or comply with individual regulatory obligations, could cause the business to be non-compliant
with its obligations, or imperil its ability to obtain or maintain licenses necessary for the conduct of the business. In some
cases, the remedy to such situation may require the removal of a key executive or employee and the mandatory redemption or transfer
of such person&rsquo;s New DraftKings equity securities.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As part of obtaining real money gaming
licenses, the responsible gaming authority will generally determine suitability of certain directors, officers and employees
and, in some instances, significant shareholders. The criteria used by gaming authorities to make determinations as to who
requires a finding of suitability or the suitability of an applicant to conduct gaming operations varies among jurisdictions,
but generally requires extensive and detailed application disclosures followed by a thorough investigation. Gaming
authorities typically have broad discretion in determining whether an applicant should be found suitable to conduct
operations within a given jurisdiction. If any gaming authority with jurisdiction over our business were to find an
applicable officer, director, employee or significant shareholder of ours unsuitable for licensing or unsuitable to continue
having a relationship with us, we would be required to sever our relationship with that person. Furthermore, such gaming
authorities may require us to terminate the employment of any person who refuses to file required applications. Either result
could have a material adverse effect on our business, operations and prospects. See &ldquo;<I>Business of DraftKings and
SBTech&nbsp;&mdash; Government Regulation</I>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition, the Proposed Charter provides
that any common stock or other equity securities of New DraftKings owned or controlled by any stockholder whom the New DraftKings
board of directors determines in good faith (following consultation with reputable outside gaming regulatory counsel), pursuant
to a resolution adopted by the unanimous affirmative vote of all of the disinterested members of the New DraftKings board of directors,
is an unsuitable person, will be subject to mandatory sale and transfer to either New DraftKings or one or more third-party transferees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Additionally, a gaming regulatory body may
refuse to issue or renew a gaming license or restrict or condition the same, based on the past or present activities of DraftKings,
SBT, or our current or former directors, officers, employees, shareholders or third parties with whom we have relationships, which
could adversely affect our operations or financial condition. If additional gaming regulations are adopted in a jurisdiction in
which we operate, such regulations could impose restrictions or costs that could have a significant adverse effect on us. From
time to time, various proposals are introduced in the legislatures of some of the jurisdictions in which we have existing or planned
operations that, if enacted, could adversely affect our directors, officers, key employees, or other aspects of the company&rsquo;s
operations. To date, we have obtained all governmental licenses, findings of suitability, registrations, permits and approvals
necessary for our operations. However, we can give no assurance that any additional licenses, permits and approvals that may be
required will be given or that existing ones will be renewed or will not be revoked. Renewal is subject to, among other things,
continued satisfaction of suitability requirements of our directors, officers, key employees and shareholders. Any failure to renew
or maintain our licenses or to receive new licenses when necessary would have a material adverse effect on us.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Due to the nature of our business, we are subject to taxation
in a number of jurisdictions and changes in, or new interpretation of, tax laws, tax rulings or their application by tax authorities
could result in additional tax liabilities and could materially affect our financial condition and results of operations. SBT&rsquo;s
historic operating structure afforded it a relatively low effective corporate tax rate, and we expect following the completion
of the Business Combination the combined company will have a higher effective corporate tax rate.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our tax obligations will be varied and include
U.S. federal, state and international taxes due to the nature of the DraftKings and SBT business. The tax laws that will be applicable
to our business are subject to interpretation, and significant judgment will be required in determining our worldwide provision
for income taxes. In the course of our business, there will be many transactions and calculations where the ultimate tax determination
is uncertain. For example, compliance with the 2017 United States Tax Cuts and Jobs Act (&ldquo;TCJA&rdquo;) may require the collection
of information not regularly produced within our Company, the use of estimates in our consolidated financial statements, and the
exercise of significant judgment in accounting for its provisions. As regulations and guidance evolve with respect to the TCJA,
and as we gather more information and perform more analysis, our results may differ from previous estimates and may materially
affect our consolidated financial statements.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The gaming industry represents a significant
source of tax revenue to the jurisdictions in which we will operate. Gaming companies and business-to-business providers in the
gaming industry (directly and/or indirectly by way of their commercial relationships with operators) are currently subject to significant
taxes and fees in addition to normal corporate income taxes, and such taxes and fees are subject to increase at any time. From
time to time, various legislators and other government officials have proposed and adopted changes in tax laws, or in the administration
or interpretation of such laws, affecting the gaming industry. In addition, any worsening of economic conditions and the large
number of jurisdictions with significant current or projected budget deficits could intensify the efforts of governments to raise
revenues through increases in gaming taxes and/or other taxes. It is not possible to determine with certainty the likelihood of
changes in tax laws or in the administration or interpretation or enforcement of such laws. Any material increase, or the adoption
of additional taxes or fees, could have a material adverse effect on our business, financial condition, results of operations and
prospects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Additionally, tax authorities may
impose indirect taxes on Internet-related commercial activity based on existing statutes and regulations which, in some
cases, were established prior to the advent of the Internet. Tax authorities may interpret laws originally enacted for mature
industries and apply it to newer industries, such as DraftKings. The application of such laws may be inconsistent from
jurisdiction to jurisdiction. Our in-jurisdiction activities may vary from period to period which could result in differences
in nexus from period to period. As of December&nbsp;31, 2019 and 2018, DraftKings&rsquo; estimated contingent liability for
indirect tax liabilities was $35.9&nbsp;million and $27.2&nbsp;million, respectively. DraftKings&rsquo; estimated contingent
liability for indirect taxes represents its best estimate of tax liability for jurisdictions in which it believes taxation is
probable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We are subject to periodic review and audit
by domestic and foreign tax authorities. Tax authorities may disagree with certain positions DraftKings or SBT has taken or that
we will take, and any adverse outcome of such a review or audit could have a negative effect on our business, financial condition
and results of operations. Although we believe that our tax provisions, positions and estimates are reasonable and appropriate,
tax authorities may disagree with certain positions we have taken. In addition, economic and political pressures to increase tax
revenue in various jurisdictions may make resolving tax disputes favorably more difficult. DraftKings is currently under Internal
Revenue Service audit for prior tax&nbsp;years, with the primary unresolved issues relating to excise taxation of fantasy sports
contests and informational reporting and withholding. The final resolution of that audit, and other audits or litigation, may differ
from the amounts recorded in DraftKings&rsquo; consolidated financial statements included herein and may materially affect our
consolidated financial statements in the period or periods in which that determination is made.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Although SBT&rsquo;s corporate and tax structure
resulted in relatively low effective corporate tax rate for the business, we cannot guarantee the same tax efficiency upon the
completion of the Business Combination due to the change in corporate structures, as well as developments in the cross-border taxation
of international businesses with particular focus on the digital economy, as contemplated under the Base Erosion and Profit Shifting
project and transfer pricing legislation. Further, in light of such structure, the combined business may be exposed to a substantial
tax liability if the relevant authorities raise claims with regards to SBT&rsquo;s tax status in various jurisdictions, including
in particular the manner in which it allocated or allocates profit amongst relevant jurisdictions for tax purposes.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Failure to protect or enforce our intellectual property
rights or the costs involved in such enforcement could harm our business, financial condition and results of operations.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We will rely on trademark, copyright, patent,
trade secret, and domain-name-protection laws to protect our proprietary rights. In the United States and internationally, DraftKings
and SBT have filed various applications to protect aspects of their intellectual property, and currently hold a number of issued
patents in multiple jurisdictions. In the future we may acquire additional patents or patent portfolios, which could require significant
cash expenditures. However, third parties may knowingly or unknowingly infringe our proprietary rights, third parties may challenge
proprietary rights held by us, and pending and future trademark and patent applications may not be approved. In addition, effective
intellectual property protection may not be available in every country in which we operate or intend to operate our business. In
any of these cases, we may be required to expend significant time and expense to prevent infringement or to enforce our rights.
There can be no assurance that others will not offer products or services that are substantially similar to ours and compete with
our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Circumstances outside our control could
pose a threat to our intellectual property rights. For example, effective intellectual property protection may not be available
in the United States or other countries from which our DFS, Sportsbook and iGaming product offerings or platforms are accessible.
Also, the efforts we have taken to protect our proprietary rights may not be sufficient or effective. Any significant impairment
of our intellectual property rights could harm our business or our ability to compete. Also, protecting our intellectual property
rights is costly and time-consuming. Any unauthorized disclosure or use of our intellectual property could make it more expensive
to do business, thereby harming our operating results. Furthermore, if we are unable to protect our proprietary rights or prevent
unauthorized use or appropriation by third parties, the value of our brand and other intangible assets may be diminished, and competitors
may be able to more effectively mimic our offerings and service. Any of these events could seriously harm our business.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We will rely on licenses to use the intellectual property
rights of third parties which are incorporated into our products and services. Failure to renew or expand existing licenses may
require us to modify, limit or discontinue certain offerings, which could materially affect our business, financial condition and
results of operations.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We will rely on products, technologies and
intellectual property that we license from third parties, for use in our business-to-business and business-to-consumers offerings.
Substantially all of our offerings and services use intellectual property licensed from third parties. The future success of our
business may depend, in part, on our ability to obtain, retain and/or expand licenses for popular technologies and games in a competitive
market. We cannot assure that these third-party licenses, or support for such licensed products and technologies, will continue
to be available to us on commercially reasonable terms, if at all. In the event that we cannot renew and/or expand existing licenses,
we may be required to discontinue or limit our use of the products that include or incorporate the licensed intellectual property.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Some of our license agreements contain minimum
guaranteed royalty payments to the third party. If we are unable to generate sufficient revenue to offset the minimum guaranteed
royalty payments, it could have a material adverse effect on our results of operations, cash flows and financial condition. Our
license agreements generally allow for assignment in the event of a strategic transaction but contain some limited termination
rights post-assignment. Certain of our license agreements grant the licensor rights to audit our use of their intellectual property.
Disputes with licensors over uses or terms could result in the payment of additional royalties or penalties by us, cancellation
or non-renewal of the underlying license or litigation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The regulatory review process and licensing
requirements also may preclude us from using technologies owned or developed by third parties if those parties are unwilling to
subject themselves to regulatory review or do not meet regulatory requirements. Some gaming authorities require gaming manufacturers
to obtain approval before engaging in certain transactions, such as acquisitions, mergers, reorganizations, financings, stock offerings
and share repurchases. Obtaining such approvals can be costly and time consuming, and we cannot assure that such approvals will
be granted or that the approval process will not result in delays or disruptions to our strategic objectives.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our insurance may not provide adequate levels of coverage
against claims.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We intend to maintain insurance that we
believe is customary for businesses of our size and type. However, there are types of losses we may incur that cannot be insured
against or that we believe are not economically reasonable to insure. Moreover, any loss incurred could exceed policy limits and
policy payments made to us may not be made on a timely basis. Such losses could adversely affect our business prospects, results
of operations, cash flows and financial condition.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Risk Factors Relating to the Business Combination and Integration
of DraftKings&rsquo; and SBTech&rsquo;s Businesses</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Each of DEAC, DraftKings and SBT have incurred and will
incur substantial costs in connection with the Business Combination and related transactions, such as legal, accounting, consulting
and financial advisory fees.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As part of the Business Combination, each
of DEAC, DraftKings and SBT are utilizing professional service firms for legal, accounting and financial advisory. Although the
parties have been provided with estimates of the costs for each advisory firm, the total actual costs may exceed those estimates.
In addition, DraftKings is retaining consulting services to assist in the integration of the businesses, including but not limited
to organizational decisions, combined company business process design, cultural integration and go-to-market integration. These
consulting services may extend beyond the current estimated time frame thus resulting in higher than expected costs.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>While DEAC, DraftKings and SBT work to complete the Business
Combination and integrate the DraftKings and SBT businesses and operations, management&rsquo;s focus and resources may be diverted
from operational matters and other strategic opportunities.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Successful integration of SBT&rsquo;s operations,
sports betting and gaming technology and personnel into those of DraftKings may place a significant burden on management and other
internal resources. The diversion of management&rsquo;s attention and any difficulties encountered in the transition and integration
process could harm New DraftKings&rsquo; business, financial condition, results of operations and prospects. In addition, uncertainty
about the effect of the Business Combination on DraftKings&rsquo; and SBT&rsquo;s systems, employees, customers, partners, and
other third parties, including regulators, may have an adverse effect on New DraftKings. These uncertainties may impair New DraftKings&rsquo;
ability to attract, retain and motivate key personnel for a period of time after the Business Combination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Furthermore, the overall integration of
the businesses may result in material unanticipated problems, expenses, liabilities, competitive responses, and loss of customers
and other relationships. The difficulties of combining the operations of the companies include, among others, difficulties in integrating
operations and systems; conforming standards, controls, procedures and accounting and other policies, business cultures and compensation
structures; assimilating employees, including possible culture conflicts and different opinions on technical decisions and product
roadmaps; managing the expanded operations of a larger and more complex company, including coordinating a geographically dispersed
organization; and keeping existing customers and obtaining new customers. Many of these factors will be outside our control and
any one of them could result in increased costs, decreases in the amount of expected revenues and diversion of management&rsquo;s
time and energy, which could materially impact New DraftKings&rsquo; business, financial condition and results of operations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>DraftKings&rsquo; and SBT&rsquo;s operations were restricted
during the pendency of the Business Combination pursuant to terms of the BCA.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Prior to the consummation of the Business
Combination, SBT was subject to customary interim operating covenants relating to carrying on its business in the ordinary course
of business and is also subject to customary restrictions on actions that may be taken during such period. As a result, SBT may
have been unable, during the pendency of the Business Combination, to make certain acquisitions and capital expenditures, borrow
money and otherwise pursue other actions, even if such actions would prove beneficial.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DraftKings was also subject to certain interim
operating covenants and restrictions relating to fundamental changes to its business and capital structure prior to the consummation
of the Business Combination. DraftKings may have been unable, during the pendency of the Business Combination, to undertake certain
actions in connection with making dividends or reducing share capital and otherwise pursue other actions, even if such actions
would have proven to be beneficial.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Uncertainty about the effect of the Business Combination
may affect our ability to retain key employees and integrate management structures and may materially impact the management, strategy
and results of our operation as a combined company.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Uncertainty about the effect of the Business
Combination on DraftKings&rsquo; and SBT&rsquo;s business, employees, customers, third parties with whom DraftKings and SBT have
relationships, and other third parties, including regulators, may have an adverse effect on New DraftKings. These uncertainties
may impair New DraftKings&rsquo; ability to attract, retain and motivate key personnel for a period of time after the Business
Combination. If key employees depart because of issues related to the uncertainty and difficulty of integration or a desire not
to remain with New DraftKings, our business could be harmed.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We may incur successor liabilities due to conduct arising
prior to the completion of the Business Combination.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">New DraftKings may be subject to
certain liabilities of DraftKings and SBT. DraftKings and SBT at times may each become subject to litigation claims in the
operation of its business, including, but not limited to, with respect to employee matters and contract matters. From time to
time, DraftKings and SBT may also face intellectual property infringement, misappropriation, or invalidity/non-infringement
claims from third parties, and some of these claims may lead to litigation. DraftKings and SBT may initiate claims to assert
or defend their own intellectual property against third parties. Any litigation may be expensive and time-consuming and could
divert management&rsquo;s attention from its business and negatively affect its operating results or financial condition. The
outcome of any litigation cannot be guaranteed and adverse outcomes can affect New DraftKings, DraftKings and SBT
negatively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DraftKings and SBT may also face inquiry
and investigation by governmental authorities, which could in turn lead to fines, as the regulatory landscape of sport betting
and iGaming changes.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Some of DraftKings&rsquo; or SBT&rsquo;s existing agreements
contain change in control or early termination rights that may be implicated by the Business Combination.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Parties with which DraftKings or SBT currently
does business or may do business in the future, including customers and suppliers, may experience uncertainty associated with the
Business Combination, including with respect to current or future business relationships with DraftKings, SBT and New DraftKings.
As a result, the business relationships of DraftKings or SBT may be subject to disruptions if customers, suppliers or others attempt
to negotiate changes in existing business relationships or consider entering into business relationships with parties other than
DraftKings, SBT and New DraftKings. For example, certain customers, suppliers and third-party providers may have contractual consent
rights or termination rights that may be triggered by a change of control or assignment of the rights and obligations of contracts
that will be transferred in the Business Combination. These disruptions could harm our relationships with existing third parties
with whom DraftKings and SBT have relationships and preclude us from attracting new third parties, all of which could have a material
adverse effect on our business, financial condition and results of operations, cash flows, and/or share price of New DraftKings.
The effect of such disruptions could be exacerbated by a delay in the consummation of the Business Combination.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Some of DraftKings&rsquo; or SBT&rsquo;s relationships
with its customers and suppliers may experience disruptions in connection with the Business Combination, which may limit New DraftKings&rsquo;
business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Parties with which DraftKings or SBT currently
does business or may do business in the future, including customers and suppliers, may experience uncertainty associated with the
Business Combination, including with respect to future business relationships with the other or with New DraftKings. As a result,
the business relationships of DraftKings, SBT and New DraftKings may be subject to disruptions if customers, suppliers, or others
attempt to renegotiate changes in existing business relationships or consider entering into business relationships with parties
other than DraftKings, SBT or New DraftKings, in respect of DraftKings, SBT or New DraftKings. For example, certain customers and
collaborators of DraftKings or SBT may exercise contractual termination rights as they arise or elect to not renew contracts with
DraftKings or SBT. These disruptions could harm relationships with existing customers, suppliers or others and preclude us from
attracting new users, all of which could have a material adverse effect on our business, financial condition and results of operations
of DraftKings, SBT or New DraftKings. The effect of such disruptions could be exacerbated by a delay in the consummation of the
Business Combination.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>SBT&rsquo;s and DraftKings&rsquo; licenses and applications
for licenses in certain jurisdictions may be subject to a review procedure or an ownership change consent requirement by regulators
as a result of the Business Combination (including following its consummation), which could result in a license or application
being delayed, canceled, withheld, or subjected to additional requirements or conditions.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Both SBT and DraftKings hold certain licenses
and have filed certain applications for licenses to operate iGaming and sports-betting products in various jurisdictions. The regulatory
bodies that oversee and issue these licenses and review such applications regularly review corporate transactions involving ownership
changes to determine whether the ownership changes have any impact on current licenses held by, or applications pending with respect
to, either company. Such regulatory bodies also have broad discretion in determining whether to deny applications, cancel existing
licenses, withhold new licenses or require the businesses to comply with additional conditions as a result of a business combination.
We cannot assure you that we will be able to obtain regulatory review of our applications or licenses in a timely fashion or without
any limitations as a result of the Business Combination.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Although DraftKings management and the management of
SBT expect that the Business Combination will produce substantial synergies, the integration of the two companies,
incorporated in different countries, with geographically dispersed operations, and with different business cultures and
compensation structures, presents significant management challenges. There can be no assurance that this integration, and the
synergies expected to result from that integration, will be achieved as rapidly or to the extent currently
anticipated.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Business Combination involves the integration
of two businesses that currently operate as independent businesses. Each of the companies will be required to devote management
attention and resources to integrating their business practices and operations following the Closing, and prior to the Business
Combination, management attention and resources will be required to plan for such integration. The companies may encounter potential
difficulties in the integration process including the following:</P>

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt; width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
inability to successfully integrate the two businesses, including operations, technologies, products and services, in a manner
that permits DraftKings, SBT or New DraftKings to achieve the cost savings and operating synergies anticipated to result from
the Business Combination, which could result in the anticipated benefits of the Business Combination not being realized partly
or wholly in the time frame currently anticipated or at all;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the loss of customers as a result of certain customers
of either or both of the two businesses deciding not to continue to do business with DraftKings or SBT, or deciding to decrease
their amount of business in order to reduce their reliance on a single company;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
necessity of coordinating geographically separated organizations, systems and facilities;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">potential unknown liabilities and unforeseen expenses,
delays or regulatory conditions associated with the Business Combination;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the integration of personnel with diverse business backgrounds
and business cultures, while maintaining focus on providing consistent, high-quality products and services;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the consolidation and rationalization of information
technology platforms and administrative infrastructures as well as accounting systems and related financial reporting activities;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the potential weakening of relationships with regulators;
and</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the challenge of preserving important relationships
of both DraftKings and SBT and resolving potential conflicts that may arise.</FONT></TD></TR>
</TABLE>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Furthermore, it is possible that the integration
process could result in the loss of talented employees or skilled workers of DraftKings and SBT. The loss of talented employees
and skilled workers could adversely affect DraftKings&rsquo;, SBT&rsquo;s or New DraftKings&rsquo; ability to successfully conduct
their respective businesses because of such employees&rsquo; experience and knowledge of the respective business. In addition,
DraftKings, SBT, or New DraftKings could be adversely affected by the diversion of management&rsquo;s attention and any delays
or difficulties encountered in connection with the integration of DraftKings and SBT. The process of integrating operations could
cause an interruption of, or loss of momentum in, the activities of the businesses. If DraftKings, SBT or New DraftKings experience
difficulties with the integration process, the anticipated benefits of the Business Combination may not be realized fully or at
all, or may take longer to realize than expected. These integration matters could have an adverse effect on the business, results
of operations, financial condition or prospects of DraftKings, SBT, or New DraftKings during this transition period and for an
undetermined period after completion of the Business Combination.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>SBT&rsquo;s business includes a B2B business model, primarily
in international jurisdictions, which business depends on the underlying financial performance of its direct operators and its
resellers. As a material part of SBT&rsquo;s revenue is currently generated through resellers and direct sales to operators, a
decline in such resellers&rsquo; or direct operators&rsquo; financial performance or a termination of some or all of the agreements
with such resellers or operators could have a material adverse effect on SBT&rsquo;s or New DraftKings&rsquo; business.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">SBT offers their services directly to operators
in Europe and uses a reseller model in Asia. SBT&rsquo;s financial performance depends on the underlying financial performance
of its direct operators and its resellers. In particular, SBT relies primarily on one reseller for its Asia revenue. This reseller
accounted for approximately 46% of SBT&rsquo;s revenue in the year ended December&nbsp;31, 2019. An adverse decline in the underlying
financial performance of key SBT operators or resellers, or a termination of some or all of the agreements with such resellers
or operators, could have a material adverse effect on SBT&rsquo;s or New DraftKings&rsquo; business.</P>

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

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

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<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"><B><I>Given the increased number of jurisdictions in which we
will operate after the Business Combination, we may experience delays in the licensing application and approval process, depending
on the regulatory requirements in each relevant jurisdiction.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Regulated gaming license applications frequently
involve an in-depth suitability review of the applicant&rsquo;s business and associated individuals including certain officers,
directors, key employees and significant shareholders. These applications take substantial time to prepare and submit, often requiring
the production of multiple&nbsp;years&rsquo; worth of business and personal financial records and disclosures which take considerable
time to compile, followed by the regulator&rsquo;s investigatory process which may take&nbsp;months or even&nbsp;years to complete.
Due to the increased number of jurisdictions in which we will operate after the Business Combination, as well as additional jurisdictions
which may pass laws authorizing and requiring licensure to operate sports betting, iGaming or daily fantasy sports, we may experience
delays in the licensing application and approval process due to the volume of application materials we must prepare and submit
and the number of jurisdictions for which information is required. Many jurisdictions in which we are already licensed will require
additional applications and disclosures as a result of the Business Combination which may also contribute to delays in the licensing
application and approval process in additional jurisdictions.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>SBT has historically relied on a less formal financial
reporting system and only began integrating a group-wide consistent financial reporting system recently, which may affect our ability
to report historical financial performance accurately.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In January&nbsp;2018, SBT implemented a
global enterprise resource planning system which produces periodic consolidated financial reports. Prior to January&nbsp;2018,
SBT relied on internally generated financial reporting which consolidated a number of financial booking systems. It is possible
that historical financial information was not fully aligned from the less formal system to the new system, which could affect the
accuracy of historical financial information.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>SBT&rsquo;s growth depends on its ability to develop and
sell competitive products and services. As the industry matures, increased competition and price pressures may materialize.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">SBT&rsquo;s financial performance and future
growth prospects are partly dependent on its ability to develop competitive products and services for license to operators and
resellers. However, there is no certainty that SBT will be able to develop products and services in a timely manner that its customers
will want to purchase. In addition, the global online gaming industry is becoming increasingly more characterized by competitive
pressures and failure by SBT to develop and sell appropriately competitive and priced products and services could negatively impact
SBT&rsquo;s financial performance.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>SBT&rsquo;s business, which includes significant international
operations, is likely to expose New DraftKings to foreign currency transaction and translation risks. As a result, changes in the
valuation of the U.S. dollar in relation to other currencies could have positive or negative effects on New DraftKings&rsquo; profit
and financial position.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">SBT&rsquo;s global operations are likely
to expose New DraftKings to foreign currency transaction and translation risks. Currency transaction risk occurs in conjunction
with purchases and sales of products and services that are made in currencies other than the local currency of the subsidiary involved,
for example if the parent company pays, or transfers U.S. dollars to a subsidiary in order to fund its expenses in local currencies.
Currency translation risks occurs when the income statement and balance sheet of a foreign subsidiary is converted into currencies
other than the local currency of the company involved, for example when the results of these subsidiaries are consolidated in the
results of a parent company with a different reporting currency. As a result, SBT has historically been, and New DraftKings is
expected to be, exposed to adverse movements in foreign currency exchange rates, which may adversely impact New DraftKings&rsquo;
financial positions and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Due to SBT&rsquo;s global presence, a
significant majority of its revenues, operating expenses and assets and liabilities are non-U.S. dollar denominated and
therefore subject to foreign currency fluctuation once consolidated in New DraftKings, whose functional currency is expected
to be the U.S. dollar. New DraftKings will face exposure to currency exchange rates as a result of the growth in its non-U.S.
dollar denominated operating expense across Europe. For example, an increase in the value of non-U.S. dollar currencies
against the U.S. dollar could increase costs for delivery of products, services and also increase cost of local operating
expenses and procurement of materials or services that New DraftKings must purchase in foreign currencies by increasing labor
and other costs that are denominated in such local currencies. These risks related to exchange rate fluctuations may increase
in future periods as New DraftKings&rsquo; operations outside of the United States expand.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">New DraftKings&rsquo; foreign currency exposure
will reflect SBT&rsquo;s historical operations, which have been primarily in Euro (reflecting over 90% of its revenue in all reporting
periods), which is SBT&rsquo;s functional and reporting currency, and the British pound (which accounted for 10.2% and 5.0% of
SBT&rsquo;s revenue in the years ended December&nbsp;31, 2019 and 2018, respectively). See &ldquo;<I>SBT&rsquo;s Management&rsquo;s
Discussion and Analysis of Financial Condition and Results of Operations&#8201;&mdash;&#8201;Quantitative and Qualitative Disclosures
about Market Risk&#8201;&mdash;&#8201;Foreign Currency Exchange Rate Risk</I>.&rdquo; SBT has not historically hedged its foreign
currency transaction or translation exposure, though New DraftKings may consider doing so in the future. Foreign currency exchange
rate volatility, as well as the cost of any hedging arrangements entered into in the future, may negatively affect New DraftKings&rsquo;
financial position and results of operations, and may adversely impact the comparability of results between periods.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>DraftKings depends on the Kambi platform to operate its
Sportsbook and, following the completion of the Business Combination, we intend to transition these operations to the SBT platform
over time. As we plan and implement this transition, we may face a range of issues including the possibility that we may suffer
service disruptions or impediments that make it more difficult for our customers to access our product offerings, all which could
have a material adverse effect on our business, financial condition and results of operations.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DraftKings currently depends on Kambi and
their platform to operate its Sportsbook product offering; however, following the completion of the Business Combination, we intend
to transition the Sportsbook platform to that of SBT&rsquo;s over time. Any transition of the Sportsbook platform currently provided
by Kambi to that of SBT&rsquo;s will be difficult to implement and could cause us to incur significant time and expense. We have
committed to pay Kambi a&nbsp;percentage of contractual net gaming revenue that tiers depending on volume over the next four&nbsp;years
with the ability to terminate early after December&nbsp;2020. Given this, any significant disruption of, or interference with,
our use of Kambi would negatively impact our operations and our business could be seriously harmed. If our users are not able to
access Sportsbook or encounter difficulties in doing so, we may lose users, and our business, financial condition and results of
operations could be adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition, Kambi may take actions beyond
our control that could seriously harm our business, including discontinuing or limiting our access to their sports betting platform;
increasing pricing terms; terminating or seeking to terminate our contractual relationship altogether; establishing more favorable
relationships with one or more of our competitors; or modifying or interpreting its terms of service or other policies in a manner
that impacts our ability to run our business and operations.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Risk Factors Relating to DEAC and the Business Combination</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Directors and officers of DEAC have potential conflicts
of interest in recommending that stockholders vote in favor of approval of the Business Combination.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">When considering DEAC&rsquo;s board of directors&rsquo; recommendation
that its stockholders vote in favor of the approval of the Business Combination, DEAC Stockholders should be aware that directors
and officers of DEAC have interests in the Business Combination that may be different from, or in addition to, the interests of
DEAC Stockholders. These interests include:</P>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR STYLE="vertical-align: top"><TD STYLE="width: 20px"></TD><TD STYLE="width: 20px">&#8226;</TD><TD>If
DEAC is unable to complete its initial business combination by May&nbsp;14, 2021, DEAC will: (i)&nbsp;cease all operations except
for the purpose of winding up, (ii) as promptly as reasonably possible but not more than 10 business days thereafter, redeem the
public shares and (iii) as promptly as reasonably possible following such redemption, subject to the approval of our remaining
stockholders and DEAC&rsquo;s Board, liquidate and dissolve, subject in each case to DEAC&rsquo;s obligations under the DGCL to
provide for claims of creditors and the requirements of other applicable law. There will be no redemption rights or liquidating
distributions with respect to DEAC&rsquo;s warrants, which will expire worthless if DEAC fails to complete its initial business
combination by May&nbsp;14, 2021. DEAC&rsquo;s initial stockholders purchased the founder shares prior to DEAC&rsquo;s initial
public offering for an aggregate purchase price of $25,000. Upon the Closing, such founder shares will be exchanged for 10,000,000
shares of New DraftKings Class&nbsp;A common stock, 720,000 of which will be forfeited and 5,280,000 of which will be deposited
into escrow and released in accordance with the terms of the BCA. Such securities, if unrestricted and freely tradable would be
valued at approximately $142,500,000, based on the closing price of $14.25 per share of DEAC Class&nbsp;A common stock on The
Nasdaq Capital Market on April 13, 2020.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR STYLE="vertical-align: top"><TD STYLE="width: 20px"></TD><TD STYLE="width: 20px">&#8226;</TD><TD>Simultaneously with the closing of DEAC&rsquo;s initial public offering, DEAC consummated the sale of 6,333,334 private
                                                                                                                                                                                                      placement warrants at a price of $1.50 per warrant in a private placement to its initial stockholders, including its
                                                                                                                                                                                                      independent directors. The warrants are each exercisable commencing 30&nbsp;days following the Closing for one share of New
                                                                                                                                                                                                      DraftKings Class&nbsp;A common stock at $11.50 per share. If DEAC does not consummate a business combination transaction by
                                                                                                                                                                                                      May&nbsp;14, 2021, then the proceeds from the sale of the private placement warrants will be part of the liquidating
                                                                                                                                                                                                      distribution to the public stockholders and the warrants held by DEAC&rsquo;s initial stockholders will be worthless. The
                                                                                                                                                                                                      warrants held by DEAC&rsquo;s initial stockholders had an aggregate market value of approximately $25,333,336 based upon the
                                                                                                                                                                                                      closing price of $4.00 per warrant on The Nasdaq Capital Market on April 13, 2020.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: black"><SUP></SUP></FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR STYLE="vertical-align: top"><TD STYLE="width: 20px"></TD><TD STYLE="width: 20px">&#8226;</TD><TD>The
Sponsor and DEAC&rsquo;s officers and directors will lose their entire investment in DEAC if DEAC does not complete a business
combination by May&nbsp;14, 2021. Certain of them may continue to serve as officers and/or directors of New DraftKings after the
Closing. As such, in the future they may receive any cash fees, stock options or stock awards that the New DraftKings board of
directors determines to pay to its directors and/or officers.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR STYLE="vertical-align: top"><TD STYLE="width: 20px"></TD><TD STYLE="width: 20px">&#8226;</TD><TD>DEAC&rsquo;s
initial stockholders and its officers and directors have agreed to waive their rights to liquidating distributions from the trust
account with respect to their founder shares if DEAC fails to complete a business combination by May&nbsp;14, 2021.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR STYLE="vertical-align: top"><TD STYLE="width: 20px"></TD><TD STYLE="width: 20px">&#8226;</TD><TD>In
order to protect the amounts held in the trust account, the Sponsor has agreed that it will be liable to DEAC if and to the extent
any claims by a vendor for services rendered or products sold to DEAC, or a prospective target business with which we have entered
into a transaction agreement, reduce the amount of funds in the trust account. This liability will not apply with respect to any
claims by a third party who executed a waiver of any right, title, interest or claim of any kind in or to any monies held in the
trust account or to any claims under DEAC&rsquo;s indemnity of the underwriters of DEAC&rsquo;s initial public offering against
certain liabilities, including liabilities under the Securities Act.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR STYLE="vertical-align: top"><TD STYLE="width: 20px"></TD><TD STYLE="width: 20px">&#8226;</TD><TD>Following
the Closing, the Sponsor would be entitled to the repayment of any working capital loan and advances that have been made to DEAC
and remain outstanding. As of the date of this prospectus, the Sponsor has not made any advances to DEAC for working capital expenses.
If DEAC does not complete an initial business combination within the required period, DEAC may use a portion of its working capital
held outside the trust account to repay the working capital loans, but no proceeds held in the trust account would be used to
repay the working capital loans.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR STYLE="vertical-align: top"><TD STYLE="width: 20px"></TD><TD STYLE="width: 20px">&#8226;</TD><TD>Following
the consummation of the Business Combination, we will continue to indemnify DEAC&rsquo;s existing directors and officers and will
maintain a directors&rsquo; and officers&rsquo; liability insurance policy.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR STYLE="vertical-align: top"><TD STYLE="width: 20px"></TD><TD STYLE="width: 20px">&#8226;</TD><TD>Upon
the Closing, subject to the terms and conditions of the BCA, the Sponsor and DEAC&rsquo;s officers and directors and their respective
affiliates may be entitled to reimbursement for any reasonable out-of-pocket expenses related to identifying, investigating and
consummating an initial business combination, and repayment of any other loans, if any, and on such terms as to be determined
by DEAC from time to time, made by the Sponsor or certain of DEAC&rsquo;s officers and directors to finance transaction costs
in connection with an intended initial business combination.</TD></TR></TABLE>



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



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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">These financial interests of the initial
stockholders, officers and directors and entities affiliated with them may have influenced their decision to approve the Business
Combination. You should consider these interests when evaluating the Business Combination.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>DEAC&rsquo;s initial stockholders have agreed to vote
in favor of the Business Combination, regardless of how DEAC&rsquo;s public stockholders vote.</I></B></P>



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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DEAC&rsquo;s initial stockholders have agreed
to vote their shares in favor of the Business Combination. The initial stockholders own approximately 20% of our outstanding shares
prior to the Business Combination. Accordingly, it is more likely that the necessary stockholder approval for the Business Combination
will be received than would be the case if our initial stockholders had agreed to vote their shares in accordance with the majority
of the votes cast by DEAC&rsquo;s public stockholders.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>DEAC&rsquo;s initial stockholders, directors, officers,
advisors and their affiliates may elect to purchase shares or public warrants from public stockholders, which may influence a vote
on the Business Combination and reduce the public &ldquo;float&rdquo; of our common stock.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DEAC&rsquo;s initial stockholders, directors,
officers, advisors or their affiliates may purchase public shares or public warrants in privately negotiated transactions or in
the open market either prior to or following the completion of the Business Combination, although they are under no obligation
to do so. However, other than as expressly stated herein, they have no current commitments, plans or intentions to engage in such
transactions and have not formulated any terms or conditions for any such transactions. None of the funds in the trust account
will be used to purchase shares or public warrants in such transactions.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In the event that DEAC&rsquo;s initial stockholders,
directors, officers, advisors or their affiliates purchase public shares in privately negotiated transactions from public stockholders
who have already elected to exercise their redemption rights, such selling stockholders would be required to revoke their prior
elections to redeem their public shares. The purpose of any such purchases of public shares could be to vote such shares in favor
of the Business Combination and thereby increase the likelihood of obtaining stockholder approval of the Business Combination or
to satisfy a closing condition in the BCA that requires DEAC to have a certain amount of cash at the Closing, where it appears
that such requirement would otherwise not be met. Any such purchases of our securities may result in the completion of the Business
Combination that may not otherwise have been possible.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition, if such purchases are made,
the public &ldquo;float&rdquo; of DEAC&rsquo;s common stock and the number of beneficial holders of DEAC&rsquo;s securities may
be reduced, possibly making it difficult to maintain or obtain the quotation, listing or trading of DEAC&rsquo;s securities on
a national securities exchange.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Warrants will become exercisable for New DraftKings Class&nbsp;A
common stock, which would increase the number of shares eligible for future resale in the public market and result in dilution
to our stockholders.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Following the Business Combination, there
will be 13,333,333 outstanding public warrants to purchase 13,333,333 shares of New DraftKings Class&nbsp;A common stock at an
exercise price of $11.50 per share, which warrants will become exercisable 30&nbsp;days following the Closing. In addition, there
will be 6,333,332 private placement warrants outstanding exercisable for 6,333,332 shares of New DraftKings Class&nbsp;A common
stock at an exercise price of&#8201;&#8201;$11.50 per share. To the extent such warrants are exercised, additional shares of New
DraftKings Class&nbsp;A common stock will be issued, which will result in dilution to the holders of New DraftKings Class&nbsp;A
common stock and increase the number of shares eligible for resale in the public market. Sales of substantial numbers of such shares
in the public market could adversely affect the market price of New DraftKings Class&nbsp;A common stock.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We may redeem your unexpired warrants prior to their exercise
at a time that is disadvantageous to you, thereby making your warrants worthless.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">New DraftKings will have the ability to
redeem outstanding public warrants at any time after they become exercisable and prior to their expiration, at a price of&#8201;$0.01
per warrant, provided that the closing price of New DraftKings Class&nbsp;A common stock equals or exceeds $18.00 per share for
any 20 trading days within a 30 trading-day period ending on the third trading day prior to proper notice of such redemption provided
that on the date we give notice of redemption. If and when the warrants become redeemable by us, we may exercise our redemption
right even if we are unable to register or qualify the underlying securities for sale under all applicable state securities laws.
Redemption of the outstanding warrants could force holders (i)&nbsp;to exercise the warrants and pay the exercise price therefor
at a time when it may be disadvantageous to do so, (ii) to sell the warrants at the then-current market price when the holder might
otherwise wish to hold onto such warrants or (iii) to accept the nominal redemption price which, at the time the outstanding warrants
are called for redemption, is likely to be substantially less than the market value of the warrants. None of the private placement
warrants will be redeemable by us so long as they are held by their initial purchasers or their permitted transferees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition, we may redeem your warrants
after they become exercisable for a number of shares of New DraftKings Class&nbsp;A common stock determined based on the redemption
date and the fair market value of New DraftKings Class&nbsp;A common stock. Any such redemption may have similar consequences to
a cash redemption described above. In addition, such redemption may occur at a time when the warrants are &ldquo;out-of-the-money,&rdquo;
in which case you would lose any potential embedded value from a subsequent increase in the value of our common stock had your
warrants remained outstanding.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Even if we consummate the Business Combination, there
can be no assurance that the warrants will be in the money at the time they become exercisable, and they may expire worthless.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The exercise price for the outstanding warrants
is $11.50 per share of New DraftKings Class&nbsp;A common stock. There can be no assurance that the warrants will be in the money
following the time they become exercisable and prior to their expiration, and as such, the warrants may expire worthless.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our stockholders will experience immediate dilution as
a consequence of the issuance of New DraftKings Class&nbsp;A common stock as consideration in the Business Combination. Having
a minority share position may reduce the influence that our current stockholders have on the management of New DraftKings.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Assuming that no public stockholders exercise
their redemption rights in connection with the Business Combination, immediately after the consummation of the Business Combination,
DEAC&rsquo;s initial stockholders and public stockholders will hold 43,659,063 shares of New DraftKings Class&nbsp;A common stock,
or 13.9% of the outstanding Class A common stock. Assuming that our public stockholders holding 30,564,789 public shares exercise
their redemption rights in connection with the Business Combination, immediately after the consummation of the Business Combination,
DEAC&rsquo;s initial stockholders and public stockholders will hold 13,094,274 shares of New DraftKings Class&nbsp;A common stock,
or 4.6% of the outstanding Class A common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">There are currently outstanding an aggregate
of 19,666,667 warrants to acquire New DraftKings Class&nbsp;A common stock, which comprise 6,333,334 private placement warrants
held by DEAC&rsquo;s initial stockholders at the time of DEAC&rsquo;s initial public offering and 13,333,333 public warrants. Each
of DEAC&rsquo;s outstanding whole warrants is exercisable commencing 30&nbsp;days following the Closing for one share of New DraftKings
Class&nbsp;A common stock in accordance with its terms. Therefore, as of the date of this prospectus, if we assume that each outstanding
whole warrant is exercised and one share of New DraftKings Class&nbsp;A common stock is issued as a result of such exercise, with
payment to New DraftKings of the exercise price of&#8201;$11.50 per share, our fully-diluted share capital would increase by a
total of 19,666,667 shares, with approximately $226,166,670 paid to New DraftKings to exercise the warrants.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Subsequent to the consummation of the Business Combination,
we may be required to take write-downs or write-offs, restructuring and impairment or other charges that could have a significant
negative effect on our financial condition, results of operations and stock price, which could cause you to lose some or all of
your investment.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Although DEAC has conducted due diligence
on DraftKings and SBT, DEAC cannot assure you that this diligence revealed all material issues that may be present in their respective
businesses, that it would be possible to uncover all material issues through a customary amount of due diligence, or that factors
outside of DEAC&rsquo;s, DraftKings&rsquo; or SBT&rsquo;s control will not later arise. As a result, New DraftKings may be forced
to later write-down or write-off assets, restructure its operations, or incur impairment or other charges that could result in
losses. Even if the due diligence successfully identifies certain risks, unexpected risks may arise and previously known risks
may materialize in a manner not consistent with our preliminary risk analysis. Even though these charges may be non-cash items
and not have an immediate impact on our liquidity, the fact that New DraftKings reports charges of this nature could contribute
to negative market perceptions about New DraftKings or its securities. In addition, charges of this nature may cause New DraftKings
to violate net worth or other covenants to which it may be subject. Accordingly, any DEAC Stockholder who chooses to remain a stockholder
of New DraftKings following the Business Combination could suffer a reduction in the value of their shares. Such stockholders are
unlikely to have a remedy for such reduction in value unless they are able to successfully claim that the reduction was due to
the breach by DEAC&rsquo;s officers or directors of a duty of care or other fiduciary duty owed to them, or if they are able to
successfully bring a private claim under securities laws that the proxy solicitation relating to the Business Combination contained
an actionable material misstatement or material omission.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>If the benefits of the Business Combination do not meet
the expectations of investors or securities analysts, the market price of our securities may decline.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If the benefits of the Business Combination
do not meet the expectations of investors or securities analysts, the market price of DEAC&rsquo;s securities prior to the Closing
may decline. The market values of DEAC&rsquo;s securities at the time of the Business Combination may vary significantly from their
prices on the date the BCA was executed, the date of this prospectus, or the date on which our DEAC Stockholders vote on the Business
Combination. Because the number of shares to be issued pursuant to the BCA is based on the per share value of the amount in the
trust account and will not be adjusted to reflect any changes in the market price of DEAC&rsquo;s Class&nbsp;A common stock, the
market value of New DraftKings Class&nbsp;A common stock issued in the Business Combination may be higher or lower than the values
of these shares on earlier dates.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition, following the Business Combination,
fluctuations in the price of New DraftKings&rsquo; securities could contribute to the loss of all or part of your investment. Prior
to the Business Combination, there has not been a public market for the stock of any of DraftKings, SBT or New DraftKings and trading
in the shares of DEAC&rsquo;s Class&nbsp;A common stock has not been active. Accordingly, the valuation ascribed to New DraftKings
in the Business Combination may not be indicative of the price that will prevail in the trading market following the Business Combination.
If an active market for our securities develops and continues, the trading price of our securities following the Business Combination
could be volatile and subject to wide fluctuations in response to various factors, some of which are beyond our control. Any of
the factors listed below could have a material adverse effect on your investment in our securities and our securities may trade
at prices significantly below the price you paid for them. In such circumstances, the trading price of our securities may not recover
and may experience a further decline.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Factors affecting the trading price of New
DraftKings&rsquo; securities may include:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>actual or anticipated fluctuations in our quarterly financial results or the quarterly financial results of companies perceived
to be similar to us;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>changes in the market&rsquo;s expectations about our operating results;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>success of competitors;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>lack of adjacent competitors;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>our operating results failing to meet the expectation of securities analysts or investors in a particular period;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>changes in financial estimates and recommendations by securities analysts concerning New DraftKings or the industries in which
New DraftKings operates in general;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>operating and stock price performance of other companies that investors deem comparable to New DraftKings;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>our ability to market new and enhanced products and services on a timely basis;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>changes in laws and regulations affecting our business;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>commencement of, or involvement in, litigation involving New DraftKings;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>changes in New DraftKings&rsquo; capital structure, such as future issuances of securities or the incurrence of additional
debt;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the volume of shares of New DraftKings Class&nbsp;A common stock available for public sale;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>any major change in our board or management;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>sales of substantial amounts of New DraftKings Class&nbsp;A common stock by our directors, executive officers or significant
stockholders or the perception that such sales could occur; and</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>general economic and political conditions such as recessions, interest rates, fuel prices, international currency fluctuations
and acts of war or terrorism.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8203;&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Broad market and industry factors may materially
harm the market price of our securities irrespective of our operating performance. The stock market in general, and The Nasdaq
Stock Market have experienced price and volume fluctuations that have often been unrelated or disproportionate to the operating
performance of the particular companies affected. The trading prices and valuations of these stocks, and of our securities, may
not be predictable. A loss of investor confidence in the market for the stocks of other companies which investors perceive to be
similar to New DraftKings could depress our stock price regardless of our business, prospects, financial conditions or results
of operations. A decline in the market price of our securities also could adversely affect our ability to issue additional securities
and our ability to obtain additional financing in the future.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our actual financial position and results of operations
may differ materially from the unaudited pro&nbsp;forma financial information included in this prospectus.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The unaudited pro forma condensed combined
financial information included in this prospectus is presented for illustrative purposes only and is not necessarily indicative
of what our actual financial position or results of operations would have been had the Business Combination been completed on the
dates indicated. See &ldquo;<I>Unaudited Pro Forma Condensed Combined Financial Information</I>&rdquo; for more information.</P>



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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>There can be no assurance that we will be able to comply
with the continued listing standards of The Nasdaq Stock Market.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">New DraftKings Class&nbsp;A common stock
and warrants is expected to be listed on Nasdaq following the Business Combination. New DraftKings continued eligibility for listing
may depend on the number of our shares that are redeemed. If, after the Business Combination, Nasdaq delists New DraftKings Class&nbsp;A
common stock from trading on its exchange for failure to meet the listing standards, we and our stockholders could face significant
material adverse consequences including:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>a limited availability of market quotations for our securities;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>a determination that New DraftKings Class&nbsp;A common stock is a &ldquo;penny stock&rdquo; which will require brokers trading
in New DraftKings Class&nbsp;A common stock to adhere to more stringent rules, possibly resulting in a reduced level of trading
activity in the secondary trading market for New DraftKings Class&nbsp;A common stock;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>a limited amount of analyst coverage; and</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>a decreased ability to issue additional securities or obtain additional financing in the future.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8203;&nbsp;<B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Because New DraftKings will be a &ldquo;controlled company&rdquo;
under The Nasdaq Stock Market listing standards, our stockholders may not have certain corporate governance protections that are
available to stockholders of companies that are not controlled companies.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">So long as more than 50% of the voting
power for the election of directors of New DraftKings is held by an individual, a group or another company, New DraftKings
will qualify as a &ldquo;controlled company&rdquo; under The Nasdaq Stock Market listing requirements. Following the
completion of the Business Combination, Mr.&nbsp;Robins will control a majority of the voting power of our outstanding
capital stock. As a result, New DraftKings will be a &ldquo;controlled company&rdquo; under The Nasdaq Stock Market listing
standards and will not be subject to the requirements that would otherwise require us to have: (i)&nbsp;a majority of
independent directors; (ii) a nominating committee comprised solely of independent directors; (iii)&nbsp;compensation of our
executive officers determined by a majority of the independent directors or a compensation committee comprised solely of
independent directors; and (iv) director nominees selected, or recommended for the Board&rsquo;s selection, either by a
majority of the independent directors or a nominating committee comprised solely of independent directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Mr.&nbsp;Robins may have his interest in
New DraftKings diluted due to future equity issuances or his own actions in selling shares of Class&nbsp;A common stock, in each
case, which could result in a loss of the &ldquo;controlled company&rdquo; exemption under The Nasdaq Stock Market listing rules.
New DraftKings would then be required to comply with those provisions of The Nasdaq Stock Market listing requirements.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The dual class structure of New DraftKings common stock
will have the effect of concentrating voting power with New DraftKings&rsquo; Chief Executive Officer and Co-Founder, which will
limit an investor&rsquo;s ability to influence the outcome of important transactions, including a change in control.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Shares of New DraftKings Class&nbsp;B common
stock will have 10 votes per share, while shares of New DraftKings Class&nbsp;A common stock will have one vote per share. Upon
the consummation of the Business Combination, Mr.&nbsp;Robins, one of the founders of DraftKings, will hold all of the issued and
outstanding shares of New DraftKings Class&nbsp;B common stock. Accordingly, upon the consummation of the Business Combination,
Mr.&nbsp;Robins will hold approximately 90% of the voting power of New DraftKings&rsquo; capital stock on a fully-diluted basis
and will be able to control matters submitted to our stockholders for approval, including the election of directors, amendments
of our organizational documents and any merger, consolidation, sale of all or substantially all of our assets or other major corporate
transactions. Mr.&nbsp;Robins may have interests that differ from yours and may vote in a way with which you disagree and which
may be adverse to your interests. This concentrated control may have the effect of delaying, preventing or deterring a change in
control of New DraftKings, could deprive our stockholders of an opportunity to receive a premium for their capital stock as part
of a sale of New DraftKings, and might ultimately affect the market price of shares of New DraftKings Class&nbsp;A common stock.
For information about our dual class structure, see the section titled &ldquo;<I>Description of Securities.</I>&rdquo;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We cannot predict the impact New DraftKings&rsquo; dual
class structure may have on the stock price of New DraftKings Class&nbsp;A common stock.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We cannot predict whether New DraftKings&rsquo;
dual class structure will result in a lower or more volatile market price of New DraftKings Class&nbsp;A common stock or in adverse
publicity or other adverse consequences. For example, certain index providers have announced restrictions on including companies
with multiple-class share structures in certain of their indexes. In July&nbsp;2017, FTSE Russell and S&amp;P Dow Jones announced
that they would cease to allow most newly public companies utilizing dual or multi-class capital structures to be included in their
indices. Affected indices include the Russell 2000 and the S&amp;P 500, S&amp;P MidCap 400 and S&amp;P SmallCap 600, which together
make up the S&amp;P Composite 1500. Beginning in 2017, MSCI, a leading stock index provider, opened public consultations on their
treatment of no-vote and multi-class structures and temporarily barred new multi-class listings from certain of its indices; however,
in October&nbsp;2018, MSCI announced its decision to include equity securities &ldquo;with unequal voting structures&rdquo; in
its indices and to launch a new index that specifically includes voting rights in its eligibility criteria. Under the announced
policies, our dual class capital structure would make us ineligible for inclusion in certain indices, and as a result, mutual funds,
exchange-traded funds and other investment vehicles that attempt to passively track those indices will not be investing in our
stock. These policies are still fairly new and it is as of yet unclear what effect, if any, they will have on the valuations of
publicly traded companies excluded from the indices, but it is possible that they may depress these valuations compared to those
of other similar companies that are included. Because of our dual class structure, we will likely be excluded from certain of these
indexes and we cannot assure you that other stock indexes will not take similar actions. Given the sustained flow of investment
funds into passive strategies that seek to track certain indexes, exclusion from stock indexes would likely preclude investment
by many of these funds and could make shares of New DraftKings Class&nbsp;A common stock less attractive to other investors. As
a result, the market price of shares of New DraftKings Class&nbsp;A common stock could be adversely affected.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Nevada law and provisions in New DraftKings&rsquo; amended
and restated articles of incorporation and bylaws could make a takeover proposal more difficult.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0.5in; margin: 0pt 0">If the Business Combination and reincorporation are consummated,
New DraftKings&rsquo; organizational documents will be governed by Nevada law. Certain provisions of Nevada law and of New DraftKings&rsquo;
amended and restated articles of incorporation and bylaws could discourage, delay, defer or prevent a merger, tender offer, proxy
contest or other change of control transaction that a stockholder might consider in its best interest, including those attempts
that might result in a premium over the market price for the shares of Class&nbsp;A common stock held by New DraftKings&rsquo;
stockholders. These provisions provide for, among other things:</P>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the ability of New DraftKings&rsquo; board of directors
to issue one or more series of preferred stock;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">stockholder action by written consent only until the
first time when Mr.&nbsp;Robins ceases to beneficially own a majority of the voting power of the capital stock of New DraftKings;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 1in">&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt; width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">certain limitations on convening special stockholder
meetings;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </FONT></TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">advance notice for nominations of directors by stockholders
and for stockholders to include matters to be considered at our annual meetings;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">amendment of certain provisions of the organizational
documents only by the affirmative vote of (i)&nbsp;a majority of the voting power of the capital stock of New DraftKings so long
as Mr.&nbsp;Robins beneficially owns shares representing a majority of the voting power of the capital stock of New DraftKings
and (ii) at least two-thirds of the voting power of the capital stock from and after the time that Mr.&nbsp;Robins ceases to beneficially
own shares representing a majority of the voting power of the voting stock of New DraftKings; and</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left; font-size: 10pt"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a dual class common stock structure, which provides,
upon consummation of the Business Combination, Mr.&nbsp;Robins with the ability to control the outcome of matters requiring stockholder
approval, even though Mr.&nbsp;Robins owns less than a majority of the outstanding shares of New DraftKings&rsquo; capital stock.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">These anti-takeover provisions as well as
certain provisions of Nevada law could make it more difficult for a third party to acquire New DraftKings, even if the third party&rsquo;s
offer may be considered beneficial by many of New DraftKings&rsquo; stockholders. As a result, New DraftKings&rsquo; stockholders
may be limited in their ability to obtain a premium for their shares. If prospective takeovers are not consummated for any reason,
New DraftKings may experience negative reactions from the financial markets, including negative impacts on the price of New DraftKings
common stock. These provisions could also discourage proxy contests and make it more difficult for New DraftKings&rsquo; stockholders
to elect directors of their choosing and to cause New DraftKings to take other corporate actions. See &ldquo;<I>Description of
Securities</I>.&rdquo;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>New DraftKings&rsquo; amended and restated articles of
incorporation designate the Eighth Judicial District Court of Clark County, Nevada as the exclusive forum for certain types of
actions and proceedings that may be initiated by New DraftKings&rsquo; stockholders, which could limit stockholders&rsquo; ability
to obtain a favorable judicial forum for disputes with New DraftKings or its directors, officers, employees or agents.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">New DraftKings&rsquo; amended and restated
articles of incorporation will require that, to the fullest extent permitted by law, and unless New DraftKings otherwise consents
in writing to the selection of an alternative forum, the Eighth Judicial District Court of Clark County, Nevada (or if the Eighth
Judicial District Court of Clark County, Nevada does not have jurisdiction, any other state district court located in the State
of Nevada, and if no state district court in the State of Nevaada has jurisdiction, any federal court located in the State of Nevada),
will be the exclusive forum for each of the following:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>any action or proceeding brought in the name or right of New DraftKings or on its behalf;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>any action asserting a claim for breach of any fiduciary duty owed by any director, officer, employee or agent of New DraftKings
to New DraftKings or its stockholders;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>any action asserting a claim arising pursuant to any provision of NRS Chapters&nbsp;78 or 92A, New DraftKings&rsquo; amended
and restated articles of incorporation or the New DraftKings bylaws;</TD></TR>                                                                              <TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD></TR>
</TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>any action to interpret, apply, enforce or determine the validity of the New DraftKings amended and restated articles of incorporation
or the New DraftKings bylaws; or</TD></TR>                                          <TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD></TR>
</TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>any action asserting a claim governed by the internal affairs doctrine.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8203;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The exclusive forum provision will provide
federal courts located in the State of Nevada as the forum for suits brought to enforce any duty or liability for which Section
27 of the Exchange Act establishes exclusive jurisdiction with the federal courts, or any other claim for which the federal courts
have exclusive jurisdiction. In addition, Section 22 of the Securities Act provides that federal and state courts have concurrent
jurisdiction over lawsuits brought the Securities Act or the rules and regulations thereunder. To the extent the exclusive forum
provision restricts the courts in which claims arising under the Securities Act may be brought, there is uncertainty as to whether
a court would enforce such a provision. We note that investors cannot waive compliance with the federal securities laws and the
rules and regulations thereunder. Although we believe this provision will benefit New DraftKings by providing increased consistency
in the application of Nevada law in the types of lawsuits to which it applies, the provision may have the effect of discouraging
lawsuits against New DraftKings&rsquo; directors and officers.</P>

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

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

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="b_010"></A>USE OF PROCEEDS</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">All of the shares of Class A common
stock and the PIPE warrants (including shares of Class A common stock underlying such warrants) offered by the Selling
Securityholders pursuant to this prospectus will be sold by the Selling Securityholders for their respective amounts. We will
not receive any of the proceeds from these sales.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We will receive up to an aggregate of approximately
$34,500,000 from the exercise of the PIPE warrants, assuming the exercise in full of all the warrants for cash. We expect to use
the net proceeds from the exercise of the warrants for general corporate purposes, which may include acquisitions and other business
opportunities and the repayment of indebtedness. Our management will have broad discretion over the use of proceeds from the exercise
of the warrants.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">There is no assurance that the holders of
the warrants will elect to exercise any or all of the warrants. To the extent that the warrants are exercised on a &ldquo;cashless
basis,&rdquo; the amount of cash we would receive from the exercise of the warrants will decrease.<BR STYLE="clear: both">
</P>

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

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

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="b_011"></A>UNAUDITED
PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Defined terms included below have the
same meaning as terms defined and included elsewhere in this prospectus. </I></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The unaudited pro forma condensed combined
financial information is prepared in accordance with Article&nbsp;11&nbsp;of&nbsp;Regulation S-X. The unaudited pro forma condensed
combined financial information presents the pro forma effects of the following transactions (collectively the &ldquo;Business Combination&rdquo;):</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>The Reverse Recapitalization between Merger Sub and DraftKings;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>The SBTech Acquisition;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>The Private Placement; and</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>The issuance of Convertible Notes, which will convert into shares of DEAC Class A common stock immediately prior to the consummation
of the Business Combination.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DEAC was incorporated as a Delaware corporation
on March 27, 2019, and completed its initial public offering on May 14, 2019. DEAC is a blank check company whose purpose is to
acquire, through a merger, share exchange, asset acquisition, stock purchase, reorganization or other similar business combination
with one or more businesses. Upon the closing of the IPO, $400.0 million from the net proceeds thereof was placed in a trust account
and invested in U.S. &ldquo;government securities&rdquo; within the meaning of Section 2(a)(16) of the Investment Company Act having
a maturity of 185 days or in money market funds meeting certain conditions under Rule&nbsp;2a-7&nbsp;promulgated under the&nbsp;Investment
Company Act&nbsp;which invest only in direct U.S. government treasury obligations. As of December 31, 2019, DEAC had approximately
$404.0 million held in the trust account.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following describes the two operating
entities:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>DraftKings was organized on December 29, 2011, as a Delaware corporation. DraftKings was founded with the initial mission of
leveraging unique technology, analytics and marketing capabilities to deliver a daily fantasy sports offering. Within a few years,
DraftKings became one of the largest and most recognized DFS platforms in the United States.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>SBTech was incorporated on July 24, 2007, under the laws of Gibraltar. It was originally named Jamtech Limited, subsequently
renamed Networkpot Limited and thereafter renamed SBTech (Global) Limited on August 16, 2010.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following unaudited pro forma condensed
combined balance sheet as of December 31, 2019 assumes that the Business Combination occurred on December 31, 2019. The unaudited
pro forma condensed combined statement of operations for the year ended December 31, 2019 present the pro forma effect of the Business
Combination as if it had been completed on January 1, 2019.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The pro forma combined financial statements
do not necessarily reflect what New DraftKings&rsquo; financial condition or results of operations would have been had the Business
Combination occurred on the dates indicated. The pro forma combined financial information also may not be useful in predicting
the future financial condition and results of operations of the post-combination company. The actual financial position and results
of operations may differ significantly from the pro forma amounts reflected herein due to a variety of factors.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The historical financial information of
DEAC was derived from the audited consolidated financial statements of Diamond Eagle Acquisition Corp. as of December 31, 2019
and for the period between March 27, 2019 and December 31, 2019, included elsewhere in this prospectus. The historical financial
information of DraftKings was derived from DraftKings&rsquo; audited consolidated financial statements for the year ended December
31, 2019, included elsewhere in this prospectus. The historical financial information of SBTech was derived from SBTech&rsquo;s
audited consolidated financial statements for the year ended December 31, 2019, included elsewhere in this prospectus.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This information should be read together
with DEAC&rsquo;s, DraftKings&rsquo;, and SBTech&rsquo;s audited financial statements and related notes, the sections titled&nbsp;<I>&ldquo;DEAC&rsquo;s
Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations,&rdquo; &ldquo;DraftKings&rsquo; Management&rsquo;s
Discussion and Analysis of Financial Condition and Results of Operations&rdquo; and &ldquo;SBT&rsquo;s Management&rsquo;s Discussion
and Analysis of Financial Condition and Results of Operations,&rdquo;</I>&nbsp;and other financial information included elsewhere
in this prospectus.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Reverse Recapitalization will be accounted
for as a reverse merger for which DraftKings has been determined to be the accounting acquirer in both the no redemption and maximum
redemption scenarios based on the following predominate factors:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>DraftKings will have the largest voting interest in New DraftKings;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>The board of directors of New DraftKings will have 13 members, and DraftKings will have the ability to nominate ten members
of the Board;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>DraftKings&rsquo; former management will make up the vast majority of the management of New DraftKings;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>DraftKings is the largest entity by revenue and net income/loss;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>New DraftKings Class B common stock issued to one DraftKings stockholder will allow for incremental voting rights;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>The post-combination company will assume DraftKings&rsquo; name.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Other factors were considered but they would
not change the preponderance of factors indicating that DraftKings was the accounting acquirer.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The merger between DraftKings and Merger
Sub will be accounted for as a reverse recapitalization, with no goodwill or other intangible assets recorded, in accordance with
U.S. GAAP. Under this method of accounting, DEAC will be treated as the &ldquo;acquired&rdquo; company for financial reporting
purposes. Accordingly, for accounting purposes, the Reverse Recapitalization will be treated as the equivalent of DraftKings issuing
stock for the net assets of DEAC, accompanied by a recapitalization. The net assets of DEAC will be stated at historical cost,
with no goodwill or other intangible assets recorded. Operations prior to the Reverse Recapitalization will be those of DraftKings.
The SBTech Acquisition will be treated as a business combination under Financial Accounting Standards Board&rsquo;s&nbsp;ASC 805,
and will be accounted for using the acquisition method of accounting. DraftKings will record the fair value of assets acquired
and liabilities assumed from SBTech.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The unaudited pro forma condensed combined
financial information has been prepared using the assumptions below with respect to the potential redemption into cash of DEAC&rsquo;s
Class A common stock:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><B>Assuming No Redemptions</B>: This presentation assumes that none of the holders of shares of DEAC&rsquo;s Class A common
stock exercise redemption rights with respect to their public shares for a pro rata share of the funds in the trust account.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Assuming Maximum Redemptions</B>: This presentation
assumes that stockholders holding 30,564,789 DEAC public shares will exercise their redemption rights for their pro rata
share (approximately $10.10 per share) of the funds in DEAC&rsquo;s trust account. This scenario gives effect to DEAC&rsquo;s
public share redemptions of 30,564,789 shares for aggregate redemption payments of $308.7 million. The Business Combination
Agreement includes as a condition to closing the Business Combination that, at the Closing, DEAC will have a minimum of
$400.0 million in cash comprising (i) the cash held in the trust account after giving effect to DEAC share redemptions and
(ii) proceeds from the Private Placement, provided that DraftKings and SBTech will be entitled to waive that condition. After
giving effect to the proceeds from the Private Placement, approximately $95.3 million would be needed from the trust account
in order to meet the Minimum Proceeds Condition of $400.0 million.</P>
</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in">&nbsp;</P>

<!-- Field: Split-Segment; Name: 3 -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Description of the Business Combination</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Pursuant to the Business Combination Agreement,
DEAC intends to acquire all of the issued and outstanding equity interests of DraftKings and SBTech in exchange for cash and equity.
The initial purchase price will be based on a combined pre-money enterprise value of DraftKings and SBTech, which will consist
of $196.1 million of cash being transferred to SBTech shareholders (subject to adjustments as defined in the Business Combination
Agreement), and the remaining value will be in the form of shares of New DraftKings&rsquo; Class A common stock, options, restricted
stock units and warrants of New DraftKings and, in the case of Mr. Robins, shares of Class B common stock of New DraftKings.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following summarizes the consideration
issuable in the Reverse Recapitalization and SBTech Acquisition assuming a $12.25 share price (as of April 3, 2020) in both the
no redemption and maximum redemption scenarios:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold; border-bottom: Black 1pt solid">Total Consideration (in 000s)</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Amounts</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Shares</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 74%; font-size: 10pt">Share consideration&#8201;-&#8201;DraftKings<FONT STYLE="font-size: 10pt"><SUP>(2)</SUP></FONT></TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">2,537,278</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">207,125</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Cash consideration&#8201;-&#8201;SBTech<FONT STYLE="font-size: 10pt"><SUP>(1)</SUP></FONT></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">196,126</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; padding-bottom: 1pt">Share consideration&#8201;-&#8201;SBTech<FONT STYLE="font-size: 10pt"><SUP>(2)</SUP></FONT></TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">540,486</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">44,121</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 2.5pt">Total Merger Consideration</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">3,273,890</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">251,246</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&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"></P>

<!-- Field: Rule-Page --><DIV STYLE="width: 25%"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.35in">(1)</TD><TD>Amount is subject to adjustment for the estimated Net Debt Amount and Working Capital Amount, estimated to be $13.4 million,
as specified in the Business Combination Agreement. Per the Business Combination Agreement, the cash consideration amount is EUR
180.0 million. Amount was converted using the EUR to USD rate as of April 3, 2020. A 10% fluctuation in the EUR to USD foreign
currency exchange rate would change the cash consideration by approximately $19.6 million.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.35in">(2)</TD><TD>Represents the estimated fair value of New DraftKings common stock to be issued to DraftKings/SBTech stockholders pursuant
to the Business Combination Agreement. The estimate is based on shares that are expected to be outstanding and options and warrants
that are expected to vest by the Closing (assumed as April 2020). Amount is subject to adjustment based on an earnout clause included
in the BCA. Per the terms of the BCA, a total of six million shares will be held in escrow, three million of which will be for
the benefit of DraftKings/SBTech stockholders. The Earnout shares will be paid out in thirds upon the share price of the post-combination
company reaching $12.50, $14.00 and $16.00.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The equity share capitalization of New DraftKings
under the no redemption and maximum redemption scenarios will be as follows (including shares issuable pursuant to vested options
and warrants that will be rolled over at Closing):</P>

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



<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold; border-bottom: Black 1pt solid">Total Capitalization (in 000s)</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">No<BR> Redemptions</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">%</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Maximum<BR> Redemptions</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">%</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 48%; font-size: 10pt; text-align: left">DraftKings rollover equity&thinsp;-&thinsp;New DraftKings Class A</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">207,125</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">61.5</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">207,125</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">67.7</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">SBTech rollover equity</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">44,121</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">13.1</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">44,121</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">14.4</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">DEAC public shareholders</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">40,000</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">11.9</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">9,435</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">3.1</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">DEAC Founders Shares</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">3,659</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1.1</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">3,659</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1.2</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0in">DEAC shares issued upon conversion of Convertible Notes</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">11,255</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">3.3</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">11,255</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">3.7</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">DEAC shares issued in PIPE Offering</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">30,471</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">9.1</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">30,471</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">9.9</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 2.5pt">Total Class A Shares</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">336,631</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">100.0</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">306,066</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">100.0</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">New DraftKings Class B Shares*</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">393,955</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">366,446</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



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

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.35in">*</TD><TD>New DraftKings&rsquo; Class B shares will be issued to Jason Robins; which will carry 10 votes per share, and will allow Jason
Robins to have approximately 90% of the voting power of the capital stock of New DraftKings on a fully-diluted basis. As these
shares have no economic or participating rights, they have been excluded from the calculation of earnings per share.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following unaudited pro forma condensed
combined balance sheet as of December 31, 2019 and the unaudited pro forma condensed combined statements of operations for the
year ended December 31, 2019 are based on the historical financial statements of DEAC, DraftKings, and SBTech. The unaudited pro
forma adjustments are based on information currently available, and assumptions and estimates underlying the unaudited pro forma
adjustments are described in the accompanying notes. Actual results may differ materially from the assumptions used to present
the accompanying unaudited pro forma condensed combined financial information.</P>

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Diamond Eagle Acquisition Corp.<BR>
Unaudited Pro Forma Condensed Combined Balance Sheet<BR>
as of December 31, 2019<BR>
(Amounts in thousands)</B>&nbsp;</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap; font-size: 7pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD COLSPAN="8" STYLE="border-bottom: Black 1pt solid; font-size: 7pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt">As
    of December 31, 2019</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt; font-weight: bold"></TD>
    <TD STYLE="font-size: 7pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font-size: 7pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt">December
    31, 2019</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font-size: 7pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt">December
    31, 2019</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom">
    <TD STYLE="white-space: nowrap; font-size: 7pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; white-space: nowrap; font-size: 7pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt">DraftKings<BR>
    (Historical)</FONT></TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; white-space: nowrap; font-size: 7pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt">DEAC<BR>
    (Historical)</FONT></TD><TD STYLE="white-space: nowrap; padding-bottom: 1pt; font-size: 7pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; white-space: nowrap; font-size: 7pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt">SBTech<BR>
    (As<BR>
 Adjusted)<BR> (Note 3)</FONT></TD><TD STYLE="white-space: nowrap; padding-bottom: 1pt; font-size: 7pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; white-space: nowrap; font-size: 7pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; white-space: nowrap; font-size: 7pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt">Accounting<BR>
    Policies and<BR> Reclassification<BR> Adjustments<BR> (Note 2)</FONT></TD><TD STYLE="white-space: nowrap; padding-bottom: 1pt; font-size: 7pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; white-space: nowrap; font-size: 7pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt">Pro
    Forma<BR> Adjustments<BR> (Assuming No<BR> Redemptions)<BR> (Note 4&thinsp;- PF)</FONT></TD><TD STYLE="white-space: nowrap; padding-bottom: 1pt; font-size: 7pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; white-space: nowrap; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap; font-size: 7pt; font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; white-space: nowrap; font-size: 7pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt">Purchase<BR>
    Accounting<BR> Adjustments<BR> (Note 4&thinsp;- PPA)</FONT></TD><TD STYLE="white-space: nowrap; padding-bottom: 1pt; font-size: 7pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap; font-size: 7pt; font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; white-space: nowrap; font-size: 7pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt">Pro
    Forma<BR> Combined<BR> (Assuming No<BR> Redemptions)</FONT></TD><TD STYLE="white-space: nowrap; padding-bottom: 1pt; font-size: 7pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; white-space: nowrap; font-size: 7pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt">Additional<BR>
    Pro Forma<BR> Adjustments<BR> (Assuming<BR> Maximum<BR> Redemptions)<BR> (Note 4&thinsp;- PF)</FONT></TD><TD STYLE="white-space: nowrap; padding-bottom: 1pt; font-size: 7pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="white-space: nowrap; padding-bottom: 1pt; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; white-space: nowrap; font-size: 7pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt">Pro
    Forma<BR> Combined<BR> (Assuming<BR> Maximum<BR> Redemptions)</FONT></TD><TD STYLE="white-space: nowrap; padding-bottom: 1pt; font-size: 7pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="white-space: nowrap; font-size: 7pt; font-weight: bold"><FONT STYLE="font-size: 7pt">ASSETS</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; font-size: 7pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: White">
    <TD STYLE="white-space: nowrap; font-size: 7pt"><FONT STYLE="font-size: 7pt">Current assets:</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; font-size: 7pt"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="white-space: nowrap; width: 27%; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">Cash and cash equivalents</FONT></TD>
    <TD STYLE="width: 1%; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">$</FONT></TD><TD STYLE="width: 1%; font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">76,533</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">$</FONT></TD><TD STYLE="width: 1%; font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">491</FONT></TD><TD STYLE="width: 1%; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">$</FONT></TD><TD STYLE="width: 1%; font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">9,143</FONT></TD><TD STYLE="width: 1%; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font-size: 7pt; text-align: right"></TD>
    <TD STYLE="width: 1%; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">$</FONT></TD><TD STYLE="width: 1%; font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="width: 1%; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT>$</TD><TD STYLE="width: 1%; font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">403,961</FONT></TD><TD STYLE="width: 1%; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 7pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt"><B>A</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT>$</TD><TD STYLE="width: 1%; font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">(212,847</FONT></TD><TD STYLE="width: 1%; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">)</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 7pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt"><B>A</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">$</FONT></TD><TD STYLE="width: 1%; font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">593,443</FONT></TD><TD STYLE="width: 1%; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT>$</TD><TD STYLE="width: 1%; font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">(308,675</FONT></TD><TD STYLE="width: 1%; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">)</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 7pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt"><B>K</B></FONT></TD><TD STYLE="width: 1%; font-size: 7pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT>$</TD><TD STYLE="width: 1%; font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">294,768&#8203;</FONT></TD><TD STYLE="width: 1%; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: White">
    <TD STYLE="white-space: nowrap; font-size: 7pt"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">(14,000</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt"><B>B</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">10,000</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt"><B>L</B></FONT></TD><TD STYLE="font-size: 7pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="white-space: nowrap; font-size: 7pt"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">(41,596</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt"><B>C</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: White">
    <TD STYLE="white-space: nowrap; font-size: 7pt"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">40,042</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt"><B>D</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
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    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">304,714</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
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    <TD STYLE="font-size: 7pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt"><B>E</B></FONT></TD>
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    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
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    <TD STYLE="white-space: nowrap; font-size: 7pt"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
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    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
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    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">(10,000</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">)</FONT></TD>
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    <TD STYLE="font-size: 7pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt"><B>L</B></FONT></TD>
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    <TD>&nbsp;</TD>
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<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="white-space: nowrap; font-size: 7pt"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">(6,006</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt"><B>M</B></FONT></TD>
    <TD>&nbsp;</TD>
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    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
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    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: White">
    <TD STYLE="white-space: nowrap; font-size: 7pt"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">(1,492</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt"><B>N</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="white-space: nowrap; font-size: 7pt"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">44,500</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt"><B>O</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: White">
    <TD STYLE="white-space: nowrap; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">Cash reserved for customers</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">144,000</FONT></TD>
    <TD>&nbsp;</TD>
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    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: center"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">144,000</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">144,000&#8203;&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="white-space: nowrap; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">Receivables reserved for customers</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">19,828</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: center"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">19,828</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">19,828&#8203;&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: White">
    <TD STYLE="white-space: nowrap; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">Trade receivables, net</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">27,781</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: center"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">27,781</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">27,781&#8203;&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="white-space: nowrap; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">Prepaid expenses</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">319</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">(319</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">)</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: center"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-&#8203;&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: White">
    <TD STYLE="white-space: nowrap; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">Prepaid expenses and other current assets</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">20,787</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">4,045</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: center"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">24,832</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">24,832&#8203;&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="white-space: nowrap; font-size: 7pt; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">Other current assets</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">3,726</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">(3,726</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">)</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: center"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-&#8203;&#8203;</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: White">
    <TD STYLE="white-space: nowrap; font-size: 7pt; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">Total current assets</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">261,148</FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">810</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">40,650</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt; font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">720,123</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; font-size: 7pt; text-align: center"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">(212,847</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">)</FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">809,884</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">(298,675</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">)</FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">511,209&#8203;&#8203;</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="white-space: nowrap; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">Cash and investments held in Trust Account</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">403,961</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">(403,961</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt"><B>A</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-&#8203;&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: White">
    <TD STYLE="white-space: nowrap; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">Property and equipment, net</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">25,945</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">11,148</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">209</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: center"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">37,302</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">37,302&#8203;&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="white-space: nowrap; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">Intangible assets, net</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">33,939</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">29,296</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">(209</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">)</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: center"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">240,152</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt"><B>B</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">303,178</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">303,178&#8203;&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: White">
    <TD STYLE="white-space: nowrap; font-size: 7pt"><FONT STYLE="font-size: 7pt">Goodwill</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">4,738</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: center"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">461,100</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt"><B>A</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">465,838</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">465,838&#8203;&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="white-space: nowrap; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">Equity method investment</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">2,521</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: center"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">2,521</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">2,521&#8203;&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: White">
    <TD STYLE="white-space: nowrap; font-size: 7pt"><FONT STYLE="font-size: 7pt">Deposits</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">2,434</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: center"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">2,434</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">2,434&#8203;&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="white-space: nowrap; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">Deferred tax assets</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">520</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">(520</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">)</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: center"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-&#8203;&#8203;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: White">
    <TD STYLE="white-space: nowrap; font-size: 7pt; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">Other non-current assets</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">344</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">520</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: center"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">864</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&#8203;</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">864&#8203;&#8203;</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="white-space: nowrap; font-size: 7pt; font-weight: bold; text-align: left; padding-bottom: 2.5pt"><FONT STYLE="font-size: 7pt">Total
    Assets</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 7pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 7pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt">330,725</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 7pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 7pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt">404,771</FONT></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 7pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 7pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 7pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt">81,958</FONT></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 7pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 7pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 7pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 7pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 7pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 7pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 7pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt">316,162</FONT></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 7pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt"><B>&#8203;</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; font-weight: bold; padding-bottom: 2.5pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 7pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 7pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt">488,405</FONT></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 7pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt"><B>&#8203;</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; font-weight: bold; padding-bottom: 2.5pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 7pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 7pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt">1,622,021</FONT></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 7pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 7pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 7pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt">(298,675</FONT></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 7pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 7pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt"><B>&#8203;</B></FONT></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 7pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 7pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 7pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt"><B>1,323,346&#8203;&#8203;</B></FONT></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 7pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
</TABLE>



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<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>
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<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 CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="10" STYLE="border-bottom: Black 1pt solid; font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">As
    of December 31, 2019</FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; vertical-align: top; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; vertical-align: top; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">December
    31, 2019</FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 1pt; font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">December
    31, 2019</FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: bottom">
    <TD STYLE="white-space: nowrap; font: bold 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="white-space: nowrap; font: bold 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; border-bottom: Black 1pt solid; font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">DraftKings<BR>
    (Historical)</FONT></TD><TD STYLE="white-space: nowrap; font: bold 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="white-space: nowrap; font: bold 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; border-bottom: Black 1pt solid; font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">DEAC<BR>
    (Historical)</FONT></TD><TD STYLE="white-space: nowrap; font: bold 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="white-space: nowrap; font: bold 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; border-bottom: Black 1pt solid; font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">SBTech<BR>
    (As Adjusted)<BR> (Note 3)</FONT></TD><TD STYLE="white-space: nowrap; font: bold 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="white-space: nowrap; font: bold 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; border-bottom: Black 1pt solid; font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">Accounting<BR>
    Policies and<BR> Reclassification<BR> Adjustments<BR> (Note 2)</FONT></TD><TD STYLE="white-space: nowrap; font: bold 7pt Times New Roman, Times, Serif; vertical-align: top; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="white-space: nowrap; font: bold 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; border-bottom: Black 1pt solid; font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">Pro
    Forma<BR> Adjustments<BR> (Assuming No<BR> Redemptions)<BR> (Note 4&thinsp;- PF)</FONT></TD><TD STYLE="white-space: nowrap; font: bold 7pt Times New Roman, Times, Serif; vertical-align: top; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; border-bottom: Black 1pt solid; font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">Purchase<BR>
    Accounting<BR> Adjustments<BR> (Note 4&thinsp;- PPA)</FONT></TD><TD STYLE="white-space: nowrap; font: bold 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; border-bottom: Black 1pt solid; font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">Pro
    Forma<BR> Combined<BR> (Assuming No<BR> Redemptions)</FONT></TD><TD STYLE="white-space: nowrap; font: bold 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="white-space: nowrap; font: bold 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; border-bottom: Black 1pt solid; font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">Additional<BR>
    Pro Forma<BR> Adjustments<BR> (Assuming<BR> Maximum<BR> Redemptions)<BR> (Note 4&thinsp;- PF)</FONT></TD><TD STYLE="white-space: nowrap; font: bold 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD><TD STYLE="white-space: nowrap; font: bold 7pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; border-bottom: Black 1pt solid; font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">Pro
    Forma<BR> Combined<BR> (Assuming<BR> Maximum<BR> Redemptions)</FONT></TD><TD STYLE="white-space: nowrap; font: bold 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">LIABILITIES
    AND STOCKHOLDERS&rsquo; EQUITY</FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; vertical-align: top; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; vertical-align: top; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">Current
    liabilities:</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: top; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: top; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">Accounts
    payable</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">1,492&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">(1,492&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: top; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">)</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: top; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 25%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">Accounts
    payable and accrued expenses</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">85,295</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;22,364</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: top; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">(6,449&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: top; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">)</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>C&#8203;</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">99,718</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">99,718&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: top; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">(1,492</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: middle; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;N</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">Liabilities
    to customers</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">163,035</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;799</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: top; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: top; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">163,834</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;163,834</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">Term
    note, current portion</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">6,750</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: top; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">44,500&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: top; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;O</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">51,250</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;51,250</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">Settlement
    liability, current portion</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: top; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: top; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">Trade
    payables</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">9,124&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;(9,124</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: top; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">)</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: top; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">Other
    accounts payable</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">12,547</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;(12,547</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: top; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">)</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: top; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">Total
    current liabilities</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">255,080</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">1,492&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">21,671&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: top; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">36,559&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: top; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">314,802</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;314,802</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">Deferred
    underwriting commissions</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">14,000&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: top; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">(14,000&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: top; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>B&#8203;</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">Other
    long-term liabilities</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">56,862</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;458</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: top; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">(11,000&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: top; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;P</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;2,648</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>C</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">48,968</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">48,968</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">Convertible
    promissory notes</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">68,363</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: top; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">(68,363&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: top; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;D</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">Accrued
    severance pay, net</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">458&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;(458</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: top; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">)</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: top; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">Total
    liabilities</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">380,305</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">15,492&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;22,129</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: top; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">(56,804</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: top; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;2,648</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">363,770</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;363,770</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.125in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">Class
    A common stock subject to possible<BR> redemption</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">384,279&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: top; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">(384,279</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;F</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.125in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">Series
    E-1 Redeemable Convertible Preferred Stock</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">119,752</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: top; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">(119,752&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;H</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.125in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">Series
    F Redeemable Convertible Preferred Stock</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">138,619</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: top; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">(138,619&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: bottom; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;H</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">Stockholders&rsquo;
    Equity:</FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; vertical-align: top; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; vertical-align: top; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&nbsp;</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">Class
    A common stock</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: top; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">1&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: top; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;D</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;4</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>A</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">34</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
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<TR STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">Common
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    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;H</B></FONT></TD>
    <TD>&nbsp;</TD>
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    <TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">Share
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    <TD>&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>D</B></FONT></TD>
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<TR STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">Actuarial
    reserve</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;(156</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: top; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: top; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">156&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>D</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;-</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;</FONT></TD></TR>
</TABLE>



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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif">&#8203;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="border-bottom: Black 1pt solid; font: bold 7pt Times New Roman, Times, Serif; text-align: center">As of December 31, 2019</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center">&#8203;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center">&#8203;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center">&#8203;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 7pt Times New Roman, Times, Serif; text-align: center">December 31, 2019</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center">&#8203;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 7pt Times New Roman, Times, Serif; text-align: center">December 31, 2019</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; white-space: nowrap">&#8203;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; white-space: nowrap; font: bold 7pt Times New Roman, Times, Serif; text-align: center">DraftKings<BR> (Historical)</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left; white-space: nowrap">&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; white-space: nowrap; font: bold 7pt Times New Roman, Times, Serif; text-align: center">DEAC<BR> (Historical)</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; white-space: nowrap">&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; white-space: nowrap; font: bold 7pt Times New Roman, Times, Serif; text-align: center">SBTech<BR> (As Adjusted)<BR> (Note 3)</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; white-space: nowrap">&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; white-space: nowrap; font: bold 7pt Times New Roman, Times, Serif; text-align: center">Accounting<BR> Policies and<BR> Reclassification<BR> Adjustments<BR> (Note 2)</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; white-space: nowrap">&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; white-space: nowrap; font: bold 7pt Times New Roman, Times, Serif; text-align: center">Pro Forma<BR> Adjustments<BR> (Assuming No<BR> Redemptions)<BR> (Note 4&#8201;- PF)</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center">&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; white-space: nowrap; font: bold 7pt Times New Roman, Times, Serif; text-align: center">Purchase<BR> Accounting<BR> Adjustments<BR> (Note 4&#8201;- PPA)</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center">&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; white-space: nowrap; font: bold 7pt Times New Roman, Times, Serif; text-align: center">Pro Forma<BR> Combined<BR> (Assuming No<BR> Redemptions)</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; white-space: nowrap">&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; white-space: nowrap; font: bold 7pt Times New Roman, Times, Serif; text-align: center">Additional<BR> Pro Forma<BR> Adjustments<BR> (Assuming<BR> Maximum<BR> Redemptions)<BR> (Note 4&#8201;- PF)</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center">&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; white-space: nowrap; font: bold 7pt Times New Roman, Times, Serif; text-align: center">Pro Forma<BR> Combined<BR> (Assuming<BR> Maximum<BR> Redemptions)</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; white-space: nowrap">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 25%; text-align: left">Additional paid-in capital</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: right">690,443</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: right">2,689</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: right">(6,000</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left">)</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; width: 1%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>C</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: right">545,582</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; width: 1%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>A</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: right">2,311,241</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: right">(308,672</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left">)</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; width: 1%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>K</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">2,002,016&#8203;&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif">&#8203;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">112,544</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>D</B></FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">(553</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>Q</B></FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif">&#8203;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">304,711</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>E</B></FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif">&#8203;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">384,275</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>F</B></FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif">&#8203;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">2,310</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>I</B></FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif">&#8203;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">258,740</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>H</B></FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif">&#8203;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">3,042</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>J</B></FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif">&#8203;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">(6,006</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>M</B></FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif">&#8203;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">11,000</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>P</B></FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif">&#8203;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">7,911</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>Q</B></FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">Retained earnings</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">2,310</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">58,795</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">(61,105</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-&#8203;&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">Accumulated deficit</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">(998,784</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">61,105</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">(29,147</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>C</B></FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">(58,795</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>D</B></FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">(1,053,063</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">10,000</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>L</B></FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">(1,042,508)&#8203;&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif">&#8203;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">(4,140</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>D</B></FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">555</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>Q</B></FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif">&#8203;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">(2,310</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>I</B></FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif">&#8203;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">(3,042</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>J</B></FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif">&#8203;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">(10,000</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>L</B></FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;&#8203;&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif">&#8203;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">(7,950</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>Q</B></FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;&#8203;&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">Total parent stockholders&rsquo; equity</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">(307,951</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">5,000</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">58,642</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">1,015,616</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">486,944</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">1,258,251</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">(298,675</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">959,576&#8203;&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">Non-controlling interest</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">1,187</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">(1,187</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>D</B></FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">-&#8203;&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">Total stockholders&rsquo; equity</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">(307,951</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">5,000</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">59,829</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">1,015,616</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">485,757</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">1,258,251</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">(298,675</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">959,576&#8203;&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">Total Liabilities and Stockholders&rsquo; Equity</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: bold 7pt Times New Roman, Times, Serif; text-align: right">330,725</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: bold 7pt Times New Roman, Times, Serif; text-align: right">404,771</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: bold 7pt Times New Roman, Times, Serif; text-align: right">81,958</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: bold 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: bold 7pt Times New Roman, Times, Serif; text-align: right">316,162</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: bold 7pt Times New Roman, Times, Serif; text-align: right">488,405</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: bold 7pt Times New Roman, Times, Serif; text-align: right">1,622,021</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: bold 7pt Times New Roman, Times, Serif; text-align: right">(298,675</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD>
    <TD>&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: bold 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>1,323,346&#8203;&#8203;</B></FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
</TABLE>

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

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

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<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>Diamond Eagle Acquisition Corp.<BR>
Unaudited Pro Forma Condensed Combined Statement of Operations<BR>
for the year ended December 31, 2019<BR>
(Amounts in thousands, except per share data)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><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 STYLE="font: bold 7pt Times New Roman, Times, Serif">&#8203;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">For the Year ended<BR> December 31, 2019</TD><TD STYLE="padding-bottom: 1pt; font: bold 7pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">March 27, 2019<BR> (inception) to<BR> December 31, 2019</TD><TD STYLE="padding-bottom: 1pt; font: bold 7pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">For the Year ended<BR> December 31, 2019</TD><TD STYLE="padding-bottom: 1pt; font: bold 7pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: right">&#8203;</TD><TD STYLE="padding-bottom: 1pt; font: bold 7pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: right">&#8203;</TD><TD STYLE="padding-bottom: 1pt; font: bold 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center">&#8203;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: right">&#8203;</TD><TD STYLE="padding-bottom: 1pt; font: bold 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center">&#8203;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">For the Year ended<BR> December 31, 2019</TD><TD STYLE="padding-bottom: 1pt; font: bold 7pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap; font: bold 7pt Times New Roman, Times, Serif">&#8203;</TD><TD STYLE="white-space: nowrap; font: bold 7pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; font: bold 7pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">DraftKings<BR> (Historical)</TD><TD STYLE="white-space: nowrap; padding-bottom: 1pt; font: bold 7pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="white-space: nowrap; font: bold 7pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; font: bold 7pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">DEAC<BR> (Historical)</TD><TD STYLE="white-space: nowrap; padding-bottom: 1pt; font: bold 7pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="white-space: nowrap; font: bold 7pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; font: bold 7pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">SBTech<BR> (As Adjusted)<BR> (Note 3)</TD><TD STYLE="white-space: nowrap; padding-bottom: 1pt; font: bold 7pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="white-space: nowrap; font: bold 7pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; font: bold 7pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Accounting Policies<BR> and Reclassification<BR> Adjustments<BR> (Note 2)</TD><TD STYLE="white-space: nowrap; padding-bottom: 1pt; font: bold 7pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="white-space: nowrap; font: bold 7pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; font: bold 7pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Pro Forma<BR> Adjustments<BR> (Assuming No and<BR> Maximum<BR> Redemptions)<BR> (Note 4&#8201;-&#8201;PF)</TD><TD STYLE="white-space: nowrap; padding-bottom: 1pt; font: bold 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; font: bold 7pt Times New Roman, Times, Serif; text-align: center">&#8203;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; font: bold 7pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Purchase<BR> Accounting<BR> Adjustments<BR> (Note 4&#8201;-&#8201;PPA)</TD><TD STYLE="white-space: nowrap; padding-bottom: 1pt; font: bold 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; font: bold 7pt Times New Roman, Times, Serif; text-align: center">&#8203;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; white-space: nowrap; font: bold 7pt Times New Roman, Times, Serif; text-align: center">Pro Forma<BR> Combined<BR> (Assuming No and<BR> Maximum<BR> Redemptions)</TD><TD STYLE="white-space: nowrap; padding-bottom: 1pt; font: bold 7pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 35%">Revenue</TD><TD STYLE="width: 1%; font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 7pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 2%; font: 7pt Times New Roman, Times, Serif; text-align: right">323,410</TD><TD STYLE="width: 1%; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 7pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 2%; font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="width: 1%; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 7pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 2%; font: 7pt Times New Roman, Times, Serif; text-align: right">108,424</TD><TD STYLE="width: 1%; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 7pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 2%; font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="width: 1%; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 7pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 2%; font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="width: 1%; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 7pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 2%; font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="width: 1%; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 7pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 2%; font: 7pt Times New Roman, Times, Serif; text-align: right">431,834</TD><TD STYLE="width: 1%; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt">Cost of revenue</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">103,889</TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">60,649</TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">14,692</TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>AA</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">179,230</TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">Gross Profit</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">219,521</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">47,775</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">(14,692</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">252,604</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">Operating Expenses:</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">Sales and marketing</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">185,269</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">7,592</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">48</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>DD</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">192,909</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">General and administrative</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">124,868</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">1,857</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">13,230</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">(10,548</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>AA</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">104</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>BB</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">131,024</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif">&#8203;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">1,513</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>DD</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">Product and technology</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">55,929</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">20,408</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">82</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>DD</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">76,419</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Research and development expenses</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">20,408</TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">(20,408</TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Total Operating Expenses</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">366,066</TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">1,857</TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">41,230</TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">(8,905</TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">104</TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">400,352</TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">(Loss) / Income from Operations</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">(146,545</TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">(1,857</TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">6,545</TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">8,905</TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">(14,796</TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">(147,748</TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">Interest income (expense)</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">1,348</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">(164</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">1,184</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">Other income&#8201;-&#8201;interest on Trust Account</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">5,111</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">(5,111</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>BB</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">Gain on initial equity method investment</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">3,000</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">3,000</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">Financial Income</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">26</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">(26</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Financial Expenses</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">(190</TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">190</TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">(Loss)/Income before Income Tax Expense</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">(142,197</TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">3,254</TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">6,381</TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">3,794</TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">(14,796</TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">(143,564</TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">Income Tax Expense/(Benefit)</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">58</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">944</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">796</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">(1,864</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>CC</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">(4,084</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>CC</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">(4,150</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Loss from equity method investment</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">479</TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: right">479</TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt">Net (Loss)/Income</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 7pt Times New Roman, Times, Serif; text-align: right">(142,734</TD><TD STYLE="padding-bottom: 2.5pt; font: 7pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 7pt Times New Roman, Times, Serif; text-align: right">2,310</TD><TD STYLE="padding-bottom: 2.5pt; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 7pt Times New Roman, Times, Serif; text-align: right">5,585</TD><TD STYLE="padding-bottom: 2.5pt; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 7pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="padding-bottom: 2.5pt; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 7pt Times New Roman, Times, Serif; text-align: right">5,658</TD><TD STYLE="padding-bottom: 2.5pt; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 7pt Times New Roman, Times, Serif; text-align: right">(10,712</TD><TD STYLE="padding-bottom: 2.5pt; font: 7pt Times New Roman, Times, Serif; text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 7pt Times New Roman, Times, Serif; text-align: right">(139,893</TD><TD STYLE="padding-bottom: 2.5pt; font: 7pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">No Redemption Scenario</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif">Weighted average Class A shares outstanding</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">336,631,006</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left; text-indent: -9pt; padding-left: 9pt">Loss per share (Basic and Diluted) attributable to Class A common stockholders</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">(0.42</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">Maximum Redemption Scenario</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&#8203;</B></FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif">Weighted average Class A shares outstanding</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">306,066,216</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left; text-indent: -9pt; padding-left: 9pt">Loss per share (Basic and Diluted) attributable to Class A common stockholders</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right">(0.46</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
</TABLE>

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    <!-- Field: /Page -->

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="b_012"></A>NOTES TO
THE UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The merger between Merger Sub and DraftKings
will be accounted for as a reverse recapitalization in accordance with U.S. GAAP. Under this method of accounting, DEAC will be
treated as the &ldquo;acquired&rdquo; company for financial reporting purposes. Accordingly, for accounting purposes, the Reverse
Recapitalization will be treated as the equivalent of DraftKings issuing stock for the net assets of DEAC, accompanied by a recapitalization.
The net assets of DEAC will be stated at historical cost, with no goodwill or other intangible assets recorded. Operations prior
to the Reverse Recapitalization will be those of DraftKings.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As DraftKings is determined to be the accounting
acquirer in the SBTech Acquisition, the acquisition will be considered a business combination under&nbsp;ASC 805, and will be accounted
for using the acquisition method of accounting. DraftKings will record the fair value of assets acquired and liabilities assumed
from SBTech.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The unaudited pro forma condensed combined
balance sheet as of December 31, 2019 assumes that the Business Combination occurred on December 31, 2019. The unaudited pro forma
condensed combined statements of operations for the year ended December 31, 2019 present pro forma effect to the Business Combination
as if it had been completed on January 1, 2019. These periods are presented on the basis of DraftKings being the accounting acquirer.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The unaudited pro forma condensed combined
balance sheet as of December 31, 2019 has been prepared using, and should be read in conjunction with, the following:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>DEAC&rsquo;s audited consolidated balance sheet as of December 31, 2019 and the related notes for the period ended December
31, 2019, included elsewhere in this prospectus;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>DraftKings&rsquo; audited consolidated balance sheet as of December 31, 2019 and the related notes for the period ended December
31, 2019, included elsewhere in this prospectus; and</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>SBTech&rsquo;s audited consolidated balance sheet as of December 31, 2019 and the related notes for the period ended December
31, 2019, included elsewhere in this prospectus.*</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The unaudited pro forma condensed combined
statement of operations for the year ended December 31, 2019 has been prepared using, and should be read in conjunction with, the
following:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>DraftKings&rsquo; audited statement of operations for the twelve months ended December 31, 2019 and the related notes, included
elsewhere in this prospectus; and</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>SBTech&rsquo;s audited statement of operations for the twelve months ended December 31, 2019 and the related notes, included
elsewhere in this prospectus.*</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Management has made significant estimates
and assumptions in its determination of the pro forma adjustments. As the unaudited pro forma condensed combined financial information
has been prepared based on these preliminary estimates, the final amounts recorded may differ materially from the information presented.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The unaudited pro forma condensed combined
financial information does not give effect to any anticipated synergies, operating efficiencies, tax savings or cost savings that
may be associated with the Business Combination.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The pro forma adjustments reflecting the
completion of the Business Combination are based on certain currently available information and certain assumptions and methodologies
that DEAC believes are reasonable under the circumstances. The unaudited condensed pro forma adjustments, which are described in
the accompanying notes, may be revised as additional information becomes available and is evaluated.</P>

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

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

<!-- Field: Rule-Page --><DIV STYLE="margin-top: 3pt; margin-bottom: 3pt; width: 25%"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.35in">*</TD><TD>The historical financial information for SBTech was prepared under IFRS as issued by the IASB. Refer to Footnote 3 for additional
details regarding impact of conversion to U.S. GAAP for unaudited pro forma financial information.</TD></TR></TABLE>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Therefore, it is likely that the actual adjustments
will differ from the pro forma adjustments and it is possible the difference may be material. DEAC believes that its assumptions
and methodologies provide a reasonable basis for presenting all of the significant effects of the Business Combination based on
information available to management at this time and that the pro forma adjustments give appropriate effect to those assumptions
and are properly applied in the unaudited pro forma condensed combined financial information.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The unaudited pro forma condensed combined
financial information is not necessarily indicative of what the actual results of operations and financial position would have
been had the Business Combination taken place on the dates indicated, nor are they indicative of the future consolidated results
of operations or financial position of the post-combination company. They should be read in conjunction with the historical financial
statements and notes thereto of DEAC, DraftKings, and SBTech.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounting
Policies and Reclassifications&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As part of the preparation of these unaudited
pro forma condensed combined financial statements, certain reclassifications were made to align DEAC&rsquo;s, DraftKings&rsquo;
and SBTech&rsquo;s financial statement presentation. Upon completion of the Business Combination, management will perform a comprehensive
review of DEAC&rsquo;s, DraftKings&rsquo;, and SBTech&rsquo;s accounting policies. As a result of the review, management may identify
differences between the accounting policies of the three entities which, when conformed, could have a material impact on the financial
statements of the post-combination company. Based on its initial analysis, DEAC has identified differences that would have an impact
on the unaudited pro forma condensed combined financial information and recorded the necessary adjustments.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments
to Historical SBTech Financial Information&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The historical financial information of
SBTech was prepared in accordance with IFRS and presented in Euros. The historical financial information was translated from Euros
to U.S. dollars using the following historical exchange rates:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 95%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.25in">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">$ / &euro;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 87%; font-size: 10pt">Period end exchange rate as of December 31, 2019</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">1.12</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">Average exchange rate for twelve months ended December 31, 2019</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1.12</TD><TD STYLE="font-size: 10pt; text-align: left">&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-indent: 0.5in">In addition, adjustments were made to convert
SBTech&rsquo;s financial information from IFRS to U.S. GAAP, to align SBTech&rsquo;s accounting policies to those applied by DraftKings.
Refer to tables below for impacted line items and adjustment amounts in the pro forma condensed combined balance sheet and statements
of operations.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Impact on pro forma balance sheet as of
December 31, 2019:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 95%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.25in">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold">&#8203;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">As of<BR> December 31,<BR> 2019</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: right">&#8203;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: right">&#8203;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">As of<BR> December 31,<BR> 2019</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">As of<BR> December 31,<BR> 2019</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold">&#8203;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">IFRS<BR> SBTech<BR> (in EUR)</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Total<BR> Adjustments<BR> (in EUR)</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: right; border-bottom: Black 1pt solid">&#8203;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">US GAAP<BR> SBTech<BR> (in EUR)</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">US GAAP<BR> SBTech<BR> (in USD)</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold">ASSETS</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">CURRENT ASSETS:</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 43%; font-size: 10pt; text-align: left">Cash and cash equivalents</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&euro;</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">8,144</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&euro;</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">-</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: right">&#8203;</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&euro;</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">8,144</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">9,143</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Trade receivables, net</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">24,745</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&#8203;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">24,745</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">27,781</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Other current assets</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">3,258</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">61</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>A</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">3,319</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">3,726</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">Total current assets</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">36,147</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">61</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&#8203;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">36,208</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">40,650</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">NON-CURRENT ASSETS:</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Intangible assets, net</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">26,094</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&#8203;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">26,094</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">29,296</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Right-of-use assets</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">25,779</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(25,779</TD>
    <TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>B</B></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Property, plant and equipment, net</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">9,930</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&#8203;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">9,930</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">11,148</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Deferred tax assets</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">597</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(134</TD>
    <TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>A</B></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">463</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">520</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Other non-current assets</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">306</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">-</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>B</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">306</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">344</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 2.5pt">Total assets</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">98,853</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">(25,852</TD>
    <TD STYLE="vertical-align: top; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; text-align: right">&#8203;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">73,001</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">81,958</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">LIABILITIES AND EQUITY</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">CURRENT LIABILITIES:</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Trade payables</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">8,127</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&#8203;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">8,127</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">9,124</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Lease liabilities</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">3,516</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(3,516</TD>
    <TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>B</B></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Other accounts payable</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">11,176</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">-</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&#8203;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">11,176</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">12,547</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">Total current liabilities</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right">22,819</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right">(3,516</TD>
    <TD STYLE="vertical-align: top; font-size: 10pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right">19,303</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right">21,671</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">NON-CURRENT LIABILITIES</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Lease liabilities</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">22,749</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(22,749</TD>
    <TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>B</B></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Accrued severance pay, net</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">408</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">-</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&#8203;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">408</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">458</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">Total non-current liabilities</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right">23,157</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right">(22,749</TD>
    <TD STYLE="vertical-align: top; font-size: 10pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right">408</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right">458</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">SHAREHOLDERS&rsquo; EQUITY</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt">Share capital</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">3</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&#8203;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">3</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">3</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Actuarial reserve</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(139</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&#8203;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(139</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(156</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Retained earnings</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">51,956</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">413</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>B</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">52,369</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">58,795</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Equity attributable to owners of the parent</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">51,820</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">413</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&#8203;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">52,233</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">58,642</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Non-controlling interest</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">1,057</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">-</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&#8203;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">1,057</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">1,187</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 1pt">Total equity</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">52,877</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">413</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&#8203;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">53,290</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">59,829</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 2.5pt">TOTAL LIABILITIES AND EQUITY</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: right">98,853</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: right">(25,852</TD>
    <TD STYLE="vertical-align: top; font-size: 10pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>&#8203;</B></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: right">73,001</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: right">81,958</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Impact on pro forma income statement for
the year ended December 31, 2019:</P>

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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 95%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.25in">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold">&#8203;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">For the<BR> Year ended<BR> December 31,<BR> 2019</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: right">&#8203;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: right">&#8203;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">For the<BR> Year ended<BR> December 31,<BR> 2019</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">For the<BR> Year ended<BR> December 31,<BR> 2019</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold">&#8203;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">IFRS<BR> SBTech<BR> (in EUR)</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Total<BR> Adjustments<BR> (in EUR)</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: right">&#8203;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">US GAAP<BR> SBTech<BR> (in EUR)</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">US GAAP<BR> SBTech<BR> (in USD)</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 43%; font-size: 10pt">Revenue</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&euro;</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">96,857</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&euro;</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">-</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: right">&#8203;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&euro;</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">96,857</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">108,424</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; padding-bottom: 1pt">Cost of revenue</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">54,173</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">6</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&#8203;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">54,179</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">60,649</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Gross Profit</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">42,684</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(6</TD>
    <TD STYLE="vertical-align: top; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; text-align: right">&#8203;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">42,678</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">47,775</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Operating Expenses:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&#8203;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&#8203;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&#8203;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&#8203;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&#8203;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Selling and marketing expenses</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">6,772</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">10</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&#8203;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">6,782</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">7,592</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">General and administrative expenses</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">11,772</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">47</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>B</B></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">11,819</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">13,230</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Research and development expenses</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">18,103</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">128</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&#8203;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">18,231</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">20,408</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Total operating costs and expenses</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">36,647</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">185</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&#8203;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">36,832</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">41,230</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Operating income</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">6,037</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(191</TD>
    <TD STYLE="vertical-align: top; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; text-align: right">&#8203;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">5,846</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">6,545</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Financial Income</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">23</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&#8203;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">23</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">26</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Financial Expenses</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">846</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(676</TD>
    <TD STYLE="vertical-align: top; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><B>B</B></TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">170</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">190</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Profit before tax</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">5,214</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">485</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&#8203;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">5,699</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">6,381</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Tax expenses</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">638</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">73</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&#8203;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">711</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">796</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Net Profit</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">4,576</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">412</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&#8203;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">4,988</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">5,585</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.35in">A.</TD><TD>Reflects the reclassification of deferred taxes associated with current assets or liabilities to other current assets related
to IFRS to U.S. GAAP differences on the classification of deferred taxes. In the historical SBTech consolidated balance sheet,
all deferred tax assets were classified as non-current.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.35in">B.</TD><TD>Reflects the reversal of the impact of the adoption and ongoing effects of the accounting treatment of IFRS 16, Leases, recognized
by SBTech in their financial statements as of and for the nine months ended December 31, 2019, as DraftKings, the accounting acquirer,
has not yet adopted the similar U.S. GAAP standard under&nbsp;ASC 842, Leases, and operates under&nbsp;ASC 840, Leases, as of and
for the year ended December 31, 2019.</TD></TR></TABLE>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments
to Unaudited Pro Forma Condensed Combined Financial Information&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The historical consolidated financial statements
have been adjusted in the unaudited pro forma condensed combined financial information to give effect to pro forma events that
are (1) directly attributable to the Business Combination, (2) factually supportable and (3) with respect to the statement of operations,
expected to have a continuing impact on the results of New DraftKings.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">There were no intercompany balances or transactions
between DEAC, DraftKings and SBTech as of the dates and for the periods of these unaudited pro forma combined financial statements.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The pro forma combined consolidated provision
for income taxes does not necessarily reflect the amounts that would have resulted had the Companies filed consolidated income
tax returns during the periods presented.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The pro forma basic and diluted earnings
per share amounts presented in the unaudited pro forma condensed combined consolidated statements of operations are based upon
the number of DEAC&rsquo;s shares outstanding, assuming the Business Combination occurred on January 1, 2019.</P>

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

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Adjustments to Unaudited Pro Forma Condensed
Combined Balance Sheet</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The pro forma adjustments included in the
unaudited pro forma condensed combined balance sheet as of December 31, 2019 are as follows:</P>

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

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

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Pro Forma Adjustments (PF)</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"><B>A.</B></TD><TD>Reflects the reclassification of $403.9 million of cash and cash equivalents held in the DEAC trust account that become available
for transaction consideration, transaction expenses, redemption of public shares and the operating activities of DEAC following
the Business Combination.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: left"><B>B.</B></TD><TD STYLE="text-align: justify">Reflects the settlement of $14.0 million of deferred
underwriters&rsquo; fees.</TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"><B>C.</B></TD><TD>Represents estimated transaction costs in consummating the Business Combination (excluding approximately $3.3 million in transaction-related
costs, including a tail liability insurance for SBTech&rsquo;s current directors and officers, incurred by SBTech and to be borne
by DraftKings under the Business Combination Agreement, which was allocated to purchase price).Of the total amount shown, approximately
$6.4 million was previously incurred and accrued for on the balance sheet as of December 31, 2019.</TD></TR></TABLE>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><B>D.</B></TD><TD>Represents proceeds of $109.2 million received from the issuance of the Convertible Notes, of which $69.1 million was already
received and reflected in DraftKings&rsquo; historical consolidated balance sheet as of December 31, 2019. Upon the Closing, the
mandatory conversion feature upon a business combination would be triggered, causing a conversion of the outstanding principal
amount of these Notes and any unpaid accrued interest in equity securities at a specified price. The Convertible Notes are expected
to be outstanding from December 2019 through April 2020. For purposes of this pro forma presentation, interest of $3.4 million
for the period the Convertible Note is expected to be outstanding was accrued and converted in addition to the principal balance.
The remaining adjustment reflects the net income statement impact captured in retained earnings that is associated with the conversion
of the notes.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"><B>E.</B></TD><TD>Represents proceeds of $304.7 million from the issuance of 30.5 million shares in the Private Placement based on commitments
received.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"><B>F.</B></TD><TD>Reflects the reclassification of approximately $384.3 million of DEAC Class A common stock subject to possible redemption to
permanent equity.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"><B>G.</B></TD><TD>Reflects the conversion of DEAC Class B common stock to DEAC Class A common stock. In connection with the Closing, all shares
of DEAC Class B common stock will convert into shares of DEAC Class A common stock.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"><B>H.</B></TD><TD>Represents recapitalization of DraftKings equity and issuance of 207.1 million of New DraftKings Class A common stock to DraftKings
Equityholders as consideration for the Reverse Recapitalization.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"><B>I.</B></TD><TD>Reflects the reclassification of DEAC&rsquo;s historical retained earnings.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"><B>J.</B></TD><TD>Reflects the amount of compensation cost related to the acceleration of the vesting for certain existing stock options granted.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"><B>K.</B></TD><TD>Reflects the maximum redemption of 30,564,789 shares for aggregate redemption payments of $308.7 million allocated to Class
A common stock and additional paid-in capital using par value $0.0001 per share and at a redemption price of $10.10 per share.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"><B>L.</B></TD><TD>Reflects the payment of $10.0 million in bonuses to management of DraftKings upon closing of the transaction provided that
redemptions are less than 10% of DEAC public shares. If redemptions exceed 30%, no bonuses will be paid. As the redemption percentage
is greater than 30% in the maximum redemption scenario, no bonus payment is reflected.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"><B>M.</B></TD><TD>Reflects the cash amount paid to DraftKings Stockholders that were deemed to be non-accredited by the Company, in lieu of common
stock.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"><B>N.</B></TD><TD>Reflects the settlement of $1.5 million of DEAC's historical liabilities at transaction close.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"><B>O.</B></TD><TD>Reflects additional cash of $44.5 million obtained by DraftKings from drawing on its revolving credit facility subsequent to
the balance sheet date. The draw is expected to be short-term in nature and as such has only been reflected on the pro forma balance
sheet.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"><B>P.</B></TD><TD>Reflects the cancellation of $11 million of promissory notes in exchange for Series F preferred shares in lieu of cash which
occurred subsequent to the balance sheet date. The Series F shares will be converted to Class A shares upon close of the business
combination and have been reflected herein as such.</TD></TR></TABLE>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><B>Q.</B></TD><TD>Reflects the issuance of 394.0 million of New DraftKings Class B common stock to Jason Robins valued at $8.0 million in the
no redemption scenario, and 366.4 million shares valued at $7.4 in the maximum redemption scenario. In connection with issuance
of the Class B shares, the Company will indemnify Mr. Robins for any personal tax liabilities that may arise, which would result
in the Company incurring an additional liability and an incremental compensation charge. The Class B shares were valued using a
market trading comparables approach.</TD></TR></TABLE>

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

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

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Purchase Price Allocation Adjustments (PPA)</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"><B>A.</B></TD><TD>The estimated consideration is as follows:</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold">Estimated Consideration</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 87%; font-size: 10pt">Cash consideration<FONT STYLE="font-size: 10pt"><SUP>(1)</SUP></FONT></TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">209,516</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">Share consideration<FONT STYLE="font-size: 10pt"><SUP>(2)</SUP></FONT></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">545,586</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; padding-bottom: 1pt">Other consideration<FONT STYLE="font-size: 10pt"><SUP>(3)</SUP></FONT></TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">3,331</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 2.5pt">Total estimated consideration</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">758,433</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&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"></P>

<!-- Field: Rule-Page --><DIV STYLE="margin-top: 3pt; margin-bottom: 3pt; width: 25%"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in">(1)</TD><TD>Includes the cash consideration, as adjusted for estimated excess Net Debt Amount and Working Capital Amount as specified in
the Business Combination Agreement.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in">(2)</TD><TD>Includes the share consideration and the estimated contingent consideration of the earnout clause as specified in the Business
Combination Agreement. The additional consideration related to the earnout clause was estimated assuming a 50% probability of reaching
the specified share price targets of $12.50, $14.00, and $16.00. The possible range for the value of the contingent consideration
related to the earnout clause is $0 to $10.2 million.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in">(3)</TD><TD>Includes transaction costs incurred by SBTech to be borne by DraftKings and the six year liability insurance for SBTech&rsquo;s
current directors and officers, as specified in the Business Combination Agreement.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0in">Under the acquisition method of
accounting, the identifiable assets acquired and liabilities assumed of SBTech are recorded at the acquisition date fair values.
The pro forma adjustments are preliminary and based on estimates of the fair value and useful lives of the assets acquired and
liabilities assumed and have been prepared to illustrate the estimated effect of the SBTech Acquisition.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0in">For all assets acquired and liabilities
assumed other than identified intangible assets and goodwill, the carrying value was assumed to equal fair value. The final determination
of the fair value of certain assets and liabilities will be completed within the one-year measurement period as required by&nbsp;ASC
805. The size and breadth of the SBTech Acquisition may necessitate the use of this measurement period to adequately analyze and
assess a number of the factors used in establishing the asset and liability fair values as of the acquisition date, including the
significant contractual and operational factors underlying the developed technology and user relationship intangible assets and
the assumptions underpinning the related tax impacts of any changes made. Any potential adjustments made could be material in relation
to the preliminary values presented.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0in">Accordingly, the pro forma purchase
price allocation is subject to further adjustment as additional information becomes available and as additional analyses and final
valuations are completed. There can be no assurances that these additional analyses and final valuations will not result in significant
changes to the estimates of fair value set forth below.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0in">The following table sets forth a
preliminary allocation of the estimated consideration for the SBTech Acquisition to the identifiable tangible and intangible assets
acquired and liabilities assumed based on SBTech&rsquo;s December 31, 2019 balance sheet, with the excess recorded as goodwill:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold">Estimated Goodwill</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 87%; font-size: 10pt; text-align: left">Cash and cash equivalents</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">9,143</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Trade receivables, net</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">27,781</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Other current assets</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">3,726</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Property and equipment, net</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">11,357</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Intangible assets, net</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">269,239</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Deferred tax assets</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">520</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Other non-current assets</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">344</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: 0.25in; font-size: 10pt; text-align: left">Total Assets</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">322,110</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Trade payables</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">9,124</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Other accounts payable</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">12,547</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Other long-term liabilities</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2,648</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Accrued severance pay, net</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">458</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Total liabilities</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">24,777</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Net assets acquired (a)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">297,333</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Estimated purchase consideration (b)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">758,433</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 2.5pt">Estimated goodwill (b) &#8201;-&#8201;(a)</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">461,100</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&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"></P>

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<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-indent: 0.5in">In accordance with&nbsp;ASC Topic 350, Goodwill
and Other Intangible Assets, goodwill will not be amortized, but instead will be tested for impairment at least annually or more
frequently if certain indicators are present. In the event management determines that the value of goodwill has become impaired,
an accounting charge for the amount of impairment during the quarter in which the determination is made may be recognized. Goodwill
recognized is not expected to be deductible for tax purposes.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Total consideration was calculated based
on a $12.25 share price. In the event that the share price increases or decreases by 10%, the impact on total consideration and
goodwill would be as follows:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 95%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.25in">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold; border-bottom: Black 1pt solid">Change in stock price</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Stock Price</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Estimated<BR> Consideration</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Goodwill</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 61%; font-size: 10pt">Decrease of 10%</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">11.03</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">704,384</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">407,051</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">Increase of 10%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">13.48</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">812,482</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">515,149</TD><TD STYLE="font-size: 10pt; text-align: left">&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"><B>B.</B> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table
below indicates the estimated fair value of each of the identifiable intangible assets:</P>

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 95%; border-collapse: collapse; margin-left: 0.25in">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt; white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Preliminary<BR>
Estimated<BR>
Asset Fair Value</B></FONT></TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Weighted Average<BR>
Useful Life (Years)</B></FONT></TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(in thousands, except for useful life)</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 74%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Developed technology</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">134,515</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Customer Relationships</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">103,850</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">15</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Trademarks and Trade Names</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">30,874</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">15</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">269,239</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Less: Net intangible assets reported on SBTech&rsquo;s historical financial statements</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(29,087</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pro forma adjustment</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">240,152</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD></TR>
</TABLE>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The fair values of the developed technology
intangible assets were determined by using an &ldquo;income approach,&rdquo; specifically the relief-from-royalty approach, which
is a commonly accepted valuation approach. This approach is based on the assumption that in lieu of ownership, a firm would be
willing to pay a royalty in order to exploit the related benefits of this asset. Therefore, a portion of SBTech&rsquo;s earnings,
equal to the after-tax royalty that would have been paid for the use of the asset, can be attributed to the firm&rsquo;s ownership.
The fair values of the trademark and tradename intangible assets were also determined by the relief-from-royalty approach. The
fair values of the user relationship intangible assets were determined by using an &ldquo;income approach,&rdquo; specifically
a multi-period excess earnings approach, which is a commonly accepted valuation approach. Under this approach, the net earnings
attributable to the asset or liability being measured are isolated using the discounted projected net cash flows. These projected
cash flows are isolated from the projected cash flows of the combined asset group over the remaining economic life of the intangible
asset or liability being measured. Both the amount and the duration of the cash flows are considered from a market participant
perspective. Where appropriate, the net cash flows were adjusted to reflect the potential attrition of existing customers in the
future, as existing customers are a &ldquo;wasting&rdquo; asset and are expected to decline over time.</P>

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"><B>C.</B></TD><TD>Represents the deferred tax impact associated with the incremental differences in book and tax basis created from the preliminary
purchase price allocation resulting from the step up in fair value of intangible assets. Deferred taxes were established based
on SBTech&rsquo;s blended statutory tax rate of 2.55%, based on jurisdictions where income has historically been generated. This
estimate of deferred income tax liabilities is preliminary and is subject to change based upon SBTech&rsquo;s final determination
of the fair value of assets acquired and liabilities assumed by jurisdiction.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"><B>D.</B></TD><TD>Represents the elimination of SBTech&rsquo;s historical equity.</TD></TR></TABLE>

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

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Adjustments to Unaudited Pro Forma Condensed
Combined Statement of Operations</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The pro forma adjustments included in the
unaudited pro forma condensed statement of operations for the year ended December 31, 2019 are as follows:</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Pro Forma Adjustments (PF)</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"><B>AA.</B></TD><TD>Reflects elimination of transaction-related costs incurred and recorded by DEAC and DraftKings.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"><B>BB.</B></TD><TD>Reflects the elimination of interest income on the trust account.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"><B>CC.</B></TD><TD>Reflects adjustments to income tax expense as a result of the tax impact on the pro forma adjustments at the estimated statutory
tax rate of 27.6%.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"><B>DD.</B></TD><TD>Reflects the incremental stock-based compensation expense related certain equity awards expected to continue subsequent to
the closing.</TD></TR></TABLE>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Purchase Price Allocation Adjustments (PPA)</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"><B>AA.</B></TD><TD>Reflects the incremental amortization expense recorded as a result of the fair value adjustment for intangible assets acquired
in the SBTech Acquisition.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"><B>BB.</B></TD><TD>Reflects the adjustment to stock-based compensation expense for the post-combination portion of the SBT rolled-over options.
The new stock-based compensation expense is amortized on a straight-line basis over the remaining vesting periods.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"><B>CC.</B></TD><TD>Reflects adjustments to income tax expense as a result of the tax impact on the purchase accounting adjustments at the estimated
statutory tax rate of 27.6%.</TD></TR></TABLE>

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

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

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss per Share&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Represents the net earnings per share calculated
using the historical weighted average shares outstanding and the issuance of additional shares in connection with the Business
Combination, assuming the shares were outstanding since January 1, 2019. As the Business Combination is being reflected as if it
had occurred at the beginning of the periods presented, the calculation of weighted average shares outstanding for basic and diluted
net income per share assumes that the shares issuable relating to the Business Combination have been outstanding for the entire
periods presented. If the maximum number of shares are redeemed, this calculation is retroactively adjusted to eliminate such shares
for the entire periods.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The unaudited pro forma condensed combined
financial information has been prepared assuming two alternative levels of redemption into cash of DEAC&rsquo;s Class A common
stock for the year ended December 31, 2019:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 95%; border-collapse: collapse; margin-left: 0.25in">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold">&#8203;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">For the Year ended December 31, 2019</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap; font-size: 10pt; font-weight: bold">&#8203;</TD><TD STYLE="white-space: nowrap; font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Assuming No<BR> Redemptions</TD><TD STYLE="white-space: nowrap; padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="white-space: nowrap; font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Assuming Maximum<BR> Redemptions</TD><TD STYLE="white-space: nowrap; padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap; font-size: 10pt; font-weight: bold">&#8203;</TD><TD STYLE="white-space: nowrap; font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="white-space: nowrap; font-size: 10pt; font-weight: bold; text-align: center">(in thousands except share and per share data)</TD><TD STYLE="white-space: nowrap; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 74%; font-size: 10pt; text-align: left">Pro forma net loss</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">(139,893</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">)</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">(139,893</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">Weighted average shares outstanding of Class A common stock</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">336,631,006</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">306,066,216</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -0.125in; padding-left: 0.125in">Net loss per share (Basic and
    Diluted) attributable to Class A common stockholders(1)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">(0.42</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">(0.46</TD><TD STYLE="font-size: 10pt; text-align: left">)</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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<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 CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.35in">(1)</TD><TD>For the purposes of applying the if converted method for calculating diluted earnings per share, it was assumed that all outstanding
warrants sold in the IPO and the private placement are exchanged for Class A common stock. However, since this results in anti-dilution,
the effect of such exchange was not included in calculation of diluted loss per share. Additionally, New DraftKings&rsquo; Class
B shares will be issued to Jason Robins; which will carry 10 votes per share, and will allow Jason Robins to have approximately
90% of the voting power of the capital stock of New DraftKings on a fully-diluted basis. As these shares have no economic or participating
rights, they have been excluded from the calculation of earnings per share.</TD></TR></TABLE>

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

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

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="b_013"></A>DEAC&rsquo;s
MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS OF</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">FINANCIAL CONDITION AND RESULTS OF OPERATIONS</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>The following discussion and analysis
should be read in conjunction with the financial statements and related notes of DEAC, included elsewhere in this prospectus. This
discussion contains forward-looking statements reflecting our current expectations, estimates and assumptions concerning events
and financial trends that may affect our future operating results or financial position. Actual results and the timing of events
may differ materially from those contained in these forward-looking statements due to a number of factors, including those discussed
in the sections entitled &ldquo;Risk Factors&rdquo; and &ldquo;Cautionary Statement Regarding Forward-Looking Statements&rdquo;
appearing elsewhere in this prospectus. </I></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We are a blank check company incorporated
as a Delaware corporation on March 27, 2019 and formed for the purpose of effecting a merger, capital stock exchange, asset acquisition,
stock purchase, reorganization or similar business combination with one or more businesses. Simultaneously with the consummation
of the Public Offering, we consummated the private sale of an aggregate of 6,333,334 warrants, each exercisable to purchase one
share of Class A common stock, par value $0.0001 per share at $11.50 per share, to Eagle Equity Partners, LLC and Harry E. Sloan
at a price of $1.50 per warrant, generating gross proceeds, before expenses, of approximately $9,500,000 (the &ldquo;Private Placement&rdquo;).
We intend to consummate an initial business combination using cash from the proceeds of our initial public offering (the &ldquo;Public
Offering&rdquo;) that closed on May 14, 2019 and the Private Placement, and from additional issuances of, if any, our equity and
our debt, or a combination of cash, equity and debt.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">At December 31, 2019, we held cash of $491,225,
current liabilities of $1,493,133 and deferred underwriting compensation of $14,000,000. Further, we expect to continue to incur
significant costs in the pursuit of our acquisition plans. We cannot assure you that our plans to complete an initial business
combination will be successful.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Agreement for Business Combination</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On December 22, 2019, we entered into a
business combination agreement with DraftKings Inc., a Delaware corporation, SBTech (Global) Limited, a company limited by shares,
incorporated in Gibraltar and continued as a company under the Isle of Man Companies Act 2006, with registration number 014119V,
the shareholders of SBT, Shalom Meckenzie, in his capacity as the SBT Sellers&rsquo; Representative, DEAC NV Merger Corp., a Nevada
corporation and a wholly-owned subsidiary of DEAC and DEAC Merger Sub Inc., a Delaware corporation and a wholly-owned subsidiary
of DEAC, pursuant to which (i) DEAC will change its jurisdiction of incorporation to Nevada by merging with and into DEAC Nevada,
with DEAC Nevada surviving the merger, (ii) Merger Sub will merge with and into DraftKings with DraftKings surviving the merger,
and (iii) immediately following the DK Merger, New DraftKings will acquire all of the issued and outstanding share capital of SBT.
Upon consummation of the transactions contemplated by the Business Combination Agreement, DraftKings and SBT will become wholly
owned subsidiaries of DEAC Nevada, which will be renamed &ldquo;DraftKings Inc.&rdquo;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DraftKings is a digital sports entertainment
and gaming company. DraftKings provides users with daily fantasy sports, sports betting and iGaming opportunities. SBT&rsquo;s
principal business activities involve the design and development of sports betting and casino gaming platform software for online
and retail sportsbook and casino gaming products.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The aggregate value of the consideration
to be paid to DraftKings and SBT shareholders in the Business Combination is approximately $2.7 billion, of which (A) approximately
$2.055 billion will be paid to (i) the current equityholders of DraftKings in the form of shares of Class A common stock of New
DraftKings, valued at the redemption price for DEAC&rsquo;s public shares in the Business Combination, plus in the case of Jason
Robins, such additional number of shares of Class B common stock of New DraftKings such that as of immediately following the completion
of the Business Combination, Mr. Robins shall have approximately ninety percent (90%) of the voting power of the capital stock
of New DraftKings on a fully-diluted basis, and (ii) holders of vested in-the-money options and warrants exercisable for DraftKings
equity in the form of newly issued options and warrants of New DraftKings exercisable for New</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DraftKings Class A common stock, and (B)
approximately &euro;590 million will be paid to the SBT Sellers and holders of vested options exercisable for equity of SBT, consisting
of&#8201; (i) &euro;180 million in cash, subject to customary net debt and working capital adjustments as well as certain other
specified items payable in respect of the ordinary shares of SBT and 30% of the in-the-money vested options of SBT and (ii) approximately
 &euro;410 million in shares of New DraftKings Class A common stock, valued at the redemption price for DEAC&rsquo;s public shares
in the Business Combination, and in the form of newly issued in-the-money vested options of New DraftKings exercisable for New
DraftKings Class A common stock.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Outstanding options exercisable for DraftKings or SBT equity
(other than cashed-out options of SBT, for which the holders will receive a portion of the Cash Consideration for such options)
will be converted into options exercisable for shares of New DraftKings Class A common stock. After the execution of the BCA, DraftKings
granted restricted stock units to certain of its employees, which will be converted into restricted stock units denominated in
New DraftKings Class A common stock. The Cash Consideration will come from the following sources: (1) proceeds available from DEAC&rsquo;s
trust account that it established in connection with the Public Offering, after giving effect to any and all redemptions; and (2)
proceeds from private placements of shares of DEAC&rsquo;s Class A common stock to certain institutional investors to occur immediately
prior to the closing of the Business Combination, of which DEAC currently has commitments for $304.7 million of proceeds.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Business Combination also calls for
additional agreements, including, among others, the Subscription Agreements and the Stockholders Agreement, as described elsewhere
in this &#8203;prospectus.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">For the period from March 27, 2019 (date
of inception) through December 31, 2019, we incurred a loss from operations of $1,857,305, including income tax of $944,494, which
was offset by interest income from the trust account of $5,111,208. Through December 31, 2019, our efforts have been limited to
organizational activities, activities relating to the Public Offering, activities relating to identifying and evaluating prospective
acquisition candidates and activities relating to general corporate matters. We have not generated any revenues, other than interest
income earned on the proceeds held in the trust account. As of December 31, 2019, $403,961,209 was held in the trust account (including
$14,000,000 of deferred underwriting discounts and commissions and approximately $9,500,000 from the Private Placement) and we
had cash outside of trust of $491,225 and $1,493,133 in accounts payable and accrued expenses.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Except for the withdrawal of interest to
fund DEAC&rsquo;s working capital requirements (subject to an annual limit of $250,000) and/or to pay taxes, if any, our amended
and restated certificate of incorporation (the &ldquo;Charter&rdquo;) provides that none of the funds held in trust will be released
from the trust account until (i) the completion of an initial business combination; (ii) the redemption of any of the shares of
Class A common stock included in the units sold in the Public Offering (the &ldquo;Units&rdquo;) properly submitted in connection
with a stockholder vote to amend the Charter to modify the substance or timing of DEAC&rsquo;s obligation to redeem 100% of the
common stock included in the Units being sold in the Public Offering if DEAC does not complete an initial business combination
by May 14, 2021 or with respect to any other material provisions relating to stockholders&rsquo; rights or pre-initial business
combination activity or (iii) the redemption of 100% of the shares of Class A common stock included in the Units sold in the Public
Offering if DEAC is unable to complete a Business Combination by May 14, 2021. Through December 31, 2019, we have withdrawn $1,149,999
of funds from interest earned on the trust proceeds. Other than the deferred underwriting discounts and commissions, no amounts
are payable to the underwriters of the Public Offering in the event of a business combination.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We have also agreed to reimburse an affiliate
of the Sponsor for office space, secretarial and administrative services provided to members of our management team, in an amount
not to exceed $15,000 per month in the event that such space and/or services are utilized and we do not pay a third party directly
for such services. Upon completion of our initial business combination or our liquidation, we will cease paying these monthly fees.
For the period from March 27, 2019 (date of inception) through December 31, 2019, DEAC paid $90,000 under this agreement.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Going Concern Considerations and Capital Resources</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">For the period from March 27, 2019 (date
of inception) through December 31, 2019, we incurred an aggregate of $1,237,757, for merger expenses, legal, accounting, and filing
fees relating to our SEC reporting obligations and general corporate matters, and miscellaneous operating expenses.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We believe that we do not have sufficient
liquidity to meet our current obligations and allow us to operate through May 14, 2021, assuming that an initial business combination
is not consummated during that time. Over this time period, we currently anticipate incurring expenses for the following purposes:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>due diligence and investigation of prospective target businesses;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>legal and accounting fees relating to our SEC reporting obligations and general corporate matters;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>structuring and negotiating an initial business combination, including the making of a down payment or the payment of exclusivity
or similar fees and expenses; and</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>other miscellaneous expenses.</TD></TR></TABLE>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection with DEAC&rsquo;s assessment
of going concern considerations in accordance with ASU 2014-15, &ldquo;Disclosures of Uncertainties about an Entity&rsquo;s Ability
to Continue as a Going Concern&rdquo; as of December 31, 2019, DEAC does not have sufficient liquidity to meet its current obligations.
However, management has determined that DEAC has access to funds from the Sponsor entity, in the form of Working Capital Loans,
that are sufficient to fund the working capital needs of DEAC until the earlier of the consummation of an initial business combination
or a minimum one year from the date of issuance of the consolidated financial statements.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As indicated in the accompanying consolidated
financial statements, at December 31, 2019, we had outside of trust cash in the amount of $491,225 and $1,493,133 in accounts payable
and accrued expenses.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We have no obligations, assets or liabilities
which would be considered off-balance sheet arrangements. We do not participate in transactions that create relationships with
unconsolidated entities or financial partnerships, often referred to as variable interest entities, which would have been established
for the purpose of facilitating off-balance sheet arrangements.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We have not entered into any off-balance
sheet financing arrangements, established any special purpose entities, guaranteed any debt or commitments of other entities, or
entered into any non-financial agreements involving assets.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We do not have any long-term debt, capital
lease obligations, operating lease obligations or long-term liabilities other than an administrative agreement to reimburse the
Sponsor for office space, secretarial and administrative services provided to members of our management team by the Sponsor, members
of the Sponsor, and our management team or their affiliates in an amount not to exceed $15,000 per month in the event such space
and/or services are utilized and we do not pay a third party directly for such services, from the date of closing of the Public
Offering. Upon completion of a business combination or our liquidation, we will cease paying these monthly fees.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Critical Accounting Policies and Estimates</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The preparation of financial statements
and related disclosures in conformity with accounting principles generally accepted in the United States requires our management
to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and
liabilities at the date of the condensed financial statements, and income and expenses during the periods reported. Actual results
could materially differ from those estimates. We have identified the following as our critical accounting policies:</P>

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

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-weight: normal">Offering Costs </FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We comply with the requirements of Accounting
Standards Codification (&ldquo;ASC&rdquo;) 340-10-S99-1 and SEC Staff Accounting Bulletin Topic 5 A, &ldquo;Expenses of Offering.&rdquo;
We incurred offering costs in connection with our Public Offering of approximately $22,555,870, consisting principally of underwriter
discounts of $22,000,000 (including approximately $14,000,000 of which payment is deferred) and approximately $555,869 of professional,
printing, filing, regulatory and other costs were charged to stockholders&rsquo; equity upon completion of the Public Offering.
Approximately $224,395 of such offering expenses were accrued but unpaid at December 31, 2019.</P>

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

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-weight: normal">Redeemable Shares of
Class A Common Stock </FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">All of the 40,000,000 shares of Class A
common stock included in the Units sold as part of the Public Offering contain a redemption feature as described in the prospectus
for the Public Offering. In accordance with FASB ASC 480, &ldquo;Distinguishing Liabilities from Equity&rdquo;, redemption provisions
not solely within the control of DEAC require the security to be classified outside of permanent equity. The Charter provides a
minimum net tangible asset threshold of $5,000,001. DEAC recognizes changes in redemption value immediately as they occur and will
adjust the carrying value of the security at the end of each reporting period. Increases or decreases in the carrying amount of
redeemable shares will be affected by charges against additional paid-in capital.</P>

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

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

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

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-weight: normal">Net Income (Loss) per
Share </FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Net income (loss) per common share is computed
by dividing net income (loss) by the weighted average number of common shares outstanding for the period. We have not considered
the effect of the warrants sold in the Public Offering (including the over-allotment) and private placement warrants to purchase
approximately 13,333,333 and 6,333,334 shares of our Class A common stock, respectively, in the calculation of diluted income per
share, since their inclusion would be anti-dilutive.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our statement of operations includes a presentation
of net income per share for common shares subject to redemption in a manner similar to the two-class method of net income (loss)
per share. Net income (loss) per common share for basic and diluted Class A common stock is calculated by dividing the interest
income earned on the trust account, net of applicable franchise taxes of $153,971, working capital up to $250,000 annually, and
income taxes, by the weighted average number of Class A common stock since issuance. Net loss per common share for basic and diluted
for Class B common stock is calculated by dividing the net loss of $1,453,333, which excludes income attributable to Class A common
stock, by the weighted average number of Class B common stock outstanding for the period.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Management does not believe that any recently
issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material effect on our financial statements.</P>

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

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

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="text-transform: none"><A NAME="b_014"></A>BUSINESS
OF DRAFTKINGS AND SBTECH</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>The following discussion reflects the
business of New DraftKings, as currently embodied by each of DraftKings and SBTech. &ldquo;We,&rdquo; &ldquo;us&rdquo; and &ldquo;our&rdquo;
generally refer to DraftKings Inc. (together with its subsidiaries, &ldquo;DraftKings&rdquo;) in the present tense or New DraftKings
on a go-forward basis, unless the context otherwise refers to SBTech (Global) Limited (together with its subsidiaries, &ldquo;SBTech&rdquo;).</I></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">At DraftKings, our mission is to make life
more exciting by responsibly creating the world&rsquo;s favorite real-money games and betting experiences. We accomplish this by
creating an environment where our users can find enjoyment and fulfillment through daily fantasy sports contests, sports betting
and iGaming.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We seek to innovate and to constantly improve
our games and product offerings. Our focus is on creating unique and exciting experiences for our users. We are also highly focused
on our responsibility as stewards of this new era in real-money gaming. Our ethics guide every decision we make, both in our respect
for the tradition of sports and in our investment in regulatory compliance and consumer protection that have guided our company.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">These values anchor our business. Our desire
to innovate, improve and do the right thing drives our people and defines DraftKings, as we pursue our vision to transform the
way people experience sports entertainment and gaming.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We aspire to deliver a product that is developed
with our users in mind and to be as trustworthy as we are innovative in everything we bring to market. This comes in the form of
what we believe to be leading-edge, proprietary technology that powers real-money games and betting experiences designed for the
 &ldquo;skin-in-the-game&rdquo; sports fan&#8201;&mdash;&#8201;the fan who seeks a deeper connection to the sporting events that
he or she already loves. Our vision for DraftKings has been shaped by this user, both in who he or she is today and who we anticipate
he or she will become as the entertainment and gaming industries evolve. At our core, we are a digital sports entertainment and
gaming company with roots in technology and analytics that fosters dynamic and personalized experiences for the sports fan.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This vision underpins our position as a
leader in today&rsquo;s fast-growing global entertainment and gaming industries. DraftKings has hosted over 4.3 million unique
paid users. That number encompasses a user base that continues to steadily grow:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>During the year ended December 31, 2019, we had 684,103 average monthly unique payers (&ldquo;MUPs&rdquo;) and revenue of $323
million, resulting in an average revenue per MUP (&ldquo;ARPMUP&rdquo;) of $39. By comparison, during the same time period in 2018,
we had 600,886 average MUPs and revenue of $226 million, resulting in an ARPMUP of $31. See &ldquo;DraftKings&rsquo; Management&rsquo;s
Discussion and Analysis of Financial Condition and Results of Operations.&rdquo;</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our growth is driven both by acquiring new
users, engaging our existing users and re-engaging our past users. Research tells us that our typical user craves a more immersive
and curated fan experience. This was the user we sought with the launch of daily fantasy sports (&ldquo;DFS&rdquo;), our first
product offering following our founding in 2011, which has served as the foundation for our growth. Unlike traditional, season-long
fantasy sports offerings, DFS challenges users to create a lineup of players within a predefined fantasy &ldquo;budget&rdquo; and
to make decisions tied to a single day&rsquo;s sporting events, requiring an elevated level of skill and providing a heightened
degree of real-time gratification. This format has fundamentally changed the landscape of sports consumption, driving millions
of users to download the DraftKings app and visit our website to make DFS a staple of how they engage with teams, athletes and
sports statistics on an everyday basis.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As the popularity of our offerings grew,
so did our brand equity, which has been critical to our success over the past eight years. DraftKings became a recognized name
among gaming and sports enthusiasts because it represented an entirely new way of interacting with sports. We have remained a recognized
name due to the strong and lasting relationships we have formed with our users over time. We have placed our users at the center
of our operating model. Built at the intersection of agile technology, data-driven decision-making and dynamic product development,
our product offerings and platform are grounded in an absolute focus on our users&#8201;&mdash;&#8201;who they are and what experiences
they want. By leveraging research and analytics to inform our roadmaps, we have built a mobile-first ecosystem that offers experiences
tailored to the interests and behaviors of our users, resulting in a truly distinctive and personalized experience for the &ldquo;skin-in-the-game&rdquo;
sports fan.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Powering our product offerings is a highly
scalable platform that allows us to prioritize speed to market without sacrificing the integrity of our products&rsquo; performance.
Over the past 18 months, we have leveraged the DraftKings&rsquo; platform to expand our operations from DFS into two new product
offerings: Sportsbook and iGaming. In August 2018, less than three months after the U.S. Supreme Court struck down the Professional
and Amateur Sports Protection Act of 1992, we launched our online Sportsbook offering in New Jersey. The relative speed with which
we moved into this nascent space was no accident: it reflected nearly a decade&rsquo;s work in agile software development and regulatory
know-how that allowed us to navigate this environment. Our implementation of critical responsible-gaming staples like user protection
and data security would have been virtually impossible to deliver quickly into an online Sportsbook offering without the strength
of our existing infrastructure. Since launching in 2018, we have deepened our understanding of who our sports betting users are
and what they value. As of February 2020, our Sportsbook app and website are available in Indiana, Iowa, New Hampshire, New Jersey,
Pennsylvania and West Virginia. As a result of the highly personalized and engaging user experience we offer, we have quickly emerged
as one of the most recognized brands in unaided brand association among current online sports bettors and the top website used
among sports bettors in the United States, according to a June 2019 survey issued by Ipsos and the Fantasy Sports &amp; Gaming
Association.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">That model defines our brand in the eyes
of both our users and our employees: move rapidly and deliver the experiences that our users love. Our entry into the iGaming space
has been no different. Shortly after the launch of our online Sportsbook offering in New Jersey, we turned to iGaming as a clear
strategic adjacency for a growing, mobile-centric user base seeking entertainment in real time. We entered an industry with a significant
number of incumbent land-based licensed operators with mobile offerings and, in less than a year, surged to one of the top operators
in the iGaming space in New Jersey based on revenue, according to Eilers &amp; Krejcik Gaming, LLC&rsquo;s (&ldquo;Eilers&rdquo;)
U.S. Online Casino Tracker for December 2019. We offer hundreds of games on our iGaming platform across traditional offerings like
blackjack, roulette and slot machines, many of which have been designed by our in-house games studio (and which are our most popular
in-app offerings). The continued evolution of this platform will serve as a distinct differentiator in our ability to achieve rapid
growth in the iGaming space over time.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The intersection between the continued evolution
of the distinct experiences we offer and our user-centric DNA is what sets DraftKings apart.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Following the consummation of the Business
Combination with SBTech, we also plan to expand our offerings to begin serving other operators within our industry. We will begin
by migrating DraftKings&rsquo; own consumer offering onto SBTech&rsquo;s proprietary sports betting platform over time, allowing
us to become a fully vertically integrated sports betting operator. We will also leverage the combined entity&rsquo;s shared infrastructure
to service adjacent branded operators in both the United States and internationally at greater scale. This could include online
sportsbooks, retail sportsbooks, iGaming operators, as well as governments or lotteries seeking to manage their own sportsbook
or iGaming offerings. SBTech offers one of the industry&rsquo;s most robust platform solutions to satisfy its customers&rsquo;
sports betting technology needs, ranging from trading and risk management to platform services to support reporting, customer management
and regulatory reporting requirements. SBTech competes with a variety of other sports betting technology providers and differentiates
itself through this full suite platform offering. In addition, SBTech offers a leading iGaming solution via its proprietary platform
with integrations to third-party iGaming suppliers.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">These capabilities provide the foundation
for what we believe to be a best-in-class enterprise offering whose reach will continue to expand upon the consummation of the
Business Combination. Ultimately, we believe we will be uniquely positioned to continue delivering optimal experiences for sports
fans who engage deeply with our offerings and to service other companies who seek to offer those experiences themselves.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DraftKings was organized on December 29,
2011, as a Delaware corporation. DraftKings was founded by Matt Kalish, Paul Liberman and Jason Robins with the initial mission
of leveraging unique technology, analytics and marketing capabilities to deliver a daily fantasy sports offering. Within a few
years, DraftKings became one of the largest and most recognized DFS platforms in the United States.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">SBTech was incorporated on July 24, 2007,
under the laws of Gibraltar. It was originally named Jamtech Limited, subsequently renamed Networkpot Limited and thereafter renamed
SBTech (Global) Limited on August 16, 2010.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following is a timeline of key operational
and business milestones for our businesses:</P>

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
<TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: center; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>DraftKings</B></FONT></TD>
    <TD>&nbsp;</TD>
<TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: center; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>SBTech</B></FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 9%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2007</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 43%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 43%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SBTech was founded and officially
began its operations.</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
<TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2012</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">DraftKings began its operations and offered its
first DFS contest to the public for the Major League Baseball (&ldquo;MLB&rdquo;) season.</FONT></TD>
    <TD>&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SBTech&rsquo;s operator base had grown to six.</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2013</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">MLB became the first major sports organization to
invest in, and  &nbsp;establish a relationship, with DraftKings.</FONT></TD>
    <TD>&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SBTech&rsquo;s operator base had grown to eight
and just over 200 employees.</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
<TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We launched the first mobile app in the DFS industry.</FONT></TD>
    <TD>&nbsp;</TD>
<TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
<TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2014</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We acquired DraftStreet, a DFS operator, increasing
our user base by more than 50%, and acquired Starstreet, another DFS operator.&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SBTech&rsquo;s operator base had grown to 11 and
just over 400 employees.</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We signed a two-year deal to become the official
DFS provider of the National Hockey League.</FONT></TD>
    <TD>&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2015</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We were named the official DFS game of NASCAR, Ultimate
Fighting Championship and Major League Soccer, and announced partnership deals with major sports teams including the New England
Patriots, New York Knicks and Chicago Cubs.</FONT></TD>
    <TD>&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SBTech obtained a license from the United Kingdom
Gambling Commission to provide facilities for real event betting and to manufacture gambling software.</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">21st Century Fox America, Inc. (&ldquo;FOX&rdquo;)
became the first major media company to invest in us.</FONT></TD>
    <TD>&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We obtained a license from the United Kingdom Gambling
Commission to provide facilities to offer daily fantasy sports contests and other forms of pool betting, and to manufacture gambling
software.</FONT></TD>
    <TD>&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>



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<TR STYLE="vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 9%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2016</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 43%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We acquired a leading provider of DFS Mixed Martial
Arts <FONT STYLE="font: 10pt Times New Roman, Times, Serif">contests, Kountermove, to bolster
our user base in the burgeoning <FONT STYLE="font: 10pt Times New Roman, Times, Serif">space of combat sports.</FONT></FONT></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 43%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SBTech
re-domiciled SBTech in the Isle of Man, and acquired a Maltese B2B license from the Malta Gaming Authority for hosting <FONT STYLE="font: 10pt Times New Roman, Times, Serif">and management of remote gaming operators.</FONT></FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We explored a possible combination with a DFS competitor,
but did <FONT STYLE="font: 10pt Times New Roman, Times, Serif">not receive Federal Trade Commission approval.</FONT></FONT></TD>
    <TD>&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SBTech
acquired two Romanian licenses from the National</FONT> <FONT STYLE="font: 10pt Times New Roman, Times, Serif">Gambling Office of Romania for the production of
gambling <FONT STYLE="font: 10pt Times New Roman, Times, Serif">software and the hosting of a gambling platform.</FONT></FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SBTech
launched our Sportsbook into the newly regulated <FONT STYLE="font: 10pt Times New Roman, Times, Serif">Romanian and Portuguese jurisdictions, opened an
office in <FONT STYLE="font: 10pt Times New Roman, Times, Serif">London and accepted our first retail sports bet
in Mexico.</FONT></FONT></FONT></TD></TR>
</TABLE>

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<TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 9%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center; width: 43%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>DraftKings</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center; width: 43%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>SBTech</B></FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2017</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
were granted a skill gaming license in Malta, allowing for further expansion in the European Union.</FONT></TD>
    <TD>&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SBTech
launched a sportsbook for the Czech Republic National Lottery, marking SBTech&rsquo;s first major lottery partner.</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SBTech&rsquo;s
sportsbook launched in the Spanish regulated market.</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2018</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">PASPA
was struck down by the U.S. Supreme Court, opening the potential for state-by-state authorization of sports betting.&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SBTech
entered the Danish sports betting and iGaming industry by partnering with the Danish National Lottery, Danske Spil, under the
brand YOUBET&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
launched the first online sportsbook in New Jersey.</FONT></TD>
    <TD>&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SBTech
was awarded a B2B remote gambling license in Gibraltar, where we opened an office.</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
opened our first retail sportsbooks in Atlantic City, New Jersey (Resorts Casino and Hotel) and D&rsquo;Iberville, Mississippi
(Scarlet Pearl Casino Resort).</FONT></TD>
    <TD>&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SBTech
became one of the first sportsbook providers to be licensed in the state of Mississippi as a manufacturer and distributor by the
Mississippi Gaming Commission, and we debuted our retail sportsbook at the Golden Nugget&rsquo;s Biloxi</FONT><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Casino
                                   as well as two Churchill Downs properties.</FONT></P>


</TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SBTech
was awarded a Casino Service Industry Enterprise transactional waiver by the New Jersey Gaming Board and debuted a retail sportsbook
at the Golden Nugget Atlantic City.</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif">2019</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
officially launched iGaming in New Jersey with blackjack, roulette, video poker and slots.</FONT></TD>
    <TD>&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SBTech
launched our online sportsbook and iGaming offerings with Churchill Downs, and our online sportsbook with the Golden Nugget in
New Jersey.</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
announced a landmark partnership with the National Football League (&ldquo;NFL&rdquo;) which made us the Official Daily Fantasy
Partner of the NFL.</FONT></TD>
    <TD>&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SBTech
obtained conditional manufacturer and operator licenses from the Pennsylvania Gaming Commission, a manufacturer and Distributer
license from the Arkansas Racing Commission and a temporary supplier&rsquo;s license from the Indiana Gaming Commission, allowing
us to launch our retail sportsbook in Pennsylvania, Indiana and Arkansas with Churchill Downs properties.</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
were named the Official Daily Fantasy Game of the PGA Tour.</FONT></TD>
    <TD>&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
online sportsbook launched in Indiana, New Hampshire, Pennsylvania and West Virginia.</FONT></TD>
    <TD>&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
launched retail sportsbooks in Iowa (Wild Rose) and New York (del Lago).</FONT></TD>
    <TD>&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;<FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SBT
Malta Limited signed a five-year agreement with the Oregon State Lottery to provide online and retail sportsbook offering, and
successfully launched the first online sportsbook offering in the State of Oregon in October 2019. The retail sportsbook offering
is expected to be rolled out mid-2020.</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
were selected by the state of New Hampshire as its exclusive sportsbook partner.</FONT></TD>
    <TD>&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">DraftKings
mobile/online Sportsbook launches in New Hampshire.</FONT></TD>
    <TD>&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;<FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SBTech
launched an online sportsbook for the State Lottery and Monopoly of Azerbaijan, and signed agreements to provide its online and
retail sportsbook solution with the Finnish state lottery, Veikkaus, and the Swedish state lottery, Svenska Spel, in 2020.</FONT></TD></TR>
</TABLE>

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<TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 9%">&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 2%">&nbsp;</TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center; width: 43%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>DraftKings</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 2%">&nbsp;</TD>
<TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center; width: 43%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>SBTech</B></FONT></FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif">2020</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">DraftKings
and the XFL announced a new partnership that makes DraftKings an Official Daily Fantasy Sports Partner and an Authorized Gaming
Operator of the league.</FONT></TD>
    <TD>&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
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<TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">DraftKings
launched mobile/online Sportsbook in Iowa.</FONT></TD>
    <TD>&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
</TABLE>



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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">From the outset, our founders have embodied
and instilled in DraftKings a set of values and entrepreneurial spirit that has set the tone for the company and its employees.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We believe that our people are the reason
for our success and that we should be structured to maximize their productivity and performance. We actively work to maintain an
exceptional bar for talent to enable our mission, vision and business strategy. We identify, promote and reward talent that is
inspired by our purpose and shares our core values: analytical, authentic, bias for action, collaboration, commitment and user
focus.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As a technology company at our core, we
believe that the best innovation comes from diverse perspectives, thoughts, beliefs, ideas and experiences. We challenge the conventional
to ensure our culture and product offerings reflect the expectations of our employees and the users we serve. We work to foster
a culture of inclusion, equity and belonging that makes our employees feel safe, empowered, engaged, championed and inspired to
be their very best.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Like DraftKings, SBTech was built by founders
with an exceptional entrepreneurial spirit, with a focus on driving results, attracting and nurturing great people and teamwork.
As a technology supplier, SBTech understands its greatest resource is its human capital and is relentless in creating and fostering
a culture where employees feel empowered and inspired to continuously develop and deliver.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As of December 31, 2019, DraftKings had
869 employees and SBTech had 1,266 employees. None of DraftKings&rsquo; or SBTech&rsquo;s employees are represented by a labor
organization or are a party to any collective bargaining arrangement.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our Core Operating Principles</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DraftKings has been built on the foundation
of four core principles:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Put our users first</I></B>. Every
decision we make stems from our fundamental desire to keep our users engaged and excited to interact with our product offerings.
We have spent eight years refining our understanding of how our users engage and play and what they want most in terms of digital
sports entertainment and gaming offerings. The satisfaction of our users remains the single-most critical lens through which we
measure our own success moving forward.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Make data-driven decisions</I></B>.
At our core, DraftKings takes a data-driven approach to decision-making; no doubt a product of the shared analytical background
that our three founders possess. This holds true across everything we do&#8201;&mdash;&#8201;from minute tweaks to our marketing
programs to our product evaluation processes and our business development strategy&#8201;&mdash;&#8201;we ask our teams to justify
their decisions using the kind of thoughtful analysis that grounds our approach in objectivity. Analytics are deeply embedded in
our day-to-day operations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Be an employer of
choice</I></B>. We can only achieve our goals by acquiring, retaining and developing the best talent available. We have
invested heavily in building a team of specialized employees to ensure that our team is uniquely skilled to take on the
diverse challenges that our industry presents. Those employees are supported by an organizational structure designed to
maximize efficiency without trading off velocity. DraftKings currently operates 12 departments with 52 divisions across five
locations, ranging across core disciplines including front- and back-end technology, acquisition and retention marketing,
product management and operations, user experience and design, and a range of functions spanning analytics, data science and
data engineering. We will continue to make strategic, thoughtful decisions around how to hire the best people for the roles.
We achieve the employer of choice status not simply by attracting top talent, but also by fostering a culture that recognizes
the contribution and commitment of that talent to our operations, creating continuous opportunities for the growth and
development of our team.</P>

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Act responsibly</I></B>. We are committed
to industry-leading responsible gaming practices and seek to provide our users with the resources and services they need to play
responsibly. We have invested in processes that identify and protect vulnerable users. Specifically, we created an internal, independent
 &ldquo;Game Integrity and Ethics Team&rdquo; that actively monitors for any indication of activities that may violate current regulations
governing us, our own terms of use or our &ldquo;Community Guidelines.&rdquo; This team oversees a framework for our user community
to follow in determining when a user may need assistance. With our focus on fair and responsible gaming along with user protection
and data security, users have come to know and trust our gaming platform.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">What Makes Us Different</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In order to build the best real-money games
and product offerings, we have invested in core disciplines across technology, analytics and marketing, which have become our operational
bedrock and have allowed us to rapidly bring innovative new experiences to market while gaining a unique understanding of our users.
The result was clear market leadership in the DFS industry, fueled by a brand reputation and a depth of user trust that has set
us apart from our competitors.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our DFS investments positioned us to successfully
compete in online sports betting and iGaming, in addition to DFS. The core strengths that were born out of our DFS experience have
been critically important in the first 18 months of our entry into Sportsbook and iGaming, from the resonance of our brand to the
scalability of our technology. Similarly important were the regulatory experience and technical infrastructure we built in adapting
to the responsible gaming requirements of DFS, which have served as the foundation of our speed to market in online sports betting
and iGaming.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">These are the strengths that not only set
us apart as a DFS operator, but also will continue to differentiate us as a digital sports entertainment and gaming company:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Mobile-First Product Innovation</I></B>.
From DraftKings&rsquo; inception, we have prided ourselves on our ability to deliver new and exciting product offerings to our
users. We were the first company to launch a mobile daily fantasy sports app in 2013, anticipating the impending behavioral shift
of a user base that had historically relied on a desktop-only experience. The rapid adoption of this product pushed us to extend
native mobile experiences across all of our offerings on both iOS and Android, the result of which has been industry-leading app
reviews within the sports and games categories. We have extended this investment to build in-house capabilities in order to deliver
proprietary mobile games, ranging from DFS offerings across every major professional sport to the native development of our own
casino games. These offerings are unified by a consistent experience that reinforces retention within our apps. Additionally, as
a result of user-driven feedback around our in-app experience and our product innovation, we have created programs with DraftKings-built
social features, including our private DFS leagues for friends, as well as loyalty programs like our daily virtual rewards program.
We continue to reinforce this investment in product innovation by recruiting top-tier engineers, with a particular emphasis on
experience in consumer-facing mobile app development.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Scalable Platform and Infrastructure</I></B>.
The consumer experiences described above sit on a shared technology platform that has allowed for maximum flexibility in our product
development strategy. We have established a &ldquo;one-platform&rdquo; model by launching features like single sign-on, an integrated
wallet and universal user profile, while simultaneously leveraging our technological investments in DFS around responsible gaming,
compliance and data security to establish similar infrastructure within Sportsbook and iGaming. The net result is an integrated
experience that allows a user to move seamlessly between a DFS contest, a sports bet and a hand of blackjack, all while earning
money into one wallet and earning rewards into one profile.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">It is with these layers of shared
technological infrastructure that we bring to market a personalized, interconnected suite of experiences whose back-end meets
the standards of a highly regulated environment. As a result, we are now capable of quickly bringing to market new offerings
like our Sportsbook app without having to create an entirely new back-end infrastructure. This holds true across multiple
enterprise-level disciplines that we are now able to leverage in the world of mobile gaming:</P>

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

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<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Configurable back-end software and services that are flexible to new jurisdictional requirements.</TD></TR></TABLE>

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

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<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Analytics framework that cuts across all of our user-facing offerings.</TD></TR></TABLE>

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

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<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Technical infrastructure across data security, user privacy and compliance that can be leveraged to support various custom
responsible gaming requirements.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>A single, integrated sign-in and wallet platform across all of our product offerings.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>A shared marketing technology stack with which we can create hyper-targeted cross-product offers and promotions for every type
of user.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>A data science engine driven by eight years&rsquo; worth of user data that allows us to personalize many aspects of our products.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Consistent with our competitive advantage
in our infrastructure, SBTech believes that its recent growth and success has largely been driven by investing significantly in
its core products and infrastructure. This investment, together with product features, ensures that SBTech continues to grow its
client base and increase its existing clients&rsquo; ability to compete more effectively.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Highly Dependable Source of Users</I></B>.
In addition to building innovative, scalable product offerings, we also have the ability to effectively acquire users to engage
with those offerings. The trusted base of DFS users that we have built over time has provided us recognition among a highly dependable
source of users that are willing to engage with our new product offerings. This allows us to establish a foothold for Sportsbook
in new jurisdictions from the moment sports betting is legalized in such jurisdiction. Our foothold begins with the strength of
our brand, which is honed to create a voice and a message that resonates positively with the American sports fan. We have invested
in optimizing the new user experience, both from the perspective of product innovation&#8201;&mdash;&#8201;such as our seamless
registration flow and a first-time user experience that educates our users without intimidating them&#8201;&mdash;&#8201;and in
proprietary growth marketing technology that optimizes user acquisition at scale. We layer marketing on top of this foundation
in various forms, from targeted campaigns to our &ldquo;Refer-a-Friend&rdquo; program that rewards friend-to-friend invitations.
We have invested deeply in marketing technology to create promotional capabilities that match users dynamically to programs and
offers we know they will enjoy. We have spent years honing our model with this type of marketing across TV, digital and offline
channels, relying entirely on in-house analytics to reduce our cost of acquisition by algorithmically matching the right user to
the right offer on the right channel.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>User Retention and Monetization</I></B>.
Tied to the strengths we have built in amassing an existing user base are the capabilities we have harnessed with our existing
users. We function from the perspective that no user is more important than our existing ones&#8201;&mdash;&#8201;these are the
users around whom our business has been built, and for whom we continue to operate. To that end, we have made major investments
in building a research-and-feedback loop that connects our users directly to our product and marketing teams, ensuring that we
are constantly listening and making decisions based on their needs. This informs the way in which we think about retention. For
example, we have implemented various creative reinvestment programs tied to mechanisms like giveaways, missions, achievements and
rewards, all of which were designed based entirely on input from our users. These programs sit on top of a data-driven customer
relationship management operation that leverages user insights and a suite of models to optimize our retention channels, which
we have supplemented with technology that creates automated triggers connecting users to customized offers. All of this technology
is underpinned by a data science framework which allows us to build user personae that cut across all of our consumer product offerings,
enabling us to intelligently cross sell across all of our product offerings.</P>

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Market Access and Compliance Platform</I></B>.
We have developed technology, product offerings and partnerships to create a sustainable advantage in the gaming and DFS industries.
Strategic multi-year arrangements with lotteries, governments and casinos enable us to offer our products to end users. We have
entered into the following arrangements where legislation or regulations require us to enter the market through a relationship
with a land-based casino:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>In 2018, we entered into multi-year arrangements with Resorts Casino and Hotel (&ldquo;Resorts&rdquo;, providing us access
to the New Jersey market), with del Lago Resort and Casino (&ldquo;del Lago&rdquo;, providing us access to the New York market)
and with Scarlet Pearl Casino Resort (&ldquo;Scarlet Pearl&rdquo;, providing us access to the Mississippi market).</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>In 2019, we entered into multi-year arrangements with Penn National Gaming Inc. (&ldquo;Penn National&rdquo;, providing us
access to the Florida, Indiana, Missouri, Ohio, Pennsylvania, Texas and West Virginia markets) and with Wild Rose Casino and Resort
(&ldquo;Wild Rose&rdquo;, providing us with access to the Iowa market).</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our Resorts, del Lago, Wild Rose and Scarlet
Pearl market access agreements are multi-year (5-10 years) business partnerships established with land-based licensed casinos in
each of their respective states. Under applicable state gaming law, DraftKings is required to partner with a land-based casino
in order to offer sports betting services, both statewide mobile and in-person retail wagering, in that state, should they be authorized
by law. In exchange for a fee based on a percentage of net gaming revenue generated by gaming activities in that state, the casino
licenses DraftKings the right to offer either online or retail sports betting (or both) pending DraftKings also receiving the necessary
licensures and approvals. Under the terms of these agreements, DraftKings has agreed to operate exclusively through the casino
in such state for either retail or online or both.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our Penn National agreement is a 10-year
 &ldquo;national&rdquo; market access agreement that provides us with market access (using a similar payment and services model
as the previously noted casinos) in several states where Penn National has properties. For the majority of states covered by this
agreement, DraftKings is eligible to use the first mobile license to operate that Penn National receives or has received through
its property(ies) in that state. For other states, DraftKings is eligible to use the second or third mobile license to operate
that Penn National receives or has received through its property(ies) in that state. As a result, when states covered by this agreement
that have not yet passed mobile sports betting bills do so in the future, and if the state&rsquo;s sports betting law requires
that mobile operators partner with an in-state property of the type that Penn National owns in that state in order to have access
to the statewide mobile sports betting market, we will have that access (depending on the number of mobile licenses available and
the licensing order to which we are entitled under this agreement). Under the terms of the agreement, DraftKings has agreed to
operate exclusively through Penn National in such states.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition to our casino arrangements,
DraftKings and SBTech have entered into the following arrangements with lotteries;</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>In 2016, SBTech entered into an agreement with the Czech Republic National Lottery&#8201;&mdash;&#8201;its first major lottery
partner. The SBTech &mdash; Sazka agreement is a multi-year (3 years which was extended to an additional 3 years term) license
agreement entered with Sazka for their use of SBTech&rsquo;s seamless sports betting solution. The license is granted in exchange
for a percentage of net gaming revenues generated by Sazka through the use of the sports betting solution as well as an additional
charge for the use of sports data feeds. Under the terms of the agreement, Sazka has agreed to exclusively use SBTech&rsquo;s sports
betting solution.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>In 2018, SBTech entered the Danish sports betting and iGaming industry by contracting with the Danish National Lottery, Danske
Spil, under the brand YOUBET. The SBTech &mdash; Danske Spil (&ldquo;DS&rdquo;) agreement is a multi-year (3 years) license agreement
entered with DS for the use of SBTech&rsquo;s platform solution (which includes, player management and integration with third-party
casino providers). The license is granted in exchange for a percentage of net gaming revenues (sports betting and third party casino
content) generated by DS through the use of the platform solution as well as an additional charge for the use of sports data feeds.
Under the terms of the agreement, DS has agreed to exclusively use SBTech&rsquo;s sports betting solution.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>In 2019, SBTech entered into an exclusive five-year arrangement with the Oregon Lottery to be the sole provider of sports betting
in the state of Oregon. The SBTech &mdash; Oregon State Lottery (&ldquo;OSL&rdquo;) agreement is a multi-year (5 years) license
agreement entered with OSL for the use of SBTech&rsquo;s platform solution and managed services. The license in respect of the
platform solution is in exchange for a percentage of net gaming revenues generated by OSL through the use of the platform solution
as well as an additional charge for the use of sports data feeds. The managed services are provided by SBTech in exchange of a
percentage of net gaming revenues generated by OSL.</TD></TR></TABLE>

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

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

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

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<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Additionally in 2019, SBTech signed agreements to provide its online and retail sportsbook solution with the Finnish state
lottery, Veikkaus, and the Swedish state lottery, Svenska Spel. The SBTech&#8201;&mdash;&#8201;Veikkaus agreement is a multi-year
(4 years) license agreement entered into with Veikkaus for the use of SBTech&rsquo;s platform solution. The license in respect
of the platform solution is in exchange for a percentage of net gaming revenues generated by Veikkaus through the use of the platform
solution. Veikkaus are expected to launch with SBTech&rsquo;s solution during 2020. The SBTech&#8201;&mdash;&#8201;Svenska
Spel agreement is a multi-year (4 years) license agreement entered into with Svenska Spel for the use of SBTech&rsquo;s platform
solution. The license in respect of the platform solution is in exchange for a percentage of net gaming revenues generated by Svenska
Spel through the use of the platform solution. Svenska Spel are expected to launch with SBTech&rsquo;s solution during 2020.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>In November 2019, DraftKings entered into an exclusive multi-year arrangement with the NH Lottery to be the sole operator for
online and retail sports betting in the state of New Hampshire. DraftKings&rsquo; relationship with the New Hampshire Lottery is
as an agent/contractor for the state of New Hampshire. DraftKings applied for, and received, the exclusive right to offer online
and retail sports betting services on behalf of the NH Lottery. As part of the arrangement, DraftKings receives a portion of every
wager that it processes on behalf of the state of New Hampshire.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Lastly, we have obtained licenses in nine
states, where it is required, in the United States, and internationally in the United Kingdom, Australia and Malta, to operate
our DFS platform. We are also a registered DFS operator in four additional U.S. states where registration versus licensing is required
to operate.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">SBTech has obtained licenses (and approval,
as applicable) in six states in the United States and in the United Kingdom, Gibraltar, Malta and Romania. Additionally, SBTech
has certified its software in Denmark, Italy, Nigeria, Portugal and Spain, and its platform and sportsbook are available in Azerbaijan,
Belgium, Cyprus, Czech Republic, Greece, Mexico, Poland and Sweden under local licenses held by operators using SBTech&rsquo;s
platform in these jurisdictions.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Underpinning our regulatory access is our
DraftKings platform that allows us to efficiently and safely scale our product offerings into multiple jurisdictions. We have developed
our DraftKings platform from the ground up to meet the needs of the unique regulatory environment that the United States offers,
while maintaining ease of use for our users. We provide a single experience for login, verification and wallet.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">SBTech&rsquo;s platform has been built from
the ground up to meet the needs of differing regulatory regimes, including configurable regulatory and responsible gaming controls
such as responsible gaming tests, operator alerts on user behavior, deposit limits, betting limits, loss limits, timeout facilities,
session limits, reality checks, balance thresholds and intended gaming amounts. These features allow the operators&rsquo; customers
full control of their gaming to allow them to play responsibly.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As we continue to invest in our core competitive
advantages, we believe we will remain positioned to build a leadership position within the burgeoning global entertainment and
gaming industries. We have established several major areas of strategic focus that will guide the way we think about our future
growth:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Continue to invest in our products
and platform</I></B>. We have established a set of competencies that position us at the forefront of the evolving digital sports
entertainment and gaming industries. In the immediate term, our focus will be on reinforcing our competitive strengths and our
core competencies, in order to continue iterating on our core user experiences while we reinforce the analytical, marketing and
technological infrastructure that allows us to scale our offerings. We plan to continue to invest in our users and in our product
offerings as we remain dually driven to keep our existing users engaged while we expand the capabilities of the platform that will
enable us to rapidly reach new geographies and attract new audiences.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Launch our product offerings in new
geographies</I></B>. With our experience in regulated gaming jurisdictions in the United States, we are prepared to enter new states
as regulations on sports betting and iGaming open up these jurisdictions to us. Whether the appropriate route for a geography is
to operate as a mobile consumer operator, a mobile consumer operator with a retail presence, a technology solution provider to
a government entity, or any permutation of the foregoing, our goal is to be ready to enter jurisdictions that provide for daily
fantasy sports, sports betting and iGaming. SBTech is also well prepared to continue growing its customer base outside of the United
States given the flexible and robust nature of the SBTech platform.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Effectively integrate with
SBTech to form a vertically integrated operation</I></B>. Through the Business Combination, we expect to realize synergies
with SBTech by transitioning to its risk and trading sports betting platform over time instead of relying on a third-party
platform in order to offer Sportsbook. This will provide us with the opportunity to reduce costs and differentiate our
offering in North America from other gaming operators in order to establish ourselves as an end-to-end operation across all
of our offerings. We expect the transition to SBTech&rsquo;s risk and trading platform will deliver efficiencies over time as
we consolidate redundant capabilities. Additionally, following the Business Combination, we expect that we will be able to
serve other branded consumer operators in the United States and internationally&#8201;&mdash;&#8201;such as online
sportsbooks, retail sportsbooks and iGaming operators&#8201;&mdash;&#8201;with our proprietary sports betting and
player-management technology. Following the completion of the Business Combination, SBTech will allow us to access
jurisdictions and opportunities within the footprint of SBTech that would otherwise not be available to us.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Create replicable and predictable
state-level unit economics in sports betting and iGaming</I></B>. We believe that creating the best state-level unit economics
in our industry will be necessary for achieving and maintaining long-term significant market share in the U.S. Using as a baseline
the economic framework we have refined over our first 18 months operating in New Jersey, we believe we can create a replicable
model that balances the right levels of investment and efficiency within each new jurisdiction that we enter. This will be aided
by our integration of the SBTech platform in order to reduce our platform fees and ultimately remove our reliance on third-party
platforms to operate our Sportsbook offering. The Business Combination will also allow us to leverage our national scale to improve
our user acquisition costs, reduce our variable operational costs by investing in technology and data science to increase automation,
and leverage our combined product, technology and existing user database to create strong strategic partnerships with casinos,
lotteries and governments.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Expand our consumer offerings</I></B>.
In addition to rapidly expanding into new jurisdictions, the strength of our platform is that it allows us to seamlessly integrate
new product offerings into the DraftKings ecosystem. This comes in the form of extensions of our existing offerings such as the
addition of daily fantasy sports for sporting events like the Olympics, or a deeper investment in our proprietary live-betting
mobile experience, as well as in potential expansion into adjacent industries. We are capable of quickly bringing offerings like
these to market via our existing technology platform, and to immediately cross-market them to users according to our data analytics.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our Products and Economic Model</P>

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

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Our Revenue-Generating Product Offerings</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As a combined company, our revenues
will be predominantly generated through our business-to- consumer (&ldquo;B2C&rdquo;) offerings and business-to-business
(&ldquo;B2B&rdquo;) offerings. Currently, we have three main B2C product offerings&#8201;&mdash;&#8201;Daily Fantasy Sports,
Sportsbook and iGaming. We consider these three offerings to be of a similar class of product, and together they accounted
for 95%, 97% and 99% of DraftKings&rsquo; revenues for the fiscal years ended December 31, 2019, 2018 and 2017, respectively.
DFS, which was our sole product offering until late 2018, historically drove our revenue results and accounts for a majority
of our users; however, since we launched Sportsbook and iGaming in 2018, states with Sportsbook and iGaming together have
accounted for a rapidly growing proportion of our users, which drives our revenue. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our business experiences seasonality based
on the relative popularity of certain sports. Although exciting sporting events occur throughout the year, our users are most active
in the fourth quarter due to the overlapping calendars of the NFL and NBA seasons, which are our most popular sports.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Below is a breakdown of how each of DraftKings&rsquo;
and SBTech&rsquo;s offerings function, and their respective economic model:</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Daily Fantasy Sports is a peer-to-peer platform
in which our users compete against one another for prizes. Users pay an entry fee (ranging from $0 to $10,000 per user) to join
a contest and compete against each other in short-duration contests for cash prizes, where the prize money is distributed to the
highest performing competitors in the contest as defined by the prize table.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Every paid daily fantasy sports
contest consists of an entry fee and prizes paid out to certain contestants based on the finishing position of the
contestants. Certain finishing positions in each contest will be paid out in accordance with a prize payout table established
at the beginning of the contest. To enter a contest, a user pays an entry fee and builds a fantasy sports team to compete
against other users. The users are then ranked based on the number of fantasy points accrued by each user&rsquo;s fantasy
sports team. If a user finishes in a position that is within the prize payout table, the user wins the corresponding prize.
Our DFS revenue is generated from contest entry fees from our paid users, net of amounts paid out as prizes and customer
incentives. This amount is typically in the range of 8-15% of all entry fees depending on the contest. We offer two basic
payout structures for our fantasy sports contests: contests that pay out the entire prize payout table regardless of how many
entrants join the contest (&ldquo;guaranteed contests&rdquo;) and contests that will only pay out prizes if a minimum number
of entrants have joined the contest (&ldquo;non-guaranteed contests&rdquo;). Non-guaranteed contests that do not meet the
minimum number of entrants are canceled, any entry fees paid by users are returned, and no prizes are awarded.</P>

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

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;<IMG SRC="tm2015692-1_s1img003.jpg" ALT=""></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Illustrative DFS guaranteed contest</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 112.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Given the nature of the peer-to-peer platform,
and the popularity of large guaranteed prize contests, liquidity (the total volume of users and the total amount of money held
with an operator) is critical to the success of the game. The more users and money held on the platform, the larger the amount
of prizes an operator can offer. This in turn, creates a compelling offering (such as our $1 Million Top Prize contests), which
ultimately drives more users.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In contrast to other types of house-banked
gaming, such as slots, blackjack or sports betting, where individuals play against the operator, DFS operators are generally not
exposed to the risks of game play or the outcome of the game&#8201;&mdash;&#8201;only to whether or not the operator will fill
the guaranteed prize contests. Non-guaranteed contests, such as certain head-to-head contests (one user against another user),
only run if filled completely and therefore always result in the targeted revenue expected for each game when run.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Sportsbook</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Sports betting involves a user placing a
bet by wagering money on an event at some fixed odds (&ldquo;proposition&rdquo;) determined by DraftKings. In the event the user
wins, DraftKings pays out the bet. Unlike DFS, DraftKings takes some risk on the bet. Our revenue is generated by setting odds
such that there is a built-in theoretical margin in each proposition offered to our users. While different outcomes of the events
may cause volatility in our revenue, we believe we can deliver a stable betting win margin over the long term.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;<IMG SRC="tm2015692-1_s1img004.jpg" ALT=""></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Illustrative sports bet</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Revenue is realized by taking the settled
handle for betting markets that have been resolved, and subtracting the payouts for these betting markets such that the difference
is the gross revenue, or &ldquo;hold.&rdquo; In addition to our online Sportsbook, we also maintain a limited retail distribution
in four states, in which our retail revenue is subject to individual agreements with a land-based casino partner (a &ldquo;skin&rdquo;)
that provide for a revenue share. Retail distribution leverages the foot traffic for existing casino properties to convert their
customers to bet in our Sportsbook while on premise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>iGaming</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">iGaming, or online casino, offerings typically
include the full suite of games available in land-based casinos, such as blackjack, roulette and slot machines. For these offerings,
we function similarly to land-based casinos, generating revenue through hold, or gross winnings, as users play against the house.
In iGaming, we believe there is typically lower volatility versus land-based casinos, as there is generally a larger number of
bets placed at smaller denominations and since the average return to player for specific games is easier to predict in advance
based on game rules and statistics.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our iGaming offering consists of a combination
of games that we have built natively in-house and licensed content from suppliers such as International Gaming Technology, iForium,
Scientific Games, Spin and Evolution for Live Dealer services. The latter are subject to standard revenue-sharing agreements specific
to each supplier, whereby the supplier receives a percentage of the net gaming revenue generated from the casino games played on
our platform dependent on DraftKings&rsquo; overall gross gaming revenue for iGaming. In exchange, DraftKings receives a limited
license to offer the games on its platform to users in jurisdictions where use is approved by the regulatory authorities. Revenue
generated through our self-developed major casino games such as blackjack results in decreased revenue share payments as a percent
of revenue.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><IMG SRC="tm2015692-1_s1img013.jpg" ALT="">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>B2B Revenue for Sportsbook and iGaming</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As a result of the Business Combination
with SBTech, we will supply B2B sports betting and iGaming services globally for various DFS and gaming operators and government-run
lotteries. Currently the SBTech business generates revenue from operators by providing sports betting and iGaming content directly
to operators in exchange for a share of operators&rsquo; revenues, as well as through fixed fee contracts with resellers. Contracts
with business customers are typically awarded through a sales process or request for proposal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition to providing for a share of
gaming revenue, SBTech&rsquo;s direct customer contracts are typically non-exclusive and run for a term of 3-5 years (with automatic
renewal terms). SBTech&rsquo;s agreements with resellers typically provide for a base fee plus a fixed monthly fee determined by
the number of operators with which the reseller contracts to access SBTech&rsquo;s software and typically run for a term of 3 years
(with automatic renewal terms).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Advertising and Sponsorship</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We offer advertising and sponsorship packages
to targeted advertisers across our DFS product offering, free games and content. In the future, we expect to offer advertising
and sponsorships within our Sportsbook and iGaming product offerings.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our advertising packages range from
standard ad placements and background ad placements to more high-touch integrations, such as sponsored DFS contest series or
custom site takeovers. These are typically served and tracked by a range of advertising products that have been built
directly into our DFS platform&#8201;&mdash;&#8201;featuring partnerships with brand categories ranging from entertainment to
food to automotive&#8201;&mdash;&#8201;and that only show for contests with no-paying or low-paying users.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Each advertising package is bespoke, and
we offer each client a custom &ldquo;menu&rdquo; of advertising options, which include online media (such as display, video and
audio advertisements and page and &ldquo;skin&rdquo; sponsorship takeovers), custom content, including branded video content, live
events such as sponsored watch parties and sponsored free or paid games, including Daily Fantasy, Pick&rsquo;em and Bracket Games.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Each advertising package has a different
pricing model, with a variety of factors affecting the pricing of a particular package including, but not limited to, (i) the sport
to which the package relates and (ii) the demand for, and supply of, the individual package components.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Sponsorships and custom-built games and
content typically have fixed fee pricing. Other packages, such as custom-branded video content or online advertisements, are sold
with a guaranteed number of impressions, which are priced per a certain number of guaranteed impressions. Each time a consumer
sees an advertisement while playing, watching, reading or listening to a piece of content or playing a game, an impression is counted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Promotional Expense for DraftKings
Daily Fantasy Sports, Sportsbook and iGaming</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Offsetting our revenues is the portion of
gross revenue that we allocate to new and existing user incentives and promotions, which are awarded as a result of game play or
at our discretion, through loyalty programs, free plays, deposit bonuses, discounts, rebates or other rewards and incentives. Offsets
are generally used to acquire new users, reactivate prior users and increase monetization from active users. We leverage our return
on investment models that are based on lifetime value and expected reactivation rates to determine appropriate promotional levels.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Cost of Revenue</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We have four main elements of cost of revenue:
payment processing fees and chargebacks, product taxes, platform costs and revenue share/market access arrangements. We incur payment
processing costs on user deposits and occasionally chargebacks as a result of user complaints (chargebacks have not been material
to date). Our primary product taxes are state taxes, which are determined on a state-by-state basis, and range from 6.8% to 20%
of gross revenue minus applicable deductions, which excludes Pennsylvania at 36%. Importantly, each state defines &ldquo;gross
revenue&rdquo; differently based on the deductibility of promotion expenses. In addition to state taxes, we pay a federal excise
tax of 0.25% of handle. Our platform fees are primarily driven by hosting, third-party vendors that provide certain elements of
our platform technology (such as geolocation, risk management and data). We also amortize certain capitalized development costs
into our platform expenses. Finally, our revenue share fees are primarily driven by arrangements with land-based casinos in states
where online operators are required to have a relationship with a land-based casino. These revenue share fees are driven mainly
by levels of paid user activity via our platform, particularly engagement with our Sportsbook and iGaming offerings, in a given
period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Case Study: New Jersey Sportsbook</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">To better appreciate the mechanics of how
DraftKings&rsquo; business scales with the opening of new jurisdictions, it is helpful to track our expansion into New Jersey over
the past 18 months. Our results in New Jersey are subject to a number of variables, including the accessibility of the state and
our competitive position, and as such, we cannot assure you that our results in New Jersey will continue on the same trajectory
as our historical results, nor can we assure you that our results in New Jersey will be indicative of our performance in other
states. <I>See &ldquo;Risk Factors&#8201;&mdash;&#8201;Risk Factors Relating to the Business and Industry of New DraftKings&#8201;&mdash;&#8201;Our
projections will be subject to significant risks, assumptions, estimates and uncertainties, including assumptions regarding future
legislation and changes in regulations, both inside and outside of the United States. As a result, our projected revenues, market
share, expenses and profitability may differ materially from our expectations.&rdquo;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">After the U.S. Supreme Court struck down
PASPA in 2018, New Jersey was the first state to legalize sports betting, and provide an accessible jurisdiction, in August 2018.
Eilers estimates New Jersey&rsquo;s sports betting market at maturity to be greater than $500 million in gross gaming revenue (&ldquo;GGR&rdquo;)
per year of which more than 75% is expected to be online. DraftKings also launched iGaming in December 2018 and estimates the market
size at maturity to be $564 million in GGR per year, as described under &ldquo;DraftKings&rsquo; Industry&#8201;&mdash;&#8201;Our
Industry and Opportunity&#8201;&mdash;&#8201;North American Gaming Market.&rdquo; In the year ended December 31, 2019, we generated
approximately $86 million in U.S. GAAP revenue from all of our B2C product offerings in New Jersey.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Despite our recent entry into the competitive
sports betting and iGaming industries, we have succeeded in beating out dozens of established brick-and-mortar land-based casino
operators and European-based companies. We maintain greater than 30% in online sport betting market share as of November 30, 2019,
and have emerged as one of the top operators in iGaming despite recent entrance in a five-year-old market, according to Eilers&rsquo;
U.S. Online Casino Tracker for December 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We believe our success in New Jersey can
be attributed primarily to our strong brand presence generated by our DFS offering, along with our existing DFS user base. We have
relied on cross-selling to DFS users as a core element of strategic differentiation in New Jersey, with approximately 30% of our
DFS user base crossing into our Sportsbook offering as of December 31, 2019. Our results for iGaming are similar; approximately
50% of Sportsbook users cross into our iGaming offering. We have also been increasingly successful at optimizing the highly dependable
source of DFS users, and we continue to acquire a growing number of New Jersey users.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Sportsbook and iGaming in New Jersey had
a pronounced impact on our business:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>For the period from August 2018 through July 2019 (our first twelve months of Sportsbook and first seven months of iGaming
operations), our revenues from New Jersey grew 8.5x year-over-year and made up approximately 30% of our total revenue. This was
almost equally driven by an increase in MUP and ARPMUP year-over-year.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>By the end of 2019, we have recouped approximately 90% of our first 12 month marketing spend.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Following fast on the heels of our entry
into New Jersey, we launched online Sportsbook in Indiana, New Hampshire, Pennsylvania and West Virginia during the second half
of 2019 and in Iowa in the first quarter of 2020.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Marketing</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>User Acquisition and Retention</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our ability to effectively market is paramount
to our operational success. With a blend of analytics and data science as our foundation, we leverage our marketing to acquire,
retain and reactivate users while building a trusted consumer-facing brand. We use a variety of free and paid marketing channels,
in combination with compelling offers and exciting games, to achieve our objectives. Furthermore, we optimize our marketing spend
using data collected since the beginning of our operations, as well as additional data that we collect from vendors, partners and
data providers. Our marketing spend is based on a return-on-investment model that considers a variety of factors, including the
performance of different marketing channels, predicted lifetime value and behavior of users across various product offerings, the
location of our users and our estimate of when enabling legislation and regulations for sports betting and iGaming may come to
fruition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Where paid marketing is concerned, we leverage
a broad array of advertising channels, including television, radio, social media platforms such as Facebook, Instagram, Twitter
and Snap, affiliates and paid and organic search, and other digital channels such as mobile display. These efforts are concentrated
within the specific jurisdictions that have passed enabling legislation and regulations, and in which we operate or intend to operate
(which vary on a per-offering basis). Our marketing expenditures tend to be highly seasonal, with most spend correlating with the
start of a sports season and during its playoffs and championships.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition to traditional paid advertising
channels, we cross-promote our product offerings to our existing user base through internal channels such as mobile push notifications,
email and text messages, and external channels such as Facebook, Twitter, Instagram and Snapchat. Through those channels, we use
a combination of content, contests and promotions to engage existing users. Additionally, we incentivize our users to refer new
users through our &ldquo;Refer-a-Friend&rdquo; program, offering incentives such as free entries into tournaments or free bets
if the referred user ultimately subscribes to our product offerings.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Strategic Relationships</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We engage in strategic relationships
with sports leagues to improve our brand and awareness, acquire users, improve user retention and create differentiated
experiences for our users. In September 2019, we entered into a multi-year relationship with the NFL in which our companies
agreed to collaborate on a variety of content and product offerings on the DraftKings DFS app, as well as integrations across
NFL media properties. The NFL relationship does not include any promotional rights for sports betting. In July 2019, we
entered into a multi-year relationship with the PGA Tour. As part of the new relationship, DraftKings&rsquo; daily fantasy
golf users will have the ability to receive real-time video highlights for players in their respective lineups. Other
elements of this relationship will create expanded DFS-specific content offerings and brand integration into both the PGA
Tour and DraftKings&rsquo; platforms. Lastly, the PGA Tour and DraftKings will collaborate on a variety of real-time product
enhancements via the PGA Tour&rsquo;s proprietary data feed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<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-indent: 0.5in">We engage in similar multi-year relationships
with professional sports teams, which serve to bolster our brand affiliation and create unique collaborative integrations for our
users.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We also engage in strategic relationship
deals with media companies to create content and integrated marketing experiences. In July 2015, we entered into a multi-year relationship
with FOX, which provided DraftKings with committed media and integrations across FOX&rsquo;s national, local and digital properties.
With this relationship, FOX also made a strategic investment in the preferred stock of DraftKings. See <I>&ldquo;Certain Relationship
and Related Party Transactions.&rdquo;</I> More recently, we have established major partnerships with media entities like Vox and
Bleacher Report as we seek to grow our audience of U.S. sports fans.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>B2B Business Marketing</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">SBTech&rsquo;s core B2B marketing strategy
is centered around attending and exhibiting at major trade shows around the world, which accounted for 75% of all of SBTech&rsquo;s
2018 marketing costs. SBTech&rsquo;s trade show marketing is supplemented with digital and offline marketing campaigns in leading
industry publications, websites, regular media pieces and participation on industry panels. Similar to the DraftKings business,
SBTech&rsquo;s reputation and customer testimonials also assist in its marketing and business efforts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Distribution</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We distribute our product offerings through
various channels, including traditional websites, direct app downloads and global direct-to-consumer digital platforms such as
the Apple App Store and the Google Play store. The latter two digital platforms are the main distribution channels for our product
offerings. Our DFS product offering is delivered as a free application through both the Apple App Store and Google Play Store and
is also accessible via mobile and traditional websites. Our Sportsbook and iGaming product offerings are primarily distributed
through the Apple App Store and a traditional website. We allow our Android Sportsbook and iGaming users to install our Sportsbook
and iGaming product offerings through our website. We derive nearly all of our revenue through products distributed via the Apple
App Store, Google Play Store and via traditional websites. For all of our offerings, neither Apple nor Google take any revenue
share for distributing our product.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On the SBTech side, the sportsbook and iGaming
products and services are distributed online via the Apple App Store, Google Play Store and traditional websites by operators that
have licensed such products and services directly from SBTech, while the retail products and services are distributed primarily
via self-service betting terminals and standalone computer terminals. Similarly, Apple and Google do not take any revenue share
for distributing those products and services. SBTech also licenses its products and services to resellers (through a fixed-fee
model) who sublicense to operators, and in those situations, the reseller is responsible for the maintenance of the products and
services.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>




<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our Technology and Product Development</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><IMG SRC="tm2015692-1_s1img05.jpg" ALT="">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">At a high level, our technology consists
of three product offerings: DFS, Sportsbook and iGaming. The individual product offerings are comprised of varying levels of proprietary
and third-party software. These product offerings are bound together with a common account management and regulatory compliance
platform. Each of the product offerings can be accessed with the same account and wallet. Across our product offerings we have
made an effort to own the technology in-house for any critical component, and to utilize a combination of new technologies, including
data science and machine learning, to optimize conversion and efficiency.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">With respect to our DFS offering, we have
developed an in-house proprietary platform, which uses open source and third-party sources. The DFS platform has been designed
to run DFS contests at a national scale, and features offerings from 15 different sports/leagues. It has supported contests with
more than 1.4 million entries and has processed in excess of 20,000 entries in a minute. To orchestrate the contests, we integrate
with a wide range of data providers to retrieve up-to-the-minute information about the status of sporting events. The platform
supports the layering of redundant data providers to minimize the risk of disruption.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our Sportsbook offering relies on a mix
of proprietary and third-party software. The proprietary DraftKings&rsquo; technology includes our user experience, unique promotional
and merchandising capabilities and cross-product account management and compliance. We have invested in developing fully native
mobile apps, which are custom iOS and Android applications that offer a consistent user experience and increase our ability to
conform to application store guidelines where applicable. Integrated into our Sportsbook platform is a third-party risk and trading
platform from Kambi. This platform provides betting markets, odds and risk management. Following the consummation of the Business
Combination and as the integration of our operations with SBTech progresses, we intend to utilize the risk and trading capabilities
of SBTech over time. This will provide us with the opportunity to deliver efficiencies, reduce costs and enable further innovation
within our Sportsbook offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition to traditional fixed-odds betting,
we have invested in other proprietary sports betting products. For example, we were the first operator in New Jersey to offer paid-entry
pari-mutuel sports pools and brackets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Similar to our Sportsbook offering, our
iGaming offering relies on a mix of proprietary and third-party technology. The proprietary technology includes a growing library
of casino and card games, an in-house loyalty program and merchandising capabilities. Additionally, we supplement our own gaming
catalog with those of third parties, although over the past year we have built and deployed proprietary blackjack and roulette
offerings, which are among the most popular games on our iGaming Platform, and continue to invest in casino games and architecture.
The DraftKings-owned gaming products now account for the majority of our iGaming handle on a run rate basis, substantially reducing
our third-party content fees. For the two week period ended December 31, 2019, iGaming handle for our proprietary games accounted
for approximately 54% of total iGaming handle, and this trend has continued through January 2020 with such proprietary games accounting
for more than 50% of iGaming handle.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DraftKings&rsquo; core product
offerings are built on top of an integrated, proprietary account management platform, which we generally refer to as, our
 &ldquo;platform.&rdquo; The platform provides our users with access to their account history across all product offerings and
a uniform identity verification system, which is critical in enabling seamless navigation from our national DFS audience to
Sportsbook and iGaming products, as existing DFS users need not manage a separate set of account credentials and payment
methods for each product offering. Platform users also enjoy a highly functional wallet which, in many cases, permits user
funds to flow freely from product to product. The platform is certified to safely store user payment information, which
reduces our dependency on any particular payment processor, provides redundancy and gives us the flexibility to route our
payment volume to a processor of our choosing. In addition, our platform is built to be customizable to the specific
regulations of individual jurisdictions. SBTech also maintains an account management platform that is used by its operators,
so we expect to realize synergies from the Business Combination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<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-indent: 0.5in">Across our product offerings, we actively
use data science and machine learning to help optimize conversion and monetization. Within the DFS offering, data science algorithms
are used to customize a user&rsquo;s contest home screen based upon his or her past play history. We build recommendations by identifying
the type of contests that a user is most likely to play, along with the entry fee and prize structure that he or she will find
most appealing. In addition, contest-pacing algorithms identify contests that might present a financial exposure and increase the
contests&rsquo; visibility within the product appropriately. Similarly, within the Sportsbook offering, recommendation engines
are used to present betting markets to users based upon their past play history and location. These services are also critical
to our back-end infrastructure, as they drive key elements of our fraud and compliance program. Machine-learning models are used
to detect proxy play, money laundering, collusion and problematic gaming activity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The health of our full suite of offerings
is dependent on our ability to scale with increased demand on our infrastructure, which naturally grows in real time with live
sporting events. We have invested in a hybrid cloud infrastructure comprised of physical data centers and cloud computing that
can scale to meet the demand generated by marquee sporting events. We have built substantial technology to facilitate the management
of server infrastructure in an automated and efficient way. By taking advantage of a hybrid elastic computing model, we reduce
our costs during low demand. In addition to automated scaling and deploying, operational monitoring and responsiveness is critical
in our time-sensitive industry. DraftKings has honed its operational support strategy over the course of eight years of operating
our DFS platform. Our software is highly instrumented, allowing us to detect and respond to the most common type of irregularities
quickly. Our on-call team both actively monitors key site health metrics and responds to automated alerts in real time. In the
past 18 months, we have had 99.98% uptime for all of our offerings combined. Following the Business Combination, our combined product
and engineering workforce will consist of approximately 1,100 people.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Through a combination of cash expenses and
capitalized expenditures, DraftKings invested $61.0 million in products and technology, and SBTech invested &euro;31.1 million
in research and development, for the year ended December 31, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Intellectual Property</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our business and that of SBTech relies substantially
on the creation, acquisition, use and protection of intellectual property. Some of this intellectual property is in the form of
software code, patented technology and trade secrets that we use to develop and properly run our DFS, Sportsbook and iGaming offerings
and related services. Other intellectual property we create includes proprietary daily fantasy sports, sports betting and iGaming-related
technology and content as well as proprietary data acquired from the use of our daily fantasy sports, sports betting and iGaming
product offerings.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">While most of the intellectual property
we use is created by us, we (and SBTech) have obtained rights to use intellectual property of third parties through licenses and
service agreements with those third parties. Although we (and SBTech) believe these licenses are sufficient for the operation of
the company, these licenses typically limit our use of the third parties&rsquo; intellectual property to specific uses and for
specific time periods.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We (and SBTech) protect our intellectual
property rights by relying on federal, state and common law rights, as well as contractual restrictions. We (and SBTech) control
access to our proprietary technology by entering into confidentiality and invention assignment agreements with our employees and
contractors, and confidentiality agreements with third parties. We (and SBTech) also engage in monitoring the activities of third
parties with respect to potential infringing uses of our intellectual property by third parties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We (and SBTech) actively seek patent protection
covering inventions originating from us and, from time to time, review opportunities to acquire patents to the extent we believe
such patents may be useful or relevant to our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition to these contractual
arrangements, we (and SBTech) also rely on a combination of trade secret, copyright, trademark, trade dress, domain name and
patents to protect our daily fantasy sports, sports betting and iGaming product offerings and other intellectual property. We
typically own the copyright to the software code to our content, as well as trademarks under which our daily fantasy sports,
sports betting and iGaming product offerings and related services are marketed. We pursue the registration of our domain
names, trademarks, and service marks in the United States and in locations outside the United States. Our registered
trademarks in the United States include &ldquo;DraftKings,&rdquo; and the names of our services and applications, among
others.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<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-indent: 0.5in">Companies in the fantasy sports, sports
betting, gaming, casino, technology and other industries may own large numbers of patents, copyrights and trademarks and may frequently
request license agreements, threaten litigation or file suit against us based on allegations of infringement or other violations
of intellectual property rights. From time to time, we have faced, and we expect to face in the future, allegations by third parties,
including our competitors and non-practicing entities, that we have infringed their trademarks, copyrights, patents and other intellectual
property rights. As our business grows, we will likely face more claims of infringement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Property</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our corporate headquarters are located in
Boston, Massachusetts, where we occupy facilities totaling approximately 105,000 rentable square feet under a lease that expires
in 2029, subject to our option to extend the term for two successive terms of five years each, or our early termination right.
We use these facilities primarily for our management, technology, product design, sales and marketing, finance, legal, human resources,
general administrative and information technology teams. Our lease and our rights under the lease are subordinated under a lien
of mortgage.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We also lease office space in several cities
in the United States and in Dublin, Ireland, as of December 31, 2019. We intend to procure additional space as we add employees
and expand geographically. We believe that our facilities are adequate to meet our needs for the immediate future and that suitable
additional space will be available to accommodate any expansion of our operations as needed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">SBTech has its corporate headquarters located
on the Isle of Man, while its major technology, product design and trading teams are based in Bulgaria and Ukraine. General administration
is located in Israel and commercial support is located in London. SBTech also has offices in Gibraltar, Malta and the United States.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Legal Proceedings</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We are involved in a number of legal proceedings
(including those described below) concerning matters arising in connection with the conduct of our business activities. These proceedings
are at varying stages, and many of these proceedings seek an indeterminate amount of damages. We regularly evaluate the status
of the legal proceedings in which we are involved to assess whether a loss is probable or there is a reasonable possibility that
a loss or an additional loss may have been incurred and to determine if accruals are appropriate. If accruals are not appropriate,
we further evaluate each legal proceeding to assess whether an estimate of the possible loss or range of possible loss can be made.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">For certain cases described on the following
pages, management is unable to provide a meaningful estimate of the possible loss or range of possible loss because, among other
reasons, (i) the proceedings are in various stages; (ii) damages have not been sought; (iii) damages are unsupported and/or exaggerated;
(iv) there is uncertainty as to the outcome of pending appeals or motions; (v) there are significant factual issues to be resolved;
and/or (vi) there are novel legal issues or unsettled legal theories to be presented or a large number of parties. For these cases,
however, management does not believe, based on currently available information, that the outcomes of these proceedings will have
a material adverse effect on our financial condition, though the outcomes could be material to our operating results for any particular
period, depending, in part, upon the operating results for such period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>In Re: Daily Fantasy Sports Litigation
(Multi-District Litigation)</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Between late 2015 and early 2016, certain
individuals who allegedly registered and competed in daily sports fantasy contests on our and FanDuel&rsquo;s websites, and their
family members, filed numerous actions against us, FanDuel, and other related parties (the &ldquo;DFS defendants&rdquo;) in courts
across the country. In February 2016, these actions were consolidated in a multidistrict litigation in the U.S. District Court
for the District of Massachusetts. On September 2, 2016, the consolidated group of plaintiffs filed their First Amended Master
Class Action Complaint, superseding their individual complaints.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The plaintiffs assert 27 claims
arising under both state and federal law against the DFS defendants. The plaintiffs&rsquo; claims against us generally fall
into four categories: (1) our online daily fantasy sports contests constitute illegal gambling; (2) we promulgated false or
misleading advertisements that emphasized the ease of play and likelihood of winning; (3) we induced consumers to lose money
through a deceptive bonus program and (4) we allowed our employees to participate in competitors&rsquo; fantasy sports
contests using non-public information, which gave such employees an unfair advantage over other contestants. The plaintiffs
seek money damages, equitable relief, and disgorgement of gains against us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<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-indent: 0.5in">On November 27, 2019, the Court granted
in part and denied in part the DFS defendants&rsquo; motions to compel arbitration. The Court granted the DFS defendants&rsquo;
motions to compel arbitration with respect to the (named) player plaintiffs and the (named) cross-over plaintiffs. The Court denied
the DFS defendants&rsquo; motions to compel arbitration with respect to a small set of plaintiffs who are family members of individuals
who hold DraftKings or FanDuel accounts and who assert claims under various state laws regarding gambling. On March 9, 2019, the
DFS defendants moved to dismiss those remaining plaintiffs&rsquo; claims.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We intend to vigorously defend this case.
If the plaintiffs were to obtain a judgment in their favor in this lawsuit, we could be subject to substantial damages and we may
have to withdraw our DFS operations in certain states. We cannot predict with any degree of certainty the outcome of this lawsuit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We are unable to estimate the possible loss
or a range of possible losses in connection with the <I>In Re: Daily Fantasy Sports Litigation (Multi-District Litigation)</I>
matter because, among other reasons, (i) the proceeding is in a preliminary stage, (ii) there are significant factual issues to
be resolved and (iii) there are novel legal issues to be resolved. Despite the potential for &ldquo;significant damages&rdquo;,
we do not believe, based on currently available information, that the outcome of this proceeding will have a material adverse effect
on the combined company&rsquo;s financial condition, although the outcome could be material to the combined company's operating
results for any particular period, depending, in part, upon the operating results for such period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>1,000 Mass Arbitration Demands Filed
by One Law Firm</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On October 21, 2019, a law firm filed 1,000
 &ldquo;mass arbitrations&rdquo; against us on behalf of purported DraftKings users that assert claims similar to the multidistrict
litigation described above. The 1,000 arbitration demands are virtually identical. The law firm that filed the arbitrations has
expressed an intention to file a total of more than 20,000 such &ldquo;mass arbitrations&rdquo; against us. If these &ldquo;mass
arbitrations&rdquo; were to proceed, they could result in significant costs to us, which could include a minimum range of $3,200
to $4,700 in fees per arbitration, the legal costs incurred by us in connection with defending such arbitrations and any adverse
judgments issued in any arbitration, could be a significant cost to us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We dispute the law firm&rsquo;s ability
to file &ldquo;mass arbitrations&rdquo; against us, among other reasons, because they violate our terms of use that require claims
be brought on an individual basis and not be consolidated or joined in any other arbitration or proceeding involving a claim of
any other party.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">After the law firm filed the 1,000 &ldquo;mass
arbitrations,&rdquo; the AAA informed us in writing that it would close their files on, and decline to administer, the 1,000 &ldquo;mass
arbitrations&rdquo; unless we waived two provisions in our terms of use and that the parties would then be free to bring their
claims in court. We elected not to waive the subject terms of use provisions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If necessary, we intend to vigorously defend
all claims. If the claimants were to obtain a judgment in their favor in these arbitrations, we could be subject to substantial
damages and we could be restricted from offering DFS contests in certain states. We cannot predict with any degree of certainty
the outcome of these arbitrations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Attorney General of Texas</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On January 19, 2016, the Texas Attorney
General issued an opinion letter that &ldquo;odds are favorable that a court would conclude that participation in paid daily fantasy
sports leagues constitutes illegal gambling&rdquo; under Texas law. In response to the opinion letter, we sued the Texas Attorney
General on March 4, 2016 in Dallas County, Texas.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The lawsuit makes five claims: (1) a claim
for a declaratory judgment that daily fantasy sports contests do not violate Texas law; (2) a claim of denial of due process under
the Fifth and Fourteenth Amendments to the U.S. Constitution; (3) a claim of denial of due course of law under Article I of the
Texas Constitution; (4) a claim of denial of equal protection under the Fourteenth Amendment to the U.S. Constitution; and (5)
a claim of denial of equal rights under Article I of the Texas Constitution. We are also seeking reimbursement of costs and attorneys&rsquo;
fees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On May 2, 2016, the Texas Attorney
General filed a motion to transfer venue to Travis County, Texas. On April 16, 2018, the parties filed a notice of agreed
non-suit without prejudice, and we re-filed our lawsuit against the Texas Attorney General in Travis County. On April 17,
2018, the Dallas County court granted the parties&rsquo; agreed non-suit without prejudice, thereby dismissing the Dallas
County lawsuit without prejudice.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<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-indent: 0.5in">On May 24, 2018, the Texas Attorney General
answered the complaint filed in Travis County, Texas.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">FanDuel filed a petition in intervention
on August 24, 2018, seeking essentially the same relief as DraftKings seeks. On October 2, 2018, the Court entered a scheduling
order setting the case for a non-jury trial on November 2, 2020.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We intend to vigorously pursue our claims.
In the event a court ultimately determines that daily fantasy sports contests violate Texas law, that determination could cause
financial harm to us and loss of business in Texas.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>CG Technology Development, LLC; Interactive
Games Limited; and Interactive Games LLC</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On April 7, 2016, CG Technology Development,
LLC, Interactive Games Limited, and Interactive Games LLC (collectively, &ldquo;CG&rdquo;), filed suit against us in the U.S. District
Court for the District of Nevada. After filing an Amended Complaint, CG alleges that our Daily Fantasy Sports product offering
infringes 10 patents: (1) U.S. Patent No. 6,884,166 (the &ldquo;166 patent&rdquo;), which is entitled &ldquo;System and method
for establishing a wager for a gaming application&rdquo;; (2) U.S. Patent No. 6,899,628 (the &ldquo;628 patent&rdquo;), which is
entitled &ldquo;System and method for providing game event management to a user of a gaming application&rdquo;; (3) U.S. Patent
No. 7,029,394 (the &ldquo;394 patent&rdquo;), which is entitled &ldquo;System and method for generating statistics for a user of
a gaming application&rdquo;; (4) U.S. Patent No. 7,534,169 (the &ldquo;169 patent&rdquo;), which is entitled &ldquo;System and
method for wireless gaming system with user profiles&rdquo;; (5) U.S. Patent No. 8,342,924 (the &ldquo;924 patent&rdquo;), which
is entitled &ldquo;System and method for providing enhanced services to a user of a gaming application&rdquo;; (6) U.S. Patent
No. 8,641,511 (the &ldquo;511 patent&rdquo;), which is entitled &ldquo;Real-time interactive wagering on event outcomes&rdquo;;
(7) U.S. Patent No. 9,111,417 (the &ldquo;417 patent&rdquo;), which is entitled &ldquo;System and method for providing enhanced
services to a user of a gaming application&rdquo;; (8) U.S. Patent No. 9,306,952 (the &ldquo;952 Patent&rdquo;), which is entitled
 &ldquo;System and method for wireless gaming with location determination&rdquo;; (9) U.S. Patent No. 9,355,518 (the &ldquo;518
patent&rdquo;), which is entitled &ldquo;Gaming system with location determination&rdquo;; and (10) U.S. Patent No. RE39,818 (the
 &ldquo;818 patent&rdquo;), which is entitled &ldquo;Personalized wireless video game system.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We filed a Motion to Dismiss the Amended
Complaint and, on December 12, 2016, Judge Robert Jones dismissed the allegations for seven (the 924, 628, 394, 417, 169, 511 and
166 Patents) out of the 10 patents under 35 U.S.C. section 101 because those seven patents are directed to non-patentable subject
matter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Between March and June of 2017, we filed
petitions with the Patent Trial and Appeal Board (&ldquo;PTAB&rdquo;) of the U.S. Patent and Trademark Office challenging the validity
of select claims of each of the three remaining asserted patents&#8201;&mdash;&#8201;the 818, 952 and 518 patents. All challenged
claims of these three patents were found to be unpatentable by the PTAB. CG appealed the PTAB decisions to the U.S. Court of Appeals
for the Federal Circuit with respect to all three patents. On May 14, 2019, CG voluntarily dismissed its appeal of the PTAB&rsquo;s
unpatentability decision for the 952 Patent. The remaining appeals were fully briefed. On December 17, 2019, the Federal Circuit
upheld the unpatentability of the 818 Patent and on February 18, 2020, CG filed a petition for <I>en banc</I> rehearing of that
decision. On February 6, 2020, the Federal Circuit upheld the unpatentability of the 518 patent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On July 27, 2017, Judge Jones in the U.S.
District Court for the District of Nevada issued an order transferring the case against us to the U.S. District Court for the District
of Delaware. The case is now before Judge Richard Andrews. On December 20, 2017, the parties entered into a stipulated stay pending
the resolution of the petitions filed with the PTAB.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We intend to vigorously defend this case.
In the event that a court ultimately determines that we infringe the asserted patents, we may be subject to substantial damages,
which may include treble damages and/or an injunction that could require us to modify certain features that we currently offer
to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability
or damages.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Interactive Games LLC</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On June 14, 2019, Interactive Games
LLC (&ldquo;IG&rdquo;) filed suit against us in the U.S. District Court for the District of Delaware. In the Complaint, IG
alleges that our Daily Fantasy Sports product offering infringes two patents: U.S. Patent No. 8,956,231 (the &ldquo;231
patent&rdquo;), which is entitled &ldquo;Multi-process communication regarding gaming information&rdquo; and U.S. Patent No.
8,974,302 (the &ldquo;302 patent&rdquo;), which is entitled &ldquo;Multi-process communication regarding gaming
information.&rdquo; That same Complaint alleges that our Sportsbook product offering infringes two additional patents: U.S.
Patent No. 8,616,967 (the &ldquo;967 patent&rdquo;), which is entitled &ldquo;System and method for convenience gaming&rdquo;
and U.S. Patent No. 9,430,901 (the &ldquo;901 patent&rdquo;), which is entitled &ldquo;System and method for wireless gaming
with location determination.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<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-indent: 0.5in">In response to the Complaint, we filed a
Motion to Dismiss the Complaint under 35 U.S.C. section 101 because the asserted patents are directed to non-patentable subject
matter. The Court has not yet ruled on this Motion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We intend to continue to vigorously defend
this case. In the event that a court ultimately determines that we infringe the asserted patents, we may be subject to substantial
damages, which may include treble damages and/or an injunction that could require us to modify certain features that we currently
offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential
liability or damages.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Other</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition to the above actions, we are
subject to various other legal proceedings and claims that arise in the ordinary course of business. In our opinion, the amount
of ultimate liability with respect to any of these actions is unlikely to materially affect our financial condition, results of
operations or liquidity, though the outcomes could be material to our operating results for any particular period, depending, in
part, upon the operating results for such period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Government Regulation</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DraftKings is subject to various U.S. and
foreign laws and regulations that affect our ability to operate in the DFS, sports betting and iGaming industries. These industries
are generally subject to extensive and evolving regulations that could change based on political and social norms and that could
be interpreted in ways that could negatively impact our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The gaming industry (inclusive of our iGaming
and sports betting product offerings) is highly regulated and we must maintain licenses and pay gaming taxes or a percentage of
revenue in each jurisdiction from which we operate in order to continue our operations. Our business is subject to extensive regulation
under the laws, rules and regulations of the jurisdictions from which we operate. These laws, rules and regulations generally concern
the responsibility, financial stability, integrity and character of the owners, managers and persons with material financial interests
in the gaming operations along with the integrity and security of the iGaming and sports betting product offering. Violations of
laws or regulations in one jurisdiction could result in disciplinary action in that and other jurisdictions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Gaming laws are generally based upon declarations
of public policy designed to protect gaming consumers and the viability and integrity of the gaming industry. Gaming laws also
may be designed to protect and maximize state and local tax revenues, as well as to enhance economic development and tourism. To
accomplish these public policy goals, gaming laws establish stringent procedures to ensure that participants in the gaming industry
meet certain standards of character and responsibility. Among other things, gaming laws require gaming industry participants to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>ensure that unsuitable individuals and organizations have no role in gaming operations;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>establish procedures designed to prevent cheating and fraudulent practices;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>establish and maintain anti-money laundering practices and procedures;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>establish and maintain responsible accounting practices and procedures;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>maintain effective controls over their financial practices, including establishing minimum procedures for internal fiscal affairs
and the safeguarding of assets and revenues;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>maintain systems for reliable record keeping;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>file periodic reports with gaming regulators;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>establish programs to promote responsible gaming; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>enforce minimum age requirements.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Typically, a state regulatory environment
is established by statute and underlying regulations and is administered by one or more regulatory agencies (typically a gaming
commission or state lottery) who regulate the affairs of owners, managers and persons with financial interests in gaming operations.
Among other things, gaming authorities in the various jurisdictions in which we conduct our business:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>adopt rules and regulations under the implementing statutes;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>interpret and enforce gaming laws and regulations;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>impose fines and penalties for violations;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>review the character and fitness of participants in gaming operations and make determinations regarding their suitability or
qualification for licensure;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>grant licenses for participation in gaming operations;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>collect and review reports and information submitted by participants in gaming operations;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>review and approve certain transactions, which may include acquisitions or change-of-control transactions of gaming industry
participants and securities offerings and debt transactions engaged in by such participants; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>establish and collect fees and taxes in jurisdictions where applicable.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">While we believe that we are in compliance
in all material respects with all applicable DFS, sports betting and iGaming laws, licenses and regulatory requirements, we cannot
assure that our activities or the activities of our users will not become the subject of any regulatory or law enforcement, investigation,
proceeding or other governmental action or that any such proceeding or action, as the case may be, would not have a material adverse
impact on us or our business, financial condition or results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Licensing and Suitability Determinations</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In order to operate in certain jurisdictions,
we must obtain either a temporary or permanent license or determination of suitability from the responsible authorities. We seek
to ensure that we obtain all necessary licenses to develop and put forth our offerings in the jurisdictions in which we operate
and where our users are located.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Gaming laws require us, and each of our
subsidiaries engaged in gaming operations, certain of our directors, officers and employees, and in some cases, certain of our
shareholders, to obtain licenses from gaming authorities. Licenses typically require a determination that the applicant qualifies
or is suitable to hold the license. Where not mandated by statute, rule or regulation, gaming authorities typically have broad
discretion in determining who must apply for a license or finding of suitability and whether an applicant qualifies for licensing
or should be deemed suitable to conduct operations within a given jurisdiction. When determining to grant a license to an applicant,
gaming authorities generally consider: (i) the financial stability, integrity and responsibility of the applicant (including verification
of the applicant&rsquo;s sources of funding); (ii) the quality and security of the applicant&rsquo;s online real-money gaming platform,
hardware and related software, including the platform&rsquo;s ability to operate in compliance with local regulation, as applicable;
(iii) the applicant&rsquo;s history; (iv) the applicant&rsquo;s ability to operate its gaming business in a socially responsible
manner; and (v) in certain circumstances, the effect on competition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Gaming authorities may, subject to certain
administrative procedural requirements, (i) deny an application, or limit, condition, revoke or suspend any license issued by them;
(ii) impose fines, either on a mandatory basis or as a consensual settlement of regulatory action; (iii) demand that named individuals
or shareholders be disassociated from a gaming business; and (iv) in serious cases, liaise with local prosecutors to pursue legal
action, which may result in civil or criminal penalties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Events that may trigger revocation of
a gaming license or another form of sanction vary by jurisdiction. However, typical events include, among others: (i)
conviction in any jurisdiction of certain persons with an interest in, or key personnel of, the licensee of an offense that
is punishable by imprisonment or may otherwise cast doubt on such person&rsquo;s integrity; (ii) failure without reasonable
cause to comply with any material term or condition of the gaming license; (iii) declaration of, or otherwise engaging in,
certain bankruptcy, insolvency, winding-up or discontinuance activities, or an order or application with respect to the same;
(iv) obtaining the gaming license by a materially false or misleading representation or in some other improper way; (v)
violation of applicable anti-money laundering or terrorist financing laws or regulations; (vi) failure to meet commitments to
users, including social responsibility commitments; (vii) failure to pay in a timely manner all gaming or betting taxes or
fees due; or (viii) determination by the gaming authority that there is another material and sufficient reason to revoke or
impose another form of sanction upon the licensee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<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-indent: 0.5in">As noted above, in addition to us and our
direct and indirect subsidiaries engaged in gaming operations, gaming authorities generally also have the right to investigate
individuals or entities having a material relationship to, or material involvement with, us or any of our subsidiaries, to determine
whether such individual or entity is suitable as a business associate. Specifically, as part of our obtaining Sportsbook and iGaming
licenses, certain of our officers, directors, and employees and in some cases, certain of our shareholders (typically, beneficial
owners of more than 5% of a company&rsquo;s outstanding equity, with most jurisdictions providing that &ldquo;institutional investors&rdquo;
(as defined by a particular jurisdiction) can seek a waiver of these requirements) must file applications with the gaming authorities
and may be required to be licensed or to qualify or be found suitable in many jurisdictions. Qualification and suitability determinations
generally require the submission of extensive and detailed personal and financial disclosures followed by a thorough investigation.
The applicant must pay all the costs of the investigation. Changes with respect to the individuals who occupy licensed positions
must be reported to gaming authorities and in addition to the authority to deny an application for licensure, qualification, or
a finding of suitability, gaming authorities have jurisdiction to disapprove a change in a corporate position. If any director,
officer, employee or significant shareholder is found unsuitable (including due to the failure to submit required documentation)
by a gaming authority, we may deem it necessary, or be required, to sever our relationship with such person. Furthermore, New DraftKings&rsquo;
Proposed Charter provides that any capital stock of New DraftKings owned or controlled by an unsuitable person or its affiliates
will be transferred to either New DraftKings or one or more third-party transferees, in such number and class(es)/series as determined
by the New DraftKings board of directors in good faith, following consultation with reputable outside gaming regulatory counsel,
pursuant to a resolution adopted by the unanimous affirmative vote of all of the disinterested members of the New DraftKings board
of directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Generally, any person who fails or refuses
to apply for a finding of suitability or a license within the prescribed period after being advised that it is required by gaming
authorities may be denied a license or found unsuitable, as applicable. Furthermore, we may be subject to disciplinary action or
our licenses may be in peril if, after we receive notice that a person is unsuitable to be a stockholder or to have any other relationship
with us or any of our subsidiaries, we: (i) pay that person any dividend or interest upon our voting securities; (ii) allow that
person to exercise, directly or indirectly, any voting right conferred through securities held by that person; (iii) pay remuneration
in any form to that person for services rendered or otherwise; or (iv) fail to pursue all lawful efforts to require such unsuitable
person to relinquish his voting securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Product-Specific Licensing</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Daily Fantasy Sports</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DraftKings&rsquo; DFS is available in 43
U.S. states, the District of Columbia, and eight international jurisdictions. In the United States, 21 states and Puerto Rico have
adopted legislation permitting online fantasy sports. In those states that currently require a license or registration, DraftKings
has either obtained from the relevant regulatory authority, the appropriate license or registration, has obtained a provisional
license, or is operating pursuant to a grandfathering clause that allows operation pending the availability of licensing applications
and subsequent grant of a license. DraftKings also has three foreign licenses and operates under those licenses in eight countries.
Various state laws and regulations govern our licenses, but generally such state laws and regulations define paid fantasy sports,
establish the rules concerning the application and licensure procedures for gaming operators in the fantasy sports business and
regulate practices for paid fantasy sports deemed to be detrimental to the public interest. As part of the licensing process, we
must submit, in some jurisdictions, extensive materials on our operations, including our technology and data security, age verification
of users, segregation of account funds and responsible gaming initiatives.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In the United States, our licenses are generally
granted for a predetermined period of time (typically ranging from one to four years) or require documents to be supplied on a
regular basis in order to maintain our licenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We also maintain licenses in Great Britain,
Malta and Australia.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In Great Britain, online gaming and
sports betting is subject to the Gambling Act 2005 (the &ldquo;GA2005&rdquo;), as amended by the Gambling (Licensing and
Advertising) Act 2014, and the regulations promulgated thereunder. Under the GA2005, entities wishing to offer online sports
betting (which for purposes of GA2005 is defined to include DFS) and/or online casino services to persons located in Great
Britain must first obtain a remote gambling operating license from the Gambling Commission. We hold a remote-pool-betting
operating license authorizing us to offer our DFS product to residents of Great Britain. That license may be varied to add
further product categories permitting, for example, fixed-odds-sports betting and online casinos. We also hold a gambling
software operating license issued by the Gambling Commission, which authorizes us to develop the DFS software we use. Our
British licenses are not limited by a term, but are subject to the payment of annual fees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<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-indent: 0.5in">In Malta, online gaming and sports betting
is subject to the Gaming Act 2018 and the regulations promulgated thereunder. Fantasy sports (including DFS) are considered a controlled
skill game for the purposes of the Gaming Authorizations Regulations. Our subsidiary, Crown DFS Malta Limited, holds a gaming services
license, issued by the Malta Gaming Authority, which authorizes the holder to conduct controlled skill games. Our Malta license
was originally issued in 2017. Under the Gaming Act 2018, it has a duration of 10 years.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Malta is a Member State of the European
Union, and that has made it an increasingly popular hub for online betting and gaming businesses. We rely upon our Malta license
to conduct DFS operations not only in Malta, but also in certain other EU Member States, including Germany, Austria, the Republic
of Ireland and the Netherlands.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In Australia, online gaming and sports betting
is regulated at both the federal and state/territory levels. A sports betting operator that holds a license in one state or territory
may offer services across all other states (subject to certain specific statutory restrictions that may apply). Our subsidiary,
DraftKings Australia Pty Ltd, is the holder of a sports bookmaking license issued by the Northern Territory Racing Commission,
which enables DraftKings Australia Pty Ltd to conduct DFS contests. The Northern Territory license was issued in November 2017
for a duration of five years, subject to the payment of annual fees and compliance with license conditions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Sportsbook</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We currently operate our online sports betting
product via the DraftKings Sportsbook app in Indiana, Iowa, New Hampshire, New Jersey, Pennsylvania and West Virginia pursuant
to our temporary licenses or executed vendor agreements granted by the gaming or lottery commission of such states, specifically,
the Indiana Gaming Commission, the Iowa Racing and Gaming Commission, the New Hampshire Lottery Commission, the New Jersey Division
of Gaming Enforcement, the Pennsylvania Gaming Control Board and the West Virginia Lottery. We also operate retail sportsbooks
in Iowa, Mississippi, New Jersey and New York pursuant to state licensing regimes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On May 14, 2018, the U.S. Supreme Court
issued an opinion determining that PASPA was unconstitutional. PASPA prohibited a state from &ldquo;authorizing by law&rdquo; any
form of sports betting. In striking down PASPA, the Supreme Court opened the potential for state-by-state authorization of sports
betting. Several states and territories, including Arkansas, Colorado, Delaware, Illinois, Indiana, Iowa, Michigan, Mississippi,
Montana, Nevada, New Hampshire, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Puerto Rico, Rhode Island, Tennessee,
Washington, D.C. and West Virginia already have laws authorizing and regulating some form of sports betting online or in brick-and-mortar
establishments. Sports betting in the United States is subject to additional laws, rules and regulations at the state level. See
<I>&ldquo;Risk Factors&#8201;&mdash;&#8201;Risk Factors Relating to the Business and Industry of New DraftKings&#8201;&mdash;&#8201;Our
business will be subject to a variety of U.S. and foreign laws, many of which are unsettled and still developing and which could
subject us to claims or otherwise harm our business. Any change in existing regulations or their interpretation, or the regulatory
climate applicable to our products and services, or changes in tax rules and regulations or interpretation thereof related to our
products and services, could adversely impact our ability to operate our business as currently conducted or as we seek to operate
in the future, which could have a material adverse effect on our financial condition and results of operations.&rdquo;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>iGaming</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We currently operate our iGaming platform
in New Jersey, pursuant to a transactional waiver granted by the New Jersey Division of Gaming Enforcement, and are pursuing licenses
in Pennsylvania and Wes t Virginia.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Generally, online gambling in the
United States is only lawful when specifically permitted under applicable state law. At the federal level, several laws
provide federal law enforcement with the authority to enforce and prosecute gambling operations conducted in violation of
underlying state gambling laws. These enforcement laws include the Unlawful Internet Gambling Enforcement Act (the
 &ldquo;UIGEA&rdquo;), the Illegal Gambling Business Act and the Travel Act. No violation of the UIGEA, the Illegal Gambling
Business Act or the Travel Act can be found absent a violation of an underlying state law or other federal law. In addition,
the Wire Act of 1961 (the &ldquo;Wire Act&rdquo;) provides that anyone engaged in the business of betting or wagering
knowingly uses a wire communication facility for the transmission in interstate or foreign commerce of bets or wagers or
information assisting in the placing of bets or wagers on any sporting event or contest, or for the transmission of a wire
communication which entitles the recipient to receive money or credit as a result of bets or wagers, or for information
assisting in the placing of bets or wagers, will be fined or imprisoned, or both. However, the Wire Act notes that it shall
not be construed to prevent the transmission in interstate or foreign commerce of information for use in news reporting of
sporting events or contests, or for the transmission of information assisting in the placing of bets or wagers on a sporting
event or contest from a State or foreign country where betting on that sporting event or contest is legal into a State or
foreign country in which such betting is legal. There is ongoing legal action as to whether the Wire Act applies beyond
sports betting. A federal court of first instance has ruled that it does not.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<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-indent: 0.5in"><B><I>SBTech</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">SBTech has obtained licenses (and approvals,
as applicable) in six states in the United States and in the United Kingdom, Gibraltar, Malta and Romania. Additionally, SBTech
has certified its software in Denmark, Italy, Nigeria, Portugal and Spain, and its platform and sportsbook are available in Azerbaijan,
Belgium, Cyprus, Czech Republic, Greece, Mexico, Poland and Sweden under local licenses held by operators using SBTech&rsquo;s
platform in these jurisdictions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">SBTech currently supplies its platform,
sportsbook and iGaming services online in New Jersey and its platform and sportsbook online in Oregon. It also supplies its retail
sportsbook services in Arkansas, Indiana, Mississippi, New Jersey and Pennsylvania pursuant to state licensing regimes. In addition,
SBTech supplies its platform, sportsbook and iGaming services to customers in additional jurisdictions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition to our licensing regime for
our offerings, we also take significant measures to protect users&rsquo; privacy and data. Our programs consist of the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Data Protection and Privacy</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Because we handle, collect, store, receive,
transmit and otherwise process certain personal information of our users and employees, we are also subject to federal, state and
foreign laws related to the privacy and protection of such data. Regulations such as the General Data Protection Regulation of
the European Union and the California Consumer Privacy Act, expected to take effect in California on January 1, 2020, are new,
untested laws that could affect our business, and the potential impact is unknown.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Compliance</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We have developed and implemented a rigorous
internal compliance program to help ensure that we comply with legal and regulatory requirements imposed on us in connection with
our DFS, Sportsbook and iGaming activities. Our compliance and risk program focuses, among other things, on reducing and managing
problematic gaming and providing tools to assist users in making educated choices related to gaming activities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Additionally, we employ various methods
and tools across our operations such as geolocation blocking, which restricts access based upon the user&rsquo;s geographical location
determined through a series of data points such as mobile devices and Wi-Fi networks; age verification to ensure our users are
old enough to participate; routine monitoring of user activity; and risk-based user due diligence to ensure the funds used by our
users are legitimately derived. We have a zero-tolerance approach to money laundering, terrorist financing, fraud and collusion.
While we are firmly committed to full compliance with all applicable laws and have developed appropriate policies and procedures
in order to comply with the requirements of the evolving regulatory regimes, we cannot assure that our compliance program will
prevent the violation of one or more laws or regulations, or that a violation by us or an employee will not result in the imposition
of a monetary fine or suspension or revocation of one or more of our licenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">SBTech&rsquo;s platform has been built from
the ground up to meet the needs of differing regulatory regimes, including configurable regulatory and responsible gaming controls
such as responsible gaming tests, operator alerts on player behavior, deposit limits, betting limits, loss limits, timeout facilities,
session limits, reality checks, balance thresholds and intended gaming amounts. These features allow the operators&rsquo; customers
full control of their gaming to allow them to play responsibly.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Responsible and Safer Gaming</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We view the safety and welfare of our users
as critical to our business and have made appropriate investments in our processes and systems. We are committed to industry-leading
responsible gaming practices and seek to provide our users with the resources and services they need to play responsibly. These
practices, resources and services include deposit limits, voluntary restrictions on access and use of certain offerings, temporary
self-exclusion and cooling-off periods, voluntary permanent exclusion from our offerings and applications and data science technology,
which is able to flag any suspicious or abnormal betting activity. We also participate in national self-exclusion registers where
they are in operation. We prominently promote our responsible gaming tools, resources and initiatives on our website and mobile
applications. We also maintain a self-excluded user list, which prohibits self-identified users from participating in DFS contests
or placing bets or participating in real-money gaming and have embedded the software to limit or restrict the amount individual
users spend. We also train our frontline personnel to identify signs of problematic gaming, ensuring that we are not only utilizing
data and technology but also our human resources.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In December 2019, we joined the National
Council on Problem Gambling (&ldquo;NCPG&rdquo;) as a Platinum Member. The NCPG is the leading national organization for people
and their families who are affected by problem gambling and gambling addiction. Our NCPG membership supports wide-ranging problem
gambling prevention, treatment, education, and research programs, as well as innovative responsible gambling policies, provided
by the NCPG. Our membership helps build upon NCPG efforts, including the Safer Sports Betting Initiative and Internet Responsible
Gambling Standards, which assist gambling operators by providing best practice responsible gambling policies and procedures for
all online gambling activities, including sports betting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We are also members of the Sports Wagering
Integrity Monitoring Association and the American Gaming Association.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="b_015"></A>DRAFTKINGS&rsquo;
INDUSTRY</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Overview</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We are a leader in digital sports entertainment
and gaming in the United States, with over 4.3 million cumulative unique paid users. Our total revenue has grown from $192 million
in 2017 to $323.4 million for the year ended December 31, 2019. Our growth has been driven substantially by the legalization of
sports betting and iGaming in several U.S. jurisdictions, including New Jersey, where we launched our DraftKings Sportsbook in
the third quarter of 2018 and iGaming in the fourth quarter of 2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our Industry and Opportunity</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We operate within the global entertainment
and gaming industries, which are comprised of diverse products and offerings that compete for consumers&rsquo; time and disposable
income, such as movies, television, music, sporting events, video games, gambling and more. Industry revenue, according to the
International Trade Administration and H2 Gambling Capital (&ldquo;H2&rdquo;), is estimated to be greater than $2.5 trillion, of
which approximately one-third is derived from the United States.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We have focused our business to benefit
from the growth opportunities at the intersection of digital sports entertainment and gaming. We believe sports entertainment and
sports betting should fuel each other&rsquo;s growth for the foreseeable future. According to Deloitte&rsquo;s TMT Predictions
2019, 43% of North American men aged 25-34 who watch sports also regularly bet on sports, with regularly being defined as betting
at least once per week. Deloitte estimates that this figure could grow to be as large as 60% going forward. As more jurisdictions
legalize online gaming, we expect it to see outsized gains versus retail alternatives. For example, in New Jersey, the N.J. Division
of Gaming Enforcement notes that over 80% of sports betting gross gaming revenue came from online betting in 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As momentum for regulated sports betting
and iGaming continues, we believe we are uniquely positioned to be a leader in both B2C and B2B capacities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Global Gaming Industry</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The global gaming industry includes a wide
array of products, from lotteries to bingo, slot machines, casino games and sports betting, across land-based and online platforms.
In 2019, the global gaming industry was estimated to generate approximately $456 billion in gross gaming revenue according to H2.
The industry has various operators and stakeholders across the private and public sectors, including traditional brick-and-mortar
casinos, state-run lottery operators, Native American Tribes, legacy online gaming operators, racetracks/racinos and gaming technology
companies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Recently, online gaming has seen outsized
growth and increased penetration. Per H2, online gaming grew at an annual rate of 10% from 2014 to 2018, relative to global gaming&rsquo;s
growth of 2% per annum during that same period. H2 expects this trend to continue over the next five years. Online gaming&rsquo;s
share of total global gaming revenue is projected to nearly double from 2014 to 2024E (from 8% to 15% of the total global gaming
industry). The following trends are potential drivers of growth in this space:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>We believe various jurisdictions globally, including the United States, are embracing regulated sports betting and iGaming
in an effort to create a safer gaming environment for consumers and to generate additional tax revenue (which is otherwise lost
to illegal bookmakers and operators).</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>We believe that in jurisdictions with regulated sports betting and iGaming, consumers have shown a strong preference for online
products as opposed to retail products when the option of online versus retail is available to them.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In the past decade, there has been significant
regulatory momentum with respect to online gaming across the globe. This momentum has been particularly relevant in developed nations
whose citizens have disposable income to spend on entertainment and gaming. For example, Denmark, France, Ireland, Italy, Poland,
Spain, Sweden, Switzerland and various states in the United States have legalized and regulated online sports betting or iGaming.
All of the aforementioned countries are classified in the &ldquo;High Income&rdquo; income group according to the World Bank. We
expect this trend to continue moving forward, most notably in the United States. For further details on the U.S. regulatory landscape,
see <I>&ldquo;&mdash; Our Industry and Opportunity&#8201;&mdash;&#8201;North American Gaming Industry&#8201;&mdash;&#8201;U.S.
Sports Betting&rdquo; and &ldquo;&mdash; Our Industry and Opportunity&#8201;&mdash;&#8201;North American Gaming Industry&#8201;&mdash;&#8201;U.S.
iGaming&rdquo;</I> below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>




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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>North American Gaming Industry</I></B>&#8199;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our short- to medium- term focus is on the
North American online gaming industry, particularly the opportunity in online sports betting and iGaming. According to H2, the
total North American gaming industry was estimated to generate approximately $134 billion in annual gross gaming revenue in 2019,
only 5% of which was derived from online gaming. We believe this low percentage of mobile gaming penetration in North America relative
to the rest of the world is predominantly due to the slower pace of adoption in the United States where online gaming is regulated
on a state-by-state basis. As U.S. jurisdictions become regulated and mature, online gaming penetration may approach that of other
developed nations. For example, H2 estimates that more than 45% of the U.K.&rsquo;s gross gaming revenue comes from online betting
compared to approximately 3% in the United States.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The online gaming industry can be broadly
segmented into two sub-sectors: (1) sports betting and (2) iGaming. Our primary geographic focus is in the United States.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>U.S. Sports Betting</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On May 14, 2018, the U.S. Supreme Court
struck down PASPA. This ruling effectively allows for each state to legislate and regulate sports betting as it sees fit. After
PASPA was struck down, 21 states and the District of Columbia, as of the date of this prospectus, representing approximately 36%
of the U.S. population per the Census Bureau, have legalized sports betting in some form. The following table summarizes the current
status of legalized sports betting in the United States.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><I>U.S. Regulatory Overview</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><IMG SRC="tm2015692-1_s1img06.jpg" ALT=""></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: 0in"><I>Source: </I>&ldquo;U.S. sports
betting tracker&rdquo; from Gambling Compliance; &ldquo;Where is sports betting legal in the U.S.?&rdquo; from Legal Sports Report,
U.S. Census Data as of July 2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 22.5pt; text-indent: 0in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 22.5pt"></TD><TD STYLE="width: 22.5pt">(1)</TD><TD>Indicates states that have legalized sports betting in some form.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 22.5pt"></TD><TD STYLE="width: 22.5pt">(2)</TD><TD>Indicates states with online sportsbooks.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

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<TD STYLE="width: 22.5pt"></TD><TD STYLE="width: 22.5pt">(3)</TD><TD>Green check indicates states with operational online sports betting, while yellow check indicates states that are still pending
launch.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 22.5pt"></TD><TD STYLE="width: 22.5pt">(4)</TD><TD>In New Mexico sports betting is limited to provision by Native American tribes.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 22.5pt"></TD><TD STYLE="width: 22.5pt">(5)</TD><TD>Tennessee is the only state without retail sportsbooks.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">According to Legal Sports Report, the regulated
sports betting industry in the United States generated greater than $900 million in gross gaming revenue in 2019, with approximately
$625 million (nearly 70%) coming from Nevada and New Jersey&#8201;&mdash;&#8201;states with more established gaming industries.
While the overall industry is still nascent, growth has been strong. For example, fourth quarter sportsbook gross gaming revenue
in New Jersey, the first state to regulate sports betting after PASPA was struck down, grew 102% year-over-year to $108.7 million
this past quarter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We believe the sports betting industry is
going to grow significantly over the next five years as more states legalize sports betting and currently operational states progress
toward maturity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition to regulatory momentum, we believe
that industry growth will be spurred by multiple parties having economic interests in the industry&rsquo;s development (such as
media providers, professional sports leagues, sportsbook operators and governments, among others). For example, legalized sports
betting should contribute to more engaged television viewers, generating revenue for both professional sports leagues and media
providers. According to Deloitte&rsquo;s TMT Predictions 2019, 68% percent of North American male sports watchers aged 25-34 are
more likely to watch a game on TV if they have bet on the game.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>U.S. Online Sports Betting: Estimating
the Total Addressable Industry Size</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">There are several different ways to triangulate
potential industry size in the United States, some of which we have detailed below. For example, one can extrapolate from other
industries globally. These include the United Kingdom and Australia, both of which have mature and regulated sports betting industries.
As such, each country presents a data point to help gauge the potential of the U.S. sports betting market. Another way is to extrapolate
based on the results in New Jersey, even though New Jersey will only represent a relatively small portion of the mature U.S. industry
and the result in New Jersey may not be indicative of results in other jurisdictions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><I>Estimated U.S. Online
Sports Betting GGR at Maturity</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><IMG SRC="tm2015692-1_s1img07.jpg" ALT=""></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0in"><I>Source:</I> New Jersey Division
of Gaming Enforcement; H2 Gambling Capital Global All Product Summary Report, June 2019; U.S. Census Bureau; U.K. Office for National
Statistics.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 27pt">(1)</TD><TD>Implies industry size based on New Jersey&rsquo;s percentage of the U.S. population. 2023E NJ GGR assumes H1&rsquo;19 annualized
GGR of $180 million grows at five-year historical iGaming CAGR of 28% per year until 2023 at which point the industry reaches a
mature state.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>




<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 27pt">(2)</TD><TD>Implies industry size based on 2023E U.K. GGR per adult of $88 and a U.S. adult population of 254 million people. 2023E U.K.
GGR applies five-year historical OSB CAGR of 13% in the U.K. to 2018 GGR of $2.4 billion.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 27pt">(3)</TD><TD>Implies industry size based on 2023E Australia GGR per adult of $92 and a U.S. adult population of 254 million people. 2023E
Australia GGR per H2 Gambling Capital Global.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As presented in the chart above, the implied
U.S. sports betting industry could range from approximately $18 billion (based on the New Jersey extrapolation) to $23 billion
(based on the Australia extrapolation). We believe this industry presents an opportunity for New DraftKings&rsquo; B2C and B2B
businesses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>U.S. iGaming</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Of the nine states with live online sports
betting, four states (Nevada, New Jersey, Pennsylvania and West Virginia) have also legalized iGaming in some form. Specifically,
iGaming is legal in New Jersey, Pennsylvania and West Virginia, while only online poker is legal in Nevada. Additionally, Delaware
has legalized iGaming, although the state has not yet legalized online sports betting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">At the moment, iGaming has less regulatory
momentum than sports betting; however, New Jersey presents a data point for iGaming&rsquo;s industry potential in the United States.
As illustrated below, based on an extrapolation of New Jersey results, the implied total U.S. industry size could be greater than
$20 billion if every state legalizes iGaming.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">For further details on the New Jersey iGaming
industry, refer to the New Jersey case study in <I>&ldquo;Business of DraftKings and SBTech&#8201;&mdash;&#8201;Our Products and
Economic Model&#8201;&mdash;&#8201;Case Study: New Jersey Sportsbook.&rdquo;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><I>Estimated U.S. iGaming
GGR Implied by New Jersey</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><IMG SRC="tm2015692-1_s1img08.jpg" ALT=""></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 27pt">(1)</TD><TD>GGR for nine months ended September 30, 2019 is annualized then grown one year forward at the historical CAGR of 25% (&lsquo;14-&rsquo;18A).</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Daily Fantasy Sports</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">While predominately a U.S. business at present,
DFS is beginning to emerge in Europe and Australia. The U.S. DFS industry is currently occupied by DraftKings, our primary competitor,
FanDuel, and other smaller players (such as Yahoo Sports). According to Eilers, DraftKings and FanDuel account for approximately
95% market share, with DraftKings controlling approximately 60% of that share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>




<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Competition</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Given that DraftKings operates in the global
entertainment and gaming industry, we consider any type of discretionary leisure and entertainment provider to be a competitor
with respect to our consumers&rsquo; time and disposable income. In the sports betting space, our competitors are established European
players, such as Bet365, Flutter Entertainment / The Stars Group (through their FanDuel and FoxBet brands), William Hill and Roar
Digital (through its BetMGM brand and partnership with GVC). Additionally, we expect competition from new entrants, such as Pointsbet,
and U.S. casinos. We expect to have similar competitors in the iGaming space; however, our competitors may operate under different
brand names for the purposes of iGaming. With regard to DFS, our primary competitor is FanDuel, which is majority owned by Flutter
Entertainment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We principally compete on a number of factors
across our B2C offerings. These include, but are not limited to, our front-end online product, our back-end infrastructure, our
ability to retain and monetize existing users, re-engage prior users and acquire new users and our regulatory access and compliance
experience.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In the B2B space, our competitors for sports
betting and iGaming will include Bet.Works, Gaming Innovation Group (GiG), GVC Holdings, International Gaming Technology (IGT),
Kambi, Playtech and Scientific Games. SBTech principally competes, and we will compete, on the quality and breadth of our technology
solutions and support services.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>




<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"></P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="b_016"></A>DRAFTKINGS&rsquo;
MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>The following discussion and analysis
of the financial condition and results of operations of DraftKings Inc. (&ldquo;DraftKings,&rdquo; &ldquo;we,&rdquo; &ldquo;us&rdquo;
and &ldquo;our&rdquo;) should be read together with our audited consolidated financial statements as of December 31, 2019 and 2018
and for the years ended December 31, 2019, 2018 and 2017, in each case together with related notes thereto, included elsewhere
in this prospectus. The discussion and analysis should also be read together with the section entitled &ldquo;Business of DraftKings
and SBTech&rdquo; and our pro forma financial information as of and for the year ended December 31, 2019. See &ldquo;Unaudited
Pro Forma Condensed Combined Financial Information.&rdquo; The following discussion contains forward-looking statements. Our actual
results may differ significantly from those projected in the forward-looking statements. Factors that might cause future results
to differ materially from those projected in the forward-looking statements include, but are not limited to, those discussed in
the sections entitled &ldquo;Risk Factors&rdquo; and &ldquo;Cautionary Statement Regarding Forward-Looking Statements.&rdquo; Certain
amounts may not foot due to rounding.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our Business</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our vision is to transform the way in which
people experience sports. Our mission is to make life more exciting by responsibly creating the world&rsquo;s favorite real-money
games and betting experiences.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In 2012, we launched our peer-to-peer daily
fantasy sports product offering for short-duration contests for cash prizes and continue to pioneer innovations aligned with our
mission. Today, we believe DraftKings is the largest daily fantasy sports operator in the United States. Starting in 2018, we expanded
into Sportsbook and iGaming and established ourselves as a top operator.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our goal is to revolutionize digital sports
entertainment at the intersection of technology and entertainment. We have established a following among &ldquo;skin-in-the-game&rdquo;
sports fans brought together by our robust daily fantasy sports technology platform that powers millions of contest entries in
peer-to-peer competitions every week. We leverage our technology platform, the scale and density of our user base and insights
from over four million cumulative unique paid users to continuously improve our analytics, marketing and technology to (a) continue
to invest in our products and platform, (b) launch our product offerings in new geographies, (c) effectively integrate SBTech to
form a vertically integrated operation, (d) create replicable and predictable state-level unit economics in sports betting and
iGaming and (e) expand our consumer offerings. For example, in 2013 we launched the first mobile app in daily fantasy sports, anticipating
the behavioral shift of a user base that had historically relied on a desktop-only experience. And five years later, in August
2018, we launched the first mobile sportsbook in New Jersey.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Over the past eight years, we have achieved
sustained paid user growth and several key milestones, as indicated in the chart below (see &ldquo;<I>Business of DraftKings and
SBTech</I>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><IMG SRC="tm2015692-1_s1img09.jpg" ALT=""></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Today, our offerings include expanded means
to experience sports and gaming, including our recently added iGaming offering that provides users with a robust suite of gaming
options. We anticipate the demand for our offerings will continue to grow as additional states legalize and regulate sports betting
and iGaming, and more people discover the convenience of our platform and excitement of the &ldquo;skin-in-the-game&rdquo; experience.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following table sets forth a summary
of our financial results for the periods indicated:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Year ended December 31,</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2019</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2018</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2017</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="font-size: 10pt; font-weight: bold; text-align: center">(in thousands)</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 58%; font-size: 10pt">Revenue</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">323,410</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">226,227</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">191,844</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Net Loss</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(142,734</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(76,220</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(75,556</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Adjusted EBITDA (1)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">(98,640</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">(58,850</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">(48,884</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
</TABLE>



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<P STYLE="margin-top: 0; margin-bottom: 0"></P>

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<P STYLE="margin-top: 0; margin-bottom: 0"></P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(1)</TD><TD>Adjusted EBITDA is a non-GAAP financial measure. See <I>&ldquo;&mdash; Non-GAAP Information&rdquo;</I> below for our definition
of, and additional information about, Adjusted EBITDA, and for a reconciliation to net loss, the most directly comparable U.S.
GAAP financial measure.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The accelerated revenue growth in 2019 over
2018 was due to a full year of New Jersey Sportsbook and iGaming operations following launches in August and December of 2018,
respectively. The higher net loss year-over-year is due primarily to continued platform development and launches in three new states.
Our business is also seasonal in nature, and our revenue and user volume between quarters, as well as between year-over-year comparative
reporting periods, are impacted by the relative popularity of certain sports and the scheduling of professional sports seasons
and sporting events. See <I>&ldquo;&mdash; Quarterly Performance Trend and Seasonality.&rdquo;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We make deliberate and substantial
investments in support of our mission and long-term growth. For example, we have invested in our products and technology in
order to continually launch new product innovations on our platform, improve marketing, merchandising, and operational
efficiency through data science, and deliver a great user experience. We also make significant investments in sales and
marketing and incentives to grow and retain our paid user base, including personalized cross-product offers and promotions,
and promote brand awareness to attract the &ldquo;skin-in-the-game&rdquo; sports fan. Together, these investments have
enabled us to create a leading product offering built on a scalable platform, while attracting a user base that resulted in
the rapid growth of our business. DraftKings is the leader in daily fantasy sports, with approximately 60% revenue market
share in the United States in the fourth quarter of 2019, according to Eilers&rsquo; Daily Fantasy Sports Tracker from Q4
2019. We are also among the leading Sportsbook and iGaming operators in New Jersey, with market shares of greater than 30%
according to the NJ Division of Gaming Enforcement&rsquo;s Sports Wagering Revenue Reports from January 2020 and greater than
10% according to Eilers&rsquo; U.S. Online Casino Tracker from December 2019. We have since launched our online Sportsbook in
Indiana, Iowa, New Hampshire, Pennsylvania and West Virginia.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<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-indent: 0.5in">We are continuing to invest in our future
through product innovation and scaling our operations to prepare for the launch of our product offerings in new jurisdictions.
When we launch Sportsbook and iGaming offerings in a new jurisdiction, we invest in user acquisition, retention and cross-selling,
until the new jurisdiction provides a critical mass of users engaged across our product offerings. We expect each new jurisdiction
to achieve a positive contribution profit (which we define as revenue, minus cost of revenue and direct advertising costs) in approximately
12 to 36 months following launch, depending on the characteristics of the new market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our path to profitability is based on the
acceleration of positive contribution profit growth driven by marketing efficiencies as we transition from local to regional to
national advertising, and scale benefits on the platform development component of our cost of revenue. On a consolidated Adjusted
EBITDA basis, we expect to achieve profitability when total contribution profit exceeds the fixed costs of our business, which
depends, in part, on the percentage of the U.S. adult population that has access to our product offerings and the other factors
summarized in &ldquo;<I>Cautionary Statement Regarding Forward-Looking Statements</I>&rdquo;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our current technology is highly scalable
with relatively minimal incremental spend required to launch our product offerings into new states. We will continue to manage
our fixed-cost base in conjunction with our market entry plans and focus our variable spend on marketing, user experience and support
and regulatory compliance to become the platform of choice for users and the partner of choice for regulators. We expect the Business
Combination to further improve our profitability (excluding the impact of amortization of acquired intangibles) through cost synergies
and new opportunities driven by vertical integration of SBTech&rsquo;s technology and know-how.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><B>Impact of COVID-19</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The novel coronavirus is having a significant
impact on most businesses, including DraftKings and SBTech. The direct impact on the business of DraftKings and SBTech beyond disruptions
in normal business operations in several of our offices is primarily through the suspension, postponement and cancellation of major
sports seasons and sporting events. Typically during the March and April time periods, we would have significant user interest
and activity in our DFS and Sportsbook product offerings for sporting events such as the NCAA college basketball tournament, the
Masters golf tournament, as well as late season games and early playoff series of the National Basketball Association and the National
Hockey League. While a number of sporting events have been cancelled or postponed, including the NCAA college basketball tournament
which was canceled, the ultimate status of other sporting events is unknown, including whether the NBA season will be completed
either in part or in its entirety on a delayed schedule.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The ultimate impact of COVID-19 on our financial
and operating results is unknown and will depend on the length of time that these disruptions exist and whether the sports seasons
and sporting events will ultimately be suspended, postponed, or cancelled; however, COVID-19 has had a significant impact and may
continue to have a significant impact, the full extent of which is unknown, but which could be material. In particular, these changes
have reduced customers&rsquo; use of, and spending on, our product offerings, and have caused us to issue refunds for canceled
events, and retail casinos where we have a branded Sportsbook have closed. Our revenues vary based on major sports seasons and
sporting events, which will not generate as much revenue as they would have without the cancellation or postponements in the wake
of COVID-19. However, with respect to product offerings that do not rely on major sports seasons and sporting events, such as iGaming,
we expect to continue to generate revenue. DraftKings is also innovating to generate more content that does not rely on major sports
seasons and sporting events, for example products that allow people to wager on events such as political events and eSports such
as simulated eNASCAR and League of Legends. During this period, DraftKings and SBTech are managing the variable portion of their
cost structures to better align with revenue, including cost of goods sold, which depend on gross revenue generation, as well as
external marketing spend, which will be significantly reduced during this period of disruption. Because of the highly variable
cost structures of the businesses, DraftKings and SBTech&rsquo;s liquidity outlooks have not materially changed. Furthermore, as
detailed below in &ldquo;<I>Liquidity and Capital Resources</I>,&rdquo; in March 2020, DraftKings drew down substantially all of
its revolving credit facility in order to provide financial flexibility at a moment when there were many uncertainties from the
impact of COVID-19, including potential limits on its access to financial and capital markets. While the COVID-19 crisis continues,
DraftKings does not have an immediate need for this capital and as such, does not have any material concerns with its ability to
service its debt.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Assuming sports return this year (even without
audiences), neither DraftKings nor SBTech expect a long-term financial impact on their financial condition and results of operation.
However, as noted in &ldquo;<I>Risk Factors &mdash; Risk Factors Relating to the Business and Industry of New DraftKings &mdash;
Reductions in discretionary consumer spending could have an adverse effect on our business, financial condition, results of operations
and prospects</I>,&rdquo; any significant or prolonged decrease in consumer spending on entertainment or leisure activities could
adversely affect the demand for our offerings, reducing our cash flows and revenues, and thereby materially harming our business,
financial condition and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Finally, DraftKings and SBTech have business
continuity programs in place to ensure that employees are safe and that the businesses continue to function while employees are
working remotely. The businesses have been closely monitoring the impact of the population working from home and the potential
strain on internet connectivity but have not seen any adverse impact on the ability of the businesses to continue to function and
we have not seen any network connectivity issues that would have an adverse impact on our users ability to access our product offerings.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our Business Model</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Across all of our offerings, we provide
users with a single integrated platform that provides one account, one wallet, a centralized payment system and responsible gaming
controls, compliant with regulations across all jurisdictions in which we operate (we refer to this as our &ldquo;platform&rdquo;).
This platform enables us to develop a seamless and personalized experience across our product offerings. Our product offerings,
consisting of daily fantasy sports, Sportsbook and iGaming, available through both web and mobile applications, generate substantially
all of our revenue. Our business model relies on our ability to leverage this multijurisdictional platform and create innovative
product offerings that will both attract new users and retain our growing base of users.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our business model is based on the following
key factors and strategies:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Monetizing our Platform</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We monetize our platform through the following
principal offerings:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><I>Daily Fantasy Sports (DFS)</I>. Since launching our platform, we have monetized our DFS offering by facilitating peer-to-peer
play, whereby users compete against each other for prize money. We provide users with a technology platform that establishes daily
fantasy sports contests, scores the contest, distributes the prize money and performs other administrative activities to enable
the &ldquo;skin-in-the-game&rdquo; sports fan experience. Our revenue is the difference between the entry fees collected and the
amounts paid out to users as prizes and customer incentives in a period.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><I>Sportsbook</I>. To further enhance the &ldquo;skin-in-the-game&rdquo; sports fan experience, shortly after the U.S. Supreme
Court struck down PASPA, we enabled our platform to offer online sports betting. In Sportsbook, we generate revenue from &ldquo;hold&rdquo;
as users play against the house (us).</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><I>iGaming</I>. iGaming includes the full suite of games available in land-based casinos, such as blackjack, roulette and slot
machines, all integrated with our other offerings through our platform. For these offerings, we function similarly to land-based
casinos, generating revenue through &ldquo;hold&rdquo; as users play against the house (us).</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Across all of our principal offerings, as
more users place more bets or enter more contests, we earn more revenue. We also generate revenue from offering advertising and
sponsorship packages to targeted advertisers across our entertainment and gaming offerings.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Growing our User Base</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Monthly Unique Payers (&ldquo;MUPs&rdquo;)</I>.
The number of unique paid users (&ldquo;payers&rdquo;) that use our product offerings on a monthly basis is a key metric of our
user growth. The chart below presents our MUPs for the years ended December 31, 2017, 2018 and 2019, respectively:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><IMG SRC="tm2015692-1_s1img010.jpg" ALT=""></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">MUPs is a key indicator of the scale of
our user base and awareness of our brand. We believe that the growth of our MUPs base is also indicative of our long-term revenue
growth potential. We expect the number of MUPs to grow as we attract, retain and re-engage users in new and existing jurisdictions
and expand our offerings to appeal to a wider audience.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We define MUPs as the number of unique paid
users (&ldquo;payers&rdquo;) per month who had a paid engagement (i.e., participated in a real-money DFS contest, sports bet or
casino game) across one or more of our product offerings via our platform. For reported periods longer than one month, we average
the MUPs for the months in the reported period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">A &ldquo;unique paid user&rdquo; or &ldquo;unique
payer&rdquo; is any person who had one or more paid engagements via our platform during the period (i.e., a user that participates
in a paid engagement across each of our product offerings counts as a single unique payer for the period). This measure does not
include users who have not played with funds deposited in their wallet on our platform. We exclude users who have made a deposit
but have not yet had a paid engagement. Unique payers or unique paid users include users who have participated in a paid engagement
with promotional incentives, which are fungible with other funds deposited in their wallets on our platform, the number of these
users included in MUPs has not been material to date and a substantial majority of such users are repeat users who have had paid
engagements both prior to and after receiving incentives.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Average Revenue per MUP (&ldquo;ARPMUP&rdquo;)</I>.
The average revenue per MUP represents our ability to drive usage and monetization of our product offerings. The chart below presents
our ARPMUP for the years ended December 31, 2017, 2018 and 2019, respectively:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><IMG SRC="tm2015692-1_s1img011.jpg" ALT=""></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We use ARPMUP to analyze comparative revenue
growth and measure customer monetization and engagement trends.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We define and calculate ARPMUP as the average
monthly revenue for a reporting period, divided by MUPs (i.e., the average number of unique payers) for the same period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Business Combination</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Under the terms of the BCA, Merger Sub will
merge with and into DraftKings (the &ldquo;DK Merger&rdquo;), and DraftKings will survive the DK Merger as a wholly-owned subsidiary
of New DraftKings. Concurrently with the DK Merger, New DraftKings will acquire all of the issued and outstanding share capital
of SBTech (the &ldquo;SBTech Acquisition&rdquo;). Immediately prior to the DK Merger and the SBTech Acquisition, DEAC will merge
with and into DEAC NV Merger Corp., a Nevada corporation, and will change its name to DraftKings Inc. In consideration for the
DK Merger and the SBTech Acquisition, our stockholders will receive shares of common stock of New DraftKings, and SBTech&rsquo;s
shareholders will receive a combination of cash and shares of common stock of New DraftKings, as described more fully in the section
entitled &ldquo;The Business Combination Agreement.&rdquo; We refer to these transactions as the &ldquo;Business Combination.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We expect to be the accounting acquirer
of SBTech and have preliminarily allocated the estimated purchase price of approximately $758 million (reflecting certain estimated
purchase price adjustments and seller costs to be borne by New DraftKings pursuant to the BCA) to SBTech&rsquo;s assets and liabilities
in the pro forma balance sheet included elsewhere in this prospectus. This would result in, among other adjustments, pro forma
increases of approximately $11 million in property, plant and equipment, $269 million in amortizable intangible assets and $461
million in goodwill, compared to DraftKings&rsquo; balance sheet as of December 31, 2019. The fair value measurement period for
the SBTech Acquisition will remain open upon the consummation of the Business Combination while we await further information and
analyses to determine the acquisition date fair values of certain acquired assets and assumed liabilities. Additionally, following
the Business Combination, we expect to incur certain one-time integration costs. We also plan to integrate SBTech&rsquo;s platform,
services, assets and know-how with our operations over time, which we expect to result in substantial synergies and provide us
with important competitive advantages. Expected synergies include implementation of SBTech&rsquo;s proprietary sportsbook technology
(transitioning from an external provider), integration of corporate management and shared service functions and processes and the
ability to attract skilled IT engineering professionals in lower-cost regions. Consequently, the future results we report for the
combined business may not be comparable to DraftKings&rsquo; or SBTech&rsquo;s historical financial statements or the pro forma
financial information included elsewhere in this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Upon consummation of the Business Combination,
DraftKings expects to be deemed the predecessor of the combined business, and New DraftKings, as the parent company of the combined
business, will continue as the SEC registrant, meaning that DraftKings&rsquo; financial statements for previous periods will be
disclosed in the registrant&rsquo;s future periodic reports filed with the SEC. The DK Merger will be accounted for as a reverse
recapitalization, with no goodwill or other intangible assets recorded, in accordance with U.S. GAAP. SBTech will be treated as
an acquired company for financial statement reporting purposes. The Business Combination is expected to have several significant
impacts on our future reported financial position and results, as a consequence of reverse capitalization treatment (with respect
to DEAC) and acquisition accounting (with respect to SBTech). These include an estimated increase in cash (as compared to our balance
sheet at December 31, 2019) of between approximately $218 million, assuming maximum shareholder redemptions, and $517 million,
assuming no shareholder redemptions. These pro forma cash amounts are net of&thinsp; (x) approximately $213 million in cash consideration
payable to SBTech shareholders (including estimated purchase price adjustments pursuant to the BCA and certain seller transaction
costs to be paid by New DraftKings), (y) total non-recurring transaction costs estimated at approximately $55.6 million, in addition
to $3.8 million paid in the fourth quarter of 2019 (including acquisition-related advisory fees in connection with the Business
Combination and deferred underwriting commissions in connection with DEAC&rsquo;s initial public offering, but excluding certain
seller costs to be paid by New DraftKings) and (z) other transaction-related costs (including bonuses contingent on DEAC shareholder
redemptions not exceeding a specified threshold, redemptions of certain shares and the payment of certain transaction-related and
other payables of DEAC). A portion of the transaction costs will be treated as a reduction of equity (i.e., the deferred underwriting
commissions and costs pertaining to the reverse recapitalization) and a portion will be expensed in the period in which the Business
Combination closes (i.e., merger-related costs). The pro forma cash amounts include cash from (i) DEAC&rsquo;s trust account, the
amount of which will depend on the level of shareholder redemptions, (ii) $40.0 million in gross proceeds from our issuance of
Convertible Notes (as defined in &ldquo;&mdash; Liquidity and Capital Resources&rdquo;) in early 2020, (iii) the proceeds from
the Private Placement of approximately $304.7 million that we expect to receive upon the consummation of the Business Combination
and (iv) $44.5 million in proceeds from the borrowing on our revolving credit facility incurred in March 2020. See <I>&ldquo;Unaudited
Pro Forma Condensed Combined Financial Information.&rdquo;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As a consequence of the Business Combination,
DraftKings expects to become the successor to an SEC-registered and Nasdaq-listed company, which will require us to hire additional
staff and implement procedures and processes to address public company regulatory requirements and customary practices. We expect
to incur additional annual expenses for, among other things, directors&rsquo; and officers&rsquo; liability insurance, director
fees and additional internal and external accounting, legal and administrative resources and fees. DraftKings estimates that these
incremental costs will range between approximately $20 million and $30 million per year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Non-GAAP Information</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This prospectus includes Adjusted EBITDA,
which is a non-GAAP performance measure that we use to supplement our results presented in accordance with U.S. GAAP. We believe
Adjusted EBITDA is useful in evaluating our operating performance, as it is similar to measures reported by our public competitors
and is regularly used by security analysts, institutional investors and other interested parties in analyzing operating performance
and prospects. Adjusted EBITDA is not intended to be a substitute for any U.S. GAAP financial measure and, as calculated, may not
be comparable to other similarly titled measures of performance of other companies in other industries or within the same industry.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We define and calculate Adjusted EBITDA
as net loss before the impact of interest income or expense, income tax expense and depreciation and amortization, and further
adjusted for the following items: stock-based compensation, transaction-related costs, litigation, settlement and related costs
and certain other non-recurring, non-cash and non-core items, as described in the reconciliation below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We include this non-GAAP financial measure
because it is used by management to evaluate DraftKings&rsquo; core operating performance and trends and to make strategic decisions
regarding the allocation of capital and new investments. Adjusted EBITDA excludes certain expenses that are required in accordance
with U.S. GAAP because they are non-recurring (for example, in the case of transaction-related costs), non-cash (for example, in
the case of depreciation and amortization, stock-based compensation) or are not related to our underlying business performance
(for example, in the case of interest income and expense and legal settlement costs).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The table below presents our Adjusted EBITDA
reconciled to our net loss, the closest U.S. GAAP measure, for the periods indicated:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Year ended December 31,</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2019</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2018</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2017</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="font-size: 10pt; font-weight: bold; text-align: center">(in thousands)</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 61%; font-size: 10pt; text-align: left">Net loss</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">(142,734</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">)</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">(76,220</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">)</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">(75,556</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Adjusted for:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Depreciation and amortization</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">13,636</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">7,499</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">6,301</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Interest (income) expense, net</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(1,348</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(666</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,541</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Income tax expense</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">58</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">105</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">210</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Stock-based compensation</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">17,613</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">7,210</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">4,500</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Transaction-related costs (1)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">10,472</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">10,697</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Litigation, settlement and related costs (2)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">3,695</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">3,222</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,754</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Other non-recurring and special project costs (3)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2,489</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,062</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Non-operating costs (4)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(2,521</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">607</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 2.5pt">Adjusted EBITDA</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(98,640</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(58,850</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(48,884</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
</TABLE>






<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" STYLE="width: 100%; margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="vertical-align: top; width: 27pt; text-align: left">(1)</TD>
    <TD>Mainly includes advisory, consulting, accounting and legal expenses in connection with mergers and acquisitions activities, including
related evaluation, negotiation and integration costs, and capital-raising activities. This includes costs related to the Business
Combination in 2019. The 2017 amount relates mainly to an attempted significant transaction.</TD></TR>
</TABLE>




<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

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<TD STYLE="width: 27pt">(2)</TD><TD>Includes primarily litigation settlement costs, and related external legal costs, mainly in connection with regulatory investigations
and settlements.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt">(3)</TD><TD>Includes primarily consulting, advisory and other costs relating to non-recurring items and special projects, including, in
2019, the costs of our move to our new Boston headquarters, implementation of internal controls over financial reporting, executive
search costs and a signing bonus for a newly hired senior executive and, in 2017, lease exit costs related to the office space
in New York.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt">(4)</TD><TD>Includes, in 2019, a gain recorded upon a contribution of assets to an equity method investee, net of our equity method share
of the investee&rsquo;s losses and, in 2017, adjustments to the fair value of contingent consideration and other non-cash effects
included in the &ldquo;other non-operating costs&rdquo; line-item of our income statements.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Key Factors Affecting Our Results</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our financial position and results of operations
depend to a significant extent on the following factors:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Industry Opportunity and Competitive
Landscape</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We operate within the global entertainment
and gaming industry, which is comprised of diverse products and offerings that compete for consumers&rsquo; time and disposable
income. Our short-to-medium term focus is on the North American regulated gaming industry, particularly the opportunity in online
sports betting and iGaming. See <I>&ldquo;DraftKings&rsquo; Industry.&rdquo;</I> We believe our industry-leading product offerings,
strong technology platform, eight years of U.S. online and mobile gaming experience, established brand and, following our acquisition
of SBTech, our vertically integrated solutions make us a partner of choice for state regulators, professional sports leagues and
teams, gaming companies, retail and online sportsbooks and other sports entertainment and related businesses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As we prepare to enter new
jurisdictions, we expect to face fierce competition from other established industry players, some of which may have more
experience in sports betting and iGaming and have access to more resources. We believe our analytics, the technology that
powers our platform, and the lessons learned from our DFS operations and New Jersey experience will enable us to capture
significant market share in newly available jurisdictions. For example, we achieved and maintain as of January 2020 a digital
sportsbook New Jersey market share of over 30% and we are among the top iGaming operators in the state, despite extensive
competition. We recently launched our online Sportsbook in Indiana, Iowa, New Hampshire, Pennsylvania and West Virginia, and
believe we are the market leader in Indiana and West Virginia as of January 2020.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<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-indent: 0.5in"><B><I>Legalization, Regulation and Taxation</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We are the national leader in daily fantasy
sports and a top mobile-gaming operator in New Jersey according to Eilers&rsquo; U.S. Sports Betting Market Monitor Report from
December 2019. Our financial prospects depend on legalization of online sports betting and iGaming across more of the United States,
a trend that we believe is in its infancy after the U.S. Supreme Court struck down PASPA in May 2018. Our strategy is to expand
our Sportsbook and iGaming offerings in new jurisdictions as they are legalized and become accessible. As of the date of this prospectus,
21 U.S. states and the District of Columbia, which collectively represent 36.1% of the U.S population, have legalized sports betting
in some form. Of these 21 legal jurisdictions, 14 have legalized online sports betting, and make up 23.9% of the U.S. population.
Nine of these 14 jurisdictions are live and five are pending launch. DraftKings operates in six of these nine jurisdictions, and
SBTech operates in one other. Mobile sports wagering bills are currently being considered in 18 states.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The process of securing the necessary licenses
or partnerships to operate in a given jurisdiction may take longer than we anticipate. In addition, legislative or regulatory restrictions
and product taxes may make it less attractive or more difficult for us to do business in a particular jurisdiction. For example,
certain jurisdictions require us to have a relationship with a land-based licensed casino for online sportsbook access, which tends
to increase our costs of revenue. States that have established state-run monopolies may limit opportunities for private sector
participants like us. We nonetheless believe our acquisition of SBTech will allow us to become a partner of choice to power state-run
sportsbooks, as exemplified by SBTech&rsquo;s recent agreement with the Oregon State Lottery.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">States impose tax rates on regulated offerings,
which may vary substantially between states and product offerings. Sales taxes may also apply in certain jurisdictions. We are
also subject to a federal excise tax of 25 basis points on the amount of each sportsbook bet. See <I>&ldquo;Risk Factors&#8201;&mdash;&#8201;Risk
Factors Relating to the Business and Industry of New DraftKings&#8201;&mdash;&#8201;Our growth prospects may suffer if we are unable
to develop successful offerings or if we fail to pursue additional offerings. In addition, if we fail to make the right investment
decisions in our offerings and technology platform, we may not attract and retain key users and our revenue and results of operations
may decline.&rdquo;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Ability to Acquire, Retain and Monetize
Users</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We grow our business by attracting new paid
users to our platform and increasing their level of engagement with our product offerings over time. To effectively attract and
retain paid users and to re-engage former paid users, we invest in a variety of marketing channels in combination with personalized
customer promotions, most of which can be used across all of our product offerings (such as free contest entries or bets or matching
deposits). These investments and personalized promotions are intended to increase consumer awareness and drive engagement. While
we are continuing to assess the efficiency of our marketing and promotion activities, our limited operating history and the relative
novelty of the U.S. online sports betting and iGaming industries makes it difficult for us to predict when we will achieve our
longer-term profitability objectives.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Managing Betting Risk</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Sports betting and iGaming are characterized
by an element of chance. Our revenue is impacted by variations in the hold percentage (the ratio of net win to total amount wagered)
on bets placed on, or the actual outcome of, games or events on which users bet. Although our product offerings generally perform
within a defined statistical range of outcomes, actual outcomes may vary for any given period, and a single large bet can have
a sizeable impact on our short-term financial performance. Our hold is also affected by the spread of limits and factors that are
beyond our control, such as a user&rsquo;s skill, experience and behavior, the mix of games played, the financial resources of
users and the volume of bets placed. As a result of the variability in these factors, the actual hold rates on our products may
differ from the theoretical win rates we have estimated and could result in the winnings of our gaming users exceeding those anticipated.
We seek to mitigate these risks through data science and analytics and rules built into our platform, as well as active management
of our amounts at risk at a point in time, but may not always be able to do so successfully, particularly over short periods, which
can result in financial losses as well as revenue volatility.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Key Components of Revenue and Expenses</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Revenue</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We generate revenue primarily through
our three main product offerings. DFS, which was our sole product offering until late 2018, historically drove our revenue
results and accounts for a majority of our users; however, since we launched Sportsbook and iGaming in 2018, states with
Sportsbook and iGaming together have accounted for a rapidly growing proportion of our users, which drives our revenue. We
expect this user growth trend to continue and to further accelerate as our Sportsbook and iGaming offerings are permitted in
more U.S. states. Over time, we expect Sportsbook and iGaming users will surpass DFS users, and thus revenue.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We record substantially all our revenue
from our consumer product offerings on our platform. DFS revenue is generated to the extent that contest entry fees from customers
(i.e., our paid users), in the aggregate, exceed the aggregate prizes awarded and paid user incentives in a period. Sportsbook
and iGaming revenue is generated from bets received from paid users (referred to as &ldquo;handle&rdquo;), less winnings paid to
such users and paid user incentives. While we seek to set the odds of winning to provide us with a revenue margin on the amounts
at risk, our liability for the winning bets may result in net reductions to revenue if the amount of user bets won exceeds our
hold. We also generate revenue from the sale of advertising across our product offerings, and expect this to grow in dollar terms
(though not as a proportion of revenue) as we expand our platform across more of the United States.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We offer a variety of incentives to attract
users to our product offerings, including free or matching bets, enhanced odds and betting insurance. In addition, our paid users
are eligible for a loyalty program and can earn points for engaging with our offerings and redeem them for various rewards, including
contest tickets, apparel, events, sports merchandise and other prizes. We record the cost of these incentives as reductions to
revenue, i.e., we report revenue net of these costs. We expect the amount of these incentives, and the mix between incentives and
advertising and marketing costs, to be volatile for the foreseeable future. These incentives are also seasonal in nature and will
be affected by the timing of sporting events and our entry into new jurisdictions. While we plan to stabilize our incentive rates
as a percentage of gross revenue over time, we may incur higher or lower incentive costs in a given period, depending on a number
of factors, including the tax treatment of incentives and trend changes in legalization and our advertising spend.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our revenue is currently concentrated in
the United States. See Note 17 to DraftKings&rsquo; audited consolidated financial statements, included elsewhere in this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Costs and Expenses</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Cost of revenue</I>. Our cost of revenue
consists primarily of variable costs. These include mainly (i) payment processing fees and chargebacks, (ii) product taxes, (iii)
platform costs and (iv) revenue share / market access arrangements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We incur payment processing costs on user
deposits and occasionally chargebacks as a result of user complaints (chargebacks have not been material to date).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Product taxes are imposed by different jurisdictions,
typically as a percentage of our gross gaming revenue, and also include, to a lesser extent, federal excise and local sales taxes
on certain product offerings. Product taxation of online sports betting and iGaming can vary substantially across jurisdictions,
and we expect this to become an increasingly significant driver of our cost of revenue as we enter new jurisdictions. Product taxes
may also reflect state promotional tax credits, which are recorded as an offset to the cost of revenue.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Platform costs relate mainly to third-party
integrated platform services, such as Kambi&rsquo;s sportsbook platform, data fees for information feeds and geolocation services,
web hosting, amortization of capitalized software development costs and developer salaries. These platform costs can vary substantially
depending on the mix of product offerings. For example, our iGaming offerings consist of a combination of games we have built ourselves,
with no license fees payable to content suppliers, and licensed content from third-party suppliers subject to various arrangements
based on revenue sharing or levels of activity. The games in our iGaming offering that we developed in-house, such as blackjack,
result in higher margins than games subject to licenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Revenue share arrangements are mainly agreements
with land-based casinos in states that require these agreements in order to provide real-money online sports betting and iGaming
offerings (&ldquo;market access&rdquo;). These market access fees are driven mainly by the levels of paid user activity via our
platform, particularly engagement with our Sportsbook and iGaming offerings, in a given period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Sales and Marketing</I>. Sales and marketing
expenses consist primarily of direct advertising costs, expenses associated with strategic league and team relationships, brand
and creative services and related personnel costs. Sales and marketing also includes, to a lesser extent, costs related to promotional
contests funded entirely by us and allocations of rent, maintenance and utilities costs according to headcount.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We consider our sales and marketing spend
and promotional offers (which is contra revenue and is described under <I>&ldquo;&mdash; Key Components of Revenue and Expenses&#8201;&mdash;&#8201;Revenue&rdquo;</I>
above) to be similar in character. Our total spend and allocation of spend between sales and marketing versus promotional spend
offers on product launches varies based on local market conditions, regional synergies and competition, among other factors. For
example, in New Jersey, we increased our sales and marketing spend upon launching our Sportsbook offering in the second half of
2018, in order to attract a critical mass of new paid users before returning to a normalized level in that market, while also providing
promotional offers to our existing DFS users in that state to encourage use of our Sportsbook and iGaming offerings. We expect
our advertising spend, like our promotional offers, to be a key component of our geographic expansion. Over the longer term, assuming
the trend of mobile sports betting and iGaming legalization continues, we expect our sales and marketing spend to decline as a
percentage of revenue, both as a result of higher return on each acquired paid user in multi-offering states (relative to states
where only DFS is available) and improved purchasing scale.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Product and Technology</I>. Product and
technology expenses consist of software development costs, comprised mainly of product and platform development, support personnel
costs, including stock compensation expense and related professional services. Product and technology also includes, to a lesser
extent, allocation of rent, maintenance and utilities costs according to headcount.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our product and technology costs reflect
the ongoing maintenance of existing products, fulfilling user and government commitments including local market regulatory customizations,
continuously improving user-facing features and functionality, and innovating. We expect these costs to increase in the near term,
and to stabilize once we achieve sufficient organizational scale to support our product offerings on a national scale. We believe
these costs are highly scalable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>General and Administrative</I>. General
and administrative expenses (&ldquo;G&amp;A&rdquo;) consist primarily of administrative personnel costs, including executive salaries,
related stock compensation expense and benefits, professional services (including legal, regulatory, audit and licensing-related),
legal settlements and contingencies, insurance and allocation of rent, maintenance and utilities costs according to headcount.
Excluding the impact of SBTech integration costs and public company costs (discussed under &ldquo;&mdash; The Business Combination&rdquo;
above), we expect our G&amp;A spend to further stabilize in the near term.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Income Tax Expense</I>. We account for
income taxes using the asset and liability method whereby deferred income taxes are recognized for the tax consequences of temporary
differences between the financial statement carrying amounts and the tax basis of the assets and liabilities. The provision for
income taxes reflects income earned and taxed mainly in the various U.S. federal and state jurisdictions. Jurisdictional tax law
changes, increases or decreases in permanent differences between book and tax items, accruals or adjustments of accruals for tax
contingencies or valuation allowances, and the change in the mix of earnings from these taxing jurisdictions all affect our overall
effective tax rate. Our tax expense has been immaterial throughout the periods presented in this prospectus, reflecting our losses.
Our historical losses have given rise to a substantial tax asset mainly comprised of net operating loss carryforwards, which we
may be able to apply to future tax liabilities. See Note 11 to DraftKings&rsquo; audited consolidated financial statements included
elsewhere in this prospectus and <I>&ldquo;&mdash; Critical Accounting Policies&#8201;&mdash;&#8201;Income Taxes.&rdquo;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Results of Operations</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Comparison of the Years Ended December
31, 2019, 2018 and 2017</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following table sets forth a summary
of our consolidated results of operations for the years indicated, and the changes between periods.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt; text-align: center; font-size: 10pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="border-bottom: Black 1pt solid; text-align: center; font-size: 10pt; font-weight: bold">Year ended December 31,</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-size: 10pt; font-weight: bold">2018 to 2019 % </TD><TD STYLE="padding-bottom: 1pt; text-align: center; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-size: 10pt; font-weight: bold">2017 to 2018 % </TD><TD STYLE="padding-bottom: 1pt; text-align: center; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt; text-align: center; font-size: 10pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: center; font-size: 10pt; font-weight: bold">2019</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: center; font-size: 10pt; font-weight: bold">2018</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: center; font-size: 10pt; font-weight: bold">2017</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; padding-bottom: 1pt; text-align: center"><B>Change</B></TD><TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; padding-bottom: 1pt; text-align: center"><B>Change</B></TD><TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="font-size: 10pt; font-weight: bold; text-align: center">(in thousands)</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 35%; font-size: 10pt">Revenue</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">323,410</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">226,277</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">191,844</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">42.9</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">%</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">17.9</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">Cost of revenue</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">103,889</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">48,689</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">31,750</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">113.4</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">53.4</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Sales and marketing</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">185,269</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">145,580</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">156,632</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">27.3</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-7.1</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">Product and technology</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">55,929</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">32,885</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">20,212</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">70.1</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">%</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">62.7</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">General and administrative</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">124,868</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">75,904</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">56,448</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">64.5%&#8203;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">34.5</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Loss from operations</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(146,545</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(76,781</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(73,198</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">90.9</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">4.9</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Interest income (expense), net</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,348</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">666</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(1,541</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">102.4</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">n.m.</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Gain on initial equity method investment</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">3,000</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">n.m.</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">n.m.</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">Other income (expense), net</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(607</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">n.m.</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">n.m.</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Loss before income taxes expense</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(142,197</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(76,115</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(75,346</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">86.8</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1.0</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Income tax expense</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">58</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">105</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">210</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-44.8</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-50.0</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">Loss from equity method investment</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">479</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">n.m.</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">n.m.</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">Net loss</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">(142,734</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">(76,220</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">(75,556</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">87.3</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">%</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">0.9</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">%</TD></TR>
</TABLE>



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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">n.m. = not meaningful.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>2019 Compared to 2018</I></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Revenue</I>. Revenue increased by $97.1
million, or 42.9%, to $323.4 million in 2019 from $226.3 million in 2018. The increase was attributable primarily to a full year
of revenue from our new product offerings in New Jersey. The revenue trend reflected the growth in MUPs, which increased 13.8%
period-on-period, and ARPMUP, which increased 25.6% period-on-period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Cost of Revenue</I>. Cost of revenue
increased by $55.2 million, or 113.4%, to $103.9 million in 2019 from $48.7 million in 2018, reflecting our product expansion described
above. Product taxes, platform costs and payment processing fees and chargebacks contributed $20.6 million, $16.8 million and $9.3
million, respectively, to the increase, and revenue share arrangements, reflecting the higher market access costs relating to our
Sportsbook and iGaming product offerings, accounted for the remainder. Cost of revenue as a percentage of revenue increased by
10.6 percentage points to 32.1% in 2019 from 21.5% in 2018, reflecting the changed revenue mix of product offering revenue and
related costs. In general, we expect our Sportsbook and iGaming product offerings to produce substantially higher revenue dollars
but at a higher cost per revenue dollar relative to our DFS offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Sales and Marketing</I>. Sales and marketing
expense increased by $39.7 million, or 27.3%, to $185.3 million in 2019 from $145.6 million in 2018. The increase was due mainly
to increased advertising and marketing spend to increase awareness and user acquisition for our Sportsbook and iGaming offerings,
particularly in newly launched states. Sales and marketing expense accounted for 57.3% of our revenue in 2019 compared to 64.3%
in 2018, a decrease of 7.0 percentage points.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Product and Technology</I>. Product and
technology expense increased by $23.0 million, or 70.1%, to $55.9 million in 2019 from $32.9 million in 2018. The increase was
driven mainly by product operations and engineering headcount, which increased steadily to 390 as of December 31, 2019 from 295
as of December 31, 2018, and increased technology consulting costs. Product and technology expense accounted for 17.3% of our revenue
in 2019 compared to 14.5% in 2018, an increase of 2.8 percentage points.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>General and Administrative</I>. General
and administrative expense increased by $49.0 million, or 64.5%, to $124.9 million in 2019 from $75.9 million in 2018. The increase
was due primarily to higher personnel costs, reflecting headcount growth and a $10.4 million increase in stock-based compensation,
and $10.5 million in costs related to the Business Combination recorded in the fourth quarter of 2019, as well as additions to
our indirect tax loss contingency reserves and higher rent and facilities costs following our headquarters move. General and administrative
expenses accounted for 38.6% of our revenue in 2019 compared to 33.5% in 2018, an increase of 5.1 percentage points.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Net Loss</I>. Net loss increased by $66.5
million to $142.7 million in 2019 from $76.2 million in 2018, for the reasons discussed above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>2018 Compared to 2017</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Revenue</I>. Revenue increased by
$34.4 million, or 17.9%, to $226.3 million in 2018 from $191.8 million in 2017. The increase was attributable primarily to
the New Jersey launch of our Sportsbook and iGaming product offerings in the third and fourth quarters of 2018, respectively,
and continued growth of our DFS product offering. The increase in revenue was driven by increases in unique payers and
revenue per unique payer, reflected in the 4.7% increase in MUPs and 12.6% increase in ARPMUP, reflecting the impact of our
Sportsbook product launch. We directed a growing portion of paid user incentives and promotions at our users, to help
establish the new product.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<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-indent: 0.5in"><I>Cost of Revenue</I>. Cost of revenue
increased by $16.9 million, or 53.4%, to $48.7 million in 2018 from $31.8 million in 2017, reflecting the costs of the aforementioned
Sportsbook launch, and particularly the related increase in product taxes. Product taxes and platform costs accounted for $7.0
million and $5.6 million, respectively, of the increase, and processing fees and chargebacks and revenue share arrangements accounted
for the remainder. Cost of revenue as a percentage of revenue increased by 4.9 percentage points to 21.5% in 2018 from 16.6% in
2017, reflecting the launch of our Sportsbook and iGaming product offerings in the second half of 2018, particularly proportionally
higher product taxes and revenue-sharing costs related to our Sportsbook product offering compared to DFS.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Sales and Marketing</I>. Sales and marketing
expense decreased by $11.1 million, or 7.1%, to $145.6 million in 2018 from $156.6 million in 2017, mainly due to a reduction in
team sponsorships. Team sponsorships continue to be an important marketing channel, but we have become more targeted in our approach,
and shifted spend towards our digital and offline channels. Sales and marketing expense accounted for 64.3% of our revenue in 2018
compared to 81.6% in 2017, a decrease of 17.3 percentage points.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Product and Technology</I>. Product and
technology expense increased by $12.7 million, or 62.7%, to $32.9 million in 2018 from $20.2 million in 2017. The increase was
driven mainly by product operations and engineering headcount, which increased steadily to 295 as of December 31, 2018 from 172
as of December 31, 2017, and increased technology consulting costs. Product and technology expense accounted for 14.5% of our revenue
in 2018 compared to 10.5% in 2017, an increase of 4.0 percentage points.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>General and Administrative</I>. General
and administrative expense increased by $19.5 million, or 34.5%, to $75.9 million in 2018 from $56.4 million in 2017. The increase
was due primarily to higher personnel costs, reflecting headcount growth and a $2.7 million increase in stock-based compensation,
as well as additions to our indirect tax loss contingency reserves and third-party professional fees and increased rent and facilities
costs. General and administrative expenses accounted for 33.5% of our revenue in 2018 compared to 29.4% in 2017, an increase of
4.1 percentage points, reflecting the increases in headcount, stock-based compensation, consulting and other costs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Net Loss</I>. Net loss increased by $0.7
million to $76.2 million in 2018 from $75.6 million in 2017, for the reasons discussed above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Quarterly Performance Trend and Seasonality</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our user engagement and financial performance
is seasonal in nature, as indicated in the following chart, which presents our MUPs and ARPMUP for the last eight fiscal quarters,
and the explanations that follow.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><IMG SRC="tm2015692-1_s1img012.jpg" ALT=""></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our business experiences seasonality based
on the relative popularity of certain sports. Although our platform supports contests and betting on sporting events throughout
the year, the fourth quarter is when our users tend to be most engaged, given the overlapping time frame of the NFL and NBA seasons.
As a result, we have historically generated higher revenues in our fourth fiscal quarter compared to our other fiscal quarters.
We anticipate that this trend will continue, though our mix of revenues in a given quarter will also be impacted by the timing
of new jurisdiction launches, the introduction of new product offerings and our integration of SBTech.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition, our revenue and key performance
indicators for a given quarter or fiscal year may differ substantially due to professional sports season scheduling, including
the frequency of play. For example, during the NFL season, our user engagement and revenue is generally highest on Sundays. The
number of Sundays in a fiscal reporting period may differ from quarter to quarter and year to year, resulting in revenue volatility
between comparative periods. For example, our fiscal years 2017, 2018 and 2019 included revenue related to 18, 17 and 17 Sundays
of regular season NFL play, respectively. In contrast, the MLB season, which falls in our second and part of our third fiscal quarters,
is characterized by numerous, daily games throughout the season, which tends to result in higher DFS user engagement and more Sportsbook
bets per paid user relative to the NFL season. MLB play also tends to attract a more dedicated but smaller fan base to our product
offerings. The timing of the MLB season in combination with these factors has tended to result in lower MUPs in our second fiscal
quarter, but a higher ARPMUP.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The suspension, postponement and cancellation
of major sports seasons and sporting events may materially impact our results of operations for the current quarter and, potentially,
future quarters. See &ldquo;<I>&mdash;Impact of COVID-19.</I>&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Liquidity and Capital Resources</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We measure liquidity in terms of our ability
to fund the cash requirements of our business operations, including working capital and capital expenditure needs, contractual
obligations and other commitments, with cash flows from operations and other sources of funding. Our current working capital needs
relate mainly to launching our iGaming and Sportsbook product offerings in new geographies, as well as compensation and benefits
of our employees. Our ability to expand and grow our business will depend on many factors, including our working capital needs
and the evolution of our operating cash flows.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We had $76.5 million in cash and cash equivalents
as of December 31, 2019 (excluding player cash, which we segregate from our operating cash balances on behalf of our paid users).
On a pro forma basis, assuming the Business Combination closed on that date, our cash and cash equivalents would have amounted
to between approximately $295 million and $593 million at December 31, 2019, depending on the extent of redemptions by DEAC shareholders.
We believe our operating cash flows, together with our cash on hand (including the proceeds of the Convertible Notes, as defined
below) and the cash we expect to obtain as a result of the Business Combination (including the proceeds of the Private Placement),
will be sufficient to meet our working capital and capital expenditure requirements for a period of at least twelve months from
the date of this prospectus. We may, however, need additional cash resources due to changed business conditions or other developments,
including unanticipated regulatory developments, significant acquisitions and competitive pressures. We expect our capital expenditures
and working capital requirements to continue to increase in the immediate future, as we seek to expand our product offerings across
more of the United States. To the extent that our current resources are insufficient to satisfy our cash requirements, we may need
to seek additional equity or debt financing. If the needed financing is not available, or if the terms of financing are less desirable
than we expect, we may be forced to decrease our level of investment in new product launches and related marketing initiatives
or to scale back our existing operations, which could have an adverse impact on our business and financial prospects. See Note
2 to DraftKings&rsquo; audited consolidated financial statements included elsewhere in this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<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-indent: 0.5in"><B><I>Debt</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We had $87.1 million in debt outstanding
as of December 31, 2019, comprised of convertible and Arrowmark promissory notes (excluding capitalized issuance costs and discounts)
and amounts drawn under our revolving credit facility. We have since incurred additional convertible note debt and drawn down substantially
the full amount available under our revolving credit facility, as discussed below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Credit Facility</I>. We have a revolving
credit facility with Pacific Western Bank with a current limit of $50.0 million, which we are seeking to extend. The facility requires
us to hold a minimum cash balance of $5.0 million at all times (the &ldquo;minimum cash balance guarantee&rdquo;). The facility
is scheduled to mature on September 15, 2020. Borrowings under the facility bear interest at a variable annual rate equal to the
greater of&thinsp;(i) 1.00% above the prime rate then in effect and (ii) 6.50%, payable monthly. In addition, we are required to
pay quarterly in arrears a fee equal to 0.25% per annum of the unused portion of the revolving line of credit. As of December 31,
2019, we had $6.8 million outstanding under the facility and another $4.5 million was applied to the issuance of letters of credit
in connection with our office leases. We paid down the outstanding amount under our facility in February 2020.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our obligations under the related loan and
security agreement are secured by substantially all of our assets. Pursuant to the agreement, we are required to maintain substantially
all depository, operating and investment accounts, excluding any proceeds from our gaming business, with Pacific Western Bank.
We are also subject to certain affirmative and negative covenants until maturity, including limitations on our ability to incur
additional debt or make capital expenditures and to pay dividends. As of December 31, 2019, we did not meet all covenant obligations
under the credit facility, but have subsequently obtained waivers from Pacific Western Bank and in March 2020 we drew down $44.5
million under the revolving credit facility, which was substantially fully drawn as of the date of this prospectus. We drew down
substantially all of our revolving credit facility in order to provide financial flexibility at a moment when there were many uncertainties
from the impact of COVID-19, including potential limits on our access to financial and capital markets. While the COVID-19 crisis
continues, we do not have an immediate need for this capital and as such, do not have any material concerns with our ability to
service our debt.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection with entering into the loan
and security agreement, we issued a warrant to Pacific Western Bank to purchase 173,913 shares of our common stock at an exercise
price of&thinsp;$0.23 per share. The warrant remains outstanding and is exercisable at any time until it expires in October 2020.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>ArrowMark Notes</I>. On September 26,
2019, we entered into share redemption agreements with certain funds managed by ArrowMark Partners (the &ldquo;ArrowMark Funds&rdquo;),
pursuant to which we repurchased and redeemed shares of our preferred stock and common stock held by the ArrowMark Funds (the &ldquo;ArrowMark
Redemption&rdquo;). A portion of the consideration paid by us in connection with the ArrowMark Redemption, equaling approximately
$11.0 million, was paid by the issuance of promissory notes to certain of the ArrowMark Funds (the &ldquo;ArrowMark Notes&rdquo;).
The ArrowMark Notes were canceled and exchanged into shares of our preferred stock, which in turn will convert into new shares
of New DraftKings Class A common stock upon the consummation of the Business Combination</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Convertible Promissory Notes</I>. On
and after December 16, 2019, we issued subordinated convertible promissory notes to certain investors. The aggregate principal
amount outstanding under the Convertible Notes was $109.2 million as of the date of this prospectus, of which $69.1 million was
issued prior to December 31, 2019, and the remainder was issued in early 2020. Interest accrues on the outstanding amount of the
Convertible Notes at a rate of 10% per annum on a capitalized,</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Convertible Notes automatically convert
into equity upon (i) a business combination transaction that results in common shares of DraftKings, its successor or a new parent
company being listed on a national securities exchange (a &ldquo;Qualified Business Combination&rdquo;), (ii) the issuance of equity
securities of DraftKings that results in DraftKings receiving a minimum of $100 million in proceeds (a &ldquo;Qualified Financing&rdquo;)
or (iii) an initial public offering of the equity securities of DraftKings pursuant to a registration statement under the Securities
Act of 1933, as amended (an &ldquo;IPO&rdquo;). In the case of a Qualified Business Combination, the outstanding principal (including
capitalized interest) on the Convertible Notes will convert into listed common shares of DraftKings, its successor or the new parent
entity, as applicable, at a price per share equal to (i) in the case of the closing of the Private Placement prior to the closing
of the Qualified Business Combination, the price per share paid by the PIPE Investors in the Private Placement and (ii) in all
other cases, the volume-weighted average trading price of such shares for the five consecutive trading days ending on the trading
day immediately preceding the closing of the Qualified Business Combination. In the case of a Qualified Financing, the outstanding
principal and interest on the Convertible Notes will convert into the equity securities sold to the cash investors in such Qualified
Financing, at a price per share equal to the price paid by the cash investors in such Qualified Financing. In the case of an IPO,
the outstanding principal and interest on the Convertible Notes will convert into the equity securities sold in such IPO, at a
price per share equal to the initial public offering price.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">At the election of the Majority Holders,
the Convertible Notes are convertible into equity upon the issuance of equity securities of DraftKings that results in us receiving
less than $100 million in proceeds (a &ldquo;Non-Qualified Financing&rdquo;). In the case of a Non-Qualified Financing, the outstanding
principal and capitalized interest on the Convertible Notes may convert into the equity securities sold to the cash investors in
such Non-Qualified Financing, at a price per share equal to the price paid by the cash investors in such Non-Qualified Financing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In the event of a combination, consolidation
or merger, other than a Qualified Business Combination, or a transfer of more than 50% of the voting power of DraftKings&rsquo;
stock to stockholders that were not stockholders on the date of issuance of the Convertible Notes, we will be obligated to repay
the Convertible Notes in an amount equal to the outstanding principal and capitalized interest, plus a prepayment premium equal
to 15% of the original principal amount of the Convertible Notes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition to the foregoing, in the event
that the Convertible Notes remain outstanding on December 16, 2022 (the &ldquo;CN Maturity Date&rdquo;), the Convertible Notes
will convert as of the CN Maturity Date into shares of a newly created series of DraftKings&rsquo; preferred stock having substantially
the same rights, privileges and preferences as DraftKings&rsquo; existing Series F Preferred Stock at a conversion price equal
to $3.312335 (as adjusted for any stock split, stock dividend, combination, recapitalization or similar transaction).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><B><I>Cash Flows</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following table summarizes our cash
flows for the periods indicated:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold">&#8203;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Year ended December 31,</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold">&#8203;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2019</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2018</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2017</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold">&#8203;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="font-size: 10pt; font-weight: bold; text-align: center">(in thousands)</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 61%; font-size: 10pt; text-align: left">Net cash used by operating activities</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">(78,880</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">)</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">(45,579</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">)</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">(88,437</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Net cash used in investing activities</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(42,271</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(26,672</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(7,715</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Net cash provided by financing activities</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">79,776</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">140,892</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">118,531</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Net increase (decrease) in cash</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(41,375</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">68,641</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">22,379</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; padding-bottom: 1pt">Cash at beginning of period</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">117,908</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">49,267</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">26,888</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">Cash at end of period</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">76,533</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">117,908</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">49,267</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Operating Activities</I>. Our cash
used in operating activities includes the impact of changes in cash reserved for users, user cash receivables and liabilities
to users. Cash reserved for users is comprised of deposits by our users. We treat this cash as the property of our users and
segregate it from our operating cash balances. When we receive a user deposit, we record it as cash reserved for users on our
balance sheet. In certain cases, a payment processor may delay the remittance of deposits to us for risk management or other
reasons, in which case we grant our user access to those funds and record the deposits as a receivable reserved for users.
The sum of the changes in cash reserved for users, and changes in receivables reserved for users approximately agree to the
change in liabilities owed to users for any given period. While on deposit with us, cash reserved for users earns interest,
which is recorded as interest income on our income statement and is included in our operating cash flows. This interest
income has not been material to date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<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-indent: 0.5in">Net cash used in operating activities in
2019 increased by $33.3 million, or 73.1%, to $78.9 million from $45.6 million in 2018, reflecting our higher net loss, for the
reasons discussed above, net of non-cash cost items (which increased by $15.6 million between periods), partially offset by an
improvement in operating working capital. The operating working capital improvement was driven mainly by an increase in accounts
payable and accrued expenses of $22.2 million between periods primarily related to increased advertising and marketing spend, as
discussed above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Net cash used in operating activities in
2018 decreased by $42.9 million, or 48.5%, to $45.6 million, from $88.4 million in 2017, mostly relating to the change in our accounts
payable and accrued expenses between December 31, 2016 and December 31, 2017 compared to the change in our accounts payable and
accrued expenses between December 31, 2017 and December 31, 2018. During these periods, our accounts payable and accrued expense
balances fluctuated significantly due to the timing of our financing. At December 31, 2016, these balances totaled $80 million.
By December 31, 2017 these balances decreased by $29.8 million to $50.4 million. This decrease was funded, in part, by the 2017
equity issuances discussed below. By December 31, 2018, these balances had increased by $5.7 million to $56.1 million, and this
increase is generally aligned with growth in our cost base that year and generally not related to the timing of financing. The
difference between the $29.8 million use of cash to pay down balances in 2017 and the $5.7 million source of cash in 2018 when
we permitted these balances to rise is $35.5 million. Of the remaining $7.1 million decrease in cash used in operating activities
in 2018, $3.9 million resulted from the annual increase in depreciation, amortization and stock-based expenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Investing Activities</I>. Net cash used
in investing activities in 2019 increased by $15.6 million, or 58.5%, to $42.3 million from $26.7 million in 2018. The increase
reflected mainly higher state licensing fees, an increase in purchases of property and equipment (mainly attributable to leasehold
improvements related to our new Boston headquarters, computer equipment and software purchases and office furniture) and higher
capitalization of internal-use software costs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Net cash used in investing activities in
2018 increased by $19.0 million to $26.7 million in 2018 from $7.7 million in 2017, reflecting increases in purchases of property
and equipment and higher capitalization of internal-use software costs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Financing Activities</I>. Net cash provided
by financing activities in 2019 decreased by $61.1 million, or 43.4%, to $79.8 million from $140.9 million in 2018. The 2019 amount
mainly included net proceeds of $68.1 million from the issuance of Convertible Notes, as discussed above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Net cash provided by financing activities
in 2018 increased by $22.4 million, or 18.9%, to $140.9 million, from $118.5 million in 2017. We obtained net equity proceeds of
$141.6 million from the issuance of series F redeemable convertible preferred stock in 2018, compared to $118.6 million received
from the issuance of series E-1 redeemable convertible preferred stock in 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Contractual Obligations, Commitments and Contingencies</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following table and the information
that follows summarizes our contractual obligations as of December 31, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold">&#8203;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Total</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Less than<BR> 1 year</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">1&#8201;-&#8201;3 Years</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">3&#8201;-&#8201;5 Years</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">More than<BR> 5 Years</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold">&#8203;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="18" STYLE="font-size: 10pt; font-weight: bold; text-align: center">(in thousands)</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 35%; font-size: 10pt; text-align: left">Operating lease obligations<FONT STYLE="font-size: 10pt">(1)</FONT></TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">66,028</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">10,067</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">16,674</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">15,602</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">23,685</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Vendors and licenses<FONT STYLE="font-size: 10pt">(2)</FONT></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">185,739</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">74,390</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">88,610</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">18,639</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">4,100</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; padding-bottom: 1pt">Debt obligations<FONT STYLE="font-size: 10pt">(3)</FONT></TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">86,873</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">6,750</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">80,123</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">Total</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">338,640</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">91,207</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">185,407</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">34,241</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">27,785</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0"></P>

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<P STYLE="margin-top: 0; margin-bottom: 0"></P>



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<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(1)</TD><TD>Includes operating leases of corporate office facilities, including our headquarters in Boston, Massachusetts, the lease for
which expires in 2029.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(2)</TD><TD>Includes obligations under non-cancelable contracts with vendors, licensors and others requiring us to make future cash payments,
including a commitment for advertising purchases with an affiliate of one of our shareholders, which</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt">we expect to fulfil in the year ending December 31,
2020. See &ldquo;<I>Certain Relationships and Related Party Transactions</I>.&rdquo; In connection with and upon the closing of
the Business Combination, we will be required to pay a total of approximately $13.9 million in success fees to certain vendors.
These success fees were classified as current obligations as the Business Combination is expected to close in 2020.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(3)</TD><TD>Includes the ArrowMark Notes, Convertible Notes and amounts outstanding under our revolving credit facility. See &ldquo;<I>&mdash;
Liquidity and Capital Resources&#8201;&mdash;&#8201;Debt</I>&rdquo; above for applicable interest rates and other relevant terms.
We may repay the debt under our revolving credit facility at any time without penalty. Upon the closing of the Business Combination,
the Convertible Notes will be converted into shares of DEAC Class A common stock (and then into Class A common stock of New DraftKings).
As discussed above, we drew $44.5 million under our revolving credit facility in March 2020, additional convertible promissory
notes of $40.0 million were issued in early 2020 and the ArrowMark Notes were canceled and exchanged into shares of our preferred
stock in March 2020, and these transactions are not included in the table.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As of December 31, 2019, we had contingencies
for various indirect operating taxes amounting to $35.9 million. See Note 6 to DraftKings&rsquo; audited consolidated financial
statements included elsewhere in this prospectus. We do not have any material obligations for the payment of cash under contractual
arrangements, other than as described above under &ldquo;<I>&mdash; Liquidity and Capital Resources &mdash; Debt</I>&rdquo; or
in DraftKings&rsquo; audited consolidated financial statements, included elsewhere in this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Off-Balance Sheet Commitments and Arrangements</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We are responsible for reimbursement obligations
on letters of credit in the aggregate face amount of $4.5 million as of December 31, 2019 issued under our revolving credit facility
to support our office leases. As of December 31, 2019, we hold a variable interest in a nonconsolidated entity accounted for under
the equity method of accounting. We are not the primary beneficiary of the entity and therefore are not required to consolidate
the entity. We do not guarantee any of the entity&rsquo;s obligations and have no further funding commitments. We do not have any
off-balance sheet commitments of the type required to be disclosed pursuant to SEC rules.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Critical Accounting Policies</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our consolidated financial statements have
been prepared in accordance with U.S. generally accepted accounting principles, or U.S. GAAP Preparation of the financial statements
requires our management to make judgments, estimates and assumptions that impact the reported amount of revenue and expenses, assets
and liabilities and the disclosure of contingent assets and liabilities. We consider an accounting judgment, estimate or assumption
to be critical when (1) the estimate or assumption is complex in nature or requires a high degree of judgment and (2) the use of
different judgments, estimates and assumptions could have a material impact on our consolidated financial statements. Our significant
accounting policies are described in Note 2 to DraftKings&rsquo; audited consolidated financial statements included elsewhere in
this prospectus. Our critical accounting policies are described below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Revenue Recognition</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Revenue across all three product offerings
on our platform is generated in a similar manner. We offer a variety of incentives to attract users to our platform and product
offerings, including free or matching bets, enhanced odds, betting insurance and a loyalty program. These customer incentives,
most of which can be used across all of our product offerings, are recorded as reductions to revenue. For DFS, revenue is generated
to the extent that contest entry fees from paid users exceed prizes awarded and customer incentives in a period. Sportsbook and
iGaming revenue is generated from bets received from paid users (referred to as &ldquo;handle&rdquo;), less winnings paid and customer
incentives. See &ldquo;<I>&mdash; Key Components of Revenue and Expenses</I>&rdquo; above. .</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Internally Developed Software Costs</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We account for the cost of software
that is developed or obtained for internal use pursuant to Accounting Standards Codification (&ldquo;ASC&rdquo;) Topic
350-40, Intangibles, Goodwill and Other&#8201;&#8201;&mdash;&#8201;&#8201;Internal-Use Software. Qualifying costs incurred to
develop internal-use software are capitalized when (i) the preliminary project stage is completed, (ii) management has
authorized further funding for the completion of the project and (iii) it is probable that the project will be completed and
performed as intended. These capitalized costs include salaries for employees who devote time directly to developing
internal-use software and external direct costs of services consumed in developing the software. Capitalization of these
costs ceases once the project is substantially complete and the software is ready for its intended purpose. We amortize
capitalized internally developed software costs over an estimated useful life of three years using the straight-line method.
These amortization expenses are classified as costs of revenue in the statements of operations. We capitalized $14.8 million
and $12.7 million in internally developed software costs for the years ended December 31, 2019 and 2018, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Loss Contingencies</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our loss contingencies, which are included
within the &ldquo;other long-term liabilities&rdquo; caption on our consolidated balance sheets, are uncertain by nature and their
estimation requires significant management judgment as to the probability of loss and estimation of the amount of loss. These contingencies
include, but may not be limited to, litigation, regulatory investigations and proceedings and management&rsquo;s evaluation of
complex laws and regulations, including those relating to indirect taxes, and the extent to which they may apply to our business
and industry. See Note 6 to DraftKings&rsquo; audited consolidated financial statements for more information.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We regularly review our contingencies to
determine whether the likelihood of loss is probable and to assess whether a reasonable estimate of the loss can be made. Determination
of whether a loss estimate can be made is a complex undertaking that considers the judgement of management, third-party research,
the prospect of negotiation and interpretations by regulators and courts, among other information. When losses can be reasonably
estimated, an estimated contingent liability is recorded. We continually reevaluate our indirect tax and other positions for appropriateness.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Business Combinations</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We account for business acquisitions in
accordance with ASC Topic 805, Business Combinations. We measure the cost of an acquisition as the aggregate of the acquisition
date fair values of the assets transferred and liabilities assumed and equity instruments issued. Transaction costs directly attributable
to the acquisition are expensed as incurred. We record goodwill for the excess of&#8201; (i) the total costs of acquisition, fair
value of any non-controlling interests and acquisition date fair value of any previously held equity interest in the acquired business
over (ii) the fair value of the identifiable net assets of the acquired business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The acquisition method of accounting requires
us to exercise judgment and make estimates and assumptions based on available information regarding the fair values of the elements
of a business combination as of the date of acquisition, including the fair values of identifiable intangible assets, deferred
tax asset valuation allowances, liabilities related to uncertain tax positions and contingencies. We must also refine these estimates
over a one-year measurement period, to reflect any new information obtained about facts and circumstances that existed as of the
acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. If we are required
to retroactively adjust provisional amounts that we have recorded for the fair value of assets and liabilities in connection with
an acquisition, these adjustments could materially impact our results of operations and financial position. While we have not made
any material acquisitions to date, estimates and assumptions that we must make in estimating the fair value of future acquired
technology, user lists and other identifiable intangible assets include future cash flows that we expect to generate from the acquired
assets. If the subsequent actual results and updated projections of the underlying business activity change compared with the assumptions
and projections used to develop these values, we could record impairment charges. In addition, we have estimated the economic lives
of certain acquired assets and these lives are used to calculate depreciation and amortization expense. If our estimates of the
economic lives change, depreciation or amortization expenses could be accelerated or slowed, which could materially impact our
results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Income Taxes</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We account for income taxes using the asset
and liability method whereby deferred income taxes are recognized for the tax consequences of temporary differences between the
financial statement carrying amounts and the tax basis of the assets and liabilities. We are subject to income tax in the United
States, including at the federal level and in various U.S. states and in other countries. As of December 31, 2019, we have a net
deferred tax liability of $217 thousand. Our federal net operating loss (&ldquo;NOL&rdquo;) carryforward totaled $810.4 million
(net of $34.5 million that will expire unutilized), of which $676.0 million will expire at various dates through 2039 and $134.4
million that has an indefinite carryforward (they are, however, subject to an 80% taxable income limitation in the year of utilization).
$658.2 million of our total NOL carryforwards are subject to annual limitations through 2037 under IRC Section 382. Additionally,
we have state and foreign NOL carryforwards of $759.0 million and $271 thousand, respectively. The NOL carryforwards may be available
to offset future income tax liabilities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We record a deferred tax asset for NOL carryforwards
by applying a weighted effective statutory tax rate to our total net operating loss carryforwards. As of December 31, 2019, we
have net deferred tax assets related to NOL carryforwards of $217.8 million. Based on management&rsquo;s assessment that the realization
of any future benefit from our deferred tax assets cannot be sufficiently assured, we recorded a full valuation allowance against
these NOL deferred tax assets. Management&rsquo;s estimates of future profitability and future changes in ownership may materially
impact our valuation allowance and our net deferred tax position.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Stock-based Compensation</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our historical and outstanding stock-based
compensation awards, including the issuances of options under our equity compensation plans, are described in Note 10 to DraftKings&rsquo;
audited consolidated financial statements, included elsewhere in this prospectus. Stock-based compensation expense is measured
based on the grant-date fair value of the stock-based awards, and is recognized over the requisite service period of the awards,
which is generally the vesting period. For awards with only service-based vesting conditions, we recognize compensation cost using
the straight-line method.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We use the Black-Scholes option pricing
model to estimate the grant-date fair value of option grants, while the grant-date fair value of the underlying common stock is
measured using a number of objective and subjective factors. The Black-Scholes model requires management to make a number of key
assumptions, including the fair value of common stock, expected volatility, expected term, risk-free interest rate and expected
dividends. As our shares have not previously been publicly traded, and have not regularly traded privately, expected volatility
is estimated based on the average historical volatility of similar entities with publicly traded shares over the relevant vesting
or estimated liquidity period. The expected term represents the period of time that the options are expected to be outstanding
and is estimated using the midpoint between the requisite service period and the contractual term of the option. The risk-free
interest rate is estimated using the rate of return on U.S. treasury notes with a life that approximates the expected term.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our management and Board considered various
objective and subjective factors to determine the fair value of DraftKings&rsquo; common stock as of each grant date, including
the value determined by a third-party valuation firm. The factors considered by the third-party valuation firm and our Board included
the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>our financial performance, capital structure and stage of development;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>our management team and business strategy;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>external market conditions affecting our industry, including competition and regulatory landscape;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>our financial position and forecasted operating results;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the lack of an active public or private market for our common stock;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the likelihood of achieving a liquidity event, such as a sale of DraftKings or an initial public offering of our common stock;
and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>market performance analyses, including with respect to stock price valuation, of similar companies in our industry.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The assumptions underlying these valuations
represent management&rsquo;s best estimates, which involve inherent uncertainties and the application of management judgment. As
a result, if factors or expected outcomes change and our management uses significantly different assumptions or estimates, our
stock-based compensation expense could be materially different. Upon the consummation of the Business Combination, the fair value
of our common stock will be determined based on the quoted market price on the Nasdaq.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Recently Adopted and Issued Accounting Pronouncements</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Recently issued and adopted accounting pronouncements
are described in Note 2 to DraftKings&rsquo; audited consolidated financial statements included elsewhere in this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On January 1, 2019, we adopted
Accounting Standards Codification (ASC) Topic 606 (Revenue from Contracts with Customers) using the modified retrospective
method, and due to the immaterial difference, there was no adjustment to the opening balance of accumulated deficit at
January 1, 2019. The adoption of the New Revenue Standard did not have a material impact on our consolidated financial
position, results of operations, or cash flows. We expect the impact of the adoption of the New Revenue Standard will be
immaterial to net loss on an ongoing basis.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Emerging Growth Company Accounting Election</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Section 102(b)(1) of the Jumpstart Our Business
Startups Act of 2012 (&ldquo;JOBS Act&rdquo;) exempts emerging growth companies from being required to comply with new or revised
financial accounting standards until private companies are required to comply with the new or revised financial accounting standards.
The JOBS Act provides that a company can choose not to take advantage of the extended transition period and comply with the requirements
that apply to non-emerging growth companies, and any such election to not take advantage of the extended transition period is irrevocable.
DEAC is an &ldquo;emerging growth company&rdquo; as defined in Section 2(a) of the Securities Act of 1933, as amended, and has
elected to take advantage of the benefits of this extended transition period. Following the consummation of the Business Combination,
New DraftKings is expected to remain an emerging growth company at least through the end of the 2020 fiscal year and is expected
to continue to take advantage of the benefits of the extended transition period. This may make it difficult or impossible to compare
New DraftKings&rsquo; financial results with the financial results of another public company that is either not an emerging growth
company or is an emerging growth company that has chosen not to take advantage of the extended transition period exemptions for
emerging growth companies because of the potential differences in accounting standards used.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Quantitative and Qualitative Disclosures About Market Risk</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We have in the past and may in the future
be exposed to certain market risks, including interest rate, foreign currency exchange and financial instrument risks, in the ordinary
course of our business. Currently, these risks are not material to our financial condition or results of operations, but they may
be in the future. In particular, upon the consummation of the Business Combination, we expect our exposure to foreign currency
translation and transaction risk to increase. See the section of this prospectus entitled &ldquo;<I>SBT&rsquo;s Management&rsquo;s
Discussion and Analysis of Financial Condition and Results of Operations &mdash; Quantitative and Qualitative Disclosures About
Market Risk</I>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="b_017"></A>SBT&rsquo;S
MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>The following discussion and analysis
of the financial condition and results of operations of SBTech (Global) Limited (&ldquo;SBTech&rdquo;) should be read together
with SBTech&rsquo;s audited consolidated financial statements as of December 31, 2019 and 2018 and for the years ended December
31, 2019, 2018 and 2017, together with the related notes thereto, included elsewhere in this prospectus. The discussion and analysis
should also be read together with the section entitled &ldquo;Business of DraftKings and SBTech&rdquo;, the pro forma financial
information as of and for the year ended December 31, 2019 (see &ldquo;Unaudited Pro Forma Condensed Combined Financial Information&rdquo;)
and the section entitled &ldquo;DraftKings&rsquo; Management&rsquo;s Discussion and Analysis of Financial Condition and Results
of Operations.&rdquo; The following discussion contains forward-looking statements. SBTech&rsquo;s actual results may differ significantly
from those projected in the forward-looking statements. Factors that might cause future results to differ materially from those
projected in the forward-looking statements include, but are not limited to, those discussed in the sections entitled &ldquo;Risk
Factors&rdquo; and &ldquo;Cautionary Note Regarding Forward Looking Statements.&rdquo; Certain amounts in tables and narrative
may not foot due to rounding.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>&nbsp;</I></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Overview</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">SBTech&rsquo;s principal business activities
involve the design and development of sports betting and casino gaming platform software. SBTech&rsquo;s platform software is delivered
using a SaaS model, along with complementary managed services. SBTech is a turnkey supplier of an end-to-end suite of services,
such as a fully- and semi-managed Internet-based (e.g., mobile) sportsbook with industry-leading risk management tools and an in-house
multi-channel technology platform configured with all major payment gateways and adaptable to regulatory requirements, casino providers
and customer relationship management tools. In addition, SBTech offers a leading mobile casino gaming solution via its proprietary
platform with integrations to all leading third-party mobile gaming suppliers. SBTech&rsquo;s proprietary platform allows leading
mobile sportsbook and casino gaming operators to deliver products under their own brands, powered by SBTech&rsquo;s leading industry
platform engine.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Business Combination presents New DraftKings,
including the businesses of DraftKings and SBTech, with an opportunity to provide a vertically integrated Sportsbook offering.
SBTech management believes this will enable New DraftKings to leverage SBTech&rsquo;s proprietary technology to serve other branded
online and retail sports betting operators in the U.S. and internationally, including U.S. state monopoly providers for whom New
DraftKings&rsquo; vertical integration could provide a significant advantage. See &ldquo;<I>DraftKings&rsquo; Management&rsquo;s
Discussion and Analysis of Financial Condition and Results of Operations&#8201;- The Business Combination</I>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following table sets forth a summary
of SBTech&rsquo;s financial results for the periods indicated:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold">&#8203;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Year ended December 31,</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&#8203;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">2019</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">2018</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">2017</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold">&#8203;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="font-size: 10pt; font-weight: bold; text-align: center">(&euro; in thousands)</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 61%; font-size: 10pt">Revenue</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&euro;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">96,857</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&euro;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">94,147</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&euro;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">66,087</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Gross profit</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">42,684</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">49,060</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">34,243</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Net profit after tax</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&euro;</TD><TD STYLE="font-size: 10pt; text-align: right">4,576</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&euro;</TD><TD STYLE="font-size: 10pt; text-align: right">26,779</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&euro;</TD><TD STYLE="font-size: 10pt; text-align: right">16,290</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The comparability of SBTech&rsquo;s revenue
and gross profit was impacted between periods by SBTech&rsquo;s strategic decision to end a relationship with a certain customer
as of September 1, 2018, as discussed below. Excluding the impact of dot.com (as defined below), which contributed &euro;24.5 million
and &euro;27.7 million in revenue in 2018 and 2017, respectively, SBTech&rsquo;s footprint and revenue have expanded substantially
since January 1, 2017, driven mainly by growth in the number of customers using SBTech&rsquo;s platform, a trend management expects
will accelerate following SBTech&rsquo;s entry into the United States.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Impact of COVID-19</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The novel coronavirus is having a significant impact on most
businesses, including DraftKings and SBTech. The direct impact on the business of DraftKings and SBTech beyond disruptions in normal
business operations in several of our offices is primarily through the suspension, postponement and cancellation of major sports
seasons and sporting events. Typically during the March and April time periods, we would have significant user interest and activity
in our Sportsbook product offerings for sporting events across the major European Soccer competitions, NBA, NCAA college basketball
tournament, the Masters golf tournament and the Grand National Horse Race in the UK. The status of most of these sporting events
is that they are postponed or unknown as to when they will restart, including whether the NBA season will be completed either in
part or in its entirety on a delayed schedule.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<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-indent: 0.5in">The ultimate impact of COVID-19 on our financial
and operating results is unknown and will depend on the length of time that these disruptions exist and whether the sports seasons
and sporting events will ultimately be suspended, postponed, or cancelled; however, COVID-19 has had a significant impact and may
continue to have a significant impact, the full extent of which is unknown, but which could be material.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">SBTech revenues vary based on major sports
seasons and sporting events, which will not generate as much revenue as they would have without the cancellation or postponements
in the wake of COVID-19. To date, the impact of COVID-19 on SBTech&rsquo;s revenues from its Asia reseller business has been limited
due to the primarily fixed fee arrangements with its Asian resellers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">During this period, DraftKings and SBTech
are managing the variable portion of their cost structures to better align with revenue, including cost of goods sold, which depend
on gross revenue generation, as well as external marketing spend, which will be reduced during this period of disruption.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Assuming sports return this year (even without
audiences), neither DraftKings nor SBTech expect a long-term financial impact on their financial condition and results of operation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Finally, DraftKings and SBTech have business
continuity programs in place to ensure that employees are safe and that the businesses continue to function while employees are
working remotely. SBTech has been closely monitoring the new working environment for their employees and have not experienced any
adverse impact on its ability to continue to operate its business. SBTech has established training and is continually monitoring
its remote working practices to increase productivity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Presentation of Financial Information</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In 2018, SBTech decided to end a relationship
with a certain customer, &ldquo;dot.com&rdquo;. The decision was effective on September 1, 2018, and SBTech continued to support
the customer&rsquo;s operations with transitional support for a limited period. SBTech no longer operates, supports or derives
any revenue from dot.com.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">SBTech&rsquo;s financial statements included
elsewhere in this prospectus were prepared in accordance with International Financial Reporting Standards (&ldquo;IFRS&rdquo;)
as issued by the International Accounting Standards Board (&ldquo;IASB&rdquo;). SBTech&rsquo;s historical financial statements
were prepared using the historical cost convention method. To facilitate comparability, the pro forma financial information included
elsewhere in this prospectus has been prepared by, among other things, converting SBTech&rsquo;s historical financial information
into U.S. GAAP, eliminating the impact of dot.com, conforming to DraftKings&rsquo; accounting policies and applying preliminary
purchase accounting adjustments based on DraftKings&rsquo; management&rsquo;s preliminary allocation of the purchase price to SBTech&rsquo;s
assets and liabilities. See &ldquo;<I>Unaudited Pro Forma Condensed Combined Financial Information</I>.&rdquo; Consequently, SBTech&rsquo;s
results of operations and consolidated statements of financial positions discussed herein are not comparable to the pro forma financial
information and will not be comparable to New DraftKings&rsquo; financial reporting for future periods, which will be calculated
in accordance with U.S. GAAP and will reflect the accounting acquirer&rsquo;s accounting policies and a new basis of accounting
for SBTech&rsquo;s assets and liabilities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">SBTech adopted IFRS 16 (Leases), which established
a new standard for the recognition, measurement, presentation and disclosure of leases, as of January 1, 2019. As a result, at
that date SBTech recognized a lease liability and corresponding right-of-use asset of&#8201; &euro;20.8 million, and has accrued,
in 2019, related interest expense on the lease liability of&#8201; &euro;0.7 million and depreciation expense on the right-of-use
asset of&#8201; &euro;3.3 million. As a result, SBTech&rsquo;s audited consolidated financial statements as of and for the years
ended December 31, 2018 and 2017 are not directly comparable to its audited consolidated financial statements as of and for the
year ended December 31, 2019. See Note 2 to SBTech&rsquo;s audited consolidated financial statements included elsewhere in this
prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">SBTech&rsquo;s functional currency is
the Euro, and its results of operations reported herein are presented in Euro. SBTech has historically been exposed to
foreign currency exchange risk. See &ldquo;<I>-&#8201;Quantitative and Qualitative Disclosures About Market
Risk&#8201;-&#8201;Foreign Currency Exchange Rate Risk</I>.&rdquo; Going forward, SBTech&rsquo;s results will be reported as
part of New DraftKings, and the combined company&rsquo;s results of operations and financial condition will be reported in
U.S. dollars, will be subject to foreign currency transaction and translation risk and will be impacted by various factors,
including those discussed in the sections of this prospectus entitled &ldquo;<I>Risk Factors</I>&rdquo; and
 &ldquo;<I>DraftKings&rsquo; Management&rsquo;s Discussion and Analysis of Financial Condition and Results of
Operations&#8201;- Key Factors Affecting Our Results.</I>&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Key Components of Revenue and Expenses</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Revenue</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">SBTech generates revenue by offering its
services and software to customers throughout Europe, Asia and the United States. SBTech&rsquo;s services are delivered through
its proprietary platform for sports betting and casino gaming, as well as for certain customers trading and risk management and
complementary services to support reporting, customer management and regulatory reporting requirements. SBTech&rsquo;s direct customer
contracts entitle it to earn a percentage of a customer&rsquo;s monthly net gaming revenue as defined under customer contracts,
generated on SBTech&rsquo;s platform. In contrast, SBTech&rsquo;s reseller arrangements typically provide for a base fixed fee
plus a fixed monthly fee determined based on the number of operators with which the reseller contracts to access SBTech&rsquo;s
software.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">SBTech records revenue net of value added
tax and discounts. SBTech&rsquo;s key revenue drivers include the number of customers that it serves, amount of revenue generated
by direct customers and geographic expansion (particularly into U.S. jurisdictions). In 2019, SBTech generated approximately 46%
of its revenue under contracts with direct customers. In 2019, approximately 37% and 63% of SBTech&rsquo;s revenue was derived
from customers in Europe and other regions (primarily Asia). In comparison, the revenue split for the respective regions was approximately
34% and 66% in fiscal year 2018 and 48% and 52% in fiscal year 2017. Following the dot.com exit decision and entry into the United
States, SBTech&rsquo;s management expects U.S.- and European-source revenue to continue growing relative to other regions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Costs and Expenses</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Cost of revenue.</I> SBTech&rsquo;s cost
of revenue is largely variable and consists mainly of salaries, benefits and incidental costs for personnel dedicated primarily
to revenue-generating activities, licenses to non-proprietary online casino games marketed through SBTech&rsquo;s platform and
feed providers of live sporting and racing results, information technology infrastructure and hosting costs, amortization of capitalized
software costs, depreciation of related assets and allocation of related overhead costs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Research and Development.</I> Research
and development expenses include mainly salaries, benefits and incidental costs for personnel dedicated primarily to research and
development activities and related third-party consulting costs, depreciation of related assets and allocation of related overhead
costs. Research and development costs that lead to new or substantially improved internally generated software are capitalized.
The determination of whether to capitalize or expense these costs is based on analyses of time and materials dedicated to each
project and evaluation of how far the project has progressed. Capitalized costs are amortized through cost of revenue once the
asset is determined to be marketable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Selling and Marketing.</I> Selling and
marketing expenses consist of costs incurred to acquire new customers, mainly salaries and benefits of sales and marketing personnel,
advertising and marketing costs and promotional trade conferences and events. In order to reach a larger audience of B2B customers,
SBTech typically ramps up its sales and marketing activities upon entering a new market or expansion in an existing market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>General and Administrative.</I> General
and administrative expenses consist primarily of administrative personnel costs, including executive salaries and bonuses, professional
costs related to legal, regulatory, audit and consulting services, transaction costs, allocation of overhead costs, insurance,
travel and depreciation of related assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Income Taxes.</I> SBTech accounts
for income taxes using the asset and liability method whereby deferred income taxes are recognized for the tax consequences
of temporary differences between the financial statement carrying amounts and the tax basis of the assets and liabilities.
The provision for income taxes reflects income earned and taxed in the various, to date mostly non-U.S., jurisdictions.
SBTech is headquartered in the Isle of Man, where it has historically reported a significant majority of its profits.
SBTech&rsquo;s applicable subsidiaries are subject to income tax in their respective jurisdictions. See Note 13 to
SBTech&rsquo;s audited consolidated financial statements included elsewhere in this prospectus. Jurisdictional tax law
changes, increases or decreases in permanent differences between book and tax items, accruals or adjustments of accruals for
tax contingencies or valuation allowances, and the change in the mix of earnings from these taxing jurisdictions all affect
the overall effective tax rate. SBTech&rsquo;s effective tax rates were approximately 6%, 3% and 2% in the years ended
December 31, 2019, 2018 and 2017, respectively. The differences between periods were attributable mainly to the change in mix
of taxing jurisdictions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Results of Operations</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Comparison of the Years Ended December
31, 2019, 2018 and 2017</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following table sets forth a summary
of SBTech&rsquo;s consolidated results of operations for the years indicated, and the changes between periods.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD COLSPAN="10" STYLE="border-bottom: Black 1pt solid; font: bold 9pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">Year
    ended December 31,</FONT></TD><TD STYLE="text-align: center; padding-bottom: 1pt; font: bold 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: center; padding-bottom: 1pt; font: bold 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">2018&#8201;-&#8201;2019</FONT></TD><TD STYLE="text-align: center; padding-bottom: 1pt; font: bold 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: center; padding-bottom: 1pt; font: bold 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">2017&#8201;-&#8201;2018</FONT></TD><TD STYLE="text-align: center; padding-bottom: 1pt; font: bold 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 9pt Times New Roman, Times, Serif; vertical-align: bottom">
    <TD STYLE="text-align: center; padding-bottom: 1pt; font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: center; padding-bottom: 1pt; font: bold 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 9pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">2019</FONT></TD><TD STYLE="text-align: center; padding-bottom: 1pt; font: bold 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: center; padding-bottom: 1pt; font: bold 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 9pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">2018</FONT></TD><TD STYLE="text-align: center; padding-bottom: 1pt; font: bold 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: center; padding-bottom: 1pt; font: bold 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 9pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">2017</FONT></TD><TD STYLE="text-align: center; padding-bottom: 1pt; font: bold 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: center; padding-bottom: 1pt; font: bold 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 9pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">%
    Change</FONT></TD><TD STYLE="text-align: center; padding-bottom: 1pt; font: bold 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: center; padding-bottom: 1pt; font: bold 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 9pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">%
    Change</FONT></TD><TD STYLE="text-align: center; padding-bottom: 1pt; font: bold 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 9pt Times New Roman, Times, Serif; vertical-align: bottom">
    <TD STYLE="text-align: center; font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: center; font: bold 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD COLSPAN="10" STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">(&euro;
    in thousands)</FONT></TD><TD STYLE="text-align: center; font: bold 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: center; font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: 9pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: center; font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: center; font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: 9pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 9pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 9pt Times New Roman, Times, Serif; width: 35%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">Revenue</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 9pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&euro;</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; width: 10%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">96,857</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 9pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&euro;</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; width: 10%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">94,147</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 9pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&euro;</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; width: 10%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">66,087</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 9pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; width: 10%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">2.9</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">%</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 9pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; width: 10%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">42.5</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">%</FONT></TD></TR>
<TR STYLE="font: 9pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">Cost
    of revenue</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">54,173</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">45,087</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">31,844</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">20.2</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">%</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">41.6</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">%</FONT></TD></TR>
<TR STYLE="font: 9pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">Gross
    profit</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">42,684</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">49,060</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">34,243</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">-13.0</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">%</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">43.3</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">%</FONT></TD></TR>
<TR STYLE="font: 9pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">Operating
    expenses:</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&#8203;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&#8203;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&#8203;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&#8203;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&#8203;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 9pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">Research
    and development expenses</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">18,103</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">10,115</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">8,693</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">79.0</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">%</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">16.4</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">%</FONT></TD></TR>
<TR STYLE="font: 9pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">Selling
    and marketing expenses</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">6,772</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">3,722</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">2,964</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">81.9</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">%</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">25.6</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">%</FONT></TD></TR>
<TR STYLE="font: 9pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">General
    and administrative expenses</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">11,772</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">7,636</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">5,892</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">54.2</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">%</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">29.6</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">%</FONT></TD></TR>
<TR STYLE="font: 9pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">Profit
    from operations</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">6,037</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">27,587</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">16,694</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">-78.1</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">%</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">65.3</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">%</FONT></TD></TR>
<TR STYLE="font: 9pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">Financial
    income</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">23</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">97</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">37</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">-76.3</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">%</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">162.2</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">%</FONT></TD></TR>
<TR STYLE="font: 9pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">Financial
    expense</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">846</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">340</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">177</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">148.8</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">%</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">92.1</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">%</FONT></TD></TR>
<TR STYLE="font: 9pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">Profit
    before tax</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">5,214</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">27,344</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">16,554</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">-80.9</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">%</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">65.2</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">%</FONT></TD></TR>
<TR STYLE="font: 9pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">Tax
    expenses</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">638</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">565</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">264</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">12.9</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">%</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">114.0</FONT></TD><TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">%</FONT></TD></TR>
<TR STYLE="font: 9pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 9pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">Net
    profit</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: bold 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&euro;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: bold 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">4,576</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: bold 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&euro;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: bold 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">26,779</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: bold 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&euro;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: bold 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">16,290</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: bold 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: bold 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">-82.9</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">%</FONT></TD><TD STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: bold 9pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: bold 9pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">64.4</FONT></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">%</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;<B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>2019 Compared to 2018</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Revenue.</I> Revenue increased by &euro;2.7
million, or 2.9%, to &euro;96.9 million in the year ended December 31, 2019 from &euro;94.1 million in the year ended December
31, 2018, driven by SBTech&rsquo;s growth in Europe and Asia and entry into U.S. jurisdictions after PASPA was struck down, offset
by dot.com, which contributed &euro;24.5 million in revenue in 2018. Excluding the impact of dot.com, 2018 revenue would have been
 &euro;69.6 million, implying an organic revenue growth of&#8201; &euro;27.3 million, or 39.2%, in 2019. Organic revenue growth
reflected mainly additions of new customers in Asia, as well as growth in Europe and the United States.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Cost of Revenue and Gross Profit.</I>
Cost of revenue increased by &euro;9.1 million, or 20.2%, to &euro;54.2 million in the year ended December 31, 2019 from &euro;45.1
million in the year ended December 31, 2018, reflecting the expansion in gaming activity on SBTech&rsquo;s platform, requiring
additional information technology infrastructure and personnel to support adequate product delivery and facilitate processing of
bets. The increase also reflected an increase in depreciation and amortization costs associated with additions of internally developed
software costs and recognition of right-of-use assets from the adoption of IFRS 16. dot.com, which historically generated higher
margins, accounted for &euro;3.2 million in cost of revenue (mostly fees paid to feed and third-party casino game providers) in
2018, reflecting an organic cost of revenue growth rate of 29.3% between periods.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Gross profit decreased by &euro;6.4
million, or 13.0%, to &euro;42.7 million in the year ended December 31, 2019 compared to &euro;49.1 million in the year ended
December 31, 2018. Gross margin (gross profit as a percentage of revenue) decreased by 8.0 percentage points to 44.1% in 2019
from 52.1% in 2018, reflecting mainly the lower margins of SBTech&rsquo;s operations excluding the impact of dot.com.
Excluding the impact of dot.com, gross profit in 2018 would have been &euro;27.8 million, implying an organic gross profit
growth rate of 53.6% between periods.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<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-indent: 0.5in"><I>Research and Development.</I> Research
and development expenses increased by &euro;8.0 million, or 79.0%, to &euro;18.1 million in the year ended December 31, 2019 from
 &euro;10.1 million in the year ended December 31, 2018. The increase was due primarily to headcount additions, driven by platform
adaptation to compliance standards and customer requirements in various jurisdictions, including the United States. Research and
development expenses accounted for 18.7% of SBTech&rsquo;s revenue in 2019 compared to 10.7% in 2018, an increase of 8.0 percentage
points.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Selling and Marketing.</I> Selling and
marketing expenses increased by &euro;3.1 million, or 81.9%, to &euro;6.8 million in the year ended December 31, 2019 from &euro;3.7
million in the year ended December 31, 2018. The increase was driven by additional headcount related to sales and marketing and
an expanding footprint at trade conferences.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>General and Administrative.</I> General
and administrative expenses increased by &euro;4.1 million, or 54.20%, to &euro;11.8 million in the year ended December 31, 2019
from &euro;7.6 million in the year ended December 31, 2018. The increase was driven by transaction costs and higher third-party
professional fees, related mainly to U.S. licensing and compliance, as well as additional headcount in the United States and other
jurisdictions to provide management support for the platform&rsquo;s growing footprint.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Net Profit.</I> Net profit decreased
by &euro;22.2 million, or 82.9%, to &euro;4.6 million in the year ended December 31, 2019 from &euro;26.8 million in the year ended
December 31, 2018, due to dot.com, as well as the other reasons discussed above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">2018 Compared to 2017</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Revenue.</I> Revenue increased by &euro;28.0
million, or 42.5%, to &euro;94.1 million in the year ended December 31, 2018 from &euro;66.1 million in the year ended December
31, 2017, driven by organic customer growth in Europe as well as the addition of new customers in Asia. dot.com contributed &euro;24.5
million in revenue in 2018 and &euro;27.7 million in 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Cost of Revenue and Gross Profit.</I>
Cost of revenue increased by &euro;13.2 million, or 41.6%, to &euro;45.1 million in the year ended December 31, 2018 from &euro;31.9
million in the year ended December 31, 2017, reflecting mainly SBTech&rsquo;s growth in Europe and in Asia, as well as costs in
connection with SBTech&rsquo;s entry into the United States, partially offset by the impact of dot.com.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Gross profit increased by &euro;14.8 million,
or 43.3%, to &euro;49.0 million in the year ended December 31, 2018 compared to &euro;34.2 million in the year ended December 31,
2017. Gross margin percentage (gross profit as a percentage of revenue) increased by 0.3 percentage points to 52.1% in the year
ended December 31, 2018 from 51.8% in the year ended December 31, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Research and development.</I> Research
and development expenses increased by &euro;1.4 million, or 16.4%, to &euro;10.1 million in the year ended December 31, 2018 from
 &euro;8.7 million in the year ended December 31, 2017. The increase was due primarily to an increase in headcount relating to our
investment in platform improvements and addition of new features and modules, as well as salary increases. However, research and
development expenses accounted for 10.7% of SBTech&rsquo;s revenue in 2018 compared to 13.2% in 2017, a decrease of 2.5 percentage
points.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Selling and Marketing.</I> Selling and
marketing expenses increased by &euro;0.7 million, or 25.6%, to &euro;3.7 million in the year ended December 31, 2018 from &euro;3.0
million in the year ended December 31, 2017. The increase was due mainly to an increase in spend on trade conference participation.
Sales and marketing expenses accounted for 4.0% of SBTech&rsquo;s revenue in 2018 compared to 4.5% in 2017, a decrease of 0.5 percentage
points.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>General and Administrative.</I> General
and administrative expenses increased by &euro;1.7 million, or 29.6%, to &euro;7.6 million in the year ended December 31, 2018
from &euro;5.9 million in the year ended December 31, 2017. The increase was due mainly to higher spend on third-party professional
services, mainly related to SBTech&rsquo;s entry into the United States.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Net Profit.</I> Net profit increased
by &euro;10.5 million, or 64.4%, to &euro;26.8 million in the year ended December 31, 2018 compared to &euro;16.3 million in the
year ended December 31, 2017, for the reasons discussed above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>




<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Liquidity and Capital Resources</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">SBTech measures liquidity in terms of its
ability to fund the cash requirements of its business operations, including working capital needs, capital expenditures, contractual
obligations and other commitments with cash flows from operations and other sources of funding. SBTech&rsquo;s current liquidity
needs relate mainly to working capital, platform development and market expansion of its offerings. SBTech has historically generated
sufficient cash flows from operations to meet these cash requirements, including investments in platform development throughout
SBTech&rsquo;s current growth phase. SBTech had &euro;8.1 million in cash and cash equivalents as of December 31, 2019, no debt
for borrowed money and &euro;26.3 million in lease liabilities. Following the Business Combination, the liquidity needs of the
combined company will be determined based on the needs and strategy of the combined business, as discussed in the sections of this
prospectus entitled &ldquo;<I>Business of DraftKings and SBTech</I>&rdquo; and &ldquo;<I>DraftKings&rsquo; Management&rsquo;s Discussion
and Analysis of Financial Condition and Results of Operations</I>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Cash Flows</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following table summarizes SBTech&rsquo;s
cash flows for the periods indicated:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold">&#8203;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Year ended December 31,</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold">&#8203;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">2019</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">2018</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">2017</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold">&#8203;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="font-size: 10pt; font-weight: bold; text-align: center">(&euro; in thousands)</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 61%; font-size: 10pt; text-align: left">Net cash provided by operating activities</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&euro;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">19,525</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&euro;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">30,949</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&euro;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">18,260</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Net cash used in investing activities</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(18,399</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(17,384</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(14,307</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Net cash provided by (used in) financing activities</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(13,537</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(1,184</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">190</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Effects of exchange rate changes</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(176</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(104</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(6</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Net increase (decrease) in cash and cash equivalents</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(12,587</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">12,277</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">4,137</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Cash, cash equivalents at beginning of period</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">20,731</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">8,454</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">4,317</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 2.5pt">Cash, cash equivalents at end of period</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&euro;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">8,144</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&euro;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">20,731</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&euro;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">8,454</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Operating Activities.</I> Net cash provided
by operating activities in 2019 decreased by &euro;11.4 million, or 36.9%, to &euro;19.5 million from &euro;30.9 million in 2018,
reflecting SBTech&rsquo;s &euro;21.6 million decrease in operating profit, driven primarily by the impact of dot.com and costs
related to expansion, as discussed above, partially offset by higher non-cash costs, particularly depreciation and amortization
as well as an increase in other accounts payable and accrued expenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Net cash provided by operating activities
in 2018 increased by &euro;12.6 million, or 69.4%, to &euro;30.9 million from &euro;18.3 million in 2017, due to SBTech&rsquo;s
higher operating profit, driven by organic customer growth in Europe as well as the addition of new customers in Asia, as discussed
above, net of non-cash costs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Investing Activities.</I> Investing activities
in all periods included mainly capitalization of internally developed intangibles and purchases of property and equipment, mainly
computers and leasehold improvements. Net cash used in investing activities in 2019 increased by &euro;1.0 million, or 5.7%, to
 &euro;18.4 million from &euro;17.4 million in 2018. The increase was attributable mainly to higher capitalized development costs.
In addition, the repayment of a related party loan in 2018 contributed $1.2 million in cash from investing activities in 2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Net cash used in investing activities in
2018 increased by &euro;3.1 million, or 21.5%, to &euro;17.4 million from &euro;14.3 million in 2017, primarily due to a &euro;2.6
million increase in purchases of property and equipment, as well as a modest increase in capitalization of internally developed
intangibles.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Financing Activities.</I> Net cash used
in financing activities increased by &euro;12.3 million in 2019, to &euro;13.5 million, from &euro;1.2 million in 2018. The increase
in financing cash flows was due primarily to the distribution of a &euro;10.0 million dividend to shareholders and the &euro;3.5
million payment of the principal on lease liabilities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Net cash used in financing activities in
2018 was &euro;1.2 million, compared to net cash flow provided by financing activities of&#8201; &euro;0.2 million in 2017. The
change was due primarily to a &euro;0.7 million dividend payment and &euro;0.5 million loan repayment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As a result of SBTech&rsquo;s adoption of
IFRS 16 as of January 1, 2019, payments of rent expense are reflected on SBTech&rsquo;s cash flow statements in depreciation of
the right-of-use assets and implied interest on lease liabilities, both within cash flows provided by operating activities, and
payment of principal on lease liabilities within cash flows used in financing activities. Prior to SBTech&rsquo;s adoption of IFRS
16, rent was an operating expense reflected fully within operating cash flows. As a result of SBTech&rsquo;s adoption of IFRS 16,
the cash flow statement captions are not comparable between periods because cash flow provided by operating activities reflects
a &euro;4.0 million positive impact, reflecting the depreciation of the right-of-use assets and implied interest on the lease liabilities,
and cash flow used in financing reflects &euro;3.5 million negative impact, reflecting the payment of principal on lease liabilities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Contractual Obligations</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0.5in; margin: 0pt 0">The following table and the information that follows summarizes
SBTech&rsquo;s contractual obligations as of December 31, 2019:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold">&#8203;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Total</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Less than<BR> 1 year</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">1&#8201;-&#8201;3 Years</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">3&#8201;-&#8201;5 Years</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">More than<BR> 5 Years</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold">&#8203;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="18" STYLE="font-size: 10pt; font-weight: bold; text-align: center">(&euro; in thousands)</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 35%; font-size: 10pt; padding-left: 3pt">Lease obligations<FONT STYLE="font-size: 10pt">(1)</FONT></TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&euro;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">26,265</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&euro;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">3,516</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&euro;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">7,103</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&euro;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">5,813</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&euro;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">9,833</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0"></P>

<!-- Field: Rule-Page --><DIV STYLE="margin-top: 3pt; margin-bottom: 3pt; width: 25%"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="margin-top: 0; margin-bottom: 0"></P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(1)</TD><TD>This includes the total amount of lease liabilities recorded under IFRS 16.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection with the anticipated Business
Combination, SBTech entered into an agreement with a financial advisor to pay success fees equal to (i) $2.5 million (&euro;2.2
million), in the event the sale includes participation by a special purpose acquisition company (&ldquo;SPAC&rdquo;), or (ii) $2
million (&euro;1.8 million), in the event that the sale does not include participation by a SPAC. In the event that a sale is not
consummated by SBTech and SBTech receives a termination or break-up fee, SBTech will pay the financial advisor a cash fee equal
to 15% of the termination or break-up fee received by SBTech. In addition, the Group entered into an agreement with a legal advisor
by which the Group agreed to pay for fees based on time involved in the engagement and internal time charges. However, to the extent
that the deal is abandoned, the fees will be capped at $0.5 million (&euro;0.4 million).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In the ordinary course of its business,
SBTech enters into short-term software licenses and cloud managed services with certain vendors, which are not included in the
table above. SBTech does not have any material obligations for the payment of cash under contractual arrangements other than disclosed
above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Off-Balance Sheet Commitments and Arrangements</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">SBTech does not have any relationships with
unconsolidated entities or financial partnerships, such as structured finance or special purpose entities that were established
for the purpose of facilitating off-balance sheet arrangements or contingent commitments of the type required to be reported under
SEC rules.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Critical Accounting Policies</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">SBTech&rsquo;s consolidated financial statements
have been prepared in accordance with IFRS. Preparation of the financial statements requires SBTech&rsquo;s management to make
judgments, estimates and assumptions that impact the reported amount of revenue and expenses, assets and liabilities and the disclosure
of contingent assets and liabilities. SBTech considers an accounting judgment, estimate or assumption to be critical when (l) the
estimate or assumption is complex in nature or requires a high degree of judgment and (2) the use of different judgments, estimates
and assumptions could have a material impact on SBTech&rsquo;s consolidated financial statements. SBTech&rsquo;s significant accounting
policies are described in Note 2 to SBTech&rsquo;s annual consolidated financial statements included elsewhere in this prospectus.
SBTech&rsquo;s critical accounting policies are described below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>




<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"></P>

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<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Capitalization and Amortization of Development
Costs</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Expenditures incurred for software development
activities are capitalized only where the expenditures will lead to new or substantially improved products, the products are technically
and commercially feasible and SBTech has sufficient resources to complete the development and reach the stage in which the product
is ready for use, which requires significant management judgment. Development costs that lead to new or substantially improved
internally generated intangibles are capitalized based on management&rsquo;s analysis of time and materials dedicated to each project
and evaluation of how far the project has progressed. Capitalized development costs are amortized on a straight-line basis over
their estimated useful lives once the development is completed and the assets are in use. The carrying value of capitalized development
costs are reviewed for impairment whenever there is an indicator that the assets may be impaired.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Useful lives are based on management&rsquo;s
estimates of the period during which the assets will generate revenue, which are periodically reviewed for continued appropriateness.
Changes to estimates can result in significant variations in the amounts recorded on SBTech&rsquo;s consolidated statement of financial
position and statement of comprehensive income for a given period. In 2019, SBTech capitalized &euro;13.0 million of development
costs as intangible assets and expensed &euro;18.1 million in research and development costs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Quantitative and Qualitative Disclosures About Market Risk</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">SBTech has in the past, and New DraftKings
may in the future, be exposed to certain market risks, including interest rate, foreign currency exchange and financial instrument
risks, in the ordinary course of business. SBTech&rsquo;s exposure to interest rate and financial instruments risk is not material
as of December 31, 2019. In addition, SBTech may also face customer collection risk in the ordinary course of business. See Note
2 to SBTech&rsquo;s audited consolidated financial statements included elsewhere in this &#8203;prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Foreign Currency Exchange Rate Risk</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">SBTech has been exposed to foreign currency
exchange risk related to its transactions in currencies other than the Euro, which is SBTech&rsquo;s reporting currency. SBTech
does not currently hedge its foreign exchange exposure. SBTech&rsquo;s foreign currency exposure is primarily with respect to the
British pound (which accounted for 10.2% and 5.0% of SBTech&rsquo;s revenue in 2019 and 2018, respectively) and the U.S. dollar
(which accounted for 4.2% and 1.4% of SBTech&rsquo;s revenue in 2019 and 2018, respectively). A 10% increase or decrease in the
value of these currencies to the Euro would have caused SBTech&rsquo;s reported revenue to increase or decrease by approximately
 &euro;1.3 million in 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>




<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="b_018"></A>MANAGEMENT</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Board of Directors and Management After the Business Combination</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Board of Directors</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The business and affairs of New DraftKings
will be managed by or under the direction of the New DraftKings Board. The Stockholders Agreement provides for the New DraftKings
director designation rights of DEAC, DraftKings and SBT. See the section entitled &ldquo;&mdash;<I>&#8201;Stockholders Agreement</I>&rdquo;
for more information.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The table below lists the persons expected
to be nominated and elected to the New DraftKings board of directors following the completion of the Business Combination, along
with the party to the Stockholders Agreement expected to nominate each person, each nominee&rsquo;s age as of the date of the Special
Meeting, and any other position that such nominee will hold with New DraftKings.</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold; border-bottom: Black 1pt solid">Name</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Position with New<BR> DraftKings</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Age as of Special<BR> Meeting</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Nominated <BR>
By</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 40%; font-size: 10pt; text-align: left">Jason D. Robins</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 35%; font-size: 10pt; text-align: center">Chief Executive Officer and<BR> Chairman of the Board</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: center">39</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 10%; font-size: 10pt; text-align: center">DraftKings</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Harry Evans Sloan</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">Vice Chairman of the Board</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center">70</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">DEAC</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Michael Gavin Isaacs</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">Director</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center">55</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">SBTech</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Matthew Kalish</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">President, DraftKings<BR> North America, Director</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center">38</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">DraftKings</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Woodrow H. Levin</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">Director</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center">41</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">DraftKings</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Paul Liberman</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">President, Global Technology<BR> and Product, Director</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center">37</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">DraftKings</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Shalom Meckenzie</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">Director</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center">43</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">SBTech</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Ryan R. Moore</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">Director</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center">46</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">DraftKings</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Steven J. Murray</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">Director</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center">51</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">DraftKings</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Hany M. Nada</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">Director</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center">51</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">DraftKings</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Richard Rosenblatt</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">Director</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center">51</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">DraftKings</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">John S. Salter</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">Director</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center">42</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">DraftKings</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Marni M. Walden</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">Director</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center">53</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">DraftKings</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-indent: 0.5in">The following is a brief biography of each
non-executive director nominee of the New DraftKings board of directors that is known as of the date of this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.75in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Michael Gavin (Gavin) Isaacs</I></B>
currently serves as the non-executive Chairman of the board of directors of SBTech (Global) Limited (since January 2019) and as
a member of the board of directors of Galaxy Gaming, Inc. (&ldquo;Galaxy Gaming&rdquo;; OTCMKTS: GLXZ) (since June 2019), a public
company which develops and distributes casino table games and enhanced systems. During his tenure at SBT, he has assisted in the
company&rsquo;s successful entry into the U.S. gaming market to become the exclusive statewide provider for the Oregon State Lottery.
Since December 2018, Mr. Isaacs has worked as an independent consultant, advising companies, including Galaxy Gaming, on strategy,
market development and execution-oriented deliverables. Previously, Mr. Isaacs served as Vice Chairman of the board of directors
of Scientific Games Corporation (&ldquo;Scientific Games&rdquo;) between August 2016 and December 2018, and prior to that was President
and Chief Executive Officer of Scientific Games from June 2014 until August 2016. Prior to 2014, Mr. Isaacs served as Chief Executive
Officer of SHFL Entertainment, Inc. and served as Executive Vice President and Chief Operating Officer of Bally from 2006 through
2011. Mr. Isaacs is currently Counsellor of the International Association of Gaming Advisors, having previously served as the President
of the association. In addition, he previously served as Vice Chairman of the board of directors of the American Gaming Association.
Mr. Isaacs received his LL.M. from the University of Sydney and his LL.B. and BCommerce in Accounting and Financial Systems from
the University of New South Wales.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We believe Mr. Isaacs is qualified to serve
on the board of directors of New DraftKings due, among other things, to his more than 20 years&rsquo; experience in the gaming
and technology industries, including in executive and leadership positions. Mr. Isaacs also brings public company board experience.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Woodrow H. Levin</I></B> is the founder
and has served as Chief Executive Officer of Extend, Inc. (&ldquo;Extend&rdquo;), which offers an API-first solution for merchants
to offer extended warranties and protection plans, and 3.0 Capital GP, LLC, which is a multi-strategy crypto asset hedge fund.
Prior to founding Extend in November 2018 and 3.0 Capital GP, LLC in December 2017, Mr. Levin served as Vice President of growth
at DocuSign, Inc., which allows organizations to digitally prepare, sign, act on, and manage agreements. In addition, Mr. Levin
served as the founder and Chief Executive Officer of Estate Assist, Inc., from February 2014 to September 2015 (at which time it
was acquired), which offers digital estate planning assistance and BringIt, Inc., from June 2009 to September 2012 (at which time
it was acquired), which provides a virtual currency casino and arcade. Mr. Levin served as Director Emerging Business&#8201;-&#8201;Office
of the CTO at International Game Technology, Inc., which manufactured and distributed slot machines and other gaming technology.
Mr. Levin currently serves as a member of the board of directors of DraftKings (since December 2013) and of Extend (since November
2018). He received his J.D. from Chicago-Kent College of Law, Illinois Institute of Technology, and his B.A. from the University
of Wisconsin.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We believe Mr. Levin is qualified to serve
on the board of directors of New DraftKings due, among other things, to his extensive experience and knowledge as an executive
for technology companies, and his service as a member of the DraftKings&rsquo; board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Shalom Meckenzie</I></B> is an entrepreneur
who founded SBTech in July 2007 and served as a director until May 2014. He currently serves as a member of the board of directors
of A.L. Skyshield Ltd (since May 2014) which is a holding company for real estate property. Mr. Meckenzie also served as a member
of the board of directors of Gaming Tech Ltd., from June 2003 until January 2018, which is a subsidiary of SBTech that provides
general and administration, marketing support and research and development services.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We believe Mr. Meckenzie is qualified to
serve on the board of directors of New DraftKings due, among other things, to his experience and background in managing large-scale
international corporations, including over a decade of experience in the online sports betting and online gaming industries, as
well as his service as a member of the board of directors of numerous companies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Ryan R. Moore</I></B> is a co-founder
of Accomplice Management, LLC, a venture capital firm he co-founded in January 2015, and a founding investor in several technology
companies. He has served as a member of the board of directors for DraftKings since February of 2012. He currently sits on the
board of several privately held companies. Mr. Moore began his career at SoftBank Capital Partners LP, a venture capital firm.
Later, he was investment team member of GrandBanks Capital, which invested primarily in early stage technology companies. He joined
Atlas Advisors, Inc., the predecessor to Accomplice, which focuses its investments on early-stage companies, where he was a Partner
from August 2011 to December of 2014. Mr. Moore received his A.B. in Economics from Princeton University.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We believe Mr. Moore is qualified to serve
on the board of directors of New DraftKings due, among other things, to his extensive investment experience and background, including
experience in the eSports industry, as well as his service as a member of the board of directors of DraftKings and numerous other
companies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Steven J. Murray</I></B> is the
Operating Manager of the ultimate general partner of Revolution Growth III, LP (together with its affiliates,
 &ldquo;Revolution&rdquo;), a venture capital firm, where he has worked since January 2016. Prior to joining Revolution, Mr.
Murray worked for SoftBank Capital Partners LP (&ldquo;Softbank&rdquo;), a venture capital firm, from April 1996 to January
2016, where he most recently served as a Partner. Prior to joining Softbank, he worked for Deloitte &amp; Touche LLP, where
he specialized in high-growth technology based businesses. Mr. Murray currently serves as a member of the board of directors
of Fitbit, Inc. (NYSE: FIT) (since June 2013), which offers wireless-enabled wearable technology devices and activity
trackers, and of a number of private Revolution portfolio companies, including: BigCommerce, Inc. (since June 2018), which is
the world&rsquo;s leading open SaaS ecommerce platform for fast-growing and established brands; Convene Holding Company LLC
(since June 2018), which offers full-service, technology-enabled meeting, event and flexible workspaces; Glowforge Inc.
(since August 2019), which manufactures 3D laser printers; Interactions Corporation (since June 2013), which uses artificial
intelligence to create virtual assistant customer service products for companies; and InVenture Capital Corporation d/b/a
Tala (since March 2018), which provides financial products and services to underbanked individuals in developing nations; and
DraftKings (since August 2016). Mr. Murray received his B.S. in Accounting from Boston College in 1990.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<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-indent: 0.5in">We believe Mr. Murray is qualified to serve
on the board of directors of New DraftKings due, among other things, to his experience as a member of the board of directors of
both public and private companies, including DraftKings, and expertise in fundraising, management of high-growth companies and
all levels of corporate governance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Hany M. Nada</I></B> co-founded ACME
Capital, a venture capital firm, in January 2019 and serves as one of the firm&rsquo;s partners. Prior to co-founding ACME Capital,
Mr. Nada co-founded GGV Capital LLC (formerly Granite Global Ventures, &ldquo;GGV&rdquo;), a venture capital firm, in 2000, and
served as a Managing Director at the firm from 2000 until October 2016 and as a Venture Partner from November 2016 until October
2018. Prior to co-founding GGV, Mr. Nada served as Managing Director and Senior Research Analyst at Piper Sandler &amp; Co. f/k/a
Piper Jaffray &amp; Co, an investment banking firm, specializing in Internet software and e-infrastructure. Mr. Nada currently
serves as a member of the board of directors of several companies, including Glu Mobile (Nasdaq: GLUU) (since April 2005), in which
he sits on the audit committee, compensation committee and strategy committee; ArchByte (since December 2019); and DraftKings (since
December 2013), and was previously on the board of directors of Vocera Communications, Inc. and Tudou, both publicly traded companies.
In addition, Mr. Nada is an observer on the board of directors of Houzz, Inc, IonQ and Uhnder. Mr. Nada received his B.S. in Economics
and his B.A. in Political Science from the University of Minnesota.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We believe Mr. Nada is qualified to serve
on the board of directors of New DraftKings due, among other things, to his experience in the venture capital industry, with a
focus on software, wireless applications, and multimedia, his expertise and insights in technology companies that he gained during
his tenure as Managing Director and Senior Research Analyst at Piper Jaffray &amp; Co., his experience as a director of technology
companies and his service as a member of the DraftKings&rsquo; board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Richard Rosenblatt</I></B> is a serial
entrepreneur who has built, operated and sold several high-profile Internet media companies, including Demand Media Inc. (&ldquo;Demand
Media&rdquo;), iCrossing, Inc., Intermix Media, Inc. (&ldquo;Intermix&rdquo;), Myspace LLC and iMall. He co-founded Whip Media
Group (&ldquo;Whip Media&rdquo;) in 2014 and currently serves as its Chairman and CEO. Whip&rsquo;s companies, including Mediamorph,
TV Time and TheTVDB, which offer a data-driven integrated cloud solution that empowers the world&rsquo;s leading entertainment
companies to efficiently acquire, distribute and monetize their content. Prior to co-founding Whip Media, Mr. Rosenblatt co-founded
Demand Media, and served as Chairman and Chief Executive Officer. During his tenure, Demand Media went public in January 2011,
with a valuation greater than $2 billion. Prior Demand Media, Mr. Rosenblatt served as the Chief Executive Officer of Intermix
and Chairman of Myspace. In addition, he serves as a senior advisor to The Raine Group LLC (since November 2013), an integrated
merchant bank focused on technology, media and telecommunications, and as a member of the board of directors of DraftKings (since
January 2018) and Imagine Films Entertainment LLC (since April 2016), a film and television production company. Mr. Rosenblatt
received his J.D. from the University of Southern California Gould School of Law and his B.A., Phi Beta Kappa, from the University
of California, Los Angeles.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We believe Mr. Rosenblatt is qualified to
serve on the board of directors of New DraftKings due, among other things, to his extensive experience as an executive in the media
and entertainment industries and experience guiding companies through transformational events, as well as his service as a member
of the DraftKings&rsquo; board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>John S. Salter</I></B> is a co-founder
and partner of The Raine Group LLC (&ldquo;Raine&rdquo;), an integrated merchant bank advising and investing in high growth sectors
of technology, media and telecommunications, where he is responsible for Raine&rsquo;s digital media and gaming practice. Prior
to co-founding Raine in May 2009, he was the Global Head of Digital Media at UBS Investment Bank in the Technology, Media and Telecommunications
Group. Prior to joining UBS Investment Bank, Mr. Salter worked for Volpe, Brown, Whelan &amp; Co., a boutique investment bank focused
on technology and health care companies. In addition, he serves as a member of the board of directors of the following portfolio
companies of Raine&rsquo;s investment management arm: Zumba Fitness (since February 2012), which is a global leader in dance fitness;
Huuuge Games (since September 2017), which develops casual video games played on mobile devices and PCs; Beachbody (since December
2018), a creator of premium at-home fitness programs and nutritional products; and Play Games 24x7 (since October 2019), one of
India&rsquo;s largest gaming companies. He also serves as a member of the board of directors of DraftKings (since August 2014).
Mr. Salter received his B.A. from Stanford University.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We believe Mr. Salter is qualified to
serve on the board of directors of New DraftKings due, among other things, to his extensive background and experience in
leading transactions in the media and technology industries and his service as a member of the board of directors of numerous
companies, including DraftKings and others in the gaming industry.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Harry Evans Sloan</I></B> is a media
investor, entrepreneur and studio executive. Mr. Sloan co-founded Flying Eagle (Nasdaq: FEAC), a special purpose acquisition vehicle,
in 2020, and serves as its Chief Executive Officer and Chairman. Additionally, Mr. Sloan co-founded Global Eagle Acquisition Corp.,
a special purpose acquisition vehicle, in 2011, serving as its Chairman and Chief Executive Officer through its business combination
with Row 44, Inc. and Advanced Inflight Alliance AG in January 2013, and remains a director of the combined company, Global Eagle
Entertainment Inc. (Nasdaq: ENT). He was also a founding investor in a number of other special purpose acquisition vehicles, including
Silver Eagle Acquisition Corporation, in which he served as Chairman and Chief Executive Officer from April 2013 through its business
combination with Videocon d2h Limited (Nasdaq: VDTH) in March 2015, Double Eagle Acquisition Corporation, Platinum Eagle Acquisition
Corporation and DEAC. Mr. Sloan served on the board of directors of Videocon from May 2016 to April 2018. From October 2005 to
August 2009, Mr. Sloan served as Chairman and Chief Executive Officer of Metro-Goldwyn-Mayer, Inc., a motion picture, television,
home entertainment, and theatrical production and distribution company, and thereafter continued as non-executive chairman until
December 2010. Throughout his entrepreneurial career, Mr. Sloan was responsible for the creation or sponsorship of three successful
public companies in the media and entertainment industries: Lions Gate Entertainment Corp., an independent motion picture and television
production company, New World Entertainment Ltd., an independent motion picture and television production company, and SBS Broadcasting,
S.A., a European broadcasting group, operating commercial television, premium pay channels, radio stations and related print businesses
in Western and Central and Eastern Europe, which he founded in 1990. Mr. Sloan began his career as an entertainment lawyer with
Sloan, Kuppin and Ament, a law firm he founded. He currently serves on the University of California, Los Angeles Anderson School
of Management Board of Visitors, the Executive Board of UCLA Theatre, Film and Television and the Harry and Florence Sloan Family
Foundation. Mr. Sloan received his J.D. from Loyola Law School and his B.A. from the University of California, Los Angeles.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We believe Mr. Sloan is qualified to serve
on the board of directors of New DraftKings due, among other things, to his extensive experience as an international media investor,
entrepreneur and studio executive and his ability to identify key investment opportunities with significant returns for his partners.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Marni M. Walden</I></B> retired from
Verizon Communications Inc. (&ldquo;Verizon&rdquo;), which provides wireless phone services, Internet access and digital television
services, in February 2018, where she most recently served as a Strategic Advisor from January 2018 to February 2018, and prior
to that, served as President and Executive Vice President of Global Media and Telematics from March 2016 to January 2018, in which
she built new revenue streams for Verizon and guided strategy for Verizon Media and the Connected Vehicle business, and as President
and Executive Vice President of Product Innovation from May 2014 to March 2016, in which she led global strategy, venture and technology
teams across all lines of business for Verizon. During her tenure at Verizon, as the company&rsquo;s top-ranking female executive,
Ms. Walden teamed up with the Chief Executive Officer of AOL to create Oath Inc., which encompasses all of Verizon&rsquo;s media
and advertising businesses. Additionally, Ms. Walden played a key role in Verizon&rsquo;s acquisition of Yahoo and Verizon&rsquo;s
merger with AOL. Ms. Walden&rsquo;s prior experiences include working for other wireless service providers including AT&amp;T Inc.,
McCaw Communications, LLC and General Cellular Corporation. In addition, she served as Chief Operating Officer, from January 2011
to May 2014, and separately as Chief Marketing Officer, from October 2010 to January 2011, of Verizon Wireless, Inc. (f/k/a Cellco
Partnership), a wireless telecommunications carrier. Ms. Walden currently serves as a member of the board of directors of DraftKings
(since October 2018); Globetouch Inc. d/b/a Airlinq Inc. (since February 2017), which develops &amp; deploys large scale connected
applications around smart mobility and ecosystem monetization; Persado Inc. (since June 2018), which uses artificial intelligence
to generate language for digital marketing; 4C Insights, Inc. (since April 2018),which provides a self-service intelligence platform
for marketers; and Loon LLC (since January 2019), which partners with mobile network operators globally to expand the reach of
their LTE service. She also serves as an advisor to various private companies, including Opensignal Limited, Spkr. Inc, and Life
Impact Solutions, Inc. d/b/a Mobilize Solutions. Ms. Walden attended California State University, Chico, where she majored in English
and minored in Communications.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We believe Ms. Walden is qualified to serve
on the board of directors of New DraftKings due, among other things, to her over 20 years&rsquo; experience in telecommunications,
technology and media, including her leadership roles at Verizon, where she gained extensive experience managing multi-billion dollar
lines of business and leading transformative M&amp;A activities and digital transformations, as well as her service as a member
of the board of directors of DraftKings and numerous other public and private companies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>




<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"></P>

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<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Management</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following persons are anticipated to
be the executive officers of New DraftKings following the consummation of the Business Combination:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold; border-bottom: Black 1pt solid">Name</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Position with New<BR> DraftKings</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Age as of<BR> Special<BR> Meeting</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 44%; font-size: 10pt; text-align: left">Jason D. Robins</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 40%; font-size: 10pt; text-align: center">Chief Executive Officer and Chairman of the Board</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: center">39</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Matthew Kalish</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">President, DraftKings North America, Director</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center">38</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Paul Liberman</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">President, Global Technology and Product, Director</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center">36</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">R. Stanton Dodge</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">Chief Legal Officer and Secretary</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center">52</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Jason K. Park</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">Chief Financial Officer</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center">43</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following is a brief biography of each
of the executive officers of New DraftKings.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Jason D. Robins</I></B> is our Chief
Executive Officer. Mr. Robins co-founded DraftKings in December 2011 and has been DraftKings&rsquo; Chief Executive Officer since
inception. Mr. Robins oversees the company&rsquo;s strategy and operations, while also driving funding and partnerships. He has
built a reputation for expanding DraftKings&rsquo; reach across numerous platforms through wide-ranging, forward-thinking partnerships.
Under his leadership, DraftKings became the first DFS company to partner with Major League Baseball in 2013. Mr. Robins has led
efforts at DraftKings to work with policy makers and regulators to pass fantasy sports, sports betting and iGaming legislation.
Mr. Robins attended Duke University, where he received his B.S. in Economics and Computer Science.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We believe Mr. Robins is qualified to serve
on the board of directors of New DraftKings due, among other things, to the perspective and experience he brings as our Chief Executive
Officer and as a co-founder and current Chairman of the board of directors of DraftKings.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Matthew Kalish</I></B> is our President,
DraftKings North America. Mr. Kalish co-founded DraftKings and served as its Chief Revenue Officer from 2014 until December 2019.
In December 2019, Mr. Kalish was appointed President, DraftKings North America. As Chief Revenue Officer, Mr. Kalish&rsquo;s purview
has grown consistently to now oversee the performance of DraftKings&rsquo; DFS, Sportsbook and iGaming offerings, and he leads
DraftKings&rsquo; operations, marketing, analytics and customer experience departments. Mr. Kalish focuses on developing and managing
high-performing offerings and promotions that users love, and bringing those offerings to market in order to drive user base growth
and loyalty. The innovation under Mr. Kalish&rsquo;s guidance has helped DraftKings grow its customer base significantly. Under
Mr. Kalish&rsquo;s oversight, DraftKings has grown to offer a broad variety of sports and game variants in DFS as well as highly
competitive Sportsbook and iGaming offerings, which have resulted in DraftKings achieving a market leadership position in the rapidly
expanding U.S. real-money gaming landscape. Mr. Kalish&rsquo;s passion for sports, analytics and game design has been instrumental
in growing DraftKings from a small Boston start-up to a digital sports entertainment enterprise. Mr. Kalish received his MBA from
Boston College and his B.A. in Computer Science and Economics from Columbia University.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We believe Mr. Kalish is qualified to serve
on the board of directors of New DraftKings due, among other things, to the perspective and experience he brings as our President,
DraftKings North America and as a co-founder and current member of the board of directors of DraftKings.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Paul Liberman</I></B> is our President,
Global Technology and Product. Mr. Liberman co-founded DraftKings in December 2011 and served as its Chief Operations Officer
(&ldquo;COO&rdquo;) from 2015 to December 2019. In December 2019, Mr. Liberman was appointed President, Global Technology and
Product. He oversees our product development while leading efforts in maintaining the company&rsquo;s current product set. He
acted as DraftKings&rsquo; Chief Technology Officer from 2011 to 2013 and subsequently acted as its Chief Marketing Officer before
moving into his current position as COO. Mr. Liberman&rsquo;s data-driven mindset has been instrumental in growing DraftKings
from a small Boston start-up to a digital sports entertainment enterprise. Under his leadership, Mr. Liberman&rsquo;s team has
developed award-winning, stand-alone apps and product offerings including DraftKings&rsquo; DK Live and Leagues, DraftKings Daily
Fantasy Sports app and, most recently, the DraftKings Sportsbook platform. Mr. Liberman attended Worcester Polytechnic Institute
where he received a B.S. in Electrical Engineering and minor in Computer Science.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<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-indent: 0.5in">We believe Mr. Liberman is qualified to
serve on the board of directors of New DraftKings due, among other things, to the perspective and experience he brings as our President,
Global Technology and Product and as a co-founder and current member of the board of directors of DraftKings.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>R. Stanton Dodge</I></B> is our Chief
Legal Officer and Secretary. Mr. Dodge joined DraftKings in that capacity in November 2017, and is responsible for all legal and
government affairs and oversees Corporate Communications for DraftKings. Prior to joining DraftKings, Mr. Dodge served as Executive
Vice President, General Counsel and Secretary of DISH Network Corporation (Nasdaq: DISH) from June 2007 to October 2017, where
he was responsible for all legal and government affairs and oversaw corporate communications. Mr. Dodge serves on the board of
directors of EchoStar Corporation (Nasdaq: SATS). In addition, Mr. Dodge was appointed to the State of Colorado, Supreme Court
Nominating Commission on January 1, 2018 to serve a six-year term on the commission tasked with recommending nominees to fill vacancies
on the Colorado Supreme Court and the Corlorado Court of Appeals. Mr. Dodge received his J.D., magna cum laude, from Suffolk University
Law School and his B.S. in Accounting from the University of Vermont.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Jason K. Park</I></B> is our Chief
Financial Officer. Mr. Park joined DraftKings in that capacity in June 2019, and is responsible for the accounting, tax, treasury,
financial planning and analysis and investor relations departments. Prior to joining DraftKings, from January 2009 to June 2019,
Mr. Park worked at Bain Capital Private Equity where he was an Operating Partner and focused on technology investments. For more
than 10 years, Mr. Park worked collaboratively with chief executive officers, chief financial officers and management teams to
develop and achieve value creation plans. Before Bain Capital, Mr. Park was an Associate Partner at McKinsey &amp; Company. Mr.
Park has previously served as a director of Central Square Technologies. Mr. Park received his MBA from the Wharton School at the
University of Pennsylvania and a MAcc (Master of Accountancy) and a B.B.A. from the University of Michigan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Stockholders Agreement</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0.5in; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection with the Business Combination, New DraftKings,
the DEAC Stockholder Group, the DK Stockholder Group and the SBT Stockholder Group will enter into the Stockholders Agreement (the
 &ldquo;Stockholders Agreement&rdquo;), which is filed as Exhibit 2.2 hereto, and which provides, among other things, that, immediately
following the Closing, the New DraftKings board of directors will initially be as set forth below:</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><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><I>DraftKings Directors</I>. Ten directors nominated by the DK Stockholder Group, which are expected to be the current DraftKings
directors, including the Chief Executive Officer of New DraftKings and at least five directors who qualify as &ldquo;independent&rdquo;
directors under The Nasdaq Stock Market listing rules.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><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><I>SBT Directors</I>. Two directors nominated by Mr. Meckenzie, including at least one director who qualifies as an &ldquo;independent&rdquo;
director under The Nasdaq Stock Market listing rules.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><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><I>DEAC Director</I>. One director nominated by the DEAC Stockholder Group, who will qualify as &ldquo;independent&rdquo; under
The Nasdaq Stock Market listing rules subject to approval by DraftKings (such approval not to be unreasonably withheld). Messrs.
Sloan, Sagansky and Baker are deemed approved by DraftKings as prospective nominees if they qualify as &ldquo;independent&rdquo;
under The Nasdaq Stock Market listing rules.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><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>From the first annual meeting of stockholders following the Closing Date, Mr. Meckenzie will have the right to nominate one
director (and any replacement of such director) to serve on the New DraftKings board of directors (subject to the Board&rsquo;s
approval not to be unreasonably withheld) so long as Mr. Meckenzie continues to hold at least 9% of the issued and outstanding
shares of New DraftKings Class A common stock.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><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>Subject to applicable law, Mr. Robins agrees to vote in favor of Mr. Meckenzie&rsquo;s nominee at each annual meeting of stockholders
so long as Mr. Meckenzie has such nomination right described above.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8203;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Board Composition</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Committees of the New DraftKings Board
of Directors</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The New DraftKings board of directors is
expected to form the following board committees:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>




<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>audit committee;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>compensation committee;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>nominating and corporate governance committee; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>compliance committee.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Audit Committee</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">New DraftKings&rsquo; audit committee will
oversee New DraftKings&rsquo; corporate accounting and financial reporting process. Among other matters, the audit committee will:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>appoint our independent registered public accounting firm;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>evaluate the independent registered public accounting firm&rsquo;s qualifications, independence and performance;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>determine the engagement of the independent registered public accounting firm;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>review and approve the scope of the annual audit and the audit fee;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>discuss with management and the independent registered public accounting firm the results of the annual audit and the review
of New DraftKings&rsquo; quarterly financial statements;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>approve the retention of the independent registered public accounting firm to perform any proposed permissible non-audit services;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>monitor the rotation of partners of the independent registered public accounting firm on New DraftKings&rsquo; engagement team
in accordance with requirements established by the SEC;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>be responsible for reviewing New DraftKings&rsquo; financial statements and New DraftKings&rsquo; management&rsquo;s discussion
and analysis of financial condition and results of operations to be included in New DraftKings&rsquo; annual and quarterly reports
to be filed with the SEC;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>review New DraftKings&rsquo; critical accounting policies and estimates; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>review the audit committee charter and the committee&rsquo;s performance at least annually.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The initial members of the audit committee
will be Messrs. Moore, Murray and Nada, with Mr. Murray serving as the chair of the committee. Under the rules of the SEC, members
of the audit committee must also meet heightened independence standards. Our board of directors has determined that all of the
members of the audit committee will be independent directors as defined under the applicable rules and regulations of the SEC and
The Nasdaq Stock Market with respect to audit committee membership. We also believe that Mr. Murray qualifies as our &ldquo;audit
committee financial expert,&rdquo; as such term is defined in Item 407(d)(5) of Regulation S-K. Our board of directors will adopt
a written charter for the audit committee, which will be available on our corporate website at www.draftkings.com upon the completion
of the Business Combination. The information on our website is not part of this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Compensation Committee</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our compensation committee will review and
recommend policies relating to compensation and benefits of our officers and employees. Among other matters, the compensation committee
will:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>review and recommend corporate goals and objectives relevant to compensation of our chief executive officer and other executive
officers;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>recommend to our board of directors the issuance of stock options and other awards under our stock plans; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>




<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>review and evaluate, at least annually, the performance of the compensation committee and its members, including compliance
by the compensation committee with its charter.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The initial members of New DraftKings&rsquo;
compensation committee will be Messrs. Levin, Moore, Nada and Rosenblatt, with Mr. Nada serving as the chair of the committee.
Pursuant to The Nasdaq Stock Market listing standards, as a controlled company New DraftKings will not be required to have a compensation
committee composed entirely of independent directors. While New DraftKings will remain able to rely upon such exemption from The
Nasdaq Stock Market listing standards, each of the members of our compensation committee will be independent as defined in The
Nasdaq Stock Market listing standards, and each will be &ldquo;non-employee directors&rdquo; as defined in Rule 16b-3 promulgated
under the Exchange Act and &ldquo;outside directors&rdquo; as that term is defined in Section 162(m) of the Code (&ldquo;Section
162(m)&rdquo;). Our board of directors will adopt a written charter for the compensation committee, which will be available on
our corporate website at www.draftkings.com upon the completion of the Business Combination. The information on our website is
not part of this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">Nominating and Corporate Governance
Committee</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The nominating and corporate governance
committee will be responsible for making recommendations to New DraftKings&rsquo; board of directors regarding candidates for directorships
and the size and composition of New DraftKings&rsquo; board of directors. In addition, the nominating and corporate governance
committee will be responsible for overseeing New DraftKings&rsquo; corporate governance policies and reporting and making recommendations
to New DraftKings&rsquo; board of directors concerning governance matters.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The initial members of New DraftKings&rsquo;
nominating and corporate governance committee will be Messrs. Levin, Murray, Salter and Sloan and Ms. Walden, with Mr. Sloan serving
as the chair of the committee. Pursuant to The Nasdaq Stock Market listing standards, as a controlled company New DraftKings will
not be required to have a nominating and corporate governance committee composed entirely of independent directors. While New DraftKings
will remain able to rely upon such exemption from The Nasdaq Stock Market listing standards, each of the members of New DraftKings&rsquo;
nominating and corporate governance committee will be an independent director as defined in the listings standards. Our board of
directors plans to adopt a written charter for the nominating and corporate governance committee, which will be available on our
corporate website at www.draftkings.com upon the completion of the Business Combination. The information on our website is not
part of this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">Compliance Committee</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">New DraftKings&rsquo; compliance committee
will oversee New DraftKings&rsquo; non-financial compliance matters. Among other matters, the compliance committee will:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>identify, review and analyze laws and regulations applicable to New DraftKings;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>recommend to the Board, and monitor the implementation of, compliance programs, policies and procedures that comply with local,
state and federal laws, regulations and guidelines;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>review significant compliance risk areas identified by management;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>discuss periodically with management the adequacy and effectiveness of policies and procedures to assess, monitor, and manage
non-financial compliance business risk and compliance programs;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>monitor compliance with, authorize waivers of, investigate alleged breaches of and enforce New DraftKings&rsquo; non-financial
compliance programs; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>review New DraftKings&rsquo; procedures for the receipt, retention and treatment of complaints received regarding non-financial
compliance matters.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The initial members of New
DraftKings&rsquo; compliance committee will be Messrs. Isaacs, Liberman and Salter and Ms. Walden, with Mr. Salter serving as
the chair of the committee. Our board of directors will adopt a written charter for the compliance committee, which will be
available on our corporate website at www.draftkings.com upon the completion of the Business Combination. The information on
our website is not part of this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Director Independence; Controlled Company Exemption</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Upon the completion of the Business Combination,
Mr. Robins will be the beneficial owner of all the outstanding shares of New DraftKings Class B common stock and will control the
voting power of our outstanding capital stock, as a result of which Mr. Robins will have the power to elect a majority of New DraftKings&rsquo;
directors. Pursuant to The Nasdaq Stock Market listing standards, a company of which more than 50% of the voting power for the
election of directors is held by an individual, a group or another company qualifies as a &ldquo;controlled company.&rdquo; Therefore,
we will not be subject to The Nasdaq Stock Market listing standards that would otherwise require us to have: (i) a board of directors
comprised of a majority of independent directors; (ii) compensation of our executive officers determined by a majority of the independent
directors or a compensation committee comprised solely of independent directors; (iii) a compensation committee charter which,
among other things, provides the compensation committee with the authority and funding to retain compensation consultants and other
advisors; and (iv) director nominees selected, or recommended for the Board&rsquo;s selection, either by a majority of the independent
directors or a nominating committee comprised solely of independent directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Upon the Closing, we anticipate that the
size of the New DraftKings&rsquo; board of directors will be 13 directors. Pursuant to The Nasdaq Stock Market listing standards,
as a controlled company New DraftKings will not be required to have a board of directors composed of a majority of independent
directors. An &ldquo;independent director&rdquo; is defined generally as a person other than an officer or employee of the company
or its subsidiaries or any other individual having a relationship which in the opinion of the board of directors, would interfere
with the director&rsquo;s exercise of independent judgment in carrying out the responsibilities of a director.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We anticipate that Messrs. Isaacs, Levin,
Moore, Murray, Nada, Rosenblatt, Salter and Sloan and Ms. Walden will be &ldquo;independent directors,&rdquo; as defined in The
Nasdaq Stock Market listing standards and applicable SEC rules.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Compensation Committee Interlocks and Insider Participation</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Following the consummation of the Business
Combination, New DraftKings&rsquo; compensation committee will consist of Messrs. Levin, Moore, Nada and Rosenblatt. None of the
expected members of New DraftKings&rsquo; compensation committee has at any time been an officer or employee of DEAC, DraftKings
or SBT, other than as disclosed in this prospectus. None of New DraftKings&rsquo; executive officers currently serves, or in the
past fiscal year has served, as a member of the board of directors or compensation committee (or other board committee performing
equivalent functions or, in the absence of any such committee, the entire board of directors) of any entity that has one or more
executive officers on DEAC&rsquo;s, DraftKings&rsquo; or SBT&rsquo;s compensation committee or board of directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Code of Business Conduct and Ethics</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Effective upon the consummation of the Business
Combination, New DraftKings will adopt a code of business conduct and ethics that will apply to all of its employees, officers
and directors, including those officers responsible for financial reporting. The code of business conduct and ethics will be available
after the Closing on New DraftKings&rsquo; website at www.draftkings.com. New DraftKings expects that, to the extent required by
law, any amendments to the code, or any waivers of its requirements, will be disclosed on its website.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Limitation on Liability and Indemnification Matters</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">New DraftKings&rsquo; amended and restated
articles of incorporation that will become effective immediately following the consummation of the Business Combination contain
provisions that limit the liability of New DraftKings&rsquo; directors for damages to the fullest extent permitted by Nevada law.
Consequently, New DraftKings&rsquo; directors will not be personally liable to New DraftKings or its stockholders for damages as
a result of an act or failure to act in his or her capacity as a director, unless:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the presumption that directors are acting in good faith, on an informed basis, and with a view to the interests of the corporation
has been rebutted; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>it is proven that the director&rsquo;s act or failure to act constituted a breach of his or her fiduciary duties as a
                                                                                                              director and such breach involved intentional misconduct,
fraud or a knowing violation of law.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in">&nbsp;</P>




<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="b_019"></A>EXECUTIVE
COMPENSATION</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Introduction</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This section provides an overview of DraftKings&rsquo;
executive compensation programs, including a narrative description of the material factors necessary to understand the information
disclosed in the summary compensation table below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">For the year ended December 31, 2019, DraftKings&rsquo;
named executive officers (&ldquo;Named Executive Officers&rdquo; or &ldquo;NEOs&rdquo;) were:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Jason Robins, Chief Executive Officer &amp; Co-Founder</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Jason Park, Chief Financial Officer</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Paul Liberman, President, Global Technology and Product &amp; Co-Founder</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The objective of DraftKings&rsquo; compensation
program is to provide a total compensation package to each Named Executive Officer that will enable DraftKings to attract, motivate
and retain outstanding individuals, align the interests of our executive team with those of our equity holders, encourage individual
and collective contributions to the successful execution of our short- and long-term business strategies and reward Named Executive
Officers for performance. The board of directors of DraftKings has historically determined the compensation for DraftKings&rsquo;
Named Executive Officers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In June 2019, DraftKings appointed Mr. Park
its Chief Financial Officer. Mr. Park&rsquo;s compensation was determined by the board of directors of DraftKings in connection
with his appointment to create a compelling offer commensurate with Mr. Park&rsquo;s expectations, experience, competitive compensation
levels for the same role at similar companies, and in consideration of internal equity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">For 2019, the compensation program for DraftKings&rsquo;
NEOs consisted of base salary and incentive compensation delivered in the form of an annual cash bonus and time- and performance-based
stock option awards, and a sign-on cash bonus (in the case of Mr. Park), each as described below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0in; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B>Base Salary</B>&#8201;-&#8201;Base
salary is paid to attract and retain qualified talent and is set at a level that is commensurate with the executive&rsquo;s duties
and authorities, contributions, prior experience and sustained performance. For each of Messrs. Robins and Liberman, base salary
for 2019 remained unchanged compared to the prior year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0in 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B>Annual Cash Bonus</B>&thinsp;-&thinsp;Annual cash
bonus is paid to incentivize the Named Executive Officers to achieve annual financial and operating performance metrics (for 2019,
gross revenue and EBITDA (defined as earnings before interest, taxes, depreciation and amortization) targets) and is paid at the
discretion of the board of directors. For 2019, Messrs. Robins and Liberman&rsquo;s target annual bonuses remained unchanged compared
to the prior year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B>Sign-on Cash Bonus</B>&#8201;-&#8201;As a recruitment
incentive, and to offset compensation that Mr. Park may have otherwise earned had he not joined DraftKings, Mr. Park was paid a
sign-on cash bonus of $250,000 following his start of employment at the Company. If Mr. Park&rsquo;s employment is terminated for
cause or without good reason (as those terms are defined in the employment agreement between Mr. Park and DraftKings) before June
24, 2020, then Mr. Park is required to repay the sign-on bonus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B>Stock Option Awards</B>&#8201;-&#8201;Stock options
are granted to our Named Executive Officers under three programs within our 2017 Equity Incentive Plan:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><I>Short-Term Performance Share Plan (PSP)</I>&thinsp;-&thinsp;The PSP is a program designed to deliver stock option awards
that incentivize our Named Executive Officers to achieve key short-term financial metrics. In June 2019, DraftKings&rsquo; board
of directors granted stock options to Messrs. Robins and Liberman under the PSP (&ldquo;PSP Options&rdquo;) that were subject to
performance-based vesting conditions tied to achievement of gross gaming revenue and EBITDA targets, as well as a service-based
vesting component which conditioned vesting on the Named Executive Officer&rsquo;s continued employment with DraftKings through
the date on which the board of directors certified applicable performance results. The level of achievement, and corresponding
vesting, under the 2019 PSP awards have not been determined as of the date of this prospectus.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP></SUP></FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><I>Time-Vested Stock Options</I>&#8201;-&#8201;Time-vested stock options (&ldquo;Time-vested Options&rdquo;) were a component
of 2019 incentive compensation and granted to further align the interests of our Named Executive Officers with those of our shareholders,
incentivize long-term value creation, and retain executives over the long term. Time-vested Options were granted to our Named Executive
Officers in June 2019 and vest in equal quarterly installments over four years following grant, subject to the Named Executive
Officer&rsquo;s continued employment with DraftKings through each such date. Mr. Park received a supplemental grant of Time-vested
Options in August 2019 to make him whole for stock price fluctuation between the date on which Mr. Park accepted his offer of employment
and the grant of his initial award.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><I>Long-Term Performance Incentive Plan (LTIP)</I>&#8201;-&#8201;The LTIP is a program designed to incentivize the Named Executive
Officers to maximize the long-term growth and value of the business. In June 2019, DraftKings&rsquo; board of directors granted
stock options under the LTIP (&ldquo;LTIP Performance Options&rdquo;) that become eligible to vest upon achievement of any one
of five specified performance targets tied to DraftKings&rsquo; annual consolidated gross gaming revenue with respect to any fiscal
year, DraftKings&rsquo; annual EBITDA with respect to any fiscal year and the fair market value of a share of DraftKings common
stock upon the occurrence of a &ldquo;liquidity event,&rdquo; subject, in the case of the gross gaming revenue and/or EBITDA performance
targets, to a threshold vesting condition relating to DraftKings&rsquo; actual achievement of at least 80% of both the gross gaming
revenue and EBITDA metrics specified in the operating plan for such fiscal year. For purposes of the LTIP Performance Options,
a liquidity event includes (i) a change in control of DraftKings (generally, a merger, consolidation or similar transaction following
which the stockholders of DraftKings immediately prior to such transaction represent less than 50% of the combined voting power
of the surviving entity in such transaction), (ii) a sale of shares of DraftKings common stock to the public in an underwritten
public offering and (iii) a &ldquo;majority transaction&rdquo; resulting in any person or affiliated persons having beneficial
ownership of shares of DraftKings stock representing more than 50% of the outstanding voting power of the company (or surviving
or resulting entity in such transaction). If the employment of a Named Executive Officer terminates for any reason, he will not
be eligible to vest with respect to any then remaining unvested LTIP Performance Options, provided that upon a termination by the
company without cause (and not due to death or disability, as each such term is defined in the 2017 Equity Incentive Plan), then
such NEO will remain eligible to vest in any LTIP Performance Options that become vested pursuant to their terms within 12 months
following the date of such termination. In addition, Mr. Park received a supplemental grant of LTIP Options in August 2019 to make
him whole for stock price fluctuation between the date on which he accepted his offer and the grant of his initial award.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Summary Compensation Table </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 8pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<TR STYLE="font-size: 8pt; vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">Name
    and Position &#8203;</FONT></TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 8pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt">Fiscal<BR>
    Year</FONT></TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 8pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt">Salary<BR>
    ($)</FONT></TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 8pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt">Bonus<BR>
    ($) (1)</FONT></TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 8pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt">Option<BR>
    Awards<BR> ($) (2)</FONT></TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 8pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt">Non-Equity<BR>
    Incentive Plan<BR> Compensation<BR> ($) (3)</FONT></TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 8pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt">All
    Other<BR> Compensation<BR> ($) (4)</FONT></TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 8pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt">Total<BR>
    ($)</FONT></TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 8pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 24%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">Jason
    Robins <BR>
<I>Chief Executive Officer</I>&#8203;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 8%; text-align: center"><FONT STYLE="font-size: 8pt">2019</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 8%; text-align: right"><FONT STYLE="font-size: 8pt">400,000</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 8%; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 8%; text-align: right"><FONT STYLE="font-size: 8pt">3,239,689</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 8%; text-align: right"><FONT STYLE="font-size: 8pt">800,000</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 8%; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 8%; text-align: right"><FONT STYLE="font-size: 8pt">4,439,689</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 8pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&#8203;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt">2018</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">400,000</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">12,847,259</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">500,000</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">9,250</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">13,756,509</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 8pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">Jason
    Park <BR>
<I>Chief Financial Officer</I>&#8203;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt">2019</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">201,923</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">250,000</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">2,326,845</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">325,260</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">14,279</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">3,118,307</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 8pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">Paul
    Liberman <I><BR>
President, Global&#8203;</I></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt">2019</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">300,000</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">1,350,348</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">480,000</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">9,600</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">2,139,948</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 8pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 8pt; text-align: left"><FONT STYLE="font-size: 8pt"><I>Technology &amp; Product</I></FONT></TD><TD STYLE="font-size: 8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 8pt; text-align: center"><FONT STYLE="font-size: 8pt">2018</FONT></TD><TD STYLE="font-size: 8pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 8pt; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font-size: 8pt; text-align: right"><FONT STYLE="font-size: 8pt">300,000</FONT></TD><TD STYLE="font-size: 8pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 8pt; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font-size: 8pt; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="font-size: 8pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 8pt; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font-size: 8pt; text-align: right"><FONT STYLE="font-size: 8pt">2,817,791</FONT></TD><TD STYLE="font-size: 8pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 8pt; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font-size: 8pt; text-align: right"><FONT STYLE="font-size: 8pt">300,000</FONT></TD><TD STYLE="font-size: 8pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 8pt; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font-size: 8pt; text-align: right"><FONT STYLE="font-size: 8pt">10,588</FONT></TD><TD STYLE="font-size: 8pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 8pt; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font-size: 8pt; text-align: right"><FONT STYLE="font-size: 8pt">3,428,379</FONT></TD><TD STYLE="font-size: 8pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
</TABLE>
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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(1)</TD><TD>The amount in this column represent the sign-on cash bonus paid to Mr. Park in connection with the commencement of his employment
with DraftKings. The terms of the sign-on cash bonus are described under &ldquo;Sign-on Cash Bonus&rdquo; above.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(2)</TD><TD>The amounts in this column represent the aggregate grant-date fair value of option awards granted to each Named Executive Officer,
computed in accordance with FASB ASC Topic 718. See Note 10 to DraftKings&rsquo; audited consolidated financial statements included
elsewhere in this &#8203;prospectus for a discussion of all assumptions made by us in determining the grant-date fair value of
our equity awards. For each of the NEOs, the amounts disclosed in this column include the following grant-date fair value of Time-Vested
Options, PSP Options and LTIP Performance Options granted in 2019:</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold; border-bottom: Black 1pt solid">Name</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Time-Vested<BR> Options<BR> ($)</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">PSP<BR> Options<BR> ($)</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">LTIP<BR> Performance<BR> Options<BR> ($)</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 61%; font-size: 10pt; text-align: left">Jason Robins</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">2,242,186</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">997,503</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">-</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Jason Park</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">1,163,753</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">1,163,092</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Paul Liberman</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">601,848</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">535,500</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">213,000</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(3)</TD><TD>Reflects payments to the Named Executive Officers in accordance with our annual bonus plan.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(4)</TD><TD>For Mr. Park, represents the payment of legal fees incurred by Mr. Park in connection with the negotiation of his employment
agreement of&#8201;$7,500 and 401(k) plan employer contributions in the amount of $6,779. For Mr. Liberman for 2019, represents
healthcare spending accounting employer contributions of $1,200 and 401(k) plan employer contributions in the amount of&#8201;$8,400.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Benefits and Perquisites</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DraftKings&rsquo; Named Executive Officers
participate in employee benefits programs available to its employees generally, including the DraftKings 401(k) Plan, a tax-qualified
401(k) plan. Under this plan, DraftKings matches 50% of each dollar contributed by a participant, up to the first 6% of eligible
compensation, subject to tax limits. DraftKings did not maintain any executive-specific benefit or perquisite programs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Outstanding Equity Awards at 2019 Year End</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following table presents information
regarding outstanding equity awards held by DraftKings&rsquo; Named Executive Officers as of December 31, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left; width: 25%"><FONT STYLE="font-size: 10pt"><B>Name</B></FONT></TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; width: 1%"><B>&nbsp;</B></TD>
    <TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left; width: 1%"><B>&nbsp;</B></TD><TD STYLE="border-bottom: Black 1pt solid; width: 8%; padding-right: 3pt; padding-left: 3pt; text-align: center"><FONT STYLE="font-size: 10pt"><B>Grant
                                         Date </B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: right; width: 1%"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left; width: 1%"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; width: 1%"><B>&nbsp;</B></TD>
    <TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left; width: 1%"><B>&nbsp;</B></TD><TD STYLE="border-bottom: Black 1pt solid; width: 1%; padding-right: 3pt; padding-left: 3pt; text-align: center"><FONT STYLE="font-size: 10pt"><B>Number
                                         of<BR>
                                         Securities<BR>
                                         Underlying<BR>
                                         Unexercised<BR>
                                         Options<BR>
                                         Exercisable<BR>
                                         (#) </B></FONT></TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left; width: 1%"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; width: 1%"><B>&nbsp;</B></TD>
    <TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left; width: 1%"><B>&nbsp;</B></TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center; width: 10%"><B>Number
                                         of<BR>
                                         Securities<BR>
                                         Underlying<BR>
                                         Unexercised<BR>
                                         Options<BR>
                                         Unexercisable<BR>
                                         (#)</B></TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left; width: 1%"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; width: 1%"><B>&nbsp;</B></TD>
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left; width: 1%"><B>&nbsp;</B></TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: center; width: 10%"><B>Equity
                                         Incentive<BR>
                                         Plan Awards:<BR>
                                         Number of<BR>
                                         Securities<BR>
                                         Underlying<BR>
                                         Unexercised<BR>
                                         Unearned<BR>
                                         Options<BR>
                                         (#)</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left; width: 1%"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; width: 1%"><B>&nbsp;</B></TD>
    <TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left; width: 1%"><B>&nbsp;</B></TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center; width: 10%"><B>Option<BR>
                                         Exercise<BR>
                                         Price<BR>
                                         ($)</B></TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left; width: 1%"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; width: 1%"><B>&nbsp;</B></TD>
    <TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left; width: 1%"><B>&nbsp;</B></TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center; width: 10%"><B>Option<BR>
                                         Expiration<BR>
                                         Date</B></TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left; width: 1%"><B>&nbsp;</B></TD></TR>
<TR STYLE="background-color: rgb(204,238,255); vertical-align: bottom">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Jason Robins</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">7/12/2013</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(1</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">2,000,000</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8213;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&#8213;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0.09</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">7/12/2023</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255); vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">9/22/2014</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(1</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">400,000</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8213;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8213;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0.22</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">9/22/2024</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255); vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2/18/2015</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(1</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1,671,032</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8213;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8213;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0.22</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2/18/2025</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255); vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">8/27/2015</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(1</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">835,358</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8213;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8213;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0.22</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">8/27/2025</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255); vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3/24/2016</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(1</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">4,446,707</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">296,448</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8213;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0.22</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3/24/2026</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255); vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5/3/2017</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(1</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1,734,554</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">788,435</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8213;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1.35</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5/3/2027</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255); vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4/18/2018</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(2</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">963,713</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1,606,189</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8213;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1.16</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4/18/2028</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255); vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4/18/2018</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(3</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1,307,645</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8213;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8213;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1.16</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4/18/2028</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255); vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5/3/2018</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(4</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8213;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8213;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">21,376,180</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1.16</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5/3/2028</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255); vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6/4/2019</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(2</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">395,834</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">2,770,841</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8213;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1.66</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6/4/2029</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255); vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6/4/2019</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(3</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8213;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8213;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1,583,338</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1.66</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6/4/2029</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Jason Park</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6/4/2019</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(1</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8213;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1,500,000</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8213;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1.66</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6/4/2029</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6/4/2019</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(4</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8213;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8213;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1,500,000</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1.66</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6/4/2029</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">8/15/2019</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(1</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8213;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">138,158</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8213;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1.67</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">8/15/2029</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">8/15/2019</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(4</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8213;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8213;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">138,518</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1.67</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">8/15/2029</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255); vertical-align: bottom">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Paul Liberman</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">7/12/2013</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(1</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">2,415,000</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8213;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8213;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0.09</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">7/12/2023</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255); vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">9/22/2014</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(1</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">302,160</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8213;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8213;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0.22</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">9/22/2024</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255); vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2/18/2015</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(1</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">835,516</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8213;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8213;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0.22</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2/18/2025</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255); vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">8/27/2015</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(1</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">578,077</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8213;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8213;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0.22</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">8/27/2025</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255); vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3/24/2016</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(1</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">2,223,353</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">148,224</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8213;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0.22</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3/24/2026</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255); vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5/3/2017</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(1</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">722,730</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">328,515</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8213;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1.35</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5/3/2027</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255); vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4/18/2018</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(2</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">392,294</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">653,822</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8213;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1.16</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4/18/2028</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255); vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4/18/2018</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(3</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">256,298</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8213;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8213;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1.16</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4/18/2028</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255); vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5/3/2018</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(4</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8213;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8213;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">4,275,236</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1.16</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5/3/2028</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255); vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6/4/2019</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(4</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8213;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8213;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">300,000</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1.66</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6/4/2029</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255); vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6/4/2019</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(3</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8213;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8213;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">850,000</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1.66</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6/4/2029</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255); vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6/4/2019</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(2</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">106,250</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">743,750</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8213;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1.66</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6/4/2029</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<!-- Field: Rule-Page --><DIV STYLE="margin-top: 3pt; margin-bottom: 3pt; width: 25%"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>



<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(1)</TD><TD>These options vest as to 25% on the first anniversary of grant and in equal quarterly increments thereafter over the following
three years, subject to the Named Executive Officer&rsquo;s continued employment with DraftKings through each such date.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(2)</TD><TD>Represent Time-Vested Options as described in the narrative disclosure above.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(3)</TD><TD>Represent PSP Options as described in the narrative disclosure above.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(4)</TD><TD>Represent LTIP Performance Options as described in the narrative disclosure above.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Potential Payments Upon Termination or Change of Control</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Prior to September 2017, all stock options
granted by DraftKings (including to the NEOs) were granted under the 2012 Stock Option &amp; Restricted Stock Incentive Plan (the
 &ldquo;2012 Equity Incentive Plan&rdquo;). The 2012 Equity Incentive Plan provides that upon an &ldquo;acquisition&rdquo; of DraftKings,
50% of the unvested portion of any stock options outstanding thereunder would immediately vest and become exercisable. As defined
in the 2012 Equity Incentive Plan, an &ldquo;acquisition&rdquo; means (i) any merger, business combination or similar consolidation
after which the voting securities of DraftKings outstanding immediately prior thereto represent less than 50% of the combined voting
power of the voting securities of DraftKings (or the surviving or acquiring entity outstanding immediately after such event), (ii)
any sale of all or substantially all of the capital stock or assets of DraftKings or (iii) any other form of business combination
or acquisition in which DraftKings is the target, as determined by the board of directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In September 2017, DraftKings adopted the
2017 Equity Incentive Plan and subsequent to its adoption, all awards of stock options granted by DraftKings (including to the
NEOs) have been granted under the 2017 Equity Incentive Plan. The 2017 Equity Incentive Plan does not provide for any default &ldquo;single-trigger&rdquo;
vesting upon a change in control. Under the 2017 Equity Incentive Plan, upon a change in control, the board of directors may, in
its sole discretion, provide that outstanding stock option awards are assumed or substituted by the surviving or acquiring corporation,
accelerate vesting conditions, in whole or in part, or cancel awards at the effective time of the change in control in exchange
for consideration (or no consideration), among other actions enumerated in the 2017 Equity Incentive Plan. For purposes of the
2018 and 2019 LTIP Performance Options granted to the Named Executive Officers under the 2017 Equity Incentive Plan, a change in
control of DraftKings constitutes a &ldquo;liquidity event&rdquo; upon which achievement of pre-determined stock price targets
would be evaluated in light of the consideration payable in respect of
one share of DraftKings common stock in connection with such transaction to determine whether, and to what extent, the applicable
vesting conditions are achieved.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<!-- Field: Split-Segment; Name: 8 -->
<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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Each of the 2012 Equity Incentive Plan and
the 2017 Equity Incentive Plan provide that, upon a termination other than for &ldquo;cause&rdquo; (as defined in the applicable
plan document), each Named Executive Officer would forfeit any outstanding stock options to the extent unvested at the time of
such termination, and would have a period of three months following his termination date (or, if earlier, until the expiration
of the applicable term) in which he could exercise his vested stock options.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Employment Agreements and Transaction Awards</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DraftKings expects to enter into employment
agreements with each of Messrs. Robins and Liberman that will govern the terms of their continuing employment with DraftKings and,
following the completion of the Business Combination, New DraftKings. The employment agreements with Messrs. Robins and Liberman
are expected to provide for an annual base salary of $650,000 and $425,000 respectively, subject to increase from time to time,
and an annual target bonus opportunity of 150% and 125% of base salary, respectively. Each of Messrs. Robins and Liberman will
continue to be eligible to participate in any executive benefit plans in effect from time to time. In the event of the termination
of Mr. Robins&rsquo; or Mr. Liberman&rsquo;s employment without cause or for good reason within 12 months following a change in
control (or within six months prior to a change in control where the termination was in connection with the change in control),
it is expected that he will be entitled to severance equal to two times the sum of his base salary and target bonus; continued
health benefits for 24 months; and vesting of outstanding equity awards, with performance awards vested based on target performance.
In the event of a termination without cause or for good reason not in connection with a change in control, it is expected that
he will be entitled to severance equal to two times his base salary; a pro rata bonus for the year of termination based on actual
performance; continued health benefits for 24 months; and pro rata vesting of outstanding equity awards with performance awards
vested based on actual performance. Severance benefits will be subject to Messrs. Robins&rsquo; and Liberman&rsquo;s execution
of a release of claims and compliance with restrictive covenants, including a non-solicitation and non-disparagement covenant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Mr. Park entered into an employment agreement
with DraftKings in connection with his appointment as Chief Financial Officer. The employment agreement with Mr. Park provides
for an annual base salary of $350,000, subject to increase from time to time as determined by the board of directors of DraftKings,
and an annual target bonus opportunity of $350,000 (prorated for 2019). Mr. Park was also entitled to the sign-on bonus and option
awards described Under &ldquo;Sign-on Cash Bonus&rdquo; and &ldquo;Stock Option Awards&rdquo; above, respectively. The employment
agreement provides that Mr. Park&rsquo;s Time-vested Options will vest in connection with a change in control in which those awards
are not assumed or substituted for similar awards, or, if the Time-vested Options granted to Mr. Park are assumed or substituted,
upon the termination of Mr. Park&rsquo;s employment without cause or for good reason within three months prior to, or 12 months
following, the change in control. Mr. Park is entitled to participate in any executive benefit plan adopted by DraftKings from
time to time. In the event of Mr. Park&rsquo;s termination without cause or for good reason, and subject to Mr. Park&rsquo;s execution
of a release of claims, Mr. Park is entitled to 12 months&rsquo; base salary and continued benefits for 12 months. Mr. Park is
subject to a non-competition covenant that continues for 12 months after termination of employment for any reason, other than a
termination without cause, and a covenant to refrain from soliciting customers, clients, vendors, employees and contractors that
continues for 12 months after termination of employment for any reason.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection with the pending Business
Combination, DraftKings has awarded transaction bonus opportunities to each of the Named Executive Officers, which will be payable
in cash shortly following the completion of the Business Combination subject to continued employment. The amount of each transaction
bonus will be determined based on the level of redemptions, with maximum bonus opportunities earned if redemptions are no greater
than 10%. The maximum bonus opportunity for Mr. Robins is $3,000,000, for Mr. Liberman is $1,500,000, and for Mr. Park is $1,000,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DraftKings also has awarded the Named
Executive Officers a grant of restricted stock units (&ldquo;RSUs&rdquo;) that contain vesting terms generally consistent
with those described with respect to the LTIP Performance Options under &ldquo;Stock Option Awards&#8201;-&#8201;Long-Term
Performance Incentive Plan (LTIP)&rdquo; above. The RSUs become eligible to vest upon achievement of any one of five
specified performance targets tied to DraftKings&rsquo; annual consolidated gross gaming revenue with respect to any fiscal
year, DraftKings&rsquo; annual adjusted EBITDA with respect to any fiscal year and the fair market value of a share of
DraftKings common stock upon (or, in the event of a public offering, for 30 trading days following) the occurrence of a
 &ldquo;liquidity event&rdquo; (defined consistent with the LTIP). Any RSUs that do not vest within ten years of grant will be
forfeited. Messrs. Robins, Park and Liberman were granted 14,764,728, 1,120,762 and 7,382,364 RSUs, respectively, each of
which represents the right to receive one share of DraftKings common stock after vesting. At the completion of the Business
Combination, the RSUs will be converted into restricted stock units settled in shares of New DraftKings Class A common stock
subject to vesting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">New DraftKings&rsquo; Class B shares will
be issued to Mr. Robins in connection with the Business Combination, which will carry 10 votes per share and will allow Mr. Robins
to have approximately 90% of the voting power of the capital stock of New DraftKings on a fully-diluted basis. The terms of the
New DraftKings&rsquo; Class B shares are described in more detail under &ldquo;<I>Description of Securities &mdash; New DraftKings
Common Stock &mdash; Class B Common Stock</I>&rdquo;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Director Compensation</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The board of directors of DraftKings sets
non-employee director compensation which is designed to provide competitive compensation necessary to attract and retain high quality
non-employee directors and to encourage ownership of DraftKings stock to further align their interests with those of our stockholders.
Each non-employee director of DraftKings is eligible to receive the following compensation:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>A stock option award with a value of&#8201;$400,000 (based on the DraftKings fair-market value on the date of grant), upon
such director&rsquo;s election to office, subject to vesting as to 25% of the award on the 6-month anniversary of grant and the
remaining 75% in equal monthly installments over the following 18 months;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>An annual stock option award with a value of&#8201;$200,000 (based on the DraftKings fair-market value on the date of grant),
for service on the board of directors subject to vesting as to 25% of the award on the 6-month anniversary of grant and the remaining
75% in equal monthly installments over the following 18 months; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>An annual stock option award with a value of&#8201;$5,000 (based on the DraftKings fair-market value on the date of grant),
for service on any committee of the board of directors subject to vesting as to 25% of the award on the 6-month anniversary of
grant and the remaining 75% in equal monthly installments over the following 18 months.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DraftKings also pays reasonable travel and
accommodation expenses of the non-employee directors in connection with their participation in meetings of the board of directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Director Compensation Table</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following table provides information
concerning the compensation of each non-employee director who served on DraftKings&rsquo; board of directors in 2019. DraftKings
employees do not receive compensation for serving as directors. Accordingly, Messrs. Robins and Liberman do not receive any compensation
for their service as directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 9pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 9pt; font-weight: bold; border-bottom: Black 1pt solid">Name</TD><TD STYLE="font-size: 9pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 9pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fees Earned or<BR> Paid in Cash<BR> ($)</TD><TD STYLE="padding-bottom: 1pt; font-size: 9pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 9pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 9pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Stock Awards<BR> ($)</TD><TD STYLE="padding-bottom: 1pt; font-size: 9pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 9pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 9pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Option Awards<BR> ($)(1)</TD><TD STYLE="padding-bottom: 1pt; font-size: 9pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 9pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 9pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">All Other<BR> Compensation<BR> ($)</TD><TD STYLE="padding-bottom: 1pt; font-size: 9pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 9pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 9pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Total<BR> ($)</TD><TD STYLE="padding-bottom: 1pt; font-size: 9pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 40%; font-size: 9pt; text-align: left">Woodrow Levin</TD><TD STYLE="width: 1%; font-size: 9pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 9pt; text-align: left">$</TD><TD STYLE="width: 9%; font-size: 9pt; text-align: right">0</TD><TD STYLE="width: 1%; font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 9pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 9pt; text-align: left">$</TD><TD STYLE="width: 9%; font-size: 9pt; text-align: right">0</TD><TD STYLE="width: 1%; font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 9pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 9pt; text-align: left">$</TD><TD STYLE="width: 9%; font-size: 9pt; text-align: right">92,404</TD><TD STYLE="width: 1%; font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 9pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 9pt; text-align: left">$</TD><TD STYLE="width: 9%; font-size: 9pt; text-align: right">0</TD><TD STYLE="width: 1%; font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 9pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 9pt; text-align: left">$</TD><TD STYLE="width: 9%; font-size: 9pt; text-align: right">92,404</TD><TD STYLE="width: 1%; font-size: 9pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 9pt">Ryan Moore(2)</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; text-align: left">$</TD><TD STYLE="font-size: 9pt; text-align: right">0</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; text-align: left">$</TD><TD STYLE="font-size: 9pt; text-align: right">0</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; text-align: left">$</TD><TD STYLE="font-size: 9pt; text-align: right">0</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; text-align: left">$</TD><TD STYLE="font-size: 9pt; text-align: right">0</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; text-align: left">$</TD><TD STYLE="font-size: 9pt; text-align: right">0</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 9pt; text-align: left">Steven Murray</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; text-align: left">$</TD><TD STYLE="font-size: 9pt; text-align: right">0</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; text-align: left">$</TD><TD STYLE="font-size: 9pt; text-align: right">0</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; text-align: left">$</TD><TD STYLE="font-size: 9pt; text-align: right">0</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; text-align: left">$</TD><TD STYLE="font-size: 9pt; text-align: right">0</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; text-align: left">$</TD><TD STYLE="font-size: 9pt; text-align: right">0</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 9pt; text-align: left">Hany Nada</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; text-align: left">$</TD><TD STYLE="font-size: 9pt; text-align: right">0</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; text-align: left">$</TD><TD STYLE="font-size: 9pt; text-align: right">0</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; text-align: left">$</TD><TD STYLE="font-size: 9pt; text-align: right">0</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; text-align: left">$</TD><TD STYLE="font-size: 9pt; text-align: right">0</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; text-align: left">$</TD><TD STYLE="font-size: 9pt; text-align: right">0</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 9pt; text-align: left">Richard Rosenblatt</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; text-align: left">$</TD><TD STYLE="font-size: 9pt; text-align: right">0</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; text-align: left">$</TD><TD STYLE="font-size: 9pt; text-align: right">0</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; text-align: left">$</TD><TD STYLE="font-size: 9pt; text-align: right">90,205</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; text-align: left">$</TD><TD STYLE="font-size: 9pt; text-align: right">0</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; text-align: left">$</TD><TD STYLE="font-size: 9pt; text-align: right">90,205</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 9pt; text-align: left">Marni Walden</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; text-align: left">$</TD><TD STYLE="font-size: 9pt; text-align: right">0</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; text-align: left">$</TD><TD STYLE="font-size: 9pt; text-align: right">0</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; text-align: left">$</TD><TD STYLE="font-size: 9pt; text-align: right">80,589</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; text-align: left">$</TD><TD STYLE="font-size: 9pt; text-align: right">0</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; text-align: left">$</TD><TD STYLE="font-size: 9pt; text-align: right">80,589</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 9pt">John Salter(2)</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; text-align: left">$</TD><TD STYLE="font-size: 9pt; text-align: right">0</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; text-align: left">$</TD><TD STYLE="font-size: 9pt; text-align: right">0</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; text-align: left">$</TD><TD STYLE="font-size: 9pt; text-align: right">0</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; text-align: left">$</TD><TD STYLE="font-size: 9pt; text-align: right">0</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 9pt">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; text-align: left">$</TD><TD STYLE="font-size: 9pt; text-align: right">0</TD><TD STYLE="font-size: 9pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>



<P STYLE="margin-top: 0; margin-bottom: 0"></P>

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<P STYLE="margin-top: 0; margin-bottom: 0"></P>

<P STYLE="font-size: 1pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">(1)</TD><TD STYLE="text-align: justify">The amounts in this column represent the aggregate grant-date
fair value of option awards granted to each non-employee director, computed in accordance with FASB ASC Topic 718. See Note 10
to DraftKings&rsquo; audited consolidated financial statements included elsewhere in this &#8203;prospectus for a discussion of
all assumptions made by us in determining the grant-date fair value of our equity awards. The aggregate number of options held
by each non- employee director as of December 31, 2019 were: Mr. Levin: 319,192; Mr. Rosenblatt: 676,454; and Ms. Walden: 436,535.</TD>
</TR></TABLE>



<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;</P>

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<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(2)</TD><TD>Ryan Moore is an affiliate of Accomplice Fund I, L.P. and Accomplice Management Holdings, LLC; and Mr. Salter is affiliated
with RPII DK LLC. Each of the entities affiliated with Accomplice, LLC; and RPII DK LLC held more than 5% of DraftKings capital
stock as of the date of this prospectus. None of these individuals received compensation from DraftKings for their service as a
director in 2019.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">New Director Compensation Program</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection with the business combination,
DraftKings adopted a new board of directors compensation program which is designed to provide competitive compensation necessary
to attract and retain high quality non-employee directors and to encourage ownership of DraftKings stock to further align their
interests with those of our stockholders. The new program will provide the following compensation for non-employee directors going
forward:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>An annual cash retainer of $45,000;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>An annual cash retainer of $20,000 for the chair of the audit committee, $17,500 for the chair of the compensation committee
and $10,000 for the chair of the nominating and corporate governance committee;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>An annual cash retainer of $10,000 for members of the audit committee, $7,500 for members of the compensation committee and
$5,000 for members of the nominating and corporate governance committee;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>An equity retainer with a value of $200,000 upon such director&rsquo;s election to office, payable in the form of stock options
or restricted stock units, granted in connection with each annual shareholders meeting that vests at the sooner of the following
annual shareholders meeting or the one-year anniversary of the grant; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>An additional annual cash retainer of $75,000 for serving as our non-executive chair and $20,000 for serving as our lead director,
in each case, if applicable.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">All cash retainers will be payable quarterly
in arrears; provided that the retainers will be delivered in equity until DraftKings is profitable. Chairs and members of other
committees, such as the compliance committee, will be eligible to receive retainers that will be set relative to the retainers
granted to the chairs and members of the audit, compensation and nominating and corporate governance committees, based on relative
scope and time commitment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">New DraftKings Incentive Award Plan</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Prior to the consummation of the Business
Combination, we expect that our Board will approve and adopt, subject to shareholder approval, the DraftKings Inc. 2020 Incentive
Award Plan (the &ldquo;Plan&rdquo;), under which we would be authorized to grant cash and equity incentive awards to eligible service
providers in order to attract, motivate and retain the talent for which we compete. A copy of the Plan is filed as Exhibit 10.1
hereto. Our Board is still in the process of developing, approving and implementing the Plan and, accordingly, there can be no
assurance that the Plan will be implemented or will contain the terms described below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Material Terms of the Plan</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The material terms of the Plan, as currently
contemplated by our Board, are summarized below. As noted above, our Board is still in the process of developing, approving and
implementing the Plan and, accordingly, there can be no assurance that the Plan will be implemented or will contain the terms described
below. Accordingly, this summary is subject to change. A copy of the Plan is filed as Exhibit 10.1 hereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Administration</I>. The
compensation committee of our board of directors will administer the Plan. The compensation committee will generally have the
authority to designate participants, determine the type or types of awards to be granted to a participant, determine the
terms and conditions of any agreements evidencing any awards granted under the Plan and to adopt, alter and repeal rules,
guidelines and practices relating to the Plan. The compensation committee will have full discretion to administer and
interpret the Plan and to make any other determination and take any other action that it deems necessary or desirable for the
administration of the Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<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-indent: 0.5in"><I>Eligibility</I>. Employees, directors,
officers, advisors or consultants and prospective employees, directors, officers, advisors or consultants of New DraftKings or
its affiliates are eligible to participate in the Plan. Following the consummation of the Business Combination, it is expected
that approximately 2,200 employees, consultants and service providers and all of our eight non-executive officer directors will
be eligible to participate in the Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Number of Shares Authorized</I>. The
Plan provides for an aggregate of 52,870,000 shares of New DraftKings Class A common stock to be delivered; provided that the total
number of shares that will be reserved, and that may be issued, under the Plan will automatically increase on the first trading
day of each calendar year, beginning with calendar year 2021, by a number of shares equal to five percent (5%) of the total outstanding
shares of New DraftKings Class A common stock on the last day of the prior calendar year (subject to a maximum annual increase
of 33,000,000 Common Shares). Notwithstanding the foregoing, the Board may act prior to January 1st of a given year to provide
that there will be no such increase in the share reserve for such year or that the increase in the share reserve for such year
will be a lesser number of shares than would otherwise occur pursuant to the preceding sentence. The maximum aggregate grant-date
fair value of awards granted and cash fees paid to any non-employee director pursuant to the Plan during any fiscal year may not
exceed a total value of $750,000, provided that the non-employee directors who are considered independent (under the rules of The
NASDAQ Stock Market or other securities exchange on which the Common Shares are traded) may make exceptions to this limit for a
non-executive chair of the Board, if any, in which case the non-employee Director receiving such additional compensation may not
participate in the decision to award such compensation. Shares of New DraftKings Class A common stock underlying awards under the
Plan that are forfeited, canceled, expire unexercised or are settled in cash will be available again for new awards under the Plan.
The Plan also permits the compensation committee to deliver an aggregate of 52,870,000 shares of New DraftKings Class B common
stock to employees, directors, consultants or advisors who are eligible to hold New DraftKings Class B common stock under the Proposed
Charter; provided, that the total number of shares of New DraftKings Class B common stock that will be reserved, and that may be
issued, under the Plan will automatically increase on the first trading day of each calendar year, beginning with calendar year
2021, by a number of shares of New DraftKings Class B common stock equal to five percent (5%) of the total outstanding shares of
DraftKings Class B common stock on the last day of the prior calendar year (subject to a maximum annual increase of 33,000,000
shares of DraftKings Class B common stock). Notwithstanding the foregoing, the Board may act prior to January 1st of a given year
to provide that there will be no such increase in the share reserve for such year or that the increase in the share reserve for
such year will be a lesser number of shares than would otherwise occur pursuant to the preceding sentence. If there is any change
in our corporate capitalization, the compensation committee in its sole discretion may make substitutions or adjustments to the
number of shares of New DraftKings Class A common stock and New DraftKings Class B common stock reserved for issuance under the
Plan, the number of shares of New DraftKings Class A common stock and New DraftKings Class B common stock covered by awards then
outstanding under the Plan, the limitations on awards under the Plan, the exercise price of outstanding options and such other
equitable substitutions or adjustments as it may determine appropriate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Plan will have a term of 10 years from
the date it is approved by shareholders and no further awards may be granted under the Plan after that date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Awards Available for Grant</I>. The compensation
committee may grant awards of nonqualified stock options, ISOs, stock appreciation rights (&ldquo;SARs&rdquo;), restricted stock
awards, restricted stock units, stock bonus awards, performance compensation awards (including cash bonus awards) or any combination
of the foregoing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Options</I>. The compensation
committee will be authorized to grant options to purchase shares of New DraftKings Class A common stock that are either
 &ldquo;qualified,&rdquo; meaning they are intended to satisfy the requirements of Section 422 of the Code, for ISOs, or
 &ldquo;nonqualified,&rdquo; meaning they are not intended to satisfy the requirements of Section 422 of the Code. Options
granted under the Plan will be subject to such terms, including the exercise price and the conditions and timing of exercise,
as may be determined by the compensation committee and specified in the applicable award agreement. The maximum aggregate
number of Common Shares that may be issued through the exercise of Incentive Stock Options granted under the Plan is
52,870,000 Common Shares. In general, the exercise price per share of New DraftKings Class A common stock for each option
granted under the Plan will not be less than the fair market value of such share at the time of grant. The maximum term of an
option granted under the Plan will be 10 years from the date of grant (or five years in the case of ISOs granted to a 10%
shareholder). However, if the option would expire at a time when the exercise of the option by means of a cashless exercise
or net exercise method (to the extent such method is otherwise then permitted by the compensation committee for purposes of
payment of the exercise price and/or applicable withholding taxes) would violate applicable securities laws or any securities
trading policy adopted by us, the expiration date applicable to the option will be automatically extended to a date that is
30 calendar days following the date such cashless exercise or net exercise would no longer violate applicable securities laws
or applicable securities trading policy (so long as such extension does not violate Section 409A of the Code), but not later
than the expiration of the original exercise period. Payment in respect of the exercise of an option may be made in cash or
by check, by surrender of unrestricted shares (at their fair market value on the date of exercise) that have been held by the
participant for any period deemed necessary by our accountants to avoid an additional compensation charge or have been
purchased on the open market, or the compensation committee may, in its discretion and to the extent permitted by law, allow
such payment to be made through a broker-assisted cashless exercise mechanism, a net exercise method, or by such other method
as the compensation committee may determine to be appropriate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<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-indent: 0.5in"><I>Stock Appreciation Rights</I>. The compensation
committee will be authorized to award SARs under the Plan. SARs will be subject to the terms and conditions established by the
compensation committee. A SAR is a contractual right that allows a participant to receive, either in the form of cash, shares of
New DraftKings Class A common stock or any combination of cash and shares of New DraftKings Class A common stock, the appreciation,
if any, in the value of a common share over a certain period of time. An option granted under the Plan may include SARs and SARs
may also be awarded to a participant independent of the grant of an option. SARs granted in connection with an option will be subject
to terms similar to the option corresponding to such SARs. SARs will be subject to terms established by the compensation committee
and reflected in the award agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Restricted Stock</I>. The compensation
committee will be authorized to award restricted stock under the Plan. Each award of restricted stock will be subject to the terms
and conditions established by the compensation committee, including any dividend or voting rights. Restricted stock awards are
shares of New DraftKings Class A common stock that generally are non-transferable and subject to other restrictions determined
by the compensation committee for a specified period. Unless the compensation committee determines otherwise or specifies otherwise
in an award agreement, if the participant terminates employment or services during the restricted period, then any unvested restricted
stock is forfeited. Dividends, if any, that may have been withheld by the compensation committee will be distributed to the participant
in cash or, at the sole discretion of the compensation committee, in shares of New DraftKings Class A common stock having a fair
market value equal to the amount of such dividends, upon the release of any applicable restrictions, and if the applicable share
is forfeited, the participant will have no right to such dividends (except as otherwise provided in the applicable award agreement).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Restricted Stock Unit Awards</I>. The
compensation committee will be authorized to award restricted stock unit awards under the Plan. The compensation committee will
determine the terms of such restricted stock units, including any dividend rights. Unless the compensation committee determines
otherwise or specifies otherwise in an award agreement, if the participant terminates employment or services during the period
of time over which all or a portion of the units are to be earned, then any unvested units will be forfeited. At the election of
the compensation committee, the participant will receive a number of shares of New DraftKings Class A common stock equal to the
number of units earned or an amount in cash equal to the fair market value of that number of shares of New DraftKings Class A common
stock at the expiration of the period over which the units are to be earned or at a later date selected by the compensation committee.
Dividends, if any, that may have been withheld by the compensation committee will be distributed to the participant in cash or,
at the sole discretion of the compensation committee, in shares of New DraftKings Class A common stock having a fair market value
equal to the amount of such dividends, upon the release of any applicable restrictions, and if the applicable share is forfeited,
the participant will have no right to such dividends (except as otherwise provided in the applicable award agreement).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Stock Bonus Awards</I>. The compensation
committee will be authorized to grant awards of unrestricted shares of New DraftKings Class A common stock, shares of New DraftKings
Class B common stock or other awards denominated in shares of New DraftKings Class A common stock or New DraftKings Class B common
stock, either alone or in tandem with other awards, under the Plan, on such terms and conditions as the compensation committee
may determine.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Performance Compensation Awards</I>.
The compensation committee will be authorized to grant any award, including in the form of cash, under the Plan in the form of
a performance compensation award by conditioning the vesting of the award on the satisfaction of certain performance goals, measured
on an absolute or relative basis, for a particular performance period. The compensation committee may establish performance criteria
that will be used to establish these performance goals with reference to one or more of the following, without limitation:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Net earnings or net income (before or after taxes);</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>basic or diluted earnings per share (before or after taxes);</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>revenue or revenue growth (measured on a net or gross basis);</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>gross profit or gross profit growth;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>operating profit (before or after taxes);</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>return measures (including, but not limited to, return on assets, capital, invested capital, equity or sales);</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>cash flow (including, but not limited to, operating cash flow, free cash flow, net cash provided by operations and cash flow
return on capital);</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>financing and other capital-raising transactions (including, but not limited to, sales of New DraftKings&rsquo; equity or debt
securities);</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>earnings before or after taxes, interest, depreciation, and/or amortization;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>gross or operating margins;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>productivity ratios;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>share price (including, but not limited to, growth measures and total shareholder return);</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>expense targets;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>margins;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>productivity and operating efficiencies;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>measures of customer satisfaction;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>customer growth;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>working capital targets;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>measures of economic value added;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>inventory control;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>enterprise value;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>sales;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>debt levels and net debt;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>combined ratio;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>timely launch of new facilities;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>client retention;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>employee retention;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>timely completion of new product rollouts;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>cost targets;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>reductions and savings;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>productivity and efficiencies;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>strategic partnerships or transactions;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>measures of personal targets, goals or completion of projects; or</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>any combination of the foregoing.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The compensation committee is authorized
to adjust or modify the calculation of a performance goal for a performance period based on and in order to appropriately reflect
certain circumstances or events that occur during such performance period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Transferability</I>. Each award may be
exercised during the participant&rsquo;s lifetime only by the participant or, if permissible under applicable law, by the participant&rsquo;s
guardian or legal representative and may not be otherwise transferred or encumbered by a participant other than by will or by the
laws of descent and distribution. The compensation committee, however, may permit awards (other than ISOs) to be transferred to
family members, a trust for the benefit of such family members, a partnership or limited liability company whose partners or stockholders
are the participant and his or her family members or anyone else approved by it.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Amendment and Termination</I>. In general,
our Board may amend, suspend or terminate the Plan at any time. However, shareholder approval to amend the Plan may be necessary
if the law or the Plan so requires (<I>e</I>.<I>g</I>., repricing, performance goals, approval is necessary to comply with any
tax or regulatory requirement, etc.). No amendment, suspension or termination will impair the rights of any participant or recipient
of any award without the consent of the participant or recipient.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Change in Control</I>. In the event of
a &ldquo;Change in Control&rdquo; (as defined in the Plan), the compensation committee may adjust the number of shares of Class
A common stock or other securities of New DraftKings (or number and kind of other securities or other property) subject to an award,
the exercise or strike price of an award, or any applicable performance measure, and may provide for the substitution or assumption
of outstanding awards in a manner that substantially preserves the terms of such awards, the acceleration of the exercisability
or lapse of restrictions applicable to outstanding awards and the cancellation of outstanding awards in exchange for the consideration
received by shareholders of New DraftKings in connection with such Change in Control transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Israeli Sub-Plan</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Company has adopted an Israeli Sub-Plan
to the Plan in order to enable the grant of awards to employees and directors of the Company&rsquo;s Israeli subsidiaries and affiliates
that are intended to qualify, subject to compliance with certain terms and conditions, for beneficial treatment for Israeli tax
purposes. The Company currently intends to grant Awards pursuant to Section 102 of the Israeli Income Tax Ordinance [New Version]&#8201;-&#8201;1961
(the &ldquo;Israeli Ordinance&rdquo;) pursuant to the trustee capital gains route that will be held in trust for the benefit of
eligible Israeli participants (the &ldquo;Trustee 102 Awards&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Effectiveness</I>. Prior to granting
Trustee 102 Awards, the Company will make the appropriate filings with the Israeli Tax Authority. The grant of Trustee 102 Awards
will not become effective prior to the lapse of 30 days from the date on which the Plan, the Israeli Sub-Plan and the relevant
forms have been submitted for approval by, and will be conditioned upon the approval of, the Israeli Tax Authority.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Trust</I>. One of the primary
requirements for beneficial Israeli tax treatment is the engagement of a trustee. Trustee 102 Awards granted under the
Sub-Plan and any share of New DraftKings Class A common stock allocated or issued in connection therewith will be issued to a
trustee or will be under the supervision of the trustee, for the benefit of the applicable Israeli participants in accordance
with the provisions of Section 102 of the Israeli Ordinance. The trustee will hold the awards and shares at least until the
end of the statutory holding period, but the Israeli participants may sell shares before that date and pay higher taxes
(including social security and health tax). The trustee may not release or sell any shares unless the Company, its Israeli
subsidiary or affiliate and the trustee are satisfied that the full amounts of tax due have been paid or will be paid. The
main role of the trustee is ensuring compliance with tax withholding obligations. Upon receipt of any Trustee 102 Award, the
Israeli participant will consent to the grant of such award under the specific tax route elected by the Company as required
under the Israeli Ordinance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<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-indent: 0.5in"><I>Assignability and Transferability</I>.
Awards or any right with respect awards will not be assignable, transferable or given as collateral, and, during the lifetime of
the Israeli participant, the Israeli participant&rsquo;s rights with respect to an award will belong only to the Israeli participant.
As long as awards or shares issued or purchased under the Israeli Sub-Plan are held or supervised, as the case may be, by the trustee
on behalf of an Israeli participant, all rights of the Israeli participant over the shares may not be transferred, assigned, pledged
or mortgaged, other than by will or laws of descent and distribution.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="b_020"></A>DESCRIPTION
OF SECURITIES</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>As a result of the Business Combination,
DEAC Stockholders who receive shares of New DraftKings Class A common stock in the transactions will become New DraftKings stockholders.
Your rights as New DraftKings stockholders will be governed by Nevada law and the New DraftKings&rsquo; charter and bylaws. The
following description of the material terms of New DraftKings&rsquo; securities reflects the anticipated state of affairs upon
completion of the Business Combination. </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>In connection with the reincorporation
as part of the Business Combination, DEAC Nevada will amend and restate its articles of incorporation and bylaws. The following
summary of the material terms of New DraftKings&rsquo; securities following the Business Combination is not intended to be a complete
summary of the rights and preferences of such securities. The full text of the Proposed Charter and post-Business Combination bylaws
are filed as <U>Exhibit 3.3</U> and <U>Exhibit 3.4</U>, respectively, to this prospectus. You are encouraged to read the applicable
provisions of Nevada law, the Proposed Charter and the post-Business Combination bylaws in their entirety for a complete description
of the rights and preferences of New DraftKings&rsquo; securities following the Business Combination. </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Authorized and Outstanding Capital Stock</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Proposed Charter authorizes the issuance
of 2,100,000,000 shares, of which 900,000,000 shares will be shares of Class A common stock, par value $0.0001 per share, 900,000,000
shares will be shares of Class B common stock, par value $0.0001 per share, and 300,000,000 shares will be shares of preferred
stock, par value $0.0001 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As of April 13, 2020, DEAC had approximately
2,648,774 units, each consisting of one share of Class A common stock and one-third of one redeemable warrant, 37,351,226 shares
of Class A common stock, par value $0.0001 per share, and 18,783,740 warrants, each whole warrant exercisable for one share of
Class A common stock, issued and outstanding and one holder of record of Class A common stock. After giving effect to the Business
Combination, New DraftKings will have approximately 313 million shares of Class A common stock outstanding (assuming no redemptions)
and approximately 394 million shares of Class B common stock outstanding (assuming no redemptions).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">New DraftKings Common Stock</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Class A Common Stock</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Voting Rights</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Holders of New DraftKings Class A common
stock will be entitled to cast one vote per Class A share. Generally, holders of all classes of New DraftKings common stock vote
together as a single class, and an action is approved by New DraftKings stockholders if the number of votes cast in favor of the
action exceeds the number of votes cast in opposition to the action, while directors are elected by a plurality of the votes cast.
Holders of New DraftKings Class A common stock will not be entitled to cumulate their votes in the election of directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Dividend Rights</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Holders of New DraftKings Class A common
stock will share ratably (based on the number of shares of Class A common stock held) if and when any dividend is declared by the
New DraftKings board of directors out of funds legally available therefor, subject to restrictions, whether statutory or contractual
(including with respect to any outstanding indebtedness), on the declaration and payment of dividends and to any restrictions on
the payment of dividends imposed by the terms of any outstanding preferred stock or any class or series of stock having a preference
over, or the right to participate with, the New DraftKings Class A common stock with respect to the payment of dividends.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Liquidation, Dissolution and Winding
Up</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On the liquidation, dissolution, distribution
of assets or winding up of New DraftKings, each holder of New DraftKings Class A common stock will be entitled, pro rata on a per
share basis, to all assets of New DraftKings of whatever kind available for distribution to the holders of common stock, subject
to the designations, preferences, limitations, restrictions and relative rights of any other class or series of preferred stock
of New DraftKings then outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Other Matters</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">No shares of New DraftKings Class A common
stock will be subject to redemption (except as described below under &ldquo;<I>Redemption Rights and Transfer Restrictions with
Respect to Capital Stock held by Unsuitable Persons and Their Affiliates</I>&rdquo;) or have preemptive rights to purchase additional
shares of Class A common stock. Holders of shares of New DraftKings Class A common stock do not have subscription, redemption or
conversion rights. Upon completion of the Business Combination, all the outstanding shares of New DraftKings Class A common stock
will be validly issued, fully paid and non-assessable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Class B Common Stock</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Issuance of Class B common stock
with Common Units</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Shares of New DraftKings Class B common
stock may be issued only to, and registered in the name of, Mr. Robins and any entities wholly owned by Mr. Robins (including all
subsequent successors, assigns and permitted transferees) (collectively, &ldquo;Permitted Class B Owners&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Voting Rights</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Holders of New DraftKings Class B common
stock will be entitled to cast 10 votes per Class B share. Generally, holders of all classes of New DraftKings common stock vote
together as a single class, and an action is approved by New DraftKings stockholders if the number of votes cast in favor of the
action exceeds the number of votes cast in opposition to the action, while directors are elected by a plurality of the votes cast.
Holders of New DraftKings Class B common stock will not be entitled to cumulate their votes in the election of directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Dividend Rights</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Holders of New DraftKings Class B common
stock will not participate in any dividend declared by the board of directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Liquidation Rights</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On the liquidation, dissolution, distribution
of assets or winding up of New DraftKings, holders of New DraftKings Class B common stock will not be entitled to receive any distribution
of New DraftKings assets of whatever kind available until distribution has first been made to all holders of New DraftKings Class
A common stock. Notwithstanding this, due to the liquidation rights of New DraftKings Class A common stock described above in which
all assets of New DraftKings of whatever kind available will be distributed to holders of New DraftKings Class A common stock,
no assets of New DraftKings will be available for liquidating distributions in respect of the New DraftKing Class B common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Transfers</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Pursuant to the Proposed Charter, holders
of New DraftKings Class B common stock are generally restricted from transferring such shares, other than to a Permitted Class
B Owner or in connection with a divorce or domestic relations order or decree.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Mandatory Cancellation</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Each share of New DraftKings Class B
common stock will be (1) automatically canceled for no consideration in the event that shares of Class A common stock that
are then held by Permitted Class B Owners (including without limitation all shares of Class A common stock that are the
subject of unvested stock options or other equity awards held by Mr. Robins) represent less than 33% of Base Class A Shares
(as defined in the Proposed Charter) and (2) subject to cancelation by New DraftKings (without consideration) one year after
the date that both of the following conditions apply (the &ldquo;Founder Termination Anniversary Date&rdquo;): (a) the
earliest to occur of&#8201; (i) Mr. Robins&rsquo; employment as Chief Executive Officer of New DraftKings being terminated
due to termination of employment for cause or due to death or permanent disability and (ii) Mr. Robins resigns (other than
for good reason) as the Chief Executive Officer of New DraftKings and (b) either (i) Mr. Robins no longer serves as a member
of the board of directors of New DraftKings or (ii) Mr. Robins&rsquo; service to New DraftKings is not his primary business
occupation. In the event that Mr. Robins is reinstated as the Chief Executive Officer of New DraftKings or is reelected or
reappointed to serve as a member of the board of directors of New DraftKings prior to the Founder Termination Anniversary
Date (each, a &ldquo;Reset Event&rdquo;), then the shares of Class B common stock will not be canceled pursuant to clause (2)
unless and until the one-year anniversary of the date that both of the foregoing conditions are subsequently met; provided
that in the event of a subsequent Reset Event, the next Founder Termination Anniversary Date will extend until the one-year
anniversary of the date that both of the foregoing conditions are subsequently met without a Reset Event occurring prior to
such anniversary.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Other Matters</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">No shares of New DraftKings Class B common
stock will be subject to redemption (except as described below under &ldquo;<I>Redemption Rights and Transfer Restrictions with
Respect to Capital Stock Held by Unsuitable Persons and Their Affiliates</I>&rdquo;) or have preemptive rights to purchase additional
shares of Class B common stock. Holders of shares of New DraftKings Class B common stock do not have subscription, redemption or
conversion rights. Upon completion of the Business Combination, all outstanding shares of New DraftKings Class B common stock will
be validly issued, fully paid and non-assessable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Preferred Stock</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">New DraftKings&rsquo; amended and restated
articles of incorporation provide that the New DraftKings board of directors has the authority, without action by the stockholders,
to designate and issue shares of preferred stock in one or more classes or series, and the number of shares constituting any such
class or series, and to fix the voting powers, designations, preferences, limitations, restrictions and relative rights of each
class or series of preferred stock, including, without limitation, dividend rights, dividend rates, conversion rights, exchange
rights, voting rights, rights and terms of redemption, dissolution preferences, and treatment in the case of a merger, business
combination transaction, or sale of New DraftKings&rsquo; assets, which rights may be greater than the rights of the holders of
the common stock. There will be no shares of preferred stock outstanding immediately upon consummation of the Business Combination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The purpose of authorizing the New DraftKings
board of directors to issue preferred stock and determine the rights and preferences of any classes or series of preferred stock
is to eliminate delays associated with a stockholder vote on specific issuances. The simplified issuance of preferred stock, while
providing flexibility in connection with possible acquisitions, future financings and other corporate purposes, could have the
effect of making it more difficult for a third party to acquire, or could discourage a third party from seeking to acquire, a majority
of New DraftKings outstanding voting stock. Additionally, the issuance of preferred stock may adversely affect the holders of New
DraftKings Class A common stock by restricting dividends on the Class A common stock, diluting the voting power of the Class A
common stock or subordinating the dividend or liquidation rights of the Class A common stock. As a result of these or other factors,
the issuance of preferred stock could have an adverse impact on the market price of New DraftKings Class A common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Unvested Stock Options</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As of December 31, 2019, DraftKings had
unvested outstanding options to purchase 80,809,423 shares of its common stock, with a weighted average exercise price of $1.31
per share, which, upon Closing, will convert to (i) 28,789,603 options to purchase shares of New DraftKings Class A Common Stock
and (ii) the right to receive earnout shares, if any.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As of December 31, 2019, SBTech had unvested
outstanding options to purchase 164 shares of its common stock, with a weighted average exercise price of $9,586.72 per share,
which, upon Closing, will convert to 166,408 options to purchase shares of New DraftKings Class A Common Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Warrants</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Public Stockholders&rsquo; Warrants</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">There are currently outstanding an aggregate
of 19,666,667 warrants, which, following the consummation of the Business Combination, will entitle the holder to acquire New DraftKings
Class A common stock. Each whole warrant will entitle the registered holder to purchase one share of New DraftKings Class A common
stock at a price of&#8201;$11.50 per share, subject to adjustment as discussed below, beginning 30 days after the Closing. A holder
may exercise its warrants only for a whole number of shares of New DraftKings Class A common stock. This means only a whole warrant
may be exercised at a given time by a warrant holder. No fractional warrants will be issued upon separation of the units and only
whole warrants will trade. Accordingly, unless you hold at least three units, you will not be able to receive or trade a whole
warrant. The warrants will expire five years after the completion of the Business Combination, at 5:00 p.m., New York City time,
or earlier upon redemption or liquidation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Redemption of Warrants for Cash</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Once the warrants become exercisable, New
DraftKings may call the warrants for redemption for cash:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>in whole and not in part; at a price of&#8201;$0.01 per warrant;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>upon not less than 30 days&rsquo; prior written notice of redemption (the &ldquo;30-day redemption period&rdquo;) to each warrant
holder; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>if, and only if, the closing price of the New DraftKings Class A common stock equals or exceeds $18.00 per share (as adjusted
for stock splits, stock capitalizations, reorganizations, recapitalizations and the like) for any 20 trading days within a 30-trading
day period ending three business days before New DraftKings sends the notice of redemption to the warrant holders.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If and when the warrants become redeemable
by New DraftKings for cash, New DraftKings may exercise its redemption right even if it is unable to register or qualify the underlying
securities for sale under all applicable state securities laws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The last of the redemption criterion discussed
above prevents a redemption call unless there is at the time of the call a significant premium to the warrant exercise price. If
the foregoing conditions are satisfied and New DraftKings issues a notice of redemption of the warrants, each warrant holder will
be entitled to exercise his, her or its warrant prior to the scheduled redemption date. However, the price of the New DraftKings
Class A common stock may fall below the $18.00 redemption trigger price (as adjusted for stock splits, stock capitalizations, reorganizations,
recapitalizations and the like) as well as the $11.50 warrant exercise price after the redemption notice is issued.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Redemption of warrants for shares of Class
A common stock</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Commencing 90 days after the warrants become
exercisable, New DraftKings may redeem the outstanding warrants for shares of New DraftKings Class A common stock:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>in whole and not in part (including both public warrants and private placement warrants);</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>at a price equal to a number of shares of New DraftKings Class A common stock to be determined by reference to the table below,
based on the redemption date and the &ldquo;fair market value&rdquo; of New DraftKings Class A common stock, except as otherwise
described below;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>upon a minimum of 30 days&rsquo; prior written notice of redemption;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>if, and only if, the last reported sale price of New DraftKings Class A common stock equals or exceeds $10.00 per share (as
adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) on the trading day prior to the date
on which New DraftKings sends the notice of redemption to the warrant holders;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>if, and only if, the private placement warrants are also concurrently exchanged at the same price (equal to a number of shares
of New DraftKings Class A common stock) as the outstanding public warrants, as described above; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>if, and only if, there is an effective registration statement covering the shares of New DraftKings Class A common stock issuable
upon exercise of the warrants and a current prospectus relating thereto available throughout the 30-day redemption period after
written notice of redemption is given.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The numbers in the table below represent
the &ldquo;redemption prices,&rdquo; or the number of shares of New DraftKings Class A common stock that a warrant holder will
receive upon redemption by us pursuant to this redemption feature, based on the &ldquo;fair market value&rdquo; of New DraftKings
Class A common stock on the corresponding redemption date, determined based on the average of the last reported sales price for
the 10 trading days ending on the third trading day prior to the date on which the notice of redemption is sent to the holders
of warrants, and the number of months that the corresponding redemption date precedes the expiration date of the warrants, each
as set forth in the table below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The share prices set forth in the column
headings of the table below will be adjusted as of any date on which the number of shares issuable upon exercise of a warrant is
adjusted. The adjusted stock prices in the column headings will equal the stock prices immediately prior to such adjustment, multiplied
by a fraction, the numerator of which is the number of shares deliverable upon exercise of a warrant immediately prior to such
adjustment and the denominator of which is the number of shares deliverable upon exercise of a warrant as so adjusted. The number
of shares in the table below shall be adjusted in the same manner and at the same time as the number of shares issuable upon exercise
of a warrant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 7pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 7pt; font-weight: bold">&#8203;</TD><TD STYLE="font-size: 7pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="34" STYLE="border-bottom: Black 1pt solid; font-size: 7pt; font-weight: bold; text-align: center">Fair Market Value of New DraftKings Class A Common Stock</TD><TD STYLE="font-size: 7pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="border-bottom: Black 1pt solid; width: 28%; font-size: 7pt; font-weight: bold; text-align: left">Redemption Date<BR> (period to expiration of warrants)</TD><TD STYLE="text-align: center; width: 1%; font-size: 7pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; width: 1%; font-size: 7pt; font-weight: bold; text-align: center">$</TD><TD STYLE="border-bottom: Black 1pt solid; width: 5%; font-size: 7pt; font-weight: bold; text-align: center">10.00</TD><TD STYLE="width: 1%; font-size: 7pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; width: 1%; font-size: 7pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; width: 1%; font-size: 7pt; font-weight: bold; text-align: center">$</TD><TD STYLE="border-bottom: Black 1pt solid; width: 5%; font-size: 7pt; font-weight: bold; text-align: center">11.00</TD><TD STYLE="width: 1%; font-size: 7pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; width: 1%; font-size: 7pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; width: 1%; font-size: 7pt; font-weight: bold; text-align: center">$</TD><TD STYLE="border-bottom: Black 1pt solid; width: 5%; font-size: 7pt; font-weight: bold; text-align: center">12.00</TD><TD STYLE="width: 1%; font-size: 7pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; width: 1%; font-size: 7pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; width: 1%; font-size: 7pt; font-weight: bold; text-align: center">$</TD><TD STYLE="border-bottom: Black 1pt solid; width: 5%; font-size: 7pt; font-weight: bold; text-align: center">13.00</TD><TD STYLE="width: 1%; font-size: 7pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; width: 1%; font-size: 7pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; width: 1%; font-size: 7pt; font-weight: bold; text-align: center">$</TD><TD STYLE="border-bottom: Black 1pt solid; width: 5%; font-size: 7pt; font-weight: bold; text-align: center">14.00</TD><TD STYLE="width: 1%; font-size: 7pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; width: 1%; font-size: 7pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; width: 1%; font-size: 7pt; font-weight: bold; text-align: center">$</TD><TD STYLE="border-bottom: Black 1pt solid; width: 5%; font-size: 7pt; font-weight: bold; text-align: center">15.00</TD><TD STYLE="width: 1%; font-size: 7pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; width: 1%; font-size: 7pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; width: 1%; font-size: 7pt; font-weight: bold; text-align: center">$</TD><TD STYLE="border-bottom: Black 1pt solid; width: 5%; font-size: 7pt; font-weight: bold; text-align: center">16.00</TD><TD STYLE="width: 1%; font-size: 7pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; width: 1%; font-size: 7pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; width: 1%; font-size: 7pt; font-weight: bold; text-align: center">$</TD><TD STYLE="border-bottom: Black 1pt solid; width: 5%; font-size: 7pt; font-weight: bold; text-align: center">17.00</TD><TD STYLE="width: 1%; font-size: 7pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; width: 1%; font-size: 7pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; width: 1%; font-size: 7pt; font-weight: bold; text-align: center">$</TD><TD STYLE="border-bottom: Black 1pt solid; width: 5%; font-size: 7pt; font-weight: bold; text-align: center">18.00</TD><TD STYLE="width: 1%; font-size: 7pt; font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 7pt">57 months</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.257</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.277</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.294</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.310</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.324</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.337</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.348</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.358</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.365</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 7pt">54 months</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.252</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.272</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.291</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.307</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.322</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.335</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.347</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.357</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.365</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 7pt">51 months</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.246</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.268</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.287</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.304</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.320</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.333</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.346</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.357</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.365</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 7pt">48 months</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.241</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.263</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.283</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.301</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.317</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.332</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.344</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.356</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.365</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 7pt">45 months</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.235</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.258</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.279</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.298</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.315</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.330</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.343</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.356</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.365</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 7pt">42 months</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.228</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.252</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.274</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.294</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.312</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.328</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.342</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.355</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.364</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 7pt">39 months</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.221</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.246</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.269</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.290</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.309</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.325</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.340</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.354</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.364</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 7pt">36 months</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.213</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.239</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.263</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.285</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.305</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.323</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.339</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.353</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.364</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 7pt">33 months</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.205</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.232</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.257</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.280</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.301</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.320</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.337</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.352</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.364</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 7pt">30 months</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.196</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.224</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.250</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.274</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.297</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.316</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.335</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.351</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.364</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 7pt">27 months</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.185</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.214</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.242</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.268</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.291</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.313</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.332</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.350</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.364</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 7pt">24 months</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.173</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.204</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.233</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.260</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.285</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.308</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.329</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.348</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.364</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 7pt">21 months</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.161</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.193</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.223</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.252</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.279</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.304</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.326</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.347</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.364</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 7pt">18 months</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.146</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.179</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.211</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.242</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.271</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.298</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.322</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.345</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.363</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 7pt">15 months</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.130</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.164</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.197</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.230</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.262</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.291</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.317</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.342</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.363</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 7pt">12 months</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.111</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.146</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.181</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.216</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.250</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.282</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.312</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.339</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.363</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 7pt">9 months</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.090</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.125</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.162</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.199</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.237</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.272</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.305</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.336</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.362</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 7pt">6 months</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.065</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.099</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.137</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.178</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.219</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.259</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.296</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.331</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.362</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 7pt">3 months</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.034</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.065</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.104</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.150</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.197</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.243</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.286</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.326</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.361</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 7pt">0 months</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">-</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">-</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.042</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.115</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.179</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.233</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.281</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.323</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt">&nbsp;</TD>
    <TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 7pt; text-align: right">0.361</TD><TD STYLE="font-size: 7pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The &ldquo;fair market value&rdquo; of New
DraftKings Class A common stock means the average last reported sale price of New DraftKings Class A common stock for the 10 trading
days ending on the third trading day prior to the date on which the notice of redemption is sent to the holders of warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The exact fair market value and redemption
date may not be set forth in the table above, in which case, if the fair market value is between two values in the table or the
redemption date is between two redemption dates in the table, the number of shares of New DraftKings Class A common stock to be
issued for each warrant redeemed will be determined by a straight-line interpolation between the number of shares set forth for
the higher and lower fair market values and the earlier and later redemption dates, as applicable, based on a 365- or 366-day year,
as applicable. For example, if the average last reported sale price of New DraftKings Class A common stock for the 10 trading days
ending on the third trading date prior to the date on which the notice of redemption is sent to the holders of the warrants is
$11.00 per share, and at that time there are 57 months until the expiration of the warrants, New DraftKings may choose to, pursuant
to this redemption feature, redeem the warrants at a &ldquo;redemption price&rdquo; of 0.277 shares of Class A common stock for
each whole warrant. For an example where the exact fair market value and redemption date are not as set forth in the table above,
if the average last reported sale price of New DraftKings Class A common stock for the 10 trading days ending on the third trading
date prior to the date on which the notice of redemption is sent to the holders of the warrants is $13.50 per share, and at such
time there are 38 months until the expiration of the warrants, New DraftKings may choose to, pursuant to this redemption feature,
redeem the warrants at a &ldquo;redemption price&rdquo; of 0.298 shares of New DraftKings Class A common stock for each whole warrant.
Finally, as reflected in the table above, New DraftKings can redeem the warrants for no consideration in the event that the warrants
are &ldquo;out of the money&rdquo; (i.e., the trading price of New DraftKings Class A common stock is below the exercise price
of the warrants) and about to expire.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Any public warrants held by New DraftKings
officers or directors will be subject to this redemption feature, except that such officers and directors will only receive &ldquo;fair
market value&rdquo; for such public warrants so redeemed (&ldquo;fair market value&rdquo; for such public warrants held by New
DraftKings officers or directors being defined as the last reported sale price of the public warrants on such redemption date).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">New DraftKings can redeem the warrants when
the shares of New DraftKings Class A common stock are trading at a price starting at $10.00, which is below the exercise price
of&#8201;&#8201; $11.50. As a result, if New DraftKings chooses to redeem the warrants when the shares of New DraftKings Class
A common stock are trading at a price below the exercise price of the warrants, this could result in the warrant holders receiving
fewer shares of New DraftKings Class A common stock than they would have received if they had chosen to wait to exercise their
warrants for shares of New DraftKings Class A common stock if and when such shares of New DraftKings Class A common stock were
trading at a price higher than the exercise price of&#8201;$11.50.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">No fractional shares of New DraftKings Class
A common stock will be issued upon redemption. If, upon redemption, a holder would be entitled to receive a fractional interest
in a share, New DraftKings will round down to the nearest whole number of the number of shares of New DraftKings Class A common
stock to be issued to the holder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Redemption Procedures and Cashless Exercise</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If New DraftKings calls the warrants for
redemption as described above, its management will have the option to require any holder that wishes to exercise his, her or its
warrant to do so on a &ldquo;cashless basis.&rdquo; To exercise warrants on a cashless basis, the holders of exercised warrants
would pay the exercise price by surrendering their warrants for that number of shares of New DraftKings Class A common stock equal
to the quotient obtained by dividing (x) the product of the number of shares of New DraftKings Class A common stock underlying
the warrants, multiplied by the excess of the &ldquo;fair market value&rdquo; of the shares of New DraftKings Class A common stock
over the exercise price of the warrants by (y) the fair market value. The &ldquo;fair market value&rdquo; will mean the average
closing price of the New DraftKings Class A common stock for the ten (10) trading days ending on the third (3rd) trading day prior
to the date on which the notice of redemption is sent to the holders of warrants or the warrant agent, as applicable. The notice
of redemption will contain the information necessary to calculate the number of shares of New DraftKings Class A common stock to
be received upon exercise of the warrants, including the &ldquo;fair market value&rdquo; in such case. Requiring a cashless exercise
in this manner will reduce the number of shares to be issued and thereby lessen the dilutive effect of a warrant redemption. If
New DraftKings management calls the warrants for redemption and does not require the holders to exercise their warrants on a cashless
basis, the holders of the private placement warrants and their permitted transferees would be entitled to exercise their private
placement warrants for cash or on a cashless basis using the same formula described above that other warrant holders would have
been required to use had all warrant holders been required to exercise their warrants on a cashless basis, as described in more
detail below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">A holder of a warrant may notify New DraftKings
in writing in the event it elects to be subject to a requirement that such holder will not have the right to exercise such warrant,
to the extent that after giving effect to such exercise, such person (together with such person&rsquo;s affiliates), to the warrant
agent&rsquo;s actual knowledge, would beneficially own in excess of 4.9% or 9.8% (as specified by the holder) of the New DraftKings
Class A common stock outstanding immediately after giving effect to such exercise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If the number of outstanding shares of New
DraftKings Class A common stock is increased by a share capitalization payable in shares of New DraftKings Class A common stock,
or by a split-up of common stock or other similar event, then, on the effective date of such share capitalization, split-up or
similar event, the number of shares of New DraftKings Class A common stock issuable on exercise of each warrant will be increased
in proportion to such increase in the outstanding shares of common stock. A rights offering to holders of common stock entitling
holders to purchase New DraftKings Class A common stock at a price less than the fair market value will be deemed a share capitalization
of a number of shares of Class A common stock equal to the product of&#8201;&#8201;(i) the number of shares of New DraftKings Class
A common stock actually sold in such rights offering (or issuable under any other equity securities sold in such rights offering
that are convertible into or exercisable for New DraftKings Class A common stock) and (ii) the quotient of&#8201; (x) the price
per share of New DraftKings Class A common stock paid in such rights offering and (y) the fair market value. For these purposes
(i) if the rights offering is for securities convertible into or exercisable for shares of New DraftKings Class A common stock,
in determining the price payable for New DraftKings Class A common stock, there will be taken into account any consideration received
for such rights, as well as any additional amount payable upon exercise or conversion and (ii) fair market value means the volume
weighted average price of shares of New DraftKings Class A common stock as reported during the ten (10) trading day period ending
on the trading day prior to the first date on which the New DraftKings Class A common stock trades on the applicable exchange or
in the applicable market, regular way, without the right to receive such rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition, if New DraftKings, at any time
while the warrants are outstanding and unexpired, pays a dividend or makes a distribution in cash, securities or other assets to
the holders of New DraftKings Class A common stock on account of such New DraftKings Class A common stock (or other securities
into which the warrants are convertible), other than (a) as described above, (b) certain ordinary cash dividends or (c) to satisfy
the redemption rights of the holders of New DraftKings Class A common stock in connection with the Business Combination, then the
warrant exercise price will be decreased, effective immediately after the effective date of such event, by the amount of cash and/or
the fair market value of any securities or other assets paid on each share of New DraftKings Class A common stock in respect of
such event.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If the number of outstanding shares of New
DraftKings Class A common stock is decreased by a consolidation, combination, reverse share split or reclassification of New DraftKings
Class A common stock or other similar event, then, on the effective date of such consolidation, combination, reverse share split,
reclassification or similar event, the number of shares of New DraftKings Class A common stock issuable on exercise of each warrant
will be decreased in proportion to such decrease in outstanding shares of New DraftKings Class A common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Whenever the number of shares of New DraftKings
Class A common stock purchasable upon the exercise of the warrants is adjusted, as described above, the warrant exercise price
will be adjusted by multiplying the warrant exercise price immediately prior to such adjustment by a fraction (x) the numerator
of which will be the number of shares of New DraftKings Class A common stock purchasable upon the exercise of the warrants immediately
prior to such adjustment, and (y) the denominator of which will be the number of shares of New DraftKings Class A common stock
so purchasable immediately thereafter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In case of any reclassification or reorganization
of the outstanding New DraftKings Class A common stock (other than those described above or that solely affects the par value of
such New DraftKings Class A common stock), or in the case of any merger or consolidation of us with or into another corporation
(other than a consolidation or merger in which New DraftKings is the continuing corporation and that does not result in any reclassification
or reorganization of outstanding New DraftKings Class A common stock), or in the case of any sale or conveyance to another corporation
or entity of the assets or other property of us as an entirety or substantially as an entirety in connection with which New DraftKings
is dissolved, the holders of the warrants will thereafter have the right to purchase and receive, upon the basis and upon the terms
and conditions specified in the warrants and in lieu of the New DraftKings Class A common stock immediately theretofore purchasable
and receivable upon the exercise of the rights represented thereby, the kind and amount of shares of New DraftKings Class A common
stock or other securities or property (including cash) receivable upon such reclassification, reorganization, merger or consolidation,
or upon a dissolution following any such sale or transfer, that the holder of the warrants would have received if such holder had
exercised its warrants immediately prior to such event. If less than 70% of the consideration receivable by the holders of New
DraftKings Class A common stock in such a transaction is payable in the form of New DraftKings Class A common stock in the successor
entity that is listed for trading on a national securities exchange or is quoted in an established over-the-counter market, or
is to be so listed for trading or quoted immediately following such event, and if the registered holder of the warrant properly
exercises the warrant within 30 days following public disclosure of such transaction, the warrant exercise price will be reduced
as specified in the warrant agreement based on the Black-Scholes Warrant Value (as defined in the warrant agreement) of the warrant.
The purpose of such exercise price reduction is to provide additional value to holders of the warrants when an extraordinary transaction
occurs during the exercise period of the warrants pursuant to which the holders of the warrants otherwise do not receive the full
potential value of the warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The warrants are issued in registered form
under a warrant agreement between Continental, as warrant agent, and DEAC. The warrant agreement provides that the terms of the
warrants may be amended without the consent of any holder to cure any ambiguity or correct any defective provision, and that all
other modifications or amendments will require the vote or written consent of the holders of at least 50% of the then outstanding
public warrants, and, solely with respect to any amendment to the terms of the private placement warrants, a majority of the then
outstanding private placement warrants. You should review a copy of the warrant agreement, which will be filed as an exhibit to
this proxy solicitation/&#8203;prospectus, for a complete description of the terms and conditions applicable to the warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The warrants may be exercised upon surrender
of the warrant certificate on or prior to the expiration date at the offices of the warrant agent, with the exercise form on the
reverse side of the warrant certificate completed and executed as indicated, accompanied by full payment of the exercise price
(or on a cashless basis, if applicable), by certified or official bank check payable to us, for the number of warrants being exercised.
The warrant holders do not have the rights or privileges of holders of common stock and any voting rights until they exercise their
warrants and receive New DraftKings Class A common stock. After the issuance of New DraftKings Class A common stock upon exercise
of the warrants, each holder will be entitled to one vote for each share held of record on all matters to be voted on by holders
of New DraftKings</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;&nbsp;</P>

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<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">Class A common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">No fractional shares will be issued upon
exercise of the warrants. If, upon exercise of the warrants, a holder would be entitled to receive a fractional interest in a share,
New DraftKings will, upon exercise, round down to the nearest whole number the number of shares of New DraftKings Class A common
stock to be issued to the warrant holder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Private Placement Warrants</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The private placement warrants (including
the New DraftKings Class A common stock issuable upon exercise of the private placement warrants) will not be transferable, assignable
or salable until thirty (30) days after the Closing (except in limited circumstances) and they will not be redeemable by New DraftKings
for cash so long as they are held by our initial stockholders or their permitted transferees. The initial purchasers of the private
placement warrants, or their permitted transferees, have the option to exercise the private placement warrants on a cashless basis.
Except as described in this section, the private placement warrants have terms and provisions that are identical to those of the
warrants sold in our initial public offering, including that they may be redeemed for shares of New DraftKings Class A common stock.
If the private placement warrants are held by holders other than the initial purchasers thereof or their permitted transferees,
the private placement warrants will be redeemable by New DraftKings and exercisable by the holders on the same basis as the warrants
included in the units being sold in our initial public offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Exclusive Forum</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Proposed Charter provides that, to the
fullest extent permitted by law, unless New DraftKings otherwise consents in writing, the Eighth Judicial District Court of Clark
County, Nevada (or if the Eighth Judicial District Court of Clark County, Nevada does not have jurisdiction, any other state district
court located in the State of Nevada, and if no state district court in the State of Nevada has jurisdiction, any federal court
located in the State of Nevada) will be the exclusive forum for any action or proceeding brought in the name or right of New DraftKings
or on its behalf, any action asserting a claim for breach of any fiduciary duty owed by any director, officer, employee or agent
of New DraftKings to New DraftKings or its stockholders, any action asserting a claim arising pursuant to any provision of NRS
Chapters 78 or 92A, New DraftKings&rsquo; amended and restated articles of incorporation or the New DraftKings bylaws, any action
to interpret, apply, enforce or determine the validity of the New DraftKings Articles of Incorporation or the New DraftKings bylaws
or any action asserting a claim governed by the internal affairs doctrine. The exclusive forum provision will provide federal courts
located in the State of Nevada as the forum for suits brought to enforce any duty or liability for which Section 27 of the Exchange
Act establishes exclusive jurisdiction with the federal courts or any other claim for which the federal courts have exclusive jurisdiction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Anti-Takeover Effects of Provisions of the New DraftKings
Amended and Restated Articles of Incorporation, the New DraftKings Amended and Restated Bylaws and Applicable Law</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Certain provisions of New DraftKings&rsquo;
amended and restated articles of incorporation, amended and restated bylaws and laws of the State of Nevada, where New DraftKings
is incorporated, may discourage or make more difficult a takeover attempt that a stockholder might consider in his or her best
interest. These provisions may also adversely affect prevailing market prices for New DraftKings common stock. We believe that
the benefits of increased protection give New DraftKings the potential ability to negotiate with the proponent of an unsolicited
proposal to acquire or restructure New DraftKings and outweigh the disadvantage of discouraging those proposals because negotiation
of the proposals could result in an improvement of their terms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Authorized but Unissued Shares</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The authorized but unissued shares of Class
A and B common stock and preferred stock are available for future issuance without stockholder approval, subject to any limitations
imposed by the listing standards of The Nasdaq Stock 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 more difficult or discourage an attempt to obtain control of New DraftKings by means of a proxy contest,
tender offer, merger or otherwise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Dual Class Stock</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>As described above in &ldquo;- New DraftKings
Common Stock&#8201;-&#8201;Class A Common Stock&#8201;-&#8201;Voting Rights&rdquo; and &ldquo;- New DraftKings Common Stock&#8201;-&#8201;Class
B Common Stock&#8201;-&#8201;Voting Rights,&rdquo; the New DraftKings amended and restated articles of incorporation will provide
for a dual class common stock structure, which will provide Mr. Robins with the ability to control the outcome of matters requiring
stockholder approval, even though he owns significantly less than a majority of the shares of outstanding New DraftKings Class
A and Class B common stock, including the election of directors and significant corporate transactions, such as a merger or other
sale of New DraftKings or its assets.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Number of Directors</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The New DraftKings amended and restated
articles of incorporation and amended and restated bylaws provide that, subject to any rights of holders of preferred stock to
elect additional directors under specified circumstances, the number of directors may be fixed from time to time pursuant to a
resolution adopted by the New DraftKings board of directors or, from and after the time that Mr. Robins beneficially owns less
than a majority of the voting power of the outstanding capital stock of New DraftKings, may be modified by the affirmative vote
of at least two-thirds of the voting power of the outstanding capital stock of New DraftKings. The initial number of directors
will be fixed at 13.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Requirements for Advance Notification
of Stockholder Meetings, Nominations and Proposals</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The New DraftKings Bylaws will establish
advance notice procedures with respect to stockholder proposals and the nomination of candidates for election as directors, other
than nominations made by or at the direction of the Board of Directors or a committee of the Board of Directors. In order for any
matter to be &ldquo;properly brought&rdquo; before a meeting, a stockholder will have to comply with advance notice requirements
and provide New DraftKings with certain information. Generally, to be timely, a stockholder&rsquo;s notice must be received at
New DraftKings&rsquo; principal executive offices not less than 90 days nor more than 120 days prior to the first anniversary date
of the immediately preceding annual meeting of stockholders. The New DraftKings Bylaws will also specify requirements as to the
form and content of a stockholder&rsquo;s notice. The New DraftKings Bylaws will allow the chairman of the meeting at a meeting
of the stockholders to adopt rules and regulations for the conduct of meetings which may have the effect of precluding the conduct
of certain business at a meeting if the rules and regulations are not followed. These provisions may also defer, delay or discourage
a potential acquirer from conducting a solicitation of proxies to elect the acquirer&rsquo;s own slate of directors or otherwise
attempting to influence or obtain control of us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Limitations on Stockholder Action by Written
Consent</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Nevada law permits stockholder action by
written consent unless the corporation&rsquo;s articles of incorporation or bylaws provide otherwise. Pursuant to Section 78.320
of the NRS, any action required to be taken at any annual or special meeting of the stockholders may be taken without a meeting,
if a written consent to such action is signed by the holders of outstanding stock having at least a majority of the voting power
of all classes entitled to vote, or such different proportion that would be required for such an action at a meeting of the stockholders.
New DraftKings&rsquo; amended and restated articles of incorporation provides that stockholder action by written consent will be
permitted so long as Mr. Robins beneficially owns a majority of the voting power of the then-outstanding shares of capital stock
of New DraftKings. Once Mr. Robins no longer beneficially owns a majority of the voting power of the then-outstanding shares of
capital stock of New DraftKings, all stockholder actions must be taken at a meeting of New DraftKings stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Amendment of Amended and Restated Articles
of Incorporation or Bylaws</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Nevada law provides generally that a
resolution of the board of directors is required to propose an amendment to a corporation&rsquo;s articles of incorporation
and that the amendment must be approved by the affirmative vote of a majority of the voting power of all classes entitled to
vote, as well as a majority of any class adversely affected. Nevada law also provides that the corporation&rsquo;s bylaws,
including any bylaws adopted by its stockholders, may be amended by the board of directors and that the power to adopt, amend
or repeal the bylaws may be granted exclusively to the directors in the corporation&rsquo;s articles of incorporation. New
DraftKings&rsquo; amended and restated articles of incorporation provide that, except as otherwise provided by applicable
law, amendments to the Proposed Charter must be approved by (1) a majority of the combined voting power of all shares of New
DraftKings capital stock entitled to vote, voting together as a single class, so long as shares representing a majority of
the voting power of all of the then-outstanding shares of capital stock of New DraftKings entitled to vote is beneficially
owned by Mr. Robins or (2) two-thirds of the combined voting power of all shares entitled to vote, voting together as a
single class, thereafter. The New DraftKings amended and restated articles of incorporation and bylaws provide that the New
DraftKings amended and restated bylaws may be amended or repealed by either the affirmative vote of a majority of the New
DraftKings board of directors or by the affirmative vote of stockholders representing a majority of the voting power of all
of the then-outstanding shares of capital stock of New DraftKings entitled to vote, while Mr. Robins beneficially owns shares
representing at least a majority of the voting power of the capital stock of New DraftKings, or, thereafter, by the
affirmative vote of stockholders representing at least two-thirds or more of the voting power of New DraftKings capital
stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Business Combinations</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The &ldquo;business combination&rdquo; provisions
of Sections 78.411 to 78.444, inclusive, of the NRS generally prohibit a publicly traded 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 up to
four years after the date of the transaction in which the person became an interested stockholder, unless the combination or transaction
was approved by the board of directors before such person became an interested stockholder or the combination is approved by the
board of directors, if within two years after the date in which the person became an interested stockholder, and is approved at
a meeting of the stockholders by the affirmative vote of stockholders representing at least 60% (for a combination within two years
after becoming an interested stockholder) or a majority (for combinations between two and four years thereafter) of the outstanding
voting power held by disinterested stockholders. Alternatively, a corporation may engage in a combination with an interested stockholder
more than two years after such person becomes an interested stockholder if:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the consideration to be paid to the holders of the corporation&rsquo;s stock, other than 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 the transaction in which it became an interested stockholder, whichever
is higher, plus interest compounded annually, (b) the market value per share of common stock on the date of announcement of the
combination or the date the interested stockholder acquired the shares, whichever is higher, less certain dividends paid or (c)
for holders of preferred stock, the highest liquidation value of the preferred stock, if it is higher; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the interested stockholder has not become the owner of any additional voting shares since the date of becoming an interested
stockholder except by certain permitted transactions.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">A &ldquo;combination&rdquo; is generally
defined to include (i) mergers or consolidations with the &ldquo;interested stockholder&rdquo; or an affiliate or associate of
the interested stockholder, (ii) any sale, lease exchange, mortgage, pledge, transfer or other disposition of assets of the corporation,
in one transaction or a series of transactions, to or with the interested stockholder or an affiliate or associate of the interested
stockholder: (a) having an aggregate market value equal to 5% or more of the aggregate market value of the assets of the corporation,
(b) having an aggregate market value equal to 5% or more of the aggregate market value of all outstanding shares of the corporation
or (c) representing more than 10% of the earning power or net income (determined on a consolidated basis) of the corporation, (iii)
any issuance or transfer of securities to the interested stockholder or an affiliate or associate of the interested stockholder,
in one transaction or a series of transactions, having an aggregate market value equal to 5% or more of the aggregate market value
of all of the outstanding voting shares of the corporation (other than under the exercise of warrants or rights to purchase shares
offered, or a dividend or distribution made pro rata to all stockholders of the corporation), (iv) adoption of a plan or proposal
for liquidation or dissolution of the corporation with the interested stockholder or an affiliate or associate of the interested
stockholder and (v) certain other transactions having the effect of increasing the proportionate share of voting securities beneficially
owned by the interested stockholder or an affiliate or associate of the interested stockholder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In general, an &ldquo;interested stockholder&rdquo;
means any person who (i) beneficially owns, directly or indirectly, 10% or more of the voting power of the outstanding voting shares
of a corporation, or (ii) is an affiliate or associate of the corporation that beneficially owned, within two years prior to the
date in question, 10% or more of the voting power of the then-outstanding shares of the corporation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">New DraftKings has opted out of these provisions
in its amended and restated articles of incorporation until Mr. Robins ceases to beneficially own shares of common stock of New
DraftKings representing at least 15% of the outstanding voting stock of New DraftKings.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Control Share Acquisitions</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The &ldquo;control share&rdquo;
provisions of Sections 78.378 to 78.3793, inclusive, of the NRS apply to &ldquo;issuing corporations&rdquo; that are Nevada
corporations doing business, directly or through an affiliate, in Nevada, and having at least 200 stockholders of record,
including at least 100 of whom have addresses in Nevada appearing on the stock ledger of the corporation. The control share
statute prohibits an acquirer, under certain circumstances, from voting its &ldquo;control shares&rdquo; of an issuing
corporation&rsquo;s stock after crossing certain ownership threshold percentages, unless the acquirer obtains approval of the
issuing corporation&rsquo;s disinterested stockholders or unless the issuing corporation amends its articles of incorporation
or bylaws within 10 days of the acquisition. The statute specifies three thresholds: one-fifth or more but less than
one-third, one-third but less than a majority, and a majority or more, of the outstanding voting power of a corporation.
Generally, once an acquirer crosses one of the foregoing thresholds, those shares acquired in an acquisition or offer to
acquire in an acquisition and acquired within 90 days immediately preceding the date that the acquirer crosses one of the
thresholds become &ldquo;control shares,&rdquo; and such control shares are deprived of the right to vote until disinterested
stockholders restore the right. In addition, the corporation, if provided in its articles of incorporation or bylaws in
effect on the tenth (10th) day following the acquisition of a controlling interest, may cause the redemption of all of the
control shares at the average price paid for such shares if the stockholders do not accord the control shares full voting
rights. If control shares are accorded full voting rights and the acquiring person has acquired a majority or more of all
voting power, all other stockholders who did not vote in favor of authorizing voting rights to the control shares are
entitled to demand payment for the fair value of their shares in accordance with statutory procedures established for
dissenters&rsquo; rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">New DraftKings has opted out of these provisions
in its amended and restated articles of incorporation until Mr. Robins ceases to beneficially own shares of common stock of New
DraftKings representing at least 15% of the outstanding voting stock of New DraftKings. After such time, New DraftKings may opt
out of the &ldquo;control share&rdquo; statute by amending its articles of incorporation or bylaws within 10 days of the acquisition
as provided by Nevada law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Limitations on Liability and Indemnification of Officers
and Directors</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">New DraftKings&rsquo; amended and restated
articles of incorporation eliminate the liability of New DraftKings officers and directors to the fullest extent permitted by Nevada
law. Nevada law provides that New DraftKings directors and officers will not be individually liable to us, New DraftKings stockholders
or New DraftKings creditors for any damages for any act or failure to act in the capacity of a director or officer other than in
circumstances where both (i) the presumption that the director or officer acted in good faith, on an informed basis and with a
view to the interests of the corporation has been rebutted, and (ii) the act or failure to act of the director or officer is proven
to have been a breach of his or her fiduciary duties as a director or officer and such breach is proven to have involved intentional
misconduct, fraud or a knowing violation of law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">New DraftKings&rsquo; amended and restated
articles of incorporation and bylaws also provide for indemnification for New DraftKings&rsquo; directors and officers to the fullest
extent permitted by Nevada law. New DraftKings intends to enter into indemnification agreements with each of its directors that
may, in some cases, be broader than the specific indemnification provisions contained under Nevada law. The effect of these provisions
is to restrict New DraftKings rights and the rights of New DraftKings stockholders in derivative suits to recover any damages against
a director for breach of fiduciary duties as a director, because a director will not be individually liable for acts or omissions,
except where the act or failure to act constituted a breach of fiduciary duty and such breach involved intentional misconduct,
fraud or a knowing violation of law, and the presumption that the director or officer acted in good faith, on an informed basis,
and with a view to the interests of the corporation, has been rebutted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">These provisions may be held not to be enforceable
for certain violations of the federal securities laws of the United States.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">New DraftKings is also expressly authorized
to carry directors&rsquo; and officers&rsquo; insurance to protect its directors, officers, employees and agents against certain
liabilities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The limitation of liability and indemnification
provisions under Nevada law and in New DraftKings&rsquo; amended and restated articles of incorporation and amended and restated
bylaws may discourage stockholders from bringing a lawsuit against directors for breach of their fiduciary duties. These provisions
may also have the effect of reducing the likelihood of derivative litigation against directors and officers, even though such an
action, if successful, might otherwise benefit New DraftKings and New DraftKings stockholders. However, these provisions do not
limit or eliminate New DraftKings rights, or those of any stockholder, to seek non-monetary relief such as injunction or rescission
in the event of a breach of a director&rsquo;s fiduciary duties. Moreover, the provisions do not alter the liability of directors
under the federal securities laws. In addition, your investment may be adversely affected to the extent that, in a class action
or direct suit, New DraftKings pays the costs of settlement and damage awards against directors and officers pursuant to these
indemnification provisions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The foregoing provisions of New
DraftKings&rsquo; amended and restated articles of incorporation and amended and restated bylaws could discourage potential
acquisition proposals and could delay or prevent a change in control. These provisions are intended to enhance the likelihood
of continuity and stability in the composition of New DraftKings&rsquo; board of directors and in the policies formulated by
New DraftKings&rsquo; board of directors and to discourage certain types of transactions that may involve an actual or
threatened change of control. These provisions are designed to reduce New DraftKings&rsquo; vulnerability to an unsolicited
acquisition proposal. The provisions also are intended to discourage certain tactics that may be used in proxy fights.
However, such provisions could have the effect of discouraging others from making tender offers for New DraftKings shares
and, as a consequence, they also may inhibit fluctuations in the market price of New DraftKings shares of Class A common
stock that could result from actual or rumored takeover attempts. Such provisions also may have the effect of preventing
changes in New DraftKings management or delaying or preventing a transaction that might benefit you or other minority
stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Corporate Opportunities</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In anticipation that Mr. Robins may engage
in activities or lines of business similar to those in which New DraftKings engages, New DraftKings&rsquo; amended and restated
articles of incorporation provide for, to the fullest extent permitted under Nevada law, the renouncement by New DraftKings of
all interest and expectancy that New DraftKings otherwise would be entitled to have in, and all rights to be offered an opportunity
to participate in, any business opportunity that from time to time may be presented to any director, stockholder, officer or agent
of New DraftKings (or any affiliate thereof), other than an employee of New DraftKings or any of its subsidiaries. Specifically,
no holder of shares of common stock, nor any non-employee director, of New DraftKings has any duty to refrain from engaging in
the same or similar business activities or lines of business that New DraftKings does or otherwise competing with New DraftKings.
In the event that any holder of shares of common stock of New DraftKings or any director that is not an employee of New DraftKings
or its subsidiaries acquires knowledge of a potential transaction or matter which may be a corporate opportunity for itself and
New DraftKings, that person will not have any duty to communicate or offer such corporate opportunity to New DraftKings and may
pursue or acquire such corporate opportunity for itself or direct such opportunity to another person.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">To the fullest extent permitted by Nevada
law, no potential transaction or business opportunity may be deemed to be a potential corporate opportunity of New DraftKings or
its subsidiaries unless (a) New DraftKings and its subsidiaries would be permitted to undertake such transaction or opportunity
in accordance with the New DraftKings amended and restated articles of incorporation, (b) New DraftKings and its subsidiaries at
such time have sufficient financial resources to undertake such transaction or opportunity and (c) such transaction or opportunity
would be in the same or similar line of business in which New DraftKings and its subsidiaries are then engaged or a line of business
that is reasonably related to, or a reasonable extension of, such line of business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Redemption Rights and Transfer Restrictions with Respect
to Capital Stock Held by Unsuitable Persons and Their Affiliates</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Proposed Charter provides that any
common stock or any other equity securities of New DraftKings, or securities exchangeable or exercisable for, or convertible
into, such other equity securities of New DraftKings owned or controlled by a person whom the board determines in good faith
(following consultation with reputable outside gaming regulatory counsel) pursuant to a resolution adopted by the unanimous
affirmative vote of all of the disinterested members of the New DraftKings board of directors (i) fails or refuses to file an
application (or fails or refuses, as an alternative, to otherwise formally request from the relevant Gaming Authority a
waiver or similar relief from filing such application) within 30 days (or such shorter period imposed by any gaming
authority, including any extensions of that period granted by the relevant gaming authority, but in no event more than such
original thirty (30) days) after having been requested in writing and in good faith to file an application by New DraftKings
(based on consultation with reputable outside gaming regulatory counsel), or has withdrawn or requested the withdrawal of a
pending application (other than for technical reasons with the intent to promptly file an amended application following such
withdrawal), to be found suitable by any gaming authority or for any gaming license when such finding of suitability or
gaming license is required by gaming laws or gaming authorities for the purpose of obtaining a material gaming license for,
or compliance with material gaming laws by New DraftKings &ldquo;or any affiliated company&rdquo;, (ii) is denied or
disqualified from eligibility for any material gaming license by any gaming authority, (iii) is determined by a gaming
authority in any material gaming jurisdiction to be unsuitable to own or control any equity interests, or be affiliated,
associated or involved with a person engaged in gaming activities, (iv) is determined by a gaming authority to have caused,
in whole or in part, any material gaming license of New DraftKings or any affiliated company to be lost, rejected, rescinded,
suspended, revoked or not renewed by any gaming authority, or to have cause, in whole or in part, New DraftKings or any
affiliated company to be threatened by any gaming authority with the loss, rejection, rescission, suspension, revocation or
non-renewal of any material gaming license (in each of&#8201; (ii) through (iv) above, only if such denial, disqualification
or determination by a gaming authority is final and non-appealable), or (v) is reasonably likely to (1) preclude or
materially delay, impede, impair, threaten or jeopardize any material gaming license held or desired in good faith to be held
by New DraftKings or any affiliated company or New DraftKings&rsquo; or any affiliated company&rsquo;s application for, right
to the use of, entitlement to, or ability to obtain or retain, any material gaming license held or desired in good faith to
be held by New DraftKings or any affiliated company, or (2) cause or otherwise be reasonably likely to result in the
imposition of any materially burdensome terms or conditions on any material gaming license held or desired to be held by New
DraftKings or any affiliated company (each of such persons, an &ldquo;Unsuitable Person&rdquo;) or its affiliates will be
subject to mandatory sale and transfer on the terms and conditions set forth in the Proposed Charter to either New DraftKings
or one or more third-party transferees (as described in the Proposed Charter) and in such number and class(es)/series as
determined by the New DraftKings board of directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<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-indent: 0.5in">Any such sale or transfer will not occur
until the later to occur of: (i) delivery to the Unsuitable Person of a copy of a resolution duly adopted by the unanimous affirmative
vote of all of the disinterested members of the New DraftKings board of directors at a meeting thereof called and held for the
purpose (after providing reasonable notice to such person and a reasonable opportunity for such person, together with their counsel,
to be heard and to provide documents and written arguments), finding that the New DraftKings board of directors has determined
in good faith (following consultation with reputable outside gaming regulatory counsel) that (A) such person is an Unsuitable Person
and (B) it is necessary for such person or an affiliate of such person (as applicable) to sell and transfer such number and class(es)/series
of equity interests in order for New DraftKings or an affiliated company to: (1) obtain, renew, maintain or prevent the loss, rejection,
rescission, suspension, revocation or non-renewal of a material gaming license; (2) comply in any material respect with a material
gaming law; (3) ensure that any material gaming license held or desired in good faith to be held by New DraftKings or any affiliated
company, or New DraftKings&rsquo; or any affiliated company&rsquo;s application for, right to the use of, entitlement to, or ability
to obtain or retain, any material gaming license held or desired in good faith to be held by New DraftKings or any affiliated company,
is not precluded, delayed, impeded, impaired, threatened or jeopardized in any material respect; or (4) prevent the imposition
of any materially burdensome terms or conditions on any material gaming license held or desired in good faith to be held by New
DraftKings or any affiliated company, and specifying the reasoning for such determinations in reasonable detail, and (ii) conclusion
of any arbitration process brought in accordance with the provisions of the Proposed Charter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Following (x) the determination of unsuitability
by the New DraftKings board of directors and (y) if applicable, an arbitrator determining that such determinations were made in
good faith by the New DraftKings board of directors, New DraftKings will deliver a transfer notice to the Unsuitable Person or
its affiliate(s) and will purchase and/or cause one or more third-party transferees to purchase such number and class(es)/series
of equity interests determined in good faith by the New DraftKings board of directors for the purchase price set forth in the transfer
notice, which will be determined in accordance with the Proposed Charter; provided that an Unsuitable Person or its affiliate(s)
will be permitted, during the 45-day period commencing on the date of the transfer notice (or before a transfer notice is formally
delivered), to effect and close a disposition of the number and class(es)/series of equity interests specified in the transfer
notice (or a portion of them) to a person that the New DraftKings board of directors determines in good faith (following consultation
with reputable outside gaming regulatory counsel) is not an Unsuitable Person, on terms agreed between the Unsuitable Person and
such person (an &ldquo;Alternate Private Transaction&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">At the closing of a sale and transfer other
than an Alternate Private Transaction, (i) New DraftKings or the third-party transferee(s) (as applicable), will deliver the aggregate
applicable purchase price for the equity interests being purchased by each of the foregoing by wire transfer of immediately available
funds to the account specified in writing by the Unsuitable Person or an affiliate of such Unsuitable Person (as applicable) in
the case of third-party transferees, by unsecured promissory note in the case of New DraftKings, or a combination of both in the
case of New DraftKings in such proportion as it may determine in its sole and absolute discretion and (ii) the Unsuitable Person
or affiliate thereof will deliver to New DraftKings or each such third-party transferee, such stock powers, assignment instruments
and other agreements as are necessary or appropriate to fully convey all right, title and interest in and to the equity interests
being purchased by each of the foregoing, free and clear of all liens and other encumbrances and to evidence the subordination
of any promissory note if and only to the extent required by any debt obligations of New DraftKings (and to the minimum extent
required pursuant to such subordination arrangement).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Proposed Charter provides that, in
the case of a sale and transfer to New DraftKings, from and after the transfer date and subject only to the right to receive
the purchase price for such equity interests, the equity interests will be deemed no longer outstanding and the Unsuitable
Person or any affiliate thereof will cease to be a stockholder, and all rights of such Unsuitable Person or any affiliate
thereof, other than the right to receive the purchase price, will cease. In the case of an Alternate Private Transaction or a
transfer to one or more third-party transferees, from and after the earlier to occur of: (i) the transfer date, in the case
of a transfer to one or more such third-party transferees, or (ii) consummation of an Alternate Private Transaction, subject
only to the right to receive the purchase price for such Unsuitable Person&rsquo;s equity securities, all rights and
entitlements of the Unsuitable Person or any affiliates thereof will be terminated, including, without limitation, any such
person will from such date no longer be entitled to: (i) receive any dividend, payment, distribution or interest with regard
to the applicable equity interests which has been declared following such date or of which the due payment date according to
the applicable declaration is following such date, other than the right to receive the purchase price or (ii) to exercise,
directly or indirectly or through any proxy, trustee, or nominee, any voting or other right (including, without limitation,
observer and information rights) conferred by the underlying equity interests.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<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-indent: 0.5in">Further, to the extent that a sale and transfer
to one or more third-party transferees is determined to be invalid or unenforceable for any reason, New DraftKings will be permitted
to redeem or repurchase the equity interests owned or controlled by an Unsuitable Person or an affiliate thereof for the price
and under the terms contemplated by the Proposed Charter promptly following any such determination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Dissenters&rsquo; Rights of Appraisal and Payment</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Under Nevada law, subject to certain exceptions
and conditions, as long as shares of Class A common stock are traded on Nasdaq, holders of shares of New DraftKings Class A common
stock will not have dissenters&rsquo; rights to payment of an appraised fair value for such shares in connection with a plan of
merger, conversion or exchange, unless such action requires holders of a class or series of shares to accept for such shares anything
other than cash, certain publicly traded shares or securities of certain investment companies redeemable at the option of the holder.
To the extent that dissenters&rsquo; rights may be available under Nevada law, stockholders who properly request and perfect such
rights in connection with such merger or consolidation will have the right to receive payment of the fair value of their shares
as determined by the Nevada court.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Stockholders&rsquo; Derivative Actions</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Under Nevada law, any of New DraftKings&rsquo;
stockholders may bring an action in New DraftKings&rsquo; name to procure a judgment in New DraftKings&rsquo; favor, also known
as a derivative action, provided that the stockholder bringing the action was a holder of New DraftKings shares at the time of
the transaction to which the action relates or such stockholder&rsquo;s stock thereafter devolved by operation of law and such
suit is brought in a Nevada court. See &ldquo;<I>Exclusive Forum</I>&rdquo; above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Transfer Agent and Registrar</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The transfer agent for New DraftKings Class
A common stock and warrants will be Computershare Trust Company, N.A.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="b_021"></A>BENEFICIAL
OWNERSHIP OF SECURITIES</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following table sets forth information
regarding (i) the actual beneficial ownership of shares of Class A common stock of DEAC Nevada as of April 13, 2020 and (ii) expected
beneficial ownership of New DraftKings common stock immediately following the Closing (assumed as April 23, 2020), assuming that
no public shares are redeemed, and alternatively that 30,564,789 public shares are redeemed, by:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>each person who is, or is expected to be, the beneficial owner of more than 5% of issued and outstanding shares of our common
stock or of New DraftKings Class A common stock or New DraftKings Class B common stock;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>each of our current executive officers and directors;</TD></TR></TABLE>

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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>each person who will become an executive officer or director of New DraftKings post-Business Combination; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>all executive officers and directors of DEAC as a group pre-Business Combination and all executive officers and directors of
New DraftKings post-Business Combination.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Beneficial ownership is determined according
to the rules of the SEC, which generally provide that a person has beneficial ownership of a security if he, she or it possesses
sole or shared voting or investment power over that security, including options and warrants that are currently exercisable or
exercisable within 60 days.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The beneficial ownership of shares of Class
A common stock of DEAC Nevada pre-Business Combination is based on one share of Class A common stock issued and outstanding as
of April 13, 2020.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The expected beneficial ownership of shares
of New DraftKings common stock post-Business Combination assuming none of the public shares are redeemed has been determined based
upon the following: (i) that no public stockholders exercise their redemption rights (no redemptions scenario), (ii) that none
of the investors set forth in the table below has purchased or purchases shares of DEAC common stock (pre-Business Combination)
or New DraftKings common stock (post-Business Combination), (iii) that 41,725,831 shares of DEAC Class A common stock (which will
be exchanged for shares of New DraftKings Class A common stock in the reincorporation) are issued to the PIPE Investors, including
to holders of Convertible Notes, (iv) that 186,831,051 shares of New DraftKings Class A common stock are issued to the DK Equityholders
(which excludes (a) shares held by non-accredited investors that will be cashed out at Closing and (b) 43.2 million in restricted
stock units that DraftKings expects to issue prior to Closing and that will be unvested at Closing), applying a 0.3546 exchange
ratio, and 393,954,594 shares of New DraftKings Class B common stock are issued to Jason Robins, (v) that 40,861,997 shares of
New DraftKings Class A common stock are issued to the SBT Sellers, applying a 1,001.5 exchange ratio (and a $1.090 to &euro;1.00
exchange rate), (vi) the DEAC Founders forfeit an aggregate of 270,000 founder shares in connection with the Closing and (vii)
there will be an aggregate of 313,077,942 shares of New DraftKings Class A common stock and 393,954,594 shares of New DraftKings
Class B common stock issued and outstanding at Closing (excluding 6,000,000 Earnout Shares held in escrow, which may be released
to the DEAC Founders, the DK Equityholders and the SBT Sellers subject to the achievement of certain stock price targets).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The expected beneficial ownership of shares
of New DraftKings common stock post-Business Combination assuming the maximum number of public shares have been redeemed has been
determined based on the following: (i) that holders of 30,564,789 public shares exercise their redemption rights (based on $403,961,209
held in trust as of December 31, 2019 and a redemption price of $10.10 per share) (maximum redemptions scenario), (ii) that none
of the investors set forth in the table below has purchased or purchases shares of DEAC common stock (pre-Business Combination)
or New DraftKings common stock (post-Business Combination), (iii) that 41,725,831 shares of DEAC Class A common stock (which will
be exchanged for shares of New DraftKings Class A common stock in the reincorporation) are issued to the PIPE Investors, including
to holders of Convertible Notes, (iv) that 186,831,051 shares of New DraftKings Class A common stock are issued to the DK Equityholders
(which excludes (a) shares held by non-accredited investors that will be cashed out at Closing and (b) 43.2 million in restricted
stock units that DraftKings expects to issue prior to Closing and that will be unvested at Closing), applying a 0.3546 exchange
ratio, and 366,446,284 shares of New DraftKings Class B common stock are issued to Jason Robins, (v) that 40,861,997 shares of
New DraftKings Class A common stock are issued to the SBT Sellers, applying a 1,001.5 exchange ratio (and a $1.090 to &euro;1.00
exchange rate), (vi) the DEAC Founders forfeit an aggregate of 270,000 founder shares in connection with the Closing and (vii)
there will be an aggregate of 282,513,153 shares of New DraftKings Class A common stock and 366,446,284 shares of New DraftKings
Class B common stock issued and outstanding at Closing (excluding 6,000,000 Earnout Shares held in escrow, which may be released
to the DEAC Founders, the DK Equityholders and the SBT Sellers subject to the achievement of certain stock price targets).</P>

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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="10" STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 7pt"><B>Before
                                         the Business</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 7pt"><B>Combination</B></FONT></P></TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="38" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt">After
    the Business Combination</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="18" STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 7pt"><B>Assuming
No<BR>
Redemption</B></FONT></P>

</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="18" STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt">Assuming
    Maximum <BR> Redemption</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap; border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">Name
    and Address of<BR> &nbsp;Beneficial Owner</FONT></TD><TD STYLE="white-space: nowrap; text-align: center; font-size: 10pt; font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt">Number
    of <BR> shares of<BR> &nbsp;Class A <BR> common<BR> &nbsp;stock</FONT></TD><TD STYLE="white-space: nowrap; text-align: center; padding-bottom: 1pt; font-size: 10pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="white-space: nowrap; text-align: center; font-size: 10pt; font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt">%</FONT></TD><TD STYLE="white-space: nowrap; text-align: center; padding-bottom: 1pt; font-size: 10pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="white-space: nowrap; text-align: center; font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>%
                                         of</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>Total</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>Voting</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>Power**</B></FONT></P></TD><TD STYLE="white-space: nowrap; text-align: center; padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="white-space: nowrap; text-align: center; font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>Number
                                         of</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>shares
                                         of</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>New</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>DraftKings</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>Class
                                         A</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>Common</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>Stock</B></FONT></P></TD><TD STYLE="white-space: nowrap; text-align: center; padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="white-space: nowrap; text-align: center; font-size: 10pt; font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt">%</FONT></TD><TD STYLE="white-space: nowrap; text-align: center; padding-bottom: 1pt; font-size: 10pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="white-space: nowrap; text-align: center; font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>Number
                                         of</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>shares
                                         of</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>New</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>DraftKings</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>Class
                                         B</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>Common</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>Stock</B></FONT></P></TD><TD STYLE="white-space: nowrap; text-align: center; padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="white-space: nowrap; text-align: center; font-size: 10pt; font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt">%</FONT></TD><TD STYLE="white-space: nowrap; text-align: center; padding-bottom: 1pt; font-size: 10pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="white-space: nowrap; text-align: center; font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>%
                                         of</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>Total</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>Voting</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>Power**</B></FONT></P></TD><TD STYLE="white-space: nowrap; text-align: center; padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="white-space: nowrap; text-align: center; font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>Number
                                         of</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>shares
                                         of</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>New</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>DraftKings</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>Class
                                         A</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>Common</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>Stock</B></FONT></P></TD><TD STYLE="white-space: nowrap; text-align: center; padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="white-space: nowrap; text-align: center; font-size: 10pt; font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt">%</FONT></TD><TD STYLE="white-space: nowrap; text-align: center; padding-bottom: 1pt; font-size: 10pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="white-space: nowrap; text-align: center; font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>Number
                                         of</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>shares
                                         of</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>New</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>DraftKings</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>Class
                                         B</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>Common</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>Stock</B></FONT></P></TD><TD STYLE="white-space: nowrap; text-align: center; padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="white-space: nowrap; text-align: center; font-size: 10pt; font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center"><FONT STYLE="font-size: 7pt">%</FONT></TD><TD STYLE="white-space: nowrap; text-align: center; padding-bottom: 1pt; font-size: 10pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="white-space: nowrap; text-align: center; font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>%
                                         of</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>Total</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>Voting</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>Power**</B></FONT></P></TD><TD STYLE="text-align: center; padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -7.35pt; padding-left: 7.35pt; width: 9%"><FONT STYLE="font-size: 7pt">Eagle
    Equity Partners,<BR>
    LLC<SUP>(1)(2)</SUP></FONT></TD><TD STYLE="width: 1%; font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="width: 4%; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="width: 1%; font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="width: 4%; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="width: 1%; font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="width: 4%; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="width: 1%; font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="width: 4%; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">2,718,529</FONT></TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="width: 1%; font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="width: 4%; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="width: 1%; font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="width: 4%; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="width: 1%; font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="width: 4%; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="width: 1%; font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="width: 4%; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="width: 1%; font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="width: 4%; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">2,718,529</FONT></TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="width: 1%; font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="width: 4%; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">1.0</FONT></TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">%</FONT></TD><TD STYLE="width: 1%; font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="width: 4%; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="width: 1%; font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="width: 4%; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="width: 1%; font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="width: 4%; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">Jeff Sagansky<SUP>(1)(2)</SUP></FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">2,718,529</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">2,718,529</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">1.0</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">%</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">Eli Baker<SUP>(1)(2)</SUP></FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">2,718,529</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">2,718,529</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">1.0</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">%</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; text-indent: -7.35pt; padding-left: 7.35pt"><FONT STYLE="font-size: 7pt">All
    Directors and Executive<BR> Officers of DEAC Nevada as a Group <BR> (Two Individuals)</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt">2,718,529</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt"><B>*</B></FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt"><B>*</B></FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt">2,718,529</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt">1.0</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">%</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt"><B>*</B></FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; font-style: italic; text-align: left; text-indent: -7.35pt; padding-left: 7.35pt"><FONT STYLE="font-size: 7pt">Directors
    and Executive Officers of<BR> New DraftKings After<BR> &nbsp;Consummation of the Business <BR> Combination</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">Jason Robins<SUP>(3)(4)(5)</SUP></FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">8,477,273</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">2.6</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">%</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">393,954,594</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">100</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">%</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">92.7</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">%</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">8,477,273</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">2.9</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">%</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">366,446,284</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">100</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">%</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">92.9</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">Matthew Kalish<SUP>(3)(5)(6)</SUP></FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">4,029,059</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">1.3</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">%</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">4,029,059</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">1.4</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">%</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">Paul Liberman<SUP>(3)(5)(7)</SUP></FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">4,675,105</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">1.5</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">%</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">4,675,105</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">1.6</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">%</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">M. Gavin Isaacs<SUP>(8)(9)</SUP></FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">480,729</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">480,729</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">Woodrow Levin<SUP>(3)(5)(10)</SUP></FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">413,438</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">413,438</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">Shalom Meckenzie<SUP>(8)(11)</SUP></FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">34,732,698</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">11.1</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">%</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">34,732,698</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">12.3</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">%</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">Ryan R. Moore<SUP>(3)(5)(12)</SUP></FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">10,445,673</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">3.3</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">%</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">10,445,673</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">3.7</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">%</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">Steven J. Murray<SUP>(3)(5)(13)</SUP></FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">7,789,689</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">2.5</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">%</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">7,789,689</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">2.8</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">%</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">Hany M. Nada<SUP>(3)(5)(14)</SUP></FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">7,231,531</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">2.3</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">%</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">7,231,531</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">2.6</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">%</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">Richard Rosenblatt<SUP>(3)(15)</SUP></FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">225,071</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">225,071</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">John S. Salter<SUP>(3)(5)(16)</SUP></FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">22,824,818</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">7.3</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">%</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">22,824,818</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">8.1</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">%</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">Harry E. Sloan<SUP>(1)(17)</SUP></FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">2,718,528</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">2,718,528</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">1.0</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">%</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">Marni M. Walden<SUP>(3)(18)</SUP></FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">90,136</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">90,136</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">R. Stanton Dodge<SUP>(3)(19)</SUP></FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">1,739,199</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">1,739,199</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">Jason Park<SUP>(3)(20)</SUP></FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">253,878</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">253,878</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; text-indent: -7.35pt; padding-left: 7.35pt"><FONT STYLE="font-size: 7pt"><B>All
    Directors and Executive <BR STYLE="clear: both"> Officers of New DraftKings as a Group (15 <I>Individuals</I>)</B></FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt">106,126,823</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt">32.1</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">%</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt">393,954,594</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt">100</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">%</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt">94.7</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">%</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt">106,126,823</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt">35.4</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">%</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt">366,446,284</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt">100</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">%</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 7pt">95.1</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left"><FONT STYLE="font-size: 7pt">%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; font-style: italic; text-align: left"><FONT STYLE="font-size: 7pt">Five Percent
    Holders:</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">Shalom Meckenzie<SUP>(8)</SUP></FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">34,732,698</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">11.1</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">%</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">34,732,698</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">12.3</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">%</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">RPII DK LLC<SUP>(3)(5)</SUP></FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">22,824,818</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">7.3</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">%</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">22,824,818</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">8.1</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">%</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -7.35pt; padding-left: 7.35pt"><FONT STYLE="font-size: 7pt">TFCF
    Sports Enterprises,&nbsp;<BR> LLC<SUP>(3)(5)</SUP></FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">18,599,456</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">5.9</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">%</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">18,599,456</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">6.6</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">%</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 7pt">*</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
</TABLE>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<!-- Field: Rule-Page --><DIV STYLE="margin-top: 3pt; margin-bottom: 3pt; width: 25%"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 1pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">*</TD><TD>Less than one percent.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">**</TD><TD>Percentage of total voting power represents voting power with respect
                                         to all shares of New DraftKings Class A common stock and Class B common stock, as a single
                                         class. After the Business Combination, each share of New DraftKings Class B common stock
                                         will be entitled to ten votes per share and each share of New DraftKings Class A common
                                         stock will be entitled to one vote per share. For <I>m</I>ore information about the voting
                                         rights of New DraftKings common stock after the Business Combination, see <I>&ldquo;Description
                                         of Securities&#8201;-&#8201;New DraftKings Common Stock.&rdquo; </I></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(1)</TD><TD>The business address of each of these shareholders is 2121 Avenue of the Stars, Suite 2300, Los Angeles, CA 90067.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(2)</TD><TD>Eagle Equity Partners, LLC is the record holder of the shares reported herein. Messrs. Baker and Sagansky are the members and
managers of Eagle Equity Partners, LLC and share voting and investment discretion with respect to the common stock held of record
by Eagle Equity Partners, LLC. Pre-Business Combination amounts consist entirely of founder shares, which will be exchanged for
shares of New DraftKings Class A common stock in connection with the reincorporation and the Closing, and excludes 2,833,335 shares
of Class A common stock underlying private placement warrants that will only become exercisable 30 days after completion of an
initial business combination. Post-Business Combination amounts include 929,100 shares
underlying private placement warrants and excludes (i) 158,279 founder shares which the Sponsor will forfeit in connection with
the Closing, (ii) 3,036,291 Earnout Shares which will be placed in escrow at the Closing, (iii) 36,001 founder shares which will
be forfeited and which value will be added to the value used in the formula of the SBT Share Exchange Ratio for the benefit of
the SBT Equityholders in connection with the Closing and (iv) an aggregate of 1,904,235 private placement warrants which will be
forfeited to New DraftKings in connection with the Closing.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(3)</TD><TD>The business address of each of these shareholders is 222 Berkeley Street, 5th Floor, Boston, MA 02116.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(4)</TD><TD>Includes 1,318,093 shares of New DraftKings Class A common stock and 7,025,013 vested options to exercise New DraftKings Class
A common stock beneficially owned by Mr. Robins, Jason Robins Revocable Trust u/d/t January 8, 2014 and/or Robins Family Trust,
for which Mr. Robins has sole investment and voting power. Also includes 126,112 shares of unvested DraftKings common stock that
will vest within 60 days of the Closing of the Business Combination.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(5)</TD><TD>Includes such holder&rsquo;s pro rata portion of New DraftKings Class A common stock underlying the private placement warrants
transferred from the DEAC Founders to DK Equityholders that will become exercisable 30 days after the completion of the Business
Combination as follows: 8,055 shares to Mr. Robins and entities affiliated with him; 7,174 shares to Mr. Kalish; 6,792 shares to
Mr. Liberman; 1,964 shares to Mr. Levin; 63,450 shares to Mr. Moore either directly or indirectly through entities affiliated with
him; 47,317 to Mr. Murray either directly or indirectly through entities affiliated with him; 43,926 shares to Mr. Nada either
directly or indirectly through entities affiliated with him; 138,644 shares to RPII DK LLC, for which Mr. Salter would have share
investment and voting power; and 112,978 shares to TFCF Sports Enterprises, LLC.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(6)</TD><TD>Includes 1,173,797 shares of New DraftKings Class A common stock and 2,805,947 vested options to exercise New DraftKings Class
A common stock and 42,141 shares of unvested DraftKings common stock that will vest within 60 days of the Closing of the Business
Combination.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(7)</TD><TD>Includes 1,111,306 shares of New DraftKings Class A common stock and 3,514,866 vested options to exercise New DraftKings Class
A common stock and 42,141 shares of unvested DraftKings common stock that will vest within 60 days of the Closing of the Business
Combination.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(8)</TD><TD>The business address of Messrs. Isaacs and Meckenzie is c/o Herzog Fox &amp; Neeman, Asia House, 4 Weizman St. Tel Aviv 6423904,
Israel.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(9)</TD><TD>Represents vested options to exercise New DraftKings Class A common stock.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(10)</TD><TD>Includes 321,304 shares of New DraftKings Class A common stock and 83,040 vested options to exercise New DraftKings Class A
common stock and 7,130 shares of unvested DraftKings common stock that will vest within 60 days of the Closing of the Business
Combination.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(11)</TD><TD>Represents shares of New DraftKings Class A common stock.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(12)</TD><TD>Represents shares of New DraftKings Class A common stock held by entities affiliated with Mr. Moore for which he shares investment
and voting control.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(13)</TD><TD>Represents shares of New DraftKings Class A common stock held by Revolution Growth III, LP, for which Mr. Murray shares in
investment and voting control.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(14)</TD><TD>Represents shares of New DraftKings Class A common stock held by ACME SPV DK, LLC, for which Mr. Nada shares investment and
voting control.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(15)</TD><TD>Represents 221,244 vested options to exercise New DraftKings Class A common stock and 3,826 shares of unvested DraftKings common
stock that will vest within 60 days of the Closing of the Business Combination.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(16)</TD><TD>Represents shares of New DraftKings Class A common stock held by RPII DK LLC, for which Mr. Salter shares investment and voting
control.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(17)</TD><TD>Pre-Business Combination amounts consist entirely of founder shares, which will be exchanged for shares of New DraftKings Class
A common stock in connection with the reincorporation and the Closing, and exclude 3,166,667 shares of Class A common stock underlying
the private placement warrants that will only become exercisable 30 days after completion of an initial business combination. Post-Business
Combination amounts include 929,099 shares underlying private placement warrants and exclude (i) 111,721 founder shares which Mr.
Sloan will forfeit in connection with the Closing, (ii) 2,963,709 Earnout Shares which will be placed in escrow at the Closing,
(iii) 35,141 founder shares which will be forfeited and which value will be added to the value used in the formula of the SBT Share
Exchange Ratio for the benefit of the SBT Equityholders in connection with the Closing and (iv) an aggregate of 2,237,568 private
placement warrants which will be forfeited to New DraftKings in connection with the Closing.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(18)</TD><TD>Represents 81,234 vested options to exercise New DraftKings Class A common stock and 8,902 shares of unvested DraftKings common
stock that will vest within 60 days of the Closing of the Business Combination.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(19)</TD><TD>Includes 1,614,392 vested options to exercise New DraftKings Class A common stock and 124,807 shares of unvested DraftKings
common stock that will vest within 60 days of the Closing of the Business Combination.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(20)</TD><TD>Includes 108,639 vested options to exercise New DraftKings Class A common stock and 145,239 shares of unvested DraftKings common
stock that will vest within 60 days of the Closing of the Business Combination.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="b_022"></A>SELLING
SECURITYHOLDERS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This prospectus relates to the resale by
the Selling Securityholders from time to time of up to 44,725,831 shares of Class A common stock and 3,000,000 warrants. The Selling
Securityholders may from time to time offer and sell any or all of the Class A common stock and warrants set forth below pursuant
to this prospectus and any accompanying prospectus supplement. When we refer to the &ldquo;Selling Securityholders&rdquo; in this
prospectus, we mean the persons listed in the table below, and the pledgees, donees, transferees, assignees, successors, designees
and others who later come to hold any of the Selling Securityholders&rsquo; interest in the Class A common stock or warrants other
than through a public sale.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following table sets forth, as of the
date of this prospectus, the names of the Selling Securityholders, the aggregate number of shares of Class A Common Stock and warrants
owned prior to the Business Combination, the aggregate number of shares of Class A common stock and warrants that the Selling Securityholders
may offer pursuant to this prospectus and the number of shares of Class A common stock and warrants beneficially owned by the Selling
Securityholders after the sale of the securities offered hereby after the Business Combination assuming (i) none of DEAC&rsquo;s
public stockholders exercise their redemption rights and (ii) holders of 30,564,789 public shares exercise their redemption rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 7pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<TR STYLE="font-size: 7pt; vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="10" STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>Before
    the Business Combination</B></FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 7pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 1pt; font-size: 7pt; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="22" STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>After
    the Business Combination</B></FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 1pt; font-size: 7pt; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 1pt; font-size: 7pt; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 1pt; font-size: 7pt; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 1pt; font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 1pt; font-size: 7pt; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="10" STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>Assuming No Redemption</B></FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="10" STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>Assuming Maximum Redemption</B></FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt; font-size: 7pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1pt solid; font-size: 7pt; text-align: center"><P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 7pt"><B>Shares
                                         of Class A<BR>
 Common Stock</B></FONT></P>

<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 7pt"><B>Beneficially
Owned <SUP>(1)</SUP></B></FONT></P>

</TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 1pt; font-size: 7pt; text-align: center"><B>Warrants</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 1pt; font-size: 7pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>Shares of<BR>
    Class A<BR> Common<BR>
    Stock</B></FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 1pt; font-size: 7pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>Warrants</B></FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt"><B>&nbsp;</B></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1pt solid; font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>Shares
    of Class A<BR>
    Common Stock<BR>
    Beneficially Owned <BR> After Sale of All Shares of Class A Common Stock Offered Hereby <SUP>(2)</SUP></B></FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 1pt; font-size: 7pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>Warrants<BR>
    Beneficially<BR>
    Owned After<BR>
    Sale of All<BR>
    Warrants</B></FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt"><B>&nbsp;</B></TD><TD STYLE="font: bold 7pt Times New Roman, Times, Serif; padding-bottom: 1pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1pt solid; font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>Shares
    of Class A<BR>
    Common Stock<BR>
    Beneficially Owned <BR> After Sale of All Shares of Class A Common Stock Offered Hereby <SUP>(3)</SUP></B></FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 1pt; font-size: 7pt; text-align: center"><FONT STYLE="font-size: 7pt"><B>Warrants<BR>
    Beneficially<BR>
    Owned After<BR>
    Sale of All<BR>
    Warrants</B></FONT></TD><TD STYLE="padding-bottom: 1pt; font-size: 7pt"><B>&nbsp;</B></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">Name of Beneficial Owner</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 7pt">Shares</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 7pt">Percentage</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: center"><P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P> <P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 7pt"><B>Beneficially
                                         Owned</B></FONT></P></TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: 7pt Times New Roman, Times, Serif; text-align: center"><P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>
                                                                                                                        <P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P> <P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 7pt"><B>Registered
                                         Hereby</B></FONT></P></TD><TD STYLE="padding-bottom: 1pt; font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 7pt Times New Roman, Times, Serif; text-align: center">Registered<BR>
Hereby</TD><TD STYLE="padding-bottom: 1pt; font: bold 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 7pt">Shares</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 7pt">Percentage</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 7pt Times New Roman, Times, Serif; text-align: center">Offered<BR>
Hereby</TD><TD STYLE="padding-bottom: 1pt; font: bold 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 7pt">Shares</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 7pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 7pt">Percentage</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 7pt Times New Roman, Times, Serif; text-align: center">Offered<BR>
Hereby</TD><TD STYLE="padding-bottom: 1pt; font: bold 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 10%; text-align: left; text-indent: -8.65pt; padding-left: 8.65pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">Certain
    Funds and Accounts Advised by ArrowMark Colorado Holdings LLC<SUP>(4)</SUP></FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 6%; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 6%; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 6%; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 6%; text-align: right"><FONT STYLE="font-size: 7pt">2,000,000</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; color: #231F20"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 6%; color: #231F20; text-align: right"><FONT STYLE="font-size: 7pt">162,414</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 6%; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 6%; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 6%; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 6%; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 6%; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 6%; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt; color: #231F20">Certain
    Funds and Accounts Advised by Monashee Investment Management LLC<SUP>(5)</SUP></FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: right"><FONT STYLE="font-size: 7pt">1,400,000</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: right"><FONT STYLE="font-size: 7pt">113,690</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.125in; color: #231F20; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt; color: #231F20">Tech
    Opportunities, LLC<SUP>(6)</SUP></FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: right"><FONT STYLE="font-size: 7pt">1,000,000</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: right"><FONT STYLE="font-size: 7pt">81,207</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.125in; color: #231F20; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt; color: #231F20">Certain
    Funds and Accounts Advised by Millennium Management LLC<SUP>(7)</SUP></FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: right"><FONT STYLE="font-size: 7pt">1,061,607</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">3.7</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">%</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: right"><FONT STYLE="font-size: 7pt">421,666</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: right"><FONT STYLE="font-size: 7pt">1,500,000</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: right"><FONT STYLE="font-size: 7pt">121,810</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: right"><FONT STYLE="font-size: 7pt">1,061,607</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt; color: #231F20">*</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: right"><FONT STYLE="font-size: 7pt">421,666</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: right"><FONT STYLE="font-size: 7pt">1,061,607</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt; color: #231F20">*</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: right"><FONT STYLE="font-size: 7pt">421,666</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.125in; color: #231F20; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt; color: #231F20">Certain
    Funds and Accounts Advised by Capital Research &amp; Management Company<SUP>(8)</SUP></FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: right"><FONT STYLE="font-size: 7pt">12,000,000</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: right"><FONT STYLE="font-size: 7pt">375,000</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.125in; color: #231F20; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt; color: #231F20">Certain
    Funds and Accounts Advised by Bain Capital Public Equity Management II, LLC<SUP>(9)</SUP></FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: right"><FONT STYLE="font-size: 7pt">4,000,000</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: right"><FONT STYLE="font-size: 7pt">324,827</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.125in; color: #231F20; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt; color: #231F20">Certain
    Funds and Accounts Advised by Franklin Advisers, Inc.<SUP>(10)</SUP></FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: right"><FONT STYLE="font-size: 7pt">1,998,900</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: right"><FONT STYLE="font-size: 7pt">162,324</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.125in; color: #231F20; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt; color: #231F20">Certain
    Funds and Accounts Advised by Caledonia (Private) Investments Pty Limited<SUP>(11)</SUP></FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: right"><FONT STYLE="font-size: 7pt">2,381,694</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: right"><FONT STYLE="font-size: 7pt">193,410</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.125in; color: #231F20; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt; color: #231F20">Certain
    Funds and Accounts Advised by Caledonia US, LP<SUP>(12)</SUP></FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: right"><FONT STYLE="font-size: 7pt">2,618,306</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: right"><FONT STYLE="font-size: 7pt">212,624</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.125in; color: #231F20; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt; color: #231F20">Certain
    Funds and Accounts Advised by Wellington Management Company LLP<SUP>(13)</SUP></FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: right"><FONT STYLE="font-size: 7pt">1,000,00</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: right"><FONT STYLE="font-size: 7pt">127,694</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; vertical-align: bottom; text-indent: -0.125in; padding-left: 0.125in; color: #231F20; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt; color: #231F20">MVP
    Opportunity Fund VI LLC<SUP>(14)</SUP></FONT></TD><TD STYLE="text-align: right; font: 7pt Times New Roman, Times, Serif; vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="vertical-align: bottom; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="vertical-align: bottom; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 7pt Times New Roman, Times, Serif; vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="vertical-align: bottom; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="vertical-align: bottom; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 7pt Times New Roman, Times, Serif; vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="vertical-align: bottom; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="vertical-align: bottom; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 7pt Times New Roman, Times, Serif; color: #231F20; vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="vertical-align: bottom; font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: right"><FONT STYLE="font-size: 7pt">467,377</FONT></TD><TD STYLE="vertical-align: bottom; font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 7pt Times New Roman, Times, Serif; vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="vertical-align: bottom; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="vertical-align: bottom; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 7pt Times New Roman, Times, Serif; vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="vertical-align: bottom; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="vertical-align: bottom; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 7pt Times New Roman, Times, Serif; vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="vertical-align: bottom; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="vertical-align: bottom; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 7pt Times New Roman, Times, Serif; vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="vertical-align: bottom; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="vertical-align: bottom; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 7pt Times New Roman, Times, Serif; vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="vertical-align: bottom; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="vertical-align: bottom; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 7pt Times New Roman, Times, Serif; vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="vertical-align: bottom; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="vertical-align: bottom; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="text-align: right; font: 7pt Times New Roman, Times, Serif; vertical-align: bottom"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="vertical-align: bottom; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="vertical-align: bottom; font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left; padding-left: 0in"><FONT STYLE="font-size: 7pt">Mark
    E. Fusco</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: right"><FONT STYLE="font-size: 7pt">207,049</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left; text-indent: -0.125in; padding-left: 0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt; color: #231F20">Certain
    Funds and Accounts Advised by Gordon Family Office<SUP>(15)</SUP></FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: right"><FONT STYLE="font-size: 7pt">2,193,168</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.125in; color: #231F20; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">Accomplice
    DK Investors, LLC<SUP>(16)</SUP></FONT></TD><TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: right"><FONT STYLE="font-size: 7pt">409,071</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left; text-indent: -0.125in; padding-left: 0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">TTBSP,
    L.P.-Opportunity Series<SUP>(17)</SUP></FONT></TD><TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: right"><FONT STYLE="font-size: 7pt">204,536</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: right"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font-size: 7pt; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.125in; color: #231F20; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt; color: #231F20">Carnegie
    GM Partners, LLC<SUP>(18)</SUP></FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: right"><FONT STYLE="font-size: 7pt">565,555</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.125in; color: #231F20; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt; color: #231F20">Certain
    Funds and Accounts Advised by The Kraft Group<SUP>(19)</SUP></FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: right"><FONT STYLE="font-size: 7pt">408,634</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.125in; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">John
    P. Tatum, II</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: right"><FONT STYLE="font-size: 7pt">102,131</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.125in; color: #231F20; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt; color: #231F20">Certain
    Funds and Accounts Advised by Carmenta Funds<SUP>(20)</SUP></FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: right"><FONT STYLE="font-size: 7pt">2,063,402</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.125in; color: #231F20; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt; color: #231F20">SP
    Investment Associates, L.P.<SUP>(21)</SUP></FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: right"><FONT STYLE="font-size: 7pt">517,623</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.125in; color: #231F20; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt; color: #231F20">Clarendon
    Investment Partners II, LP<SUP>(22)</SUP></FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: right"><FONT STYLE="font-size: 7pt">1,860,855</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left; padding-left: 0in"><FONT STYLE="font-size: 7pt">Ezra
    Hamway</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: right"><FONT STYLE="font-size: 7pt">204,536</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; padding-left: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt; color: #231F20">Touchdown
    2, LLC<SUP>(23)</SUP></FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: right"><FONT STYLE="font-size: 7pt">510,656</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; color: #231F20; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.125in; color: #231F20; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">Black
    Diamond Group Inc.<SUP>(24)</SUP></FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">204,262</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.125in; color: #231F20; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">Bailey
    Family 1998 Grandchildren's Trust<SUP>(25)</SUP></FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">818,142</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font-size: 7pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.125in; color: #231F20; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">Sazka
    Group A.S.<SUP>(26)</SUP></FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">517,483</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 7pt">&mdash;</FONT></TD><TD STYLE="font: 7pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></TD></TR>
</TABLE>



<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<!-- Field: Rule-Page --><DIV STYLE="margin-top: 3pt; margin-bottom: 3pt; width: 25%"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="margin-top: 0; margin-bottom: 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 9%; text-align: center">*</TD>
    <TD STYLE="width: 91%; padding-right: 3pt; padding-left: 3pt">Represents beneficial ownership of less than 1%.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">(1)</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt; text-align: left">The percentage of beneficial ownership before the Business Combination is calculated based on 1,000 shares of DEAC Nevada&rsquo;s common stock outstanding as of April 13, 2020. Unless otherwise indicated, we believe that all persons named in the table have sole voting and investment power with respect to all shares beneficially owned by them.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">(2)</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt; text-align: left">The percentage of beneficial ownership after the Business Combination,
assuming none of the public shares are redeemed, has been determined based upon the following: (i) that no public stockholders
exercise their redemption rights (no redemptions scenario), (ii) that none of the investors set forth in the table below has purchased
or purchases shares of DEAC common stock (pre-Business Combination) or New DraftKings common stock (post-Business Combination),
(iii) that 41,725,831shares of DEAC Class A common stock (which will be exchanged for shares of New DraftKings Class A common stock
in the reincorporation) are issued to the PIPE Investors, including to holders of Convertible Notes, (iv) that 186,831,051 shares
of New DraftKings Class A common stock are issued to the DK Equityholders (which excludes (a) shares held by non-accredited investors
that will be cashed out at Closing and (b) 4.23 million in restricted stock units that DraftKings expects to issue prior to Closing
and that will be unvested at Closing), applying a 0.3546 exchange ratio, (v) that 40,861,997 shares of New DraftKings Class A common
stock are issued to the SBT Sellers, applying a 1,001.5 exchange ratio (and a $1.090 to &euro;1.00 exchange rate), (vi) the DEAC
Founders forfeit an aggregate of 270,000 founder shares in connection with the Closing and (vii) there will be an aggregate of
313,077,942 shares of New DraftKings Class A common stock issued and outstanding at Closing (excluding 6,000,000 Earnout Shares
held in escrow, which may be released to the DEAC Founders, the DK Equityholders and the SBT Sellers subject to the achievement
of certain stock price targets).</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>

<!-- Field: Page; Sequence: 177; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->168<!-- Field: /Sequence --></FONT></P></DIV>
    <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>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 9%; text-align: center">(3)</TD>
    <TD STYLE="width: 91%; padding-right: 3pt; padding-left: 3pt; text-align: left">The percentage of beneficial ownership after the Business Combination,
assuming the maximum number of public shares have been redeemed, has been determined based on the following: (i) that holders of
30,564,789 public shares exercise their redemption rights (based on $403,961,209 held in trust as of December 31, 2019 and a redemption
price of&thinsp; $10.10 per share) (maximum redemptions scenario), (ii) that none of the investors set forth in the table below
has purchased or purchases shares of DEAC common stock (pre-Business Combination) or New DraftKings common stock (post-Business
Combination), (iii) that 41,725,831 shares of DEAC Class A common stock (which will be exchanged for shares of New DraftKings Class
A common stock in the reincorporation) are issued to the PIPE Investors, including to holders of Convertible Notes, (iv) that 186,831,051
shares of New DraftKings Class A common stock are issued to the DK Equityholders (which excludes (a) shares held by non-accredited
investors that will be cashed out at Closing and (b) 43.2 million in restricted stock units that DraftKings expects to issue prior
to Closing and that will be unvested at Closing), applying a 0.3546 exchange ratio, (v) that 40,861,997 shares of New DraftKings
Class A common stock are issued to the SBT Sellers, applying a 1,001.5 exchange ratio (and a $1.090 to &euro;1.00 exchange rate),
(vi) the DEAC Founders forfeit an aggregate of 270,000 founder shares in connection with the Closing and (vii) there will be an
aggregate of 282,513,153 shares of New DraftKings Class A common stock issued and outstanding at Closing (excluding 6,000,000 Earnout
Shares held in escrow, which may be released to the DEAC Founders, the DK Equityholders and the SBT Sellers subject to the achievement
of certain stock price targets).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">(4)</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt; text-align: left">Includes (i) Meridian Growth Fund and (ii) Meridian Small
    Cap Growth Fund (the &ldquo;ArrowMark Portfolios&rdquo;). Each of Chad Meade and Brian Schaub have investment discretion over
    the securities held by the ArrowMark Portfolios and may be deemed to beneficially own such securities. The address of this
    securityholder is 100 Fillmore Street, Suite 325, Denver, Colorado 80206.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">(5)</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt; text-align: left">Includes (i) BEMAP Master Fund LTD and (ii) Monashee Pure Alpha SPV I LP (the &ldquo;Monashee Funds&rdquo;). Jeff Muller has investment discretion over the securities held by the Monashee Funds and may be deemed to beneficially own such securities. The address of this securityholder is 125 High Street, 28th Floor, Boston, Massachusetts 02110.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">(6)</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt; text-align: left">Hudson Bay Capital Management LP is the investment manager of Tech Opportunities, LLC and has voting and investment power over these securities. Sander Gerber is the managing member of Hudson Bay Capital GP LLC, which is the general partner of Hudson Bay Capital Management LP. Mr. Gerber disclaims beneficial ownership over these securities except to the extent of his pecuniary interest therein. The address of this securityholder is 777 Third Avenue, 30th Floor, New York, New York 10017.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">(7)</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt; text-align: left">Includes (i) 1,061,607 shares of DEAC Class A common stock, (ii) 421,666 public warrants, (iii) 421,666 shares of Class A common stock underlying the public warrants, (iv) 1,500,000 shares of Class A common stock that will be issued in connection with the Private Placement, (v) 121,810 warrants that will be issued in connection with the Private Placement, and (vi) 121,810 shares of Class A common stock underlying such warrants. These securities are held by ICS Opportunities II LLC and Integrated Core Strategies (US) LLC (collectively, the &ldquo;Millennium Funds&rdquo;). Millennium Management LLC is a registered investment advisor and the general partner of the managing member of Integrated Core Strategies (US) LLC. Millennium Management LLC is also the general partner of the 100% owner of ICS Opportunities II LLC.&nbsp;&nbsp;Millennium International Management LP is the investment manager of ICS Opportunities II LLC.&nbsp;&nbsp;&nbsp;Millennium Management LLC may be deemed to have shared voting control and investment discretion over the securities held by each of Integrated Core Strategies (US) LLC and ICS Opportunities II LLC.&nbsp;&nbsp;Millennium International Management LP may be deemed to have shared voting control and investment discretion over the securities held by ICS Opportunities II LLC.&nbsp;&nbsp;Millennium Group Management LLC is the managing member of Millennium Management LLC and the general partner of Millennium International Management LP and may also be deemed to have shared voting control and investment discretion over the securities held by Integrated Core Strategies (US) LLC and ICS Opportunities II LLC.&nbsp;&nbsp;The managing member of Millennium Group Management LLC is a trust of which Israel A. Englander currently serves as the sole voting trustee.&nbsp;&nbsp;Therefore, Mr. Englander may also be deemed to have shared voting control and investment discretion over the securities held by the Millennium Funds. The foregoing should not be construed in and of itself as an admission by Millennium Management LLC, Millennium International Management LP, Millennium Group Management LLC or Mr. Englander as to the beneficial ownership of the securities held by the Millennium Funds. The business address of the Millennium Funds is c/o Millennium Management LLC, 666 Fifth Avenue, 8th Floor, New York, New York 10103.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">(8)</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt; text-align: left">Includes (i) The New Economy Fund (&ldquo;NEF&rdquo;) and (ii) SMALLCAP World Fund, Inc. (&ldquo;SCWF&rdquo; and, together with NEF, the &ldquo;CMRC Funds&rdquo;). Capital Research and Management Company (&ldquo;CRMC&rdquo;) is the investment adviser to each of the CRMC Funds. CRMC, Capital Research Global Investors (&ldquo;CRGI&rdquo;) and/or Capital World Investors (&ldquo;CWI&rdquo;) may be deemed to be the beneficial owners of the securities held by the CRMC Funds; however, each of CRMC, CRGI and CWI expressly disclaim that it is the beneficial owner of such securities.&nbsp;&nbsp;Timothy D. Armour, Mathews Cherian, Claudia P. Huntington, Caroline Jones, Harold H. La and Richmond Wolf, as portfolio managers, have voting and investment power over the securities held by NEF.&nbsp;&nbsp;Julian N. Abdey, Michael Beckwith, Noriko H. Chen, Peter Eliot, Brady L. Enright, Bradford F. Freer, Leo Hee, Roz Hongsaranagon, Claudia P. Huntington, Jonathan Knowles, Harold H. La, Dimitrije Mitrinovic, Aidan O&rsquo;Connell, Andraz Razen, Gregory W. Wendt and Dylan Yolles, as portfolio managers, have voting and investment power over the securities held by SCWF.&nbsp;&nbsp;The address for each of the CRMC Funds is c/o Capital Research and Management Company, 333 South Hope Street, 50th Floor, Los Angeles, CA 90071.&nbsp;&nbsp;Each of the CRMC Funds acquired the securities being registered hereby in the ordinary course of its business.</TD></TR>
</TABLE>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 9%; padding-right: 3pt; padding-left: 0.5in; text-indent: -0.25in">(9)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp; </FONT>&nbsp;</TD>
    <TD STYLE="width: 91%; padding-right: 3pt; padding-left: 3pt; text-align: left">Includes (i) 529,113 shares of DEAC Class A common stock, (ii) 153,190 public warrants, (iii) 529,113 shares of Class A common stock underlying the public warrants, (iv) 4,000,000 shares of Class A common stock that will be issued in the Private Placement, (v) 324,827 warrants that will be issued in the Private Placement and (vi) 324,827 shares of Class A common stock underlying such warrants. These securities are held by (i) Brookside Capital Trading Fund, LP (&ldquo;Brookside&rdquo;) and (ii) Bain Capital Public Equity Global Long Equity Fund, LP (&ldquo;Global Long&rdquo; and, together with Brookside, the &ldquo;BC Funds&rdquo;). Voting and investment decisions on behalf of Brookside are made by the members of Bain Capital Public Equity Management II, LLC (&ldquo;BC Public Equity Management II&rdquo;), which has sole authority and discretion over the investment decisions of Bain Capital Public Equity Management, LLC, which is the general partner of Brookside Capital Investors, L.P., which is the general partner of Brookside. Voting and investment decisions on behalf of Global Long are made by the members of BC Public Equity Management II, which is the general partner of Bain Capital Public Equity Global Long Equity General Partner, LLC, which is the general partner of Global Long. The address of the Bain Funds is c/o Bain Capital Public Equity Management II, LLC, 200 Clarendon Street, Boston, Massachusetts 02116.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 3pt; padding-left: 0.5in; text-indent: -0.25in">(10) &nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt; text-align: justify">Includes (i) Franklin Strategic Series - Franklin Small Cap Growth Fund, (ii) Franklin Templeton Investment Funds - Franklin Technology Fund, (iii) Franklin Templeton Variable Insurance Products Trust - Franklin Small-Mid Cap Growth VIP Fund and (iv) Franklin Strategic Series - Franklin Small-Mid Cap Growth Fund (collectively, the &ldquo;Franklin Funds&rdquo;). Franklin Advisers, Inc. is the investment manager of the Franklin Funds and has voting and investment control over the securities owned by the Franklin Funds. Michael McCarthy, Jonathan Curtis and John Scandalios are the portfolio managers of the Franklin Funds. Each of Messrs. McCarthy, Curtis and Scandalios disclaim beneficial ownership over the securities held by the Franklin Funds except to the extent of their pecuniary interest therein. The address of this security holder is One Franklin Parkway, San Mateo, CA 94403.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 3pt; padding-left: 0.5in; text-indent: -0.25in">(11) &nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt; text-align: left">Includes (i) GSA Cal Pty. Ltd., (ii) AES Caledonia Fund, (iii) ALD Investment Fund, (iv) Caledonia Carbrook Trust, (v) Caledonia Global Fund, (vi) CJH Family Trust, (vii) GJJ Family Trust, (viii) IDD Caledonia Trust, (vix) Caledonia Indweco Trust, (x) JA Darling Caledonia Trust, (xi) JSD Caledonia Trust, (xii) Longbridge Caledonia Investment Trust, (xiii) MAN Caledonia Investment Trust, (xiv) MGD Investment Fund, (xv) MJM Caledonia Investment Trust, (xvi) Caledonia Siddle Family Investment Fund and (xvii) SMD Investment Trust (collectively, the &ldquo;Caledonia AU Funds&rdquo;). Caledonia (Private) Investments Pty Limited is the investment manager of the Caledonia AU Funds and, therefore, has investment and voting power over the securities. The address of the Caledonia AU Funds is c/o Caledonia (Private) Investments Pty Limited, Level 10, 131 Macquarie Street, Sydney, NSW 2000 Australia.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 3pt; padding-left: 0.5in; text-indent: -0.25in">(12) &nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt; text-align: left">Includes (i) Caledonia GEM Fund, (ii) AJM Australian Holdings LLC, (iii) AJM Caledonia LLC, (iv) Caledonia Master Fund Ltd and (v) Caledonia Aggregated Fund LLC (collectively, the &ldquo;Caledonia US Funds&rdquo;). Caledonia US, LP is the investment manager of the Caledonia US Funds and, therefore, has investment and voting power over the securities. The address of the Caledonia US Funds is c/o Caledonia US, LP, 650 Madison Avenue, 24th Floor, New York, New York 10022.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 3pt; padding-left: 0.5in; text-indent: -0.25in">(13) &nbsp;</TD>
    <TD STYLE="text-align: left; padding-right: 3pt; padding-left: 3pt">Includes (i) Hartford Capital Appreciation HLS Fund, (ii) Hartford Growth Opportunities HLS Fund, (iii) The Hartford Capital Appreciation Fund, (iv) The Hartford Growth Opportunities Fund, (v) Hadley Harbor Master Investors (Cayman) L.P., (vi) SA Multi-Managed Mid Cap Growth Portfolio and (vii) SA Wellington Capital Appreciation Portfolio (collectively, the &ldquo;Wellington Funds&rdquo;). Wellington Management Company LLP is the investment advisor to each of the Wellington Funds and, therefore, has investment and voting power over the securities. The address of the Wellington Funds is c/o Wellington Management Company LLP, 280 Congress Street, Boston, Massachusetts 02210.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 3pt; padding-left: 0.5in; text-indent: -0.25in">(14) &nbsp;</TD>
    <TD STYLE="text-align: left; padding-right: 3pt; padding-left: 3pt">Eric Brachfeld is the manager of MVP Manager LLC, which is the manager of MVP Opportunity Fund VI LLC, and has investment and voting power over the securities. Mr. Brachfeld disclaims ownership over the securities except to the extent of his pecuniary interest therein. The address for this securityholder is c/o Manhattan Venture Partners, 152 Madison Avenue, 7th Floor, New York, New York 10016.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 3pt; padding-left: 0.5in; text-indent: -0.25in">(15) &nbsp;</TD>
    <TD STYLE="text-align: left; padding-right: 3pt; padding-left: 3pt">Includes (i) Howard Gale LLC, (ii) Gordon Family Foundation and (iii) Title 19 Maverick LLC (the &ldquo;Gordon Funds&rdquo;). Michael Gordon is the manager of each of Howard Gale LLC and Title 19 Maverick LLC and controls the investments of the Gordon Family Foundation, and therefore has investment and voting power over the securities held by the Gordon Funds. The address of the Gordon Funds is c/o Gordon Family Office, 126 Brookline Ave., Floor 3, Boston, Massachusetts 02215.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 3pt; padding-left: 0.5in; text-indent: -0.25in">(16) &nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">Accomplice Management, LLC is the manager of Accomplice DK Investors, LLC. Ryan Moore and Jeff Fagnan share investment and voting power over the securities controlled by Accomplice Management, LLC. The address of this securityholder is c/o Accomplice Management, LLC,
56 Wareham Street, 3rd Floor, Boston, Massachusetts 02118.<SUP></SUP></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 3pt; padding-left: 0.5in; text-indent: -0.25in">(17) &nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">Garth A. L. Timoll Sr. is the managing director of TTBSP, L.P. &ndash; Opportunity Series and has investment and voting power over the securities. The address of this securityholder is 600 Montgomery Street, Suite 480, San Francisco, California 94111.</TD></TR>
</TABLE>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 9%; padding-right: 3pt; padding-left: 0.5in; text-indent: -0.25in">(18) &nbsp;</TD>
    <TD STYLE="width: 91%; padding-right: 3pt; padding-left: 3pt">Andrew C. Walter and Geraldine F. Mimanus are the managers of this securityholder and have investment and voting power over the securities. The address of this securityholder is c/o Granger Management LLC, Suite 3220, New York, New York 10004.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 3pt; padding-left: 0.5in; text-indent: -0.25in">(19) &nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">Includes (i) JAK II LLC (&ldquo;JAK&rdquo;) and (ii) Two R LLC (&ldquo;Two R&rdquo; and, together with JAK, the &ldquo;Kraft Funds&rdquo;). Jonathan A. Kraft is the manager, and has investment and voting power over the securities of JAK, and Robert K. Kraft is the manager, and has investment and voting power of Two R. The address of the Kraft Funds is c/o The Kraft Group, One Patriot Place, Foxborough, Massachusetts 02035.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 3pt; padding-left: 0.5in; text-indent: -0.25in">(20) &nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">Includes (i) Carmenta Growth Portfolio 2019, L.P., (ii) Carmenta Capital Co-Investments, L.P. and (iii) Shea Ventures LLC (collectively, the &ldquo;Carmenta Funds&rdquo;). Kirk Dizon, as the managing member, and Andrew Dipkin, as the chief operating officer, have investment and voting power over the securities held by the Carmenta Funds. The address of the Carmenta Funds is 191 Knoll Place, St. Helena, California 94574.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 3pt; padding-left: 0.5in; text-indent: -0.25in">(21) &nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">Anastasios Parafestas and Stephen G. Pagliuca are the managers of Roundview Partners, LLC, which is the general partner of the securityholder. Messrs. Parafestas and Pagliuca have voting and investment power over the securities. The address of this securityholder is One Joy Street, Boston, Massachusetts, 02108.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 3pt; padding-left: 0.5in; text-indent: -0.25in">(22) &nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">BCES Management, LLC (&ldquo;BCES&rdquo;) is the general partner of Clarendon Investment Partners II, LP (&ldquo;Clarendon&rdquo;). Colin Campbell and Michael Ward are managing directors of BCES and have voting and investment power over the securities held by Clarendon. The address of this securityholder is 200 Clarendon Street, Boston, Massachusetts 02116.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 3pt; padding-left: 0.5in; text-indent: -0.25in">(23) &nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">Daniel Snyder is the sole member of this securityholder and has investment and voting power over the securities.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 3pt; padding-left: 0.5in; text-indent: -0.25in">(24) &nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">Robert Rothman is the sole owner of this securityholder and has investment and voting power over the securities.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 3pt; padding-left: 0.5in; text-indent: -0.25in">(25) &nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">Ester Jerome and Michele Bailey-Horovitz are the trustees of this securityholder and have investment and voting power over the securities. Ms. Jerome and Ms. Bailey-Horovitz disclaim ownership of the securities except to the extent of their pecuniary interest therein. The address of this securityholder is 150 Broadway, Suite 800, New York, New York 10038.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 3pt; padding-left: 0.5in; text-indent: -0.25in">(26) &nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">The address of this securityholder is Vinohradska 1511/230, 100 00 Prague 10, Czech Republic.</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-indent: 0.5in">We have determined beneficial ownership
in accordance with the rules of the SEC and the information is not necessarily indicative of beneficial ownership for any other
purpose. Unless otherwise indicated below, to our knowledge, the persons and entities named in the tables have sole voting and
sole investment power with respect to all securities that they beneficially own, subject to community property laws where applicable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Selling Securityholder information for each
additional Selling Securityholder, if any, will be set forth by prospectus supplement to the extent required prior to the time
of any offer or sale of such Selling Securityholder&rsquo;s shares pursuant to this prospectus. Any prospectus supplement may add,
update, substitute, or change the information contained in this prospectus, including the identity of each Selling Securityholder
and the number of shares registered on its behalf. A Selling Securityholder may sell or otherwise transfer all, some or none of
such shares in this offering. See &ldquo;Plan of Distribution.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Listing of Common Stock</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Application will be made for the shares
of New DraftKings Class A common stock to be approved for listing on Nasdaq under the symbol &ldquo;DKNG.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;&nbsp;</P>

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<P STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><A NAME="b_023"></A>CERTAIN RELATIONSHIPS AND RELATED
PARTY TRANSACTIONS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">DEAC</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On March 28, 2019, our Sponsor purchased
an aggregate of 10,062,500 founder shares in exchange for a capital contribution of $25,000, or approximately $0.002 per share.
On April 10, 2019, our Sponsor transferred 4,930,625 founder shares to Harry E. Sloan for a purchase price of&#8201;$12,250 (the
same per-share price initially paid by our Sponsor), resulting in our Sponsor holding 5,131,875 founder shares. On May 10, 2019,
the Sponsor and Mr. Sloan each forfeited at no cost 31,875 and 30,625 founder shares, respectively, to DEAC in connection with
the election by the underwriters to exercise their over-allotment option in part and not in full, resulting in an aggregate of
10,000,000 founder shares outstanding, consisting of 5,100,000 held by the Sponsor and 4,900,000 held by Mr. Sloan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Sponsor and Mr. Sloan purchased an aggregate
of 6,333,334 private placement warrants in connection with DEAC&rsquo;s initial public offering, at a price of&#8201;$1.50 per
warrant, or $9,550,000 in the aggregate. Each private placement warrant entitles the holder to purchase one share of Class A common
stock at $11.50 per share. The private placement warrants (including the Class A common stock issuable upon exercise of the private
placement warrants) may not, subject to certain limited exceptions, be transferred, assigned or sold until 30 days after the completion
of the Business Combination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DEAC currently sub-leases its executive
offices at 2121 Avenue of the Stars, Suite 2300, Los Angeles, CA 90067 from Global Eagle Acquisition LLC, an affiliate of our Sponsor.
Commencing upon consummation of its initial public offering, DEAC reimburses Global Eagle Acquisition LLC for office space, secretarial
and administrative services provided to members of our management team in an amount not to exceed $15,000 per month. Upon completion
of DEAC&rsquo;s initial business combination or liquidation, it will cease paying these monthly fees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DEAC&rsquo;s officers and directors are
entitled to reimbursement for any out-of-pocket expenses incurred in connection with activities on DEAC&rsquo;s behalf such as
identifying potential target businesses and performing due diligence on suitable business combinations. DEAC&rsquo;s audit committee
reviews on a quarterly basis all payments that were made to our Sponsor, DEAC&rsquo;s officers, directors or its or their affiliates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition, in order to finance transaction
costs in connection with an intended initial business combination, our Sponsor or an affiliate of our Sponsor or certain of its
officers and directors may, but are not obligated to, loan DEAC funds as may be required on a non-interest basis. If DEAC completes
the Business Combination, it would repay such loaned amounts. In the event that the Business Combination does not close, DEAC may
use a portion of the working capital held outside the trust account to repay such loaned amounts but no proceeds from its trust
account would be used for such repayment. The warrants would be identical to the private placement warrants. Except as set forth
above, the terms of such loans, if any, have not been determined and no written agreements exist with respect to such loans.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">DraftKings</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Transaction with Co-Founder and Chief
Executive Officer</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">To facilitate the delivery of Class B common
stock of DraftKings to Mr. Robins, DraftKings will enter into an exchange agreement with Mr. Robins, effective as of immediately
prior to the consummation of the Business Combination, pursuant to which each share of DraftKings common stock held by Mr. Robins
will automatically be exchanged for one share of DraftKings Class A common stock and a certain number of shares of DraftKings Class
B common stock such that as of immediately following the completion of the Business Combination, Mr. Robins will have approximately
90% of the voting power of the capital stock of New DraftKings on a fully-diluted basis. Such shares of DraftKings Class B Common
Stock will be converted into the right to receive the same number of shares of New DraftKings Class B common stock upon the consummation
of the Business Combination and will provide Mr. Robins with approximately 90% of the voting power of the capital stock of New
DraftKings on a fully-diluted basis. The related exchange agreement to be entered into in respect of such DraftKings Class B common
stock to be issued to Mr. Robins in exchange for the shares of DraftKings common stock held Mr. Robins as of immediately prior
to the effective time of the DK Merger will provide that New DrafKings agrees to treat the share exchange as a tax-free transaction
and agrees to indemnify Mr. Robins for taxes and any applicable penalties and associated costs if such exchange is not tax free.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Private Placements of Securities</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Series E-1 Preferred Stock Financing</P>


<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Between March 2017 and April 2017, DraftKings
sold an aggregate of 54,901,310 shares of its Series E-1 preferred stock in multiple closings at a purchase price of $2.202916
per share, for an aggregate purchase amount of approximately $120.9 million. Certain related persons participated in the financing
round through investment funds in which they participate in management and/or have a financial interest. The following table summarizes
purchases of DraftKings&rsquo; Series E-1 preferred stock by related persons:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&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; padding-right: 3pt"><FONT STYLE="font-size: 10pt"><B>Name </B></FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-right: 3pt; padding-left: 3pt; text-align: center"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-right: 3pt; padding-left: 3pt; text-align: center"><FONT STYLE="font-size: 10pt"><B>Number of<BR>
Shares </B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap; border-bottom: black 1pt solid; padding-right: 3pt; padding-left: 3pt; text-align: center"><FONT STYLE="font-size: 10pt"><B>Purchase Price<BR>
($) </B></FONT></TD>
    <TD>&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 77%; padding-right: 3pt">Revolution Growth III, LP<FONT STYLE="font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="width: 1%; padding-right: 3pt; padding-left: 3pt; text-align: right">&#8203;</TD>
    <TD STYLE="width: 10%; padding-right: 3pt; padding-left: 3pt; text-align: right">2,269,718</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 10%; padding-right: 3pt; padding-left: 3pt; text-align: center">4,999,998.10 </TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 3pt">RPII DK LLC<FONT STYLE="font-size: 10pt">(2)</FONT></TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt; text-align: right">&#8203;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt; text-align: right">1,361,830</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt; text-align: center">2,999,997.10</TD>
    <TD>&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-right: 3pt">Entities affiliated with Accomplice, LLC<FONT STYLE="font-size: 10pt">(3)</FONT></TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt; text-align: right">&#8203;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt; text-align: right">453,943 </TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt; text-align: center">999,998.30 </TD>
    <TD>&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 3pt">Entities affiliated with Redpoint Ventures<FONT STYLE="font-size: 10pt">(4)</FONT></TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt; text-align: right">&#8203;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt; text-align: right">453,943</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt; text-align: center">999,998.30</TD>
    <TD>&nbsp;</TD>
    </TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<!-- Field: Rule-Page --><DIV STYLE="width: 25%"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="margin-top: 0; margin-bottom: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(1)</TD><TD>Steven J. Murray is a member of the DraftKings board of directors, is to be named a director of New DraftKings and is an affiliate
of Revolution Growth III, LP.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(2)</TD><TD>John Salter is a member of the DraftKings board of directors, is to be named a director of New DraftKings and is an affiliate
of RPII DK LLC. RPII DK LLC held more than 5% of DraftKings capital stock as of the date of this prospectus.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(3)</TD><TD>Consists of 453,943 shares purchased by Accomplice Fund I, L.P. Ryan Moore is a member of the DraftKings board of directors,
is to be named a director of New DraftKings and is an affiliate of Accomplice Fund I, L.P. Entities affiliated with Accomplice,
LLC held over 5% of DraftKings capital stock as of the date of this prospectus.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(4)</TD><TD>Consists of 440,325 shares purchased by Redpoint Omega II, L.P. and 13,618 shares purchased by Redpoint Omega Associates II,
LLC. Redpoint Omega II, L.P. and Redpoint Omega Associates II, LLC collectively held more than 5% of DraftKings capital stock as
of the date of this prospectus.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Series F Preferred Stock Financing</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Between August 2018 and March 2020, DraftKings
sold an aggregate of 59,663,975 shares of its Series F preferred stock in multiple closings at a purchase price of&#8201;$2.549560
per share, for an aggregate amount of approximately $152.1 million, after accounting for redemptions. Certain related persons participated
in the financing round through investment funds in which they participate in management and/or have a financial interest. The following
table summarizes purchases of DraftKings&rsquo; Series F preferred stock by related persons:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold; border-bottom: Black 1pt solid">Name</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Number of<BR> Shares</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Purchase Price<BR> ($)</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 74%; font-size: 10pt; text-align: left">Revolution Growth III, LP<FONT STYLE="font-size: 10pt">(1)</FONT></TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">3,922,245</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: center">9,999,998.97</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Italianflare &amp; Co., as nominee for Hadley Harbor Master Investors (Cayman) L.P.<FONT STYLE="font-size: 10pt">(2)</FONT></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">980,561</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center">2,499,999.11</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt">Accomplice Fund II, L.P.<FONT STYLE="font-size: 10pt">(3)</FONT></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">784,449</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center">1,999,999.80</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Jason Robins Revocable Trust u/d/t January 8, 2014<FONT STYLE="font-size: 10pt">(4)</FONT></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">39,222</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center">99,998.85</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0"></P>

<!-- Field: Rule-Page --><DIV STYLE="margin-top: 3pt; margin-bottom: 3pt; width: 25%"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font-size: 1pt; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(1)</TD><TD>Steven J. Murray is a member of the DraftKings board of directors, is to be named a director of New DraftKings and is an affiliate
of Revolution Growth III, LP.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(2)</TD><TD>Hadley Harbor Master Investors (Cayman) L.P. is an affiliate of Wellington Management Company, LLC. Entities affiliated with
Wellington Management Company, LLC held over 5% of DraftKings capital stock as of the date of this prospectus.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(3)</TD><TD>Ryan Moore is a member of the DraftKings board of directors, is to be named a director of New DraftKings and is an affiliate
of Accomplice Fund II, L.P. Entities affiliated with Accomplice Fund II, L.P. held over 5% of DraftKings capital stock as of the
date of this prospectus.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(4)</TD><TD>Jason Robins, the trustee of Jason Robins Revocable Trust u/d/t January 8, 2014, is the Chief Executive Officer, a member of
the board of directors of DraftKings and to be named a director of New DraftKings.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Investor Rights Agreement</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DraftKings entered into an amended and restated
investor rights agreement dated August 17, 2018, granting registration rights and information rights, among other things, to holders
of its preferred stock, including Fox, RPII DK LLC, Revolution Growth III, LP, Jason Robins, Jason Robins Revocable Trust u/d/t
January 8, 2014, Paul Liberman, Matthew Kalish, Kevin Kalish and entities affiliated with Accomplice, LLC, Eldridge Industries
LLC, GGV Capital Holdings L.L.C., Redpoint Ventures, and Wellington Management Company, LLC (the &ldquo;Agreement Parties&rdquo;).
This agreement will terminate upon the Closing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Right of First Refusal Agreement</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DraftKings entered into an amended and restated
right of first refusal and co-sale agreement dated August 17, 2018 with holders of its preferred stock, including the Agreement
Parties, pursuant to which such holders have a right of first refusal and co-sale in respect of certain sales of securities by
certain of DraftKings&rsquo; current and former service providers and their affiliates, including Jason Robins, Jason Robins Revocable
Trust u/d/t January 8, 2014, Paul Liberman, Matthew Kalish and Woodrow Levin. To the extent this agreement does not terminate in
accordance with its terms, DraftKings intends to amend the agreement and terminate it at the Closing of the Business Combination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Voting Rights Agreement</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DraftKings is a party to the Voting Rights
Agreement dated August 17, 2018 pursuant to which holders of its preferred stock, including the Agreement Parties, and certain
of its current and former service providers, including Woodrow Levin, have agreed to vote in a certain way on certain matters,
including with respect to the election of directors of DraftKings. Upon the Closing, the Voting Rights Agreement will terminate
and none of DraftKings&rsquo; stockholders will have any special rights regarding the election or designation of members of the
DraftKings board of directors, and to the extent this agreement doesn&rsquo;t terminate in accordance with its terms, DraftKings
intends to amend the agreement and terminate it at the Closing of the Business Combination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Raine 2019 Engagement Letter</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On August 28, 2019, DraftKings entered into
an engagement letter, which was subsequently amended on December 13, 2019, with Raine Securities LLC (&ldquo;Raine Securities&rdquo;),
an affiliate of Raine. John Salter, a member of the board of directors of DraftKings, is a partner of Raine. Pursuant to the engagement
letter, Raine Securities has acted as the exclusive financial advisor to DraftKings in connection with the acquisition of SBTech
and the Business Combination with DEAC. Under the terms of the engagement letter, DraftKings has agreed to pay Raine Securities
the following fees in addition to any other fees and expenses that may become payable under the terms of the engagement letter:
(i) a success fee of $5.0 million for services in connection with the consummation of the SBTech Acquisition; and (ii) a success
fee of $7.0 million for services in connection with the consummation of the Business Combination. The engagement letter is terminable
at will by either party upon written notice to the other party.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">DKFS</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On August 27, 2019, DraftKings and other
investors, including Accomplice Fund II, L.P. and Hany Nada, as well as Jason Robins and Jason Park, acquired equity interests
of DKFS, LLC, a newly created joint venture, which among other things, will invest in early stage companies in the sports entertainment
industry. Jason Robins and Jason Park are managers of DKFS. The following table summarizes the equity interests of DKFS, LLC held
by DraftKings and related persons, as well as the consideration paid for such interests:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&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; border-bottom: black 1pt solid"><FONT STYLE="font-size: 10pt"><B>Name </B></FONT></TD>
    <TD STYLE="white-space: nowrap; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="white-space: nowrap; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Common<BR>
Units </B></FONT></TD>
    <TD STYLE="white-space: nowrap; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="white-space: nowrap; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="white-space: nowrap; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Incentive<BR>
Units(1)</B></FONT></TD>
    <TD STYLE="white-space: nowrap; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="white-space: nowrap; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="white-space: nowrap; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Cash<BR>
Consideration ($) </B></FONT></TD>
    <TD STYLE="white-space: nowrap; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="white-space: nowrap; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="white-space: nowrap; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>In-Kind<BR>
Consideration ($)(2)</B></FONT></TD>
    <TD STYLE="white-space: nowrap; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 62%">DraftKings </TD>
    <TD STYLE="width: 1%; text-align: right">&#8203;</TD>
    <TD STYLE="width: 10%; text-align: right">4,500,000</TD>
    <TD STYLE="width: 1%; text-align: right">&#8203;</TD>
    <TD STYLE="width: 1%; text-align: right">&#8203;</TD>
    <TD STYLE="width: 10%; text-align: right">-</TD>
    <TD STYLE="width: 1%; text-align: right">&#8203;</TD>
    <TD STYLE="width: 1%; text-align: right">&#8203;</TD>
    <TD STYLE="width: 10%; text-align: right">-</TD>
    <TD STYLE="width: 1%; text-align: right">&#8203;</TD>
    <TD STYLE="width: 1%; text-align: right">&#8203;</TD>
    <TD STYLE="width: 1%; text-align: right">3,000,000</TD>
    <TD STYLE="width: 0%; text-align: right">&#8203;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>Accomplice Fund II, L.P.<FONT STYLE="font-size: 10pt">(3)</FONT></TD>
    <TD STYLE="text-align: right">&#8203;</TD>
    <TD STYLE="text-align: right">1,500,000</TD>
    <TD STYLE="text-align: right">&#8203;</TD>
    <TD STYLE="text-align: right">&#8203;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD STYLE="text-align: right">&#8203;</TD>
    <TD STYLE="text-align: right">&#8203;</TD>
    <TD STYLE="text-align: right">1,000,000</TD>
    <TD STYLE="text-align: right">&#8203;</TD>
    <TD STYLE="text-align: right">&#8203;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD STYLE="text-align: right">&#8203;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Hany Nada<FONT STYLE="font-size: 10pt">(4)</FONT></TD>
    <TD STYLE="text-align: right">&#8203;</TD>
    <TD STYLE="text-align: right">375,000</TD>
    <TD STYLE="text-align: right">&#8203;</TD>
    <TD STYLE="text-align: right">&#8203;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD STYLE="text-align: right">&#8203;</TD>
    <TD STYLE="text-align: right">&#8203;</TD>
    <TD STYLE="text-align: right">250,000</TD>
    <TD STYLE="text-align: right">&#8203;</TD>
    <TD STYLE="text-align: right">&#8203;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD STYLE="text-align: right">&#8203;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>Jason Robins<FONT STYLE="font-size: 10pt">(5)</FONT></TD>
    <TD STYLE="text-align: right">&#8203;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD STYLE="text-align: right">&#8203;</TD>
    <TD STYLE="text-align: right">&#8203;</TD>
    <TD STYLE="text-align: right">126,603</TD>
    <TD STYLE="text-align: right">&#8203;</TD>
    <TD STYLE="text-align: right">&#8203;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD STYLE="text-align: right">&#8203;</TD>
    <TD STYLE="text-align: right">&#8203;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD STYLE="text-align: right">&#8203;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>Jason Park<FONT STYLE="font-size: 10pt">(6)</FONT></TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right">63,301</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD STYLE="text-align: right">&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"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<!-- Field: Rule-Page --><DIV STYLE="margin-top: 3pt; margin-bottom: 3pt; width: 25%"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(1)</TD><TD>One-fourth of each recipient&rsquo;s incentive units vest on the one-year anniversary of the date of issuance and the remainder
vest in equal monthly installments over the subsequent 36 months, subject to the recipient&rsquo;s continued provision of services
to DKFS, LLC.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(2)</TD><TD>Consists of the contribution to DKFS, LLC of a license to use certain proprietary marks and logos owned by DraftKings.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(3)</TD><TD>Accomplice Fund II, L.P. is an affiliate of entities holding over 5% of DraftKings capital stock.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(4)</TD><TD>Hany Nada is a member of the DraftKings board of directors and is to be named a director of New DraftKings.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(5)</TD><TD>Jason Robins is the Chief Executive Officer, a member of the board of directors of DraftKings and is to be named a director
of New DraftKings.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(6)</TD><TD>Jason Park is the Chief Financial Officer of DraftKings.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection with the investment in DKFS,
LLC, DraftKings also agreed to enter into a services agreement with Drive by DraftKings, Inc., a wholly-owned subsidiary of DKFS,
LLC. Pursuant to this services agreement, DraftKings will provide certain administrative and other services to Drive by DraftKings,
Inc. Specifically, DraftKings provides office space and general overhead support to DKFS, LLC. The overhead support relates to
rent, utilities and general and administrative support services. As of December 31, 2019, DraftKings had $959,000 of receivables
from this entity related to these services. We anticipate that the service agreement fees incurred by Drive by DraftKings, Inc.
will be approximately $120,000 annually.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Smack Transfer Transaction</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On May 11, 2018, DraftKings entered into
an asset purchase agreement with Smack Inc. (&ldquo;Smack&rdquo;) and certain stockholders of Smack, including Jason Robins and
OneSix Red, LLC. Woodrow Levin, a director of DraftKings, is a manager of and has a financial interest in OneSix Red, LLC, primarily
to hire certain key employees of Smack, which at the time, made mobile-based applications for end users. The stockholders party
to the asset purchase agreement received shares of DraftKings common stock as consideration for the transaction totaling 258,621
shares in the aggregate at a price per share of $1.16 (for a total value of $300,000.36). Jason Robins received 761 shares (valued
at $882.76) and OneSix Red, LLC received 8,747 shares (valued at $10,146.52). In connection with the transaction, the Smack stockholders,
including Jason Robins and OneSix Red, LLC, entered into a stockholder agreement with DraftKings, which, among other things, requires
such stockholders to vote the shares received as consideration in a certain way in the event of a change of control of DraftKings.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Fox Right of First Negotiation</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On July 15, 2015, DraftKings and Fox entered
into a right of first negotiation agreement (the &ldquo;ROFN Agreement&rdquo;) in connection with Fox&rsquo;s purchase of DraftKings&rsquo;
Series D preferred stock. Pursuant to the ROFN Agreement, Fox has the right to submit a non-binding offer to acquire DraftKings
in the event that DraftKings takes certain steps in connection with a sale of the company or a change of control, subject to certain
terms and conditions. If DraftKings rejects Fox&rsquo;s offer and, during the subsequent 12-month period, intends to enter into
a definitive agreement to sell the company on terms inferior to those proposed by Fox, DraftKings must provide Fox with the exclusive
opportunity to acquire DraftKings on such inferior terms. The ROFN Agreement will terminate upon the Closing, and to the extent
this agreement does not terminate in accordance with its terms, DraftKings intends to amend the agreement and terminate it at the
Closing of the Business Combination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Fox Media Agreement</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On August 1, 2014, DraftKings entered into
a fantasy games advertising agreement with Fox Sports Interactive Media, LLC, which was incorporated into a media purchase agreement
between DraftKings and Fox Networks Group, Inc., dated July 13, 2015 (as amended from time to time thereto, the &ldquo;Media Purchase
Agreement&rdquo;). Fox Networks Group, Inc., until March 2019, was an affiliate of Fox, which holds over 5% of DraftKings capital
stock. Pursuant to the Media Purchase Agreement, and effective January 2019, DraftKings is committed
to an aggregate minimum commitment of $14.4 million through December 31, 2021 ($5 million per year). The Media Purchase Agreement
will expire December 31, 2021 unless DraftKings elects to extend it.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Convertible Notes</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As part of DraftKings&rsquo; issuance of
Convertible Notes, Accomplice DK Investors, LLC invested an aggregate of $4 million. Ryan Moore is a member of the DraftKings board
of directors, is to be named a director of New DraftKings and is an affiliate of Accomplice Fund I, L.P. and Accomplice Management
Holdings, LLC. Entities affiliated with Accomplice, LLC held over 5% of DraftKings capital stock as of the date of this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">SBTech</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In the three years ended December 31, 2019,
2018 and 2017, SBTech engaged Collaborative Marketing OOD, a consulting company owned by Mr. Meckenzie and another individual,
pursuant to which Collaborative Marketing OOD provided marketing, sales and business development services to SBTech in exchange
for a fee of &euro;446 thousand, &euro;296 thousand and &euro;235 thousand, in 2019, 2018 and 2017, respectively, including a one-time
termination fee of &euro;243 thousand in 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Additionally, during the three years ended
December 31, 2019, 2018 and 2017, Water Tree Group, a company wholly owned by Mr. Meckenzie&rsquo;s brother, transacted with SBTech
for its platform licensing services. The amount received from Water Tree Group for the license was &euro;6.265 million, &euro;6.870
million and &euro;8.765 million in 2019, 2018 and 2017, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Furthermore, during the three years ended
December 31, 2019, 2018 and 2017, A.L. Skyshield LTD (&ldquo;Skyshield&rdquo;), a real-estate company owned by Mr. Meckenzie, leased
offices in Israel to Gaming Tech Ltd., a subsidiary of SBTech. The amount paid out to Skyshield in respect of lease was &euro;627
thousand, &euro;480 thousand and &euro;127 thousand in 2019, 2018 and 2017, respectively. Additionally, SBTech provided a loan
to Skyshield in the amount of&#8201; &euro;2.810 million. The loan bears interest at Libor +2.25% per annum. In 2019, there were
no repayments against this loan. In 2018, SBTech received repayments which amounted to &euro;1.550 million. As of December 31,
2019, the loan amounted to &euro;1.430 million. This loan will be repaid at the Closing of the Business Combination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Related Person Transaction Policy Following the Business
Combination</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Upon consummation of the Business Combination,
it is anticipated that the New DraftKings board of directors will adopt a written related person transaction policy that sets forth
the following policies and procedures for the review and approval or ratification of related person transactions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">A &ldquo;Related Person Transaction&rdquo;
is a transaction, arrangement or relationship in which New DraftKings or any of its subsidiaries was, is or will be a participant,
the amount of which involved exceeds $120,000, and in which any related person had, has or will have a direct or indirect material
interest. A &ldquo;Related Person&rdquo; means:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>any person who is, or at any time during the applicable period was, one of New DraftKings&rsquo; executive officers or a member
of New DraftKings&rsquo; board of directors;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>any person who is known by New DraftKings to be the beneficial owner of more than five percent (5%) of our voting stock;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>any immediate family member of any of the foregoing persons, which means any child, stepchild, parent, stepparent, spouse,
sibling, mother-in-law, father-in-law, daughter-in-law, brother-in-law or sister-in-law of a director, officer or a beneficial
owner of more than five percent (5%) of our voting stock, and any person (other than a tenant or employee) sharing the household
of such director, executive officer or beneficial owner of more than five percent (5%) of our voting stock; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>any firm, corporation or other entity in which any of the foregoing persons is a partner or principal or in a similar position
or in which such person has a 10 percent (10%) or greater beneficial ownership interest.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">It is also anticipated that New DraftKings
will have policies and procedures designed to minimize potential conflicts of interest arising from any dealings it may have with
its affiliates and to provide appropriate procedures for the disclosure of any real or potential conflicts of interest that may
exist from time to time. Specifically, pursuant to its audit committee charter, the audit committee will have the responsibility
to review related person transactions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="b_024"></A>United
STATES FEDERAL INCOME TAX CONSIDERATIONS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following is a discussion of certain
material U.S. federal income tax consequences of the acquisition, ownership and disposition of our common stock and warrants, which
we refer to collectively as our securities. This discussion applies only to securities that are held as capital assets for U.S.
federal income tax purposes and is applicable only to holders who are receiving our securities in this offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This discussion is a summary only and does
not describe all of the tax consequences that may be relevant to you in light of your particular circumstances, including but not
limited to the alternative minimum tax, the Medicare tax on certain investment income and the different consequences that may apply
if you are subject to special rules that apply to certain types of investors (such as the effects of Section 451 of the Internal
Revenue Code of 1986, as amended (the &ldquo;Code&rdquo;)), including but not limited to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify; padding-right: 7.7pt">financial institutions or financial services entities;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify; padding-right: 7.7pt">broker-dealers;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify; padding-right: 7.7pt">governments or agencies or instrumentalities thereof;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify; padding-right: 7.7pt">regulated investment companies;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify; padding-right: 7.7pt">real estate investment trusts;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify; padding-right: 7.7pt">expatriates or former long-term residents of the U.S.;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify; padding-right: 7.7pt">persons that actually or constructively own five percent or more of our voting
shares;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify; padding-right: 7.7pt">insurance companies;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify; padding-right: 7.7pt">dealers or traders subject to a mark-to-market method of accounting with
respect to the securities;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify; padding-right: 7.7pt">persons holding the securities as part of a &ldquo;straddle,&rdquo; hedge,
integrated transaction or similar transaction;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify; padding-right: 7.7pt">U.S. holders (as defined below) whose functional currency is not the U.S.
dollar;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify; padding-right: 7.7pt">partnerships or other pass-through entities for U.S. federal income tax purposes
and any beneficial owners of such entities; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify; padding-right: 7.7pt">tax-exempt entities.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This discussion is based on the Code, and
administrative pronouncements, judicial decisions and final, temporary and proposed Treasury regulations as of the date hereof,
which are subject to change, possibly on a retroactive basis, and changes to any of which subsequent to the date of this prospectus
may affect the tax consequences described herein. This discussion does not address any aspect of state, local or non-U.S. taxation,
or any U.S. federal taxes other than income taxes (such as gift and estate taxes).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We have not sought, and will not seek, a
ruling from the IRS as to any U.S. federal income tax consequence described herein. The IRS may disagree with the discussion herein,
and its determination may be upheld by a court. Moreover, there can be no assurance that future legislation, regulations, administrative
rulings or court decisions will not adversely affect the accuracy of the statements in this discussion. You are urged to consult
your tax advisor with respect to the application of U.S. federal tax laws to your particular situation, as well as any tax consequences
arising under the laws of any state, local or foreign jurisdiction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">This discussion does not consider the tax
treatment of partnerships or other pass-through entities or persons who hold our securities through such entities. If a partnership
(or other entity or arrangement classified as a partnership or other pass-through entity for United States federal income tax purposes)
is the beneficial owner of our securities, the United States federal income tax treatment of a partner or member in the partnership
or other pass-through entity generally will depend on the status of the partner or member and the activities of the partnership
or other pass-through entity. If you are a partner or member of a partnership or other pass-through entity holding our securities,
we urge you to consult your own tax advisor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>THIS DISCUSSION IS ONLY A SUMMARY OF
CERTAIN UNITED STATES FEDERAL INCOME TAX CONSIDERATIONS ASSOCIATED WITH THE ACQUISITION, OWNERSHIP AND DISPOSITION OF OUR SECURITIES.
EACH PROSPECTIVE INVESTOR IN OUR SECURITIES IS URGED TO CONSULT ITS OWN TAX ADVISOR WITH RESPECT TO THE PARTICULAR TAX CONSEQUENCES
TO SUCH INVESTOR OF THE ACQUISITION, OWNERSHIP AND DISPOSITION OF OUR SECURITIES, INCLUDING THE APPLICABILITY AND EFFECT OF ANY
UNITED STATES FEDERAL NON-INCOME, STATE, LOCAL, AND NON-U.S. TAX LAWS.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>U.S. Holders</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This section applies to you if you are a
 &ldquo;U.S. holder.&rdquo; A U.S. holder is a beneficial owner of our shares of common stock or warrants who or that is, for U.S.
federal income tax purposes:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify; padding-right: 7.7pt">an individual who is a citizen or resident of the United States;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify; padding-right: 7.7pt">a corporation (or other entity taxable as a corporation) organized in or
under the laws of the United States, any state thereof or the District of Columbia; or</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify; padding-right: 7.7pt">an estate the income of which is includible in gross income for U.S. federal
income tax purposes regardless of its source; or</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify; padding-right: 7.7pt">a trust, if (i)&nbsp;a court within the United States is able to exercise
primary supervision over the administration of the trust and one or more U.S. persons (as defined in the Code) have authority to
control all substantial decisions of the trust or (ii)&nbsp;it has a valid election in effect under Treasury Regulations to be
treated as a U.S. person.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Taxation of Distributions.</I> If we
pay distributions in cash or other property (other than certain distributions of our stock or rights to acquire our stock) to U.S.
holders of shares of our common stock, such distributions generally will constitute dividends for U.S. federal income tax purposes
to the extent paid from our current or accumulated earnings and profits, as determined under U.S. federal income tax principles.
Distributions in excess of current and accumulated earnings and profits will constitute a return of capital that will be applied
against and reduce (but not below zero) the U.S. holder&rsquo;s adjusted tax basis in our common stock. Any remaining excess will
be treated as gain realized on the sale or other disposition of the common stock and will be treated as described under &ldquo;<I>U.S.
Holders&mdash;Gain or Loss on Sale, Taxable Exchange or Other Taxable Disposition of common stock and Warrants</I>&rdquo; below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Dividends we pay to a U.S. holder that is
a taxable corporation generally will qualify for the dividends received deduction if the requisite holding period is satisfied.
With certain exceptions (including, but not limited to, dividends treated as investment income for purposes of investment interest
deduction limitations), and provided certain holding period requirements are met, dividends we pay to a non-corporate U.S. holder
may constitute &ldquo;qualified dividends&rdquo; that will be subject to tax at the maximum tax rate accorded to long-term capital
gains. If the holding period requirements are not satisfied, then a corporation may not be able to qualify for the dividends received
deduction and would have taxable income equal to the entire dividend amount, and non-corporate holders may be subject to tax on
such dividend at regular ordinary income tax rates instead of the preferential rate that applies to qualified dividend income.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Gain or Loss on Sale, Taxable Exchange
or Other Taxable Disposition of common stock and Warrants.</I> Upon a sale or other taxable disposition of our common stock or
warrants, a U.S. holder generally will recognize capital gain or loss in an amount equal to the difference between the amount realized
and the U.S. holder&rsquo;s adjusted tax basis in the common stock or warrants. Any such capital gain or loss generally will be
long-term capital gain or loss if the U.S. holder&rsquo;s holding period for the common stock or warrants so disposed of exceeds
one year. If the holding period requirements are not satisfied, any gain on a sale or taxable disposition of the shares or warrants
would be subject to short-term capital gain treatment and would be taxed at regular ordinary income tax rates. Long-term capital
gains recognized by non-corporate U.S. holders will be eligible to be taxed at reduced rates. The deductibility of capital losses
is subject to limitations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Generally, the amount of gain or loss recognized
by a U.S. holder is an amount equal to the difference between (i)&nbsp;the sum of the amount of cash and the fair market value
of any property received in such disposition and (ii)&nbsp;the U.S. holder&rsquo;s adjusted tax basis in its common stock or warrants
so disposed of. A U.S. holder&rsquo;s adjusted tax basis in its common stock or warrants generally will equal the U.S. holder&rsquo;s
acquisition cost for the common stock or warrant less, in the case of a share of common stock, any prior distributions treated
as a return of capital. In the case of any shares of common stock or warrants originally acquired as part of an investment unit,
the acquisition cost for the share of common stock and warrant that were part of such unit would equal an allocable portion of
the acquisition cost of the unit based on the relative fair market values of the components of the unit at the time of acquisition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Exercise or Lapse of a Warrant.</I> Except
as discussed below with respect to the cashless exercise of a warrant, a U.S. holder generally will not recognize taxable gain
or loss on the acquisition of our common stock upon exercise of a warrant for cash. The U.S. holder&rsquo;s tax basis in the share
of our common stock received upon exercise of the warrant generally will be an amount equal to the sum of the U.S. holder&rsquo;s
initial investment in the warrant and the exercise price. It is unclear whether the U.S. holder&rsquo;s holding period for the
common stock received upon exercise of the warrants will begin on the date following the date of exercise or on the date of exercise
of the warrants; in either case, the holding period will not include the period during which the U.S. holder held the warrants.
If a warrant is allowed to lapse unexercised, a U.S. holder generally will recognize a capital loss equal to such holder&rsquo;s
tax basis in the warrant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The tax consequences of a cashless exercise
of a warrant are not clear under current tax law. A cashless exercise may be tax-free, either because the exercise is not a realization
event or because the exercise is treated as a recapitalization for U.S. federal income tax purposes. In either tax-free situation,
a U.S. holder&rsquo;s basis in the common stock received would equal the holder&rsquo;s basis in the warrants exercised therefor.
If the cashless exercise were treated as not being a realization event, it is unclear whether a U.S. holder&rsquo;s holding period
in the common stock would be treated as commencing on the date following the date of exercise or on the date of exercise of the
warrant; in either case, the holding period would not include the period during which the U.S. holder held the warrants. If the
cashless exercise were treated as a recapitalization, the holding period of the common stock would include the holding period of
the warrants exercised therefor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">It is also possible that a cashless exercise
could be treated in part as a taxable exchange in which gain or loss would be recognized. In such event, a U.S. holder could be
deemed to have surrendered warrants equal to the number of shares of common stock having a value equal to the exercise price for
the total number of warrants to be exercised. The U.S. holder would recognize capital gain or loss in an amount equal to the difference
between the fair market value of the common stock received in respect of the warrants deemed surrendered and the U.S. holder&rsquo;s
tax basis in the warrants deemed surrendered. In this case, a U.S. holder&rsquo;s tax basis in the common stock received would
equal the sum of the fair market value of the common stock received in respect of the warrants deemed surrendered and the U.S.
holder&rsquo;s tax basis in the warrants exercised. It is unclear whether a U.S. holder&rsquo;s holding period for the common stock
would commence on the date following the date of exercise or on the date of exercise of the warrant; in either case, the holding
period would not include the period during which the U.S. holder held the warrant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Due to the absence of authority on the U.S.
federal income tax treatment of a cashless exercise, including when a U.S. holder&rsquo;s holding period would commence with respect
to the common stock received, there can be no assurance which, if any, of the alternative tax consequences and holding periods
described above would be adopted by the IRS or a court of law. Accordingly, U.S. holders should consult their tax advisors regarding
the tax consequences of a cashless exercise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Possible Constructive Distributions.</I>
The terms of each warrant provide for an adjustment to the number of shares of common stock for which the warrant may be exercised
or to the exercise price of the warrant in certain events, as discussed in the section of this registration statement entitled
 &ldquo;<I>Description of Securities&mdash;Warrants</I>.&rdquo; An adjustment which has the effect of preventing dilution generally
is not taxable. The U.S. holders of the warrants would, however, be treated as receiving a constructive distribution from us if,
for example, the adjustment to the number of such shares or to such exercise price increases the warrantholders&rsquo; proportionate
interest in our assets or earnings and profits (e.g.,&nbsp;through an increase in the number of shares of common stock that would
be obtained upon exercise or through a decrease in the exercise price of the warrant) as a result of a distribution of cash or
other property, such as other securities, to the holders of shares of our common stock, or as a result of the issuance of a stock
dividend to holders of shares of our common stock, in each case which is taxable to the holders of such shares as a distribution.
Such constructive distribution would be subject to tax as described under that section in the same manner as if the U.S. holders
of the warrants received a cash distribution from us equal to the fair market value of such increased interest.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Information Reporting and Backup Withholding.</I>
In general, information reporting requirements may apply to dividends paid to a U.S. holder and to the proceeds of the sale or
other disposition of our shares of common stock and warrants, unless the U.S. holder is an exempt recipient. Backup withholding
may apply to such payments if the U.S. holder fails to provide a taxpayer identification number, a certification of exempt status
or has been notified by the IRS that it is subject to backup withholding (and such notification has not been withdrawn).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Any amounts withheld under the backup withholding
rules generally should be allowed as a refund or a credit against a U.S. holder&rsquo;s U.S. federal income tax liability provided
the required information is timely furnished to the IRS.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Non-U.S. Holders</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This section applies to you if you are a
 &ldquo;Non-U.S. holder.&rdquo; As used herein, the term &ldquo;Non-U.S. holder&rdquo; means a beneficial owner of our common stock
or warrants who or that is for U.S. federal income tax purposes:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><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: justify; padding-right: 7.7pt">a non-resident alien individual (other than certain former citizens and residents
of the U.S. subject to U.S. tax as expatriates);</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><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: justify; padding-right: 7.7pt">a foreign corporation or</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><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: justify; padding-right: 7.7pt">an estate or trust that is not a U.S. holder;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">but generally does not include an individual who is present
in the U.S. for 183&nbsp;days or more in the taxable year of disposition. If you are such an individual, you should consult your
tax advisor regarding the U.S. federal income tax consequences of the acquisition, ownership or sale or other disposition of our
securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Taxation of Distributions.</I> In general,
any distributions we make to a Non-U.S. holder of shares of our common stock, to the extent paid out of our current or accumulated
earnings and profits (as determined under U.S. federal income tax principles), will constitute dividends for U.S. federal income
tax purposes and, provided such dividends are not effectively connected with the Non-U.S. holder&rsquo;s conduct of a trade or
business within the United States, we will be required to withhold tax from the gross amount of the dividend at a rate of 30%,
unless such Non-U.S. holder is eligible for a reduced rate of withholding tax under an applicable income tax treaty and provides
proper certification of its eligibility for such reduced rate (usually on an IRS Form&nbsp;W-8BEN or W-8BEN-E). Any distribution
not constituting a dividend will be treated first as reducing (but not below zero) the Non-U.S. holder&rsquo;s adjusted tax basis
in its shares of our common stock and, to the extent such distribution exceeds the Non-U.S. holder&rsquo;s adjusted tax basis,
as gain realized from the sale or other disposition of the common stock, which will be treated as described under &ldquo;<I>Non-U.S.
Holders&mdash;Gain on Sale, Taxable Exchange or Other Taxable Disposition of common stock and Warrants</I>&rdquo; below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The withholding tax does not apply to dividends
paid to a Non-U.S. holder who provides a Form&nbsp;W-8ECI, certifying that the dividends are effectively connected with the Non-U.S.
holder&rsquo;s conduct of a trade or business within the United States. Instead, the effectively connected dividends will be subject
to regular U.S. income tax as if the Non-U.S. holder were a U.S. resident, subject to an applicable income tax treaty providing
otherwise. A Non-U.S. corporation receiving effectively connected dividends may also be subject to an additional &ldquo;branch
profits tax&rdquo; imposed at a rate of 30% (or a lower treaty rate).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Exercise of a Warrant.</I> The U.S. federal
income tax treatment of a Non-U.S. holder&rsquo;s exercise of a warrant, or the lapse of a warrant held by a Non-U.S. holder, generally
will correspond to the U.S. federal income tax treatment of the exercise or lapse of a warrant by a U.S. holder, as described under
 &ldquo;<I>U.S. holders&mdash;Exercise or Lapse of a Warrant</I>&rdquo; above, although to the extent a cashless exercise results
in a taxable exchange, the consequences would be similar to those described below in &ldquo;<I>Non-U.S. Holders&mdash;Gain on Sale,
Taxable Exchange or Other Taxable Disposition of common stock and Warrants</I>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Gain on Sale, Taxable Exchange or Other
Taxable Disposition of common stock and Warrants.</I> A Non-U.S. holder generally will not be subject to U.S. federal income or
withholding tax in respect of gain recognized on a sale, taxable exchange or other taxable disposition of our common stock, unless:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><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: justify; padding-right: 7.7pt">the gain is effectively connected with the conduct of a trade or business
by the Non-U.S. holder within the United States (and, under certain income tax treaties, is attributable to a United States permanent
establishment or fixed base maintained by the Non-U.S. holder); or</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><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: justify; padding-right: 7.7pt">we are or have been a &ldquo;U.S. real property holding corporation&rdquo;
for U.S. federal income tax purposes at any time during the shorter of the five-year period ending on the date of disposition or
the period that the Non-U.S. holder held our common stock, and, in the case where shares of our common stock are regularly traded
on an established securities market, the Non-U.S. holder has owned, directly or constructively, more than 5% of our common stock
at any time within the shorter of the five-year period preceding the disposition or such Non-U.S. holder&rsquo;s holding period
for the shares of our common stock. There can be no assurance that our common stock will be treated as regularly traded on an established
securities market for this purpose.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Unless an applicable treaty provides otherwise,
gain described in the first bullet point above will be subject to tax at generally applicable U.S. federal income tax rates as
if the Non-U.S. holder were a U.S. resident. Any gains described in the first bullet point above of a Non-U.S. holder that is a
foreign corporation may also be subject to an additional &ldquo;branch profits tax&rdquo; at a 30% rate (or lower treaty rate).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If the second bullet point above applies
to a Non-U.S. holder, gain recognized by such holder on the sale, exchange or other disposition of our common stock or warrants
will be subject to tax at generally applicable U.S. federal income tax rates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Possible Constructive Distributions.</I>
The terms of each warrant provide for an adjustment to the number of shares of common stock for which the warrant may be exercised
or to the exercise price of the warrant in certain events, as discussed in the section of this prospectus captioned &ldquo;<I>Description
of Securities&mdash;Warrants</I>.&rdquo; An adjustment which has the effect of preventing dilution is generally not a taxable event.
Nevertheless, a Non-U.S. holder of warrants would be treated as receiving a constructive distribution from us if, for example,
the adjustment increases the holder&rsquo;s proportionate interest in our assets or earnings and profits (e.g.,&nbsp;through an
increase in the number of shares of common stock that would be obtained upon exercise) as a result of a distribution of cash or
other property, such as other securities, to the holders of shares of our common stock which is taxable to such holders as a distribution.
Any constructive distribution received by a Non-U.S. holder would be subject to U.S. federal income tax (including any applicable
withholding) in the same manner as if such Non-U.S. holder received a cash distribution from us equal to the fair market value
of such increased interest without any corresponding receipt of cash. Any resulting withholding tax may be withheld from future
cash distributions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Information Reporting and Backup Withholding.</I>
Information returns will be filed with the IRS in connection with payments of dividends and the proceeds from a sale or other disposition
of our shares of common stock and warrants. A Non-U.S. holder may have to comply with certification procedures to establish that
it is not a United States person in order to avoid information reporting and backup withholding requirements. The certification
procedures required to claim a reduced rate of withholding under a treaty will satisfy the certification requirements necessary
to avoid the backup withholding as well. The amount of any backup withholding from a payment to a Non-U.S. holder will be allowed
as a credit against such holder&rsquo;s U.S. federal income tax liability and may entitle such holder to a refund, provided that
the required information is timely furnished to the IRS.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>FATCA Withholding Taxes.</I> Provisions
commonly referred to as &ldquo;FATCA&rdquo; impose withholding of 30% on payments of dividends (including constructive dividends)
on our common stock to &ldquo;foreign financial institutions&rdquo; (which is broadly defined for this purpose and in general includes
investment vehicles) and certain other Non-U.S. entities unless various U.S. information reporting and due diligence requirements
(generally relating to ownership by U.S. persons of interests in or accounts with those entities) have been satisfied by, or an
exemption applies to, the payee (typically certified as to by the delivery of a properly completed IRS Form&nbsp;W-8BEN-E). Foreign
financial institutions located in jurisdictions that have an intergovernmental agreement with the United States governing FATCA
may be subject to different rules. Under certain circumstances, a Non-U.S. holder might be eligible for refunds or credits of such
withholding taxes, and a Non-U.S. holder might be required to file&nbsp;a U.S. federal income tax return to claim such refunds
or credits. Prospective investors should consult their tax advisers regarding the effects of FATCA on their investment in our securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="b_025"></A>PLAN OF
DISTRIBUTION</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We are registering the possible resale by
the Selling Securityholders of up to 44,725,831 shares of Class A common stock (including 3,000,000 shares of Class A common stock
issuable upon the exercise of the PIPE Warrants and 11,254,479 shares of Class A common stock issuable upon conversion of Convertible
Notes held by such Selling Securityholders.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We will not receive any of the proceeds
from the sale of the securities by the Selling Securityholders. We will receive proceeds from warrants exercised in the event that
such warrants are exercised for cash. The aggregate proceeds to the Selling Securityholders will be the purchase price of the securities
less any discounts and commissions borne by the Selling Securityholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Selling Securityholders will pay any
underwriting discounts and commissions and expenses incurred by the Selling Securityholders for brokerage, accounting, tax or legal
services or any other expenses incurred by the Selling Securityholders in disposing of the securities. We will bear all other costs,
fees and expenses incurred in effecting the registration of the securities covered by this prospectus, including, without limitation,
all registration and filing fees, Nasdaq listing fees and fees and expenses of our counsel and our independent registered public
accountants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The securities beneficially owned by the
Selling Securityholders covered by this prospectus may be offered and sold from time to time by the Selling Securityholders. The
term &ldquo;Selling Securityholders&rdquo; includes donees, pledgees, transferees or other successors in interest selling securities
received after the date of this prospectus from a Selling Securityholder as a gift, pledge, partnership distribution or other transfer.
The Selling Securityholders will act independently of us in making decisions with respect to the timing, manner and size of each
sale. Such sales may be made on one or more exchanges or in the over-the-counter market or otherwise, at prices and under terms
then prevailing or at prices related to the then current market price or in negotiated transactions. Each Selling Securityholder
reserves the right to accept and, together with its respective agents, to reject, any proposed purchase of securities to be made
directly or through agents. The Selling Securityholders and any of their permitted transferees may sell their securities offered
by this prospectus on any stock exchange, market or trading facility on which the securities are traded or in private transactions.
If underwriters are used in the sale, such underwriters will acquire the shares for their own account. These sales may be at a
fixed price or varying prices, which may be changed, or at market prices prevailing at the time of sale, at prices relating to
prevailing market prices or at negotiated prices. The securities may be offered to the public through underwriting syndicates represented
by managing underwriters or by underwriters without a syndicate. The obligations of the underwriters to purchase the securities
will be subject to certain conditions. The underwriters will be obligated to purchase all the securities offered if any of the
securities are purchased.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Subject to the limitations set forth in
any applicable registration rights agreement, the Selling Securityholders may use any one or more of the following methods when
selling the securities offered by this prospectus:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">purchases by a broker-dealer as principal and resale
by such broker-dealer for its own account pursuant to this prospectus;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">ordinary brokerage transactions and transactions
in which the broker solicits purchasers;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">block trades in which the broker-dealer so engaged
will attempt to sell the securities as agent but may position and resell a portion of the block as principal to facilitate the
transaction;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot; </FONT></TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">an over-the-counter distribution in accordance with
the rules of the Nasdaq;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">through trading plans entered into by a Selling Securityholder
pursuant to Rule 10b5-1 under the Exchange Act that are in place at the time of an offering pursuant to this prospectus and any
applicable prospectus supplement hereto that provide for periodic sales of their securities on the basis of parameters described
in such trading plans;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;through one or more underwritten offerings on
a firm commitment or best efforts basis;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">settlement of short sales entered into after the date
of this prospectus;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.75in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt; width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt">agreements with broker-dealers to sell a specified number of the securities
at a stipulated price per share or warrant;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"> in &ldquo;at the market&rdquo; offerings,
as defined in Rule 415 under the Securities Act, at negotiated prices, at prices prevailing at the time of sale or at prices related
to such prevailing market prices, including sales made directly on a national securities exchange or sales made through a
market maker other than on an exchange or other similar offerings through sales agents;</FONT></TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

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    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->182<!-- Field: /Sequence --></FONT></P></DIV>
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<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.75in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt; width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">directly to purchasers, including through a specific
bidding, auction or other process or in privately negotiated transactions;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">through the writing or settlement of options or other
hedging transactions, whether through an options exchange or otherwise;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">through a combination of any of the above methods
of sale; or</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot; </FONT></TD>
    <TD STYLE="text-indent: 0in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">any other method permitted pursuant to applicable law.</FONT></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition, a Selling Securityholder that
is an entity may elect to make a pro rata in-kind distribution of securities to its members, partners or stockholders pursuant
to the registration statement of which this prospectus is a part by delivering a prospectus with a plan of distribution. Such members,
partners or stockholders would thereby receive freely tradeable securities pursuant to the distribution through a registration
statement. To the extent a distributee is an affiliate of ours (or to the extent otherwise required by law), we may file a prospectus
supplement in order to permit the distributees to use the prospectus to resell the securities acquired in the distribution.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">There can be no assurance that the Selling
Securityholders will sell all or any of the securities offered by this prospectus. In addition, the Selling Securityholders may
also sell securities under Rule 144 under the Securities Act, if available, or in other transactions exempt from registration,
rather than under this prospectus. The Selling Securityholders have the sole and absolute discretion not to accept any purchase
offer or make any sale of securities if they deem the purchase price to be unsatisfactory at any particular time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Selling Securityholders also may transfer
the securities in other circumstances, in which case the transferees, pledgees or other successors-in-interest will be the selling
beneficial owners for purposes of this prospectus. Upon being notified by a Selling Securityholder that a donee, pledgee, transferee,
other successor-in-interest intends to sell our securities, we will, to the extent required, promptly file a supplement to this
prospectus to name specifically such person as a selling securityholder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">With respect to a particular offering of
the securities held by the Selling Securityholders, to the extent required, an accompanying prospectus supplement or, if appropriate,
a post-effective amendment to the registration statement of which this prospectus is part, will be prepared and will set forth
the following information:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the specific securities to be offered and sold;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the names of the selling securityholders;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the respective purchase prices and public offering prices, the proceeds to be received from the sale, if any, and other material
terms of the offering;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>settlement of short sales entered into after the date of this prospectus;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the names of any participating agents, broker-dealers or underwriters; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>any applicable commissions, discounts, concessions and other items constituting compensation from the selling securityholders.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 70pt">&#8203;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&#8203; </FONT>In
connection with distributions of the securities or otherwise, the Selling Securityholders may enter into hedging transactions
with broker-dealers or other financial institutions. In connection with such transactions, broker-dealers or other financial institutions
may engage in short sales of the securities in the course of hedging the positions they assume with Selling Securityholders. The
Selling Securityholders may also sell the securities short and redeliver the securities to close out such short positions. The
Selling Securityholders may also enter into option or other transactions with broker-dealers or other financial institutions which
require the delivery to such broker-dealer or other financial institution of securities offered by this prospectus, which securities
such broker-dealer or other financial institution may resell pursuant to this prospectus (as supplemented or amended to reflect
such transaction). The Selling Securityholders may also pledge securities to a broker-dealer or other financial institution, and,
upon a default, such broker-dealer or other financial institution, may effect sales of the pledged securities pursuant to this
prospectus (as supplemented or amended to reflect such transaction).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<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-indent: 0.5in">In order to facilitate the offering of the
securities, any underwriters or agents, as the case may be, involved in the offering of such securities may engage in transactions
that stabilize, maintain or otherwise affect the price of our securities. Specifically, the underwriters or agents, as the case
may be, may overallot in connection with the offering, creating a short position in our securities for their own account. In addition,
to cover overallotments or to stabilize the price of our securities, the underwriters or agents, as the case may be, may bid for,
and purchase, such securities in the open market. Finally, in any offering of securities through a syndicate of underwriters, the
underwriting syndicate may reclaim selling concessions allotted to an underwriter or a broker-dealer for distributing such securities
in the offering if the syndicate repurchases previously distributed securities in transactions to cover syndicate short positions,
in stabilization transactions or otherwise. Any of these activities may stabilize or maintain the market price of the securities
above independent market levels. The underwriters or agents, as the case may be, are not required to engage in these activities,
and may end any of these activities at any time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Selling Securityholders may solicit
offers to purchase the securities directly from, and it may sell such securities directly to, institutional investors or others.
In this case, no underwriters or agents would be involved. The terms of any of those sales, including the terms of any bidding
or auction process, if utilized, will be described in the applicable prospectus supplement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">It is possible that one or more underwriters
may make a market in our securities, but such underwriters will not be obligated to do so and may discontinue any market making
at any time without notice. We cannot give any assurance as to the liquidity of the trading market for our securities. DEAC&rsquo;s
shares of Class A common stock are currently listed on Nasdaq under the symbol &ldquo;DEAC&rdquo; and DEAC&rsquo;s public warrants
are currently listed on Nasdaq under the symbol &ldquo;DEACW&rdquo;. In connection with the Business Combination, we expect our
shares of Class A common stock and warrants to be listed on Nasdaq under the symbol &ldquo;DKNG&rdquo; and &ldquo;DKNGW&rdquo;,
respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Selling Securityholders may authorize
underwriters, broker-dealers or agents to solicit offers by certain purchasers to purchase the securities at the public offering
price set forth in the prospectus supplement pursuant to delayed delivery contracts providing for payment and delivery on a specified
date in the future. The contracts will be subject only to those conditions set forth in the prospectus supplement, and the prospectus
supplement will set forth any commissions we or the Selling Securityholders pay for solicitation of these contracts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">A Selling Securityholder may enter into
derivative transactions with third parties, or sell securities not covered by this prospectus to third parties in privately negotiated
transactions. If the applicable prospectus supplement indicates, in connection with those derivatives, the third parties may sell
securities covered by this prospectus and the applicable prospectus supplement, including in short sale transactions. If so, the
third party may use securities pledged by any Selling Securityholder or borrowed from any Selling Securityholder or others to settle
those sales or to close out any related open borrowings of stock, and may use securities received from any Selling Securityholder
in settlement of those derivatives to close out any related open borrowings of stock. The third party in such sale transactions
will be an underwriter and will be identified in the applicable prospectus supplement (or a post-effective amendment). In addition,
any Selling Securityholder may otherwise loan or pledge securities to a financial institution or other third party that in turn
may sell the securities short using this prospectus. Such financial institution or other third party may transfer its economic
short position to investors in our securities or in connection with a concurrent offering of other securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In effecting sales, broker-dealers or agents
engaged by the Selling Securityholders may arrange for other broker-dealers to participate. Broker-dealers or agents may receive
commissions, discounts or concessions from the Selling Securityholders in amounts to be negotiated immediately prior to the sale.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In compliance with the guidelines of the
Financial Industry Regulatory Authority (&ldquo;FINRA&rdquo;), the aggregate maximum discount, commission, fees or other items
constituting underwriting compensation to be received by any FINRA member or independent broker-dealer will not exceed 8% of the
gross proceeds of any offering pursuant to this prospectus and any applicable prospectus supplement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If at the time of any offering made under
this prospectus a member of FINRA participating in the offering has a &ldquo;conflict of interest&rdquo; as defined in FINRA Rule
5121 (&ldquo;Rule 5121&rdquo;), that offering will be conducted in accordance with the relevant provisions of Rule 5121.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">To our knowledge, there are currently
no plans, arrangements or understandings between the Selling Securityholders and any broker-dealer or agent regarding the
sale of the securities by the Selling Securityholders. Upon our notification by a Selling Securityholder that any material
arrangement has been entered into with an underwriter or broker-dealer for the sale of securities through a block trade,
special offering, exchange distribution, secondary distribution or a purchase by an underwriter or broker-dealer, we will
file, if required by applicable law or regulation, a supplement to this prospectus pursuant to Rule 424(b) under the
Securities Act disclosing certain material information relating to such underwriter or broker-dealer and such offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<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-indent: 0.5in">Underwriters, broker-dealers or agents may
facilitate the marketing of an offering online directly or through one of their affiliates. In those cases, prospective investors
may view offering terms and a prospectus online and, depending upon the particular underwriter, broker-dealer or agent, place orders
online or through their financial advisors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In offering the securities covered by this
prospectus, the Selling Securityholders and any underwriters, broker-dealers or agents who execute sales for the Selling Securityholders
may be deemed to be &ldquo;underwriters&rdquo; within the meaning of the Securities Act in connection with such sales. Any discounts,
commissions, concessions or profit they earn on any resale of those securities may be underwriting discounts and commissions under
the Securities Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The underwriters, broker-dealers and agents
may engage in transactions with us or the Selling Securityholders, or perform services for us or the Selling Securityholders, in
the ordinary course of business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In order to comply with the securities laws
of certain states, if applicable, the securities must be sold in such jurisdictions only through registered or licensed brokers
or dealers. In addition, in certain states the securities may not be sold unless they have been registered or qualified for sale
in the applicable state or an exemption from the registration or qualification requirement is available and is complied with.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Selling Securityholders and any other
persons participating in the sale or distribution of the securities will be subject to applicable provisions of the Securities
Act and the Exchange Act, and the rules and regulations thereunder, including, without limitation, Regulation M. These provisions
may restrict certain activities of, and limit the timing of purchases and sales of any of the securities by, the Selling Securityholders
or any other person, which limitations may affect the marketability of the shares of the securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We will make copies of this prospectus available
to the Selling Securityholders for the purpose of satisfying the prospectus delivery requirements of the Securities Act. The Selling
Securityholders may indemnify any agent, broker-dealer or underwriter that participates in transactions involving the sale of the
securities against certain liabilities, including liabilities arising under the Securities Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We have agreed to indemnify the Selling
Securityholders against certain liabilities, including certain liabilities under the Securities Act, the Exchange Act or other
federal or state law. Agents, broker-dealers and underwriters may be entitled to indemnification by us and the Selling Securityholders
against certain civil liabilities, including liabilities under the Securities Act, or to contribution with respect to payments
which the agents, broker-dealers or underwriters may be required to make in respect thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>PIPE Warrants</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The PIPE Warrants may be exercised commencing
on May 23, 2020 and on or before the expiration date by delivering to the warrant agent, Continental Stock Transfer &amp; Trust
Company (the &ldquo;Warrant Agent&rdquo;), at its corporate trust department in the Borough of Manhattan, City and State of New
York, (i) the certificate in physical form (the &ldquo;Definitive Warrant Certificate&rdquo;) evidencing the public warrants to
be exercised, or, in the case of a book-entry certificate (the &ldquo;Book-Entry Warrant Certificate&rdquo;) the public warrants
to be exercised on the records of the Depositary to an account of the Warrant Agent at The Depository Trust Company (the &ldquo;Depositary&rdquo;)
designated for such purposes in writing by the Warrant Agent to the Depositary from time to time, (ii) an election to purchase
shares of common stock pursuant to the exercise of a public warrant, properly completed and executed by the holder on the reverse
of the Definitive Warrant Certificate or, in the case of a Book-Entry Warrant Certificate, properly delivered by the DTC participant
in accordance with the Depositary&rsquo;s procedures, and (iii) by paying in full the warrant price for each full shares of common
stock as to which the public warrant is exercised and any and all applicable taxes due in connection with the exercise of the public
warrant, the exchange of the public warrant for the shares of common stock and the issuance of such common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The warrants will be required to be
exercised on a cashless basis in the event of a redemption of such warrants pursuant to the warrant agreement governing the
public warrants in which our Board has elected to require all holders of the public warrants who exercise their public
warrants to do so on a cashless basis. In such event, such the holders of exercised warrants would pay the exercise price by
surrendering their warrants for that number of shares of New DraftKings Class A common stock equal to the quotient obtained
by dividing (x) the product of the number of shares of New DraftKings Class A common stock underlying the warrants,
multiplied by the excess of the &ldquo;fair market value&rdquo; of the shares of New DraftKings Class A common stock over the
exercise price of the warrants by (y) the fair market value. The &ldquo;fair market value&rdquo; will mean the average
closing price of the New DraftKings Class A common stock for the ten (10) trading days ending on the third (3rd) trading day
prior to the date on which the notice of redemption is sent to the holders of warrants or the warrant agent, as applicable.
The notice of redemption will contain the information necessary to calculate the number of shares of New DraftKings Class A
common stock to be received upon exercise of the warrants, including the &ldquo;fair market value&rdquo; in such case.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">No fractional shares will be issued upon
the exercise of the public warrants. If, upon the exercise of such public warrants, a holder would be entitled to receive a fractional
interest in a share, we will, upon the exercise, round down to the nearest whole number of shares of common stock to be issued
to such holder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Convertible Notes </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Pursuant to the terms of the Convertible
Notes, the outstanding principal and accrued interest on the Convertible Notes will convert immediately prior to the reincorporation
into shares of DEAC Class A common stock, at a price per share equal to the price per share paid by the PIPE Investors in the Private
Placement. The shares of DEAC Class A common stock issued upon conversion of the Convertible Notes will be converted into shares
of New DraftKings Class A common stock upon consummation of the reincorporation and the Business Combination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="b_026"></A>LEGAL MATTERS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Greenberg Traurig, LLP has passed upon the
validity of the common stock of DEAC Nevada offered by this prospectus and certain other legal matters related to this &#8203;prospectus.
Certain legal matters relating to the validity of the warrants offered by this prospectus and certain other legal matters related to this prospectus has been passed upon for us by Winston
 &amp; Strawn LLP, New York, New York.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="b_027"></A>EXPERTS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The consolidated financial statements of
Diamond Eagle Acquisition Corp. as of December 31, 2019 and for the period from March 27, 2019 (date of inception) through December
31, 2019 appearing in this prospectus have been audited by WithumSmith+Brown, PC independent registered public accounting firm,
as set forth in their report thereon appearing elsewhere herein and are included in reliance on such report given the authority
of such firm as experts in accounting and auditing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The consolidated financial statements of
DraftKings Inc. as at December 31, 2019 and 2018, and for the years ended December 31, 2019, 2018 and 2017, appearing in this prospectus,
have been audited by BDO USA, LLP (&ldquo;BDO&rdquo;), independent registered public accounting firm, as set forth in their report
appearing elsewhere herein, and are included in reliance upon such report given on the authority of such firm as experts in accounting
and auditing. BDO&rsquo;s report contains an explanatory paragraph regarding DraftKings&rsquo; ability to continue as a going concern
and the impact of the novel coronavirus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The consolidated financial statements of
SBT and Subsidiaries as at December 31, 2019 and 2018, and the related consolidated statements of comprehensive income, changes
in shareholders&rsquo; equity, and cash flows for the years ended December 31, 2019, 2018 and 2017, appearing in this prospectus,
have been audited by Ziv Haft, CPA (Isr.) (&ldquo;Ziv Haft&rdquo;), a BDO Member Firm, independent registered public accounting
firm, as stated in their report appearing elsewhere herein, and are included in reliance on the report of such firm given upon
their authority as experts in accounting and auditing. Ziv Haft&rsquo;s report contains an explanatory paragraph regarding the
impact of the novel coronavirus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="b_028"></A>WHERE YOU
CAN FIND MORE INFORMATION</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We file annual, quarterly and current reports,
proxy statements and other information with the SEC. We have also filed a registration statement on Form S-1, including exhibits,
under the Securities Act of 1933, as amended, with respect to the common stock offered by this prospectus. This prospectus is
part of the registration statement, but does not contain all of the information included in the registration statement or the
exhibits. Our SEC filings are available to the public on the internet at a website maintained by the SEC located at <U>http://www.sec.gov</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Following the consummation of the Business Combination, we will also maintain an Internet website at www.draftkings.com. Through
our website, we make available, free of charge, the following documents as soon as reasonably practicable after they are electronically
filed with, or furnished to, the SEC: our Annual Reports on Form 10-K; our proxy statements for our annual and special shareholder
meetings; our Quarterly Reports on Form 10-Q; our Current Reports on Form 8-K; Forms 3, 4 and 5 and Schedules 13D; and amendments
to those documents. The information contained on, or that may be accessed through, our website is not part of, and is not
incorporated into, this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="b_029"></A>INDEX TO
FINANCIAL STATEMENTS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DIAMOND EAGLE ACQUISITION CORP. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 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: bottom">
    <TD STYLE="border-bottom: white 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Page </B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Consolidated Financial Statements as of December&nbsp;31, 2019</I></B></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&#8203;</I></B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.125in; width: 94%"><A HREF="#f_001"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Report of Independent Registered Public Accounting Firm </FONT></A></TD>
    <TD STYLE="white-space: nowrap; text-align: center; width: 6%"><A HREF="#f_001"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-4 </FONT></A></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 0.125in"><A HREF="#f_002"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consolidated Balance Sheet as of December&nbsp;31, 2019 </FONT></A></TD>
    <TD STYLE="white-space: nowrap; text-align: center"><A HREF="#f_002"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-5 </FONT></A></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.125in"><A HREF="#f_003"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consolidated Statement of Operations for the period from March 27, 2019 (date of inception) through December&nbsp;31, 2019 </FONT></A></TD>
    <TD STYLE="white-space: nowrap; text-align: center"><A HREF="#f_003"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-6 </FONT></A></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.25in"><A HREF="#f_004"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consolidated Statement of Changes in Stockholder&rsquo;s equity for the period from March 27, 2019 (date&nbsp;of&nbsp;inception) through December&nbsp;31, 2019</FONT></A></TD>
    <TD STYLE="white-space: nowrap; text-align: center"><A HREF="#f_004"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-7 </FONT></A></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.25in"><A HREF="#f_005"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consolidated Statement of Cash Flows for the period from March 27, 2019 (date of inception) through December&nbsp;31, 2019 </FONT></A></TD>
    <TD STYLE="white-space: nowrap; text-align: center"><A HREF="#f_005"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-8 </FONT></A></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 0.125in"><A HREF="#f_006"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Notes to Consolidated Financial Statements </FONT></A></TD>
    <TD STYLE="white-space: nowrap; text-align: center"><A HREF="#f_006"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-9 </FONT></A></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DRAFTKINGS INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 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: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 94%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Consolidated Financial Statements as of December&nbsp;31, 2019 and 2018</I></B></FONT></TD>
    <TD STYLE="white-space: nowrap; text-align: center; width: 6%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&#8203;</I></B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.125in"><A HREF="#f_007"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Report of Independent Registered Public Accounting Firm </FONT></A></TD>
    <TD STYLE="white-space: nowrap; text-align: center"><A HREF="#f_007"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-20 </FONT></A></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 0.125in"><A HREF="#f_008"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consolidated Balance Sheets as at December&nbsp;31, 2019 and 2018 </FONT></A></TD>
    <TD STYLE="white-space: nowrap; text-align: center"><A HREF="#f_008"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-21 </FONT></A></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.125in"><A HREF="#f_009"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consolidated Statements of Operations for the&nbsp;years ended December&nbsp;31, 2019, 2018 and 2017 </FONT></A></TD>
    <TD STYLE="white-space: nowrap; text-align: center"><A HREF="#f_009"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-23 </FONT></A></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.25in"><A HREF="#f_010"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders&rsquo; Deficit for the&nbsp;years ended December&nbsp;31, 2019, 2018 and 2017 </FONT></A></TD>
    <TD STYLE="white-space: nowrap; text-align: center"><A HREF="#f_010"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-24 </FONT></A></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.125in"><A HREF="#f_011"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consolidated Statements of Cash Flows for the&nbsp;years ended December&nbsp;31, 2019, 2018 and 2017 </FONT></A></TD>
    <TD STYLE="white-space: nowrap; text-align: center"><A HREF="#f_011"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-25 </FONT></A></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 0.125in"><A HREF="#f_012"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Notes to Consolidated Financial Statements </FONT></A></TD>
    <TD STYLE="white-space: nowrap; text-align: center"><A HREF="#f_012"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-26 </FONT></A></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&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>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SBTECH (GLOBAL) LIMITED</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 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: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 94%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Consolidated Financial Statements as of December&nbsp;31, 2019 and 2018</I></B></FONT></TD>
    <TD STYLE="white-space: nowrap; text-align: center; width: 6%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&#8203;</I></B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.125in"><A HREF="#f_013"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Report of Independent Registered Public Accounting Firm </FONT></A></TD>
    <TD STYLE="white-space: nowrap; text-align: center"><A HREF="#f_013"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-58 </FONT></A></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 0.125in"><A HREF="#f_014"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consolidated Statements of Financial Position </FONT></A></TD>
    <TD STYLE="white-space: nowrap; text-align: center"><A HREF="#f_014"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-59 </FONT></A></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.125in"><A HREF="#f_015"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consolidated Statements of Comprehensive Income </FONT></A></TD>
    <TD STYLE="white-space: nowrap; text-align: center"><A HREF="#f_015"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-60 </FONT></A></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 0.125in"><A HREF="#f_016"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consolidated Statements of Changes in Shareholders&rsquo; Equity </FONT></A></TD>
    <TD STYLE="white-space: nowrap; text-align: center"><A HREF="#f_016"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-61 </FONT></A></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.125in"><A HREF="#f_017"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consolidated Statements of Cash Flows </FONT></A></TD>
    <TD STYLE="white-space: nowrap; text-align: center"><A HREF="#f_017"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-62 </FONT></A></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 0.125in"><A HREF="#s_001"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Notes to the Consolidated Financial Statements </FONT></A></TD>
    <TD STYLE="white-space: nowrap; text-align: center"><A HREF="#s_001"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-63 </FONT></A></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&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; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="f_001"></A>Report of Independent Registered Public
Accounting Firm </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">To the Stockholders and the Board of Directors of<BR STYLE="clear: both">
Diamond Eagle Acquisition Corp.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Opinion on the Consolidated Financial Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">We have audited the accompanying consolidated
balance sheet of Diamond Eagle Acquisition Corp. (the &ldquo;Company&rdquo;) as of December&nbsp;31, 2019, and the related consolidated
statements of operations, changes in stockholders&rsquo; equity and cash flows, for the period from March&nbsp;27, 2019 (inception)
to December&nbsp;31, 2019, and the related notes (collectively referred to as the &ldquo;consolidated financial statements&rdquo;).
In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company
as of December&nbsp;31, 2019, and the results of its operations and its cash flows for the period from March&nbsp;27, 2019 (inception)
to December&nbsp;31, 2019, in conformity with accounting principles generally accepted in the United States of America.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Basis for Opinion</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">These consolidated financial statements are
the responsibility of the Company&rsquo;s management. Our responsibility is to express an opinion on the Company&rsquo;s consolidated
financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight
Board (United States) (&ldquo;PCAOB&rdquo;) and are required to be independent with respect to the Company in accordance with the
U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">We conducted our audit in accordance with
the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether
the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required
to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are
required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion
on the effectiveness of the entity&rsquo;s internal control over financial reporting. Accordingly, we express no such opinion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Our audit included performing procedures
to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing
procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and
disclosures in the consolidated financial statements. Our audit also included evaluating the accounting principles used and significant
estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe
that our audit provides a reasonable basis for our opinion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">/s/ WithumSmith+Brown, PC</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have served as the Company&rsquo;s auditor since 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">New York, New York<BR STYLE="clear: both">
March&nbsp;11, 2020</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<FONT STYLE="font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->4<!-- Field: /Sequence --></FONT></P></DIV>
    <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; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="f_002"></A>DIAMOND EAGLE ACQUISITION CORP.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CONSOLIDATED BALANCE SHEET<BR STYLE="clear: both">
December&nbsp;31, 2019 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 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: bottom; background-color: rgb(204,238,255)">
    <TD><B>ASSETS:</B></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Current assets:</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; width: 87%">Cash and cash equivalents</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">$</TD>
    <TD STYLE="width: 10%; text-align: right">491,225</TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in">Prepaid expenses</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">319,239</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.25in">Total current assets</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">810,464</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Cash and investments held in Trust Account</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">403,961,209</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.25in">Total Assets</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double"><B>$</B></TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right"><B>404,771,673&#8203;</B></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><B>LIABILITIES AND 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: rgb(204,238,255)">
    <TD>Current liabilities:</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: 0.125in">Accounts payable</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">$</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">1,493,133&#8203;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.25in">Total current liabilities</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">1,493,133</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Deferred underwriting compensation</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">14,000,000</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.25in">Total Liabilities</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">15,493,133</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0in">Class&nbsp;A common shares subject to possible redemptions; 38,427,853 shares at approximately $10.00 per share</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">384,278,530</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Stockholders&rsquo; equity:</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>Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding</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: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">Class&nbsp;A common stock, $0.0001 par value; 380,000,000 shares authorized; 1,572,147 shares issued and outstanding, (excluding 38,427,853 shares subject to possible redemption)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">157</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Class&nbsp;B common stock, $0.0001 par value; 20,000,000 shares authorized; 10,000,000 shares issued and outstanding</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">1,000</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Additional paid-in capital</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">2,689,444</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Retained earnings</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">2,309,409</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.25in">Total stockholders&rsquo; equity, net</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">5,000,010</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in">Total liabilities and stockholders&rsquo; equity</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double"><B>$</B></TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right"><B>404,771,673&#8203;</B></TD>
    <TD>&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">See accompanying notes to consolidated
financial statements</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<FONT STYLE="font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->5<!-- Field: /Sequence --></FONT></P></DIV>
    <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; text-align: center">&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif">&#8203;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="f_003"></A>DIAMOND EAGLE ACQUISITION CORP.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CONSOLIDATED STATEMENT OF OPERATIONS
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: normal; font-style: normal"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-bottom: 1pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-bottom: 1pt; font-size: 10pt; font-weight: normal; font-style: normal; text-align: center"><B>For&nbsp;the&nbsp;period&nbsp;from<BR>
    March&nbsp;27,&nbsp;2019<BR> (inception)&nbsp;to<BR> December&nbsp;31,&nbsp;2019</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: normal; font-style: normal"><B>&nbsp;</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: normal; font-style: normal">Revenue</TD><TD STYLE="font-size: 10pt; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="font-size: 10pt; font-weight: normal; font-style: normal; text-align: right">&mdash;&#8203;</TD><TD STYLE="font-size: 10pt; font-weight: normal; font-style: normal">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: normal; font-style: normal; text-align: left">General and administrative expenses</TD><TD STYLE="width: 1%; font-size: 10pt; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; width: 9%; font-size: 10pt; font-weight: normal; font-style: normal; text-align: right">1,857,305</TD><TD STYLE="width: 1%; font-size: 10pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; font-size: 10pt; font-weight: normal; font-style: normal; text-align: left">Loss from operations</TD><TD STYLE="font-size: 10pt; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: normal; font-style: normal; text-align: right">(1,857,305</TD><TD STYLE="font-size: 10pt; font-weight: normal; font-style: normal; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: normal; font-style: normal; text-align: left">Other income&thinsp;&ndash; interest on Trust Account</TD><TD STYLE="font-size: 10pt; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: normal; font-style: normal; text-align: right">5,111,208</TD><TD STYLE="font-size: 10pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; font-size: 10pt; font-weight: normal; font-style: normal; text-align: left">Income before provision for income tax</TD><TD STYLE="font-size: 10pt; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: normal; font-style: normal; text-align: right">3,253,903</TD><TD STYLE="font-size: 10pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: normal; font-style: normal; text-align: left">Provision for income tax</TD><TD STYLE="font-size: 10pt; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: normal; font-style: normal; text-align: right">(944,494</TD><TD STYLE="font-size: 10pt; font-weight: normal; font-style: normal; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; font-size: 10pt; font-weight: normal; font-style: normal; text-align: left">Net income</TD><TD STYLE="font-size: 10pt; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black medium double">$</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: normal; font-style: normal; text-align: right">2,309,409&#8203;</TD><TD STYLE="font-size: 10pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: normal; font-style: normal; text-align: left">Two Class&nbsp;Method:</TD><TD STYLE="font-size: 10pt; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: normal; font-style: normal; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">&#8203;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: normal; font-style: normal; text-align: left">Weighted average number of Class&nbsp;A common stock outstanding</TD><TD STYLE="font-size: 10pt; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black medium double">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: normal; font-style: normal; text-align: right">40,000,000</TD><TD STYLE="font-size: 10pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: normal; font-style: normal; text-align: left">Net income per common stock, Class&nbsp;A&thinsp;&ndash; basic and diluted</TD><TD STYLE="font-size: 10pt; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black medium double">$</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: normal; font-style: normal; text-align: right">0.09&#8203;</TD><TD STYLE="font-size: 10pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: normal; font-style: normal; text-align: left">Weighted average number of Class&nbsp;B common stock outstanding</TD><TD STYLE="font-size: 10pt; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black medium double">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: normal; font-style: normal; text-align: right">10,010,045</TD><TD STYLE="font-size: 10pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: normal; font-style: normal; text-align: left">Net loss per common stock, Class&nbsp;B&thinsp;&mdash;&thinsp;basic and diluted</TD><TD STYLE="font-size: 10pt; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black medium double">$</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: normal; font-style: normal; text-align: right">(0.15</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; font-weight: normal; font-style: normal; text-align: left">)</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">See accompanying notes to consolidated financial
statements</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></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; text-align: center"></P>

<!-- Field: Split-Segment; Name: a2 --><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="f_004"></A>DIAMOND EAGLE ACQUISITION CORP. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CONSOLIDATED STATEMENT OF STOCKHOLDERS&rsquo;
EQUITY<BR>
For the period from March 27, 2019 (inception) to December&nbsp;31, 2019 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="14" STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">Common Stock</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 1pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>Additional</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 1pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>Total&nbsp;</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">Class&nbsp;A</FONT></TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">Class&nbsp;B</FONT></TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Paid-in</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>Retained&nbsp;</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><B>Stockholders&rsquo;<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></B></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">Shares</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">Amount</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">Shares</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">Amount</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center"><B>Capital</B></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center"><B>Earnings</B></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center"><B>Equity</B></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; width: 37%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">Issuance of common stock to initial shareholder at approximately $0.002 per share</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&mdash;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;$</FONT></TD>
    <TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&mdash;</FONT></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: 6%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">10,062,500</FONT></TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">$</FONT></TD>
    <TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">1,006</FONT></TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">$</FONT></TD>
    <TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">23,994</FONT></TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">$</FONT></TD>
    <TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&mdash;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">$</FONT></TD>
    <TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">25,000</FONT></TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">Sale of Units to the public at $10.00 per unit</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">40,000,000</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">4,000</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&mdash;</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&mdash;</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">399,996,000</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&mdash;</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">400,000,000</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">Underwriters&rsquo; discount and offering expenses</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&mdash;</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&mdash;</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&mdash;</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&mdash;</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">(22,555,869</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&mdash;</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">(22,555,869</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">Sale of 6,333,334 Private Placement Warrants at $1.50 per warrant</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&mdash;</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&mdash;</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&mdash;</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&mdash;</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">9,500,000</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&mdash;</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">9,500,000</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">Forfeiture of Class&nbsp;B shares by initial shareholders</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&mdash;</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&mdash;</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">(62,500</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">(6</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">6</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&mdash;</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&mdash;</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">Proceeds subject to possible redemption</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">(38,427,853</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">(3,843</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&mdash;</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&mdash;</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">(384,274,687</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&mdash;</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">(384,278,530</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">Net income</FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&mdash;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&mdash;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&mdash;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&mdash;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&mdash;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">2,309,409</FONT></TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">2,309,409</FONT></TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">Balance, December&nbsp;31, 2019</FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">1,572,147</FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">157</FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">10,000,000</FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">$</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">1,000</FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">$</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">2,689,444</FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">$</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">2,309,409</FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">$</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">5,000,010</FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">See accompanying notes to consolidated financial
statements</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&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; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="f_005"></A>DIAMOND EAGLE ACQUISITION CORP. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CONSOLIDATED STATEMENT OF CASH FLOWS
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-left: 0.125in; white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&#8203;</B></FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>For
    the period from<BR> March&nbsp;27, 2019<BR> (inception) to<BR> December&nbsp;31, 2019</B></FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD></TR>
<TR STYLE="font: normal 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-left: 0in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cash
    flows from operating activities:</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: normal 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-left: 0.125in; width: 87%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net
    income</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; width: 10%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2,309,409</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: normal 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-left: 0.125in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Adjustments
    to reconcile net income to net cash used in operating activities:</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: normal 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-left: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Trust
    income reinvested in Trust Account</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(5,111,208</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD></TR>
<TR STYLE="font: normal 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-left: 0.125in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Changes
    in operating assets and liabilities:</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: normal 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-left: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Prepaid
    expenses</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(319,239</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD></TR>
<TR STYLE="font: normal 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-left: 0.25in; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accounts
    payable</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,268,808</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: normal 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-left: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net
    cash used in operating activities</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1,852,230</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD></TR>
<TR STYLE="font: normal 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-left: 0in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cash
    flows from investing activities:</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: normal 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-left: 0.125in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Principal
    deposited in Trust Account</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(400,000,000</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD></TR>
<TR STYLE="font: normal 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-left: 0.125in; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cash
    withdrawn from Trust for income taxes</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,149,999</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: normal 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-left: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net
    cash used in investing activities</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(398,850,001</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD></TR>
<TR STYLE="font: normal 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-left: 0in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cash
    flows from financing activities:</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: normal 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-left: 0.125in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Proceeds
    from promissory note&thinsp;&ndash; related party</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">60,675</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: normal 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-left: 0.125in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Repayment
    of promissory note&thinsp;&ndash; related party</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(60,675</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD></TR>
<TR STYLE="font: normal 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-left: 0.125in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Proceeds
    from private placement of warrants</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">9,500,000</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: normal 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-left: 0.125in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Proceeds
    from sale of Class&nbsp;A ordinary shares</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">400,000,000</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: normal 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-left: 0.125in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Payment
    of underwriters&rsquo; discount</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(8,000,000</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD></TR>
<TR STYLE="font: normal 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-left: 0.125in; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Payment
    of offering costs</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(306,544</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD></TR>
<TR STYLE="font: normal 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-left: 0.25in; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net
    cash provided by financing activities</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">401,193,456</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: normal 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-left: 0in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Increase
    in cash during period</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">491,225</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: normal 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-left: 0in; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cash
    and equivalents at beginning of period</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: normal 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-left: 0in; text-align: left; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cash
    and equivalents at end of period</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">491,225</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: normal 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-left: 0in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Supplemental
    disclosure of cash flow information:</B></FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: normal 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-left: 0.125in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cash
    paid for taxes</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,149,999</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: normal 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-left: 0in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Supplemental
    disclosure of non-cash financing activities:</B></FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: normal 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-left: 0.125in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Deferred
    underwriting compensation</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">14,000,000</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: normal 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-left: 0.125in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Class&nbsp;A
    common stock subject to possible redemption</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">384,278,530</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: normal 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-left: 0.125in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Offering
    costs paid by sponsor in exchange for founder shares (Class&nbsp;B Common Stock)</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">25,000</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: normal 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-left: 0.125in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Deferred
    offering costs included in accounts payable</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">224,325</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">See accompanying notes to consolidated financial
statements</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="f_006"></A>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>1.</B></TD><TD STYLE="text-align: justify"><B>Organization and Business Operations</B></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"><B><I><U>Incorporation</U></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">Diamond Eagle Acquisition Corp. (the &#8220;Company&#8221;)
was incorporated as a Delaware corporation on March&nbsp;27, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I><U>Subsidiaries</U></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">In connection with the proposed business
combination (the &#8220;Business Combination&#8221;) with DraftKings Inc. (&#8220;DK&#8221;) and SBTech (Global) Limited (&#8220;SBT&#8221;),
the Company formed a wholly-owned subsidiary, DEAC Merger Sub Inc., which was incorporated in Delaware on December&nbsp;9, 2019
(&#8220;Merger Sub&#8221;). Merger Sub did not have any activity as of December&nbsp;31, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">Also in connection with an initial business
combination, the Company formed another wholly-owned subsidiary, DEAC NV Merger Corp. (&#8220;DEAC Nevada&#8221;), which was incorporated
in Nevada on November&nbsp;13, 2019. DEAC Nevada did not have any activity as of December&nbsp;31, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I><U>Sponsor</U></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The Company&#8217;s sponsor is Eagle Equity
Partners, LLC, a Delaware limited liability company (the &#8220;Sponsor&#8221;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I><U>Fiscal Year End</U></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The Company has selected December&nbsp;31 as its fiscal year
end.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I><U>Business Purpose</U></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The Company was formed for the purpose
of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or other similar business combination
with one or more operating businesses that it has not yet selected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I><U>Financing</U></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The registration statement for the Company&#8217;s
initial public offering (the &#8220;Public Offering&#8221;) (as described in Note 3) was declared effective by the United States
Securities and Exchange Commission (the &#8220;SEC&#8221;) on May&nbsp;10, 2019. The Company consummated the Public Offering on
May&nbsp;14, 2019, and, simultaneously with the closing of the Public Offering, the Sponsor and Harry E. Sloan purchased an aggregate
of 6,333,334 warrants in a private placement (as described in Note 4) for a total purchase price of approximately $9,500,000. The
closing of the Public Offering included a partial exercise (5,000,000&nbsp;units) of the over-allotment option granted to the underwriters.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">Upon the closing of the Public Offering
and the private placement, $400,000,000 was placed in a Trust Account with Continental Stock Transfer&nbsp;&amp; Trust Company
acting as trustee (the &#8220;Trust Account&#8221;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I><U>Trust Account</U></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The Trust Account can be invested in permitted
United States &#8220;government securities&#8221; within the meaning of Section&nbsp;2(a)&nbsp;(16) of the Investment Company Act
of 1940, as amended (the &#8220;Investment Company Act&#8221;), having a maturity of 185&nbsp;days or less or in money market funds
meeting certain conditions under Rule&nbsp;2a-7 promulgated under the Investment Company Act that invest only in direct U.S. government
treasury obligations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The Company&#8217;s amended and
restated certificate of incorporation (the &#8220;Charter&#8221;) provides that, other than the withdrawal of interest to pay
income taxes, and the withdrawal of interest to fund the Company&#8217;s working capital requirements (subject to an annual
limit of&#8201; $250,000) and/or to pay taxes, if any, none of the funds held in Trust will be released until the earlier of:
(i)&nbsp;the completion of an initial business combination; (ii)&nbsp;the redemption of any of the shares of Class&nbsp;A
common stock included in the&nbsp;units sold in the Public Offering (the &#8220;Units&#8221;) properly tendered in connection
with a stockholder vote to amend the Company&#8217;s Charter to modify the substance or timing of the Company&#8217;s
obligation to redeem 100% of the shares of Class&nbsp;A common stock included in the Units if the Company does not complete
an initial business combination within 24&nbsp;months from the closing of the Public Offering (May&nbsp;14, 2021) or
(iii)&nbsp;the redemption of 100% of the shares of Class&nbsp;A common stock included in the Units if the Company is unable
to complete an initial business combination by May&nbsp;14, 2021.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<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"><B><I><U>Cash and Cash Equivalents</U></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The Company considers all short-term investments
with an original maturity of three&nbsp;months or less when purchased to be cash equivalents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I><U>Business Combination</U></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">An initial business combination is subject
to the following size, focus and stockholder approval provisions:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Size/Control</U></I></B></FONT>&#8201;&#8212;&#8201;An
initial business combination must occur with one or more target businesses that together have an aggregate fair market value of
at least 80% of the assets held in the Trust Account (excluding the deferred underwriting commissions and taxes payable on the
income earned on the Trust Account) at the time of the agreement to enter into an initial business combination. The Company will
not complete an initial business combination unless it acquires a controlling interest in a target company or is otherwise not
required to register as an investment company under the Investment Company Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Tender
Offer/Stockholder Approval</U></I></B></FONT>&#8201;&#8212;&#8201;The Company, after signing a definitive agreement for an initial
business combination, will either (i)&nbsp;seek stockholder approval of an initial business combination at a meeting called for
such purpose in connection with which stockholders may seek to redeem their shares of Class&nbsp;A common stock, regardless of
whether they vote for or against an initial business combination, for cash equal to their pro&nbsp;rata share of the aggregate
amount then on deposit in the Trust Account calculated as of two business days prior to the consummation of an initial business
combination, including interest but less income taxes payable, or (ii)&nbsp;provide stockholders with the opportunity to sell their
shares of Class&nbsp;A common stock to the Company by means of a tender offer (and thereby avoid the need for a stockholder vote)
for an amount in cash equal to their pro&nbsp;rata share of the aggregate amount then on deposit in the Trust Account calculated
as of two business days prior to commencement of the tender offer, including interest but less income taxes payable. The decision
as to whether the Company will seek stockholder approval of an initial business combination or will allow stockholders to sell
their shares of Class&nbsp;A common stock in a tender offer will be made by the Company, solely in its discretion, and will be
based on a variety of factors such as the timing of the transaction and whether the terms of the transaction would otherwise require
the Company to seek stockholder approval. If the Company seeks stockholder approval, it will complete its initial business combination
only if a majority of the outstanding shares of common stock voted are voted in favor of an initial business combination. However,
in no event will the Company redeem its public shares in an amount that would cause its net tangible assets to be less than $5,000,001.
In such case, the Company would not proceed with the redemption of its public shares and the related Business Combination, and
instead may search for an alternate business combination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">If the Company holds a stockholder vote
in connection with an initial business combination, a public stockholder will have the right to redeem its shares of Class&nbsp;A
common stock for an amount in cash equal to its pro&nbsp;rata share of the aggregate amount then on deposit in the Trust Account
calculated as of two business days prior to the consummation of the initial business combination, including interest but less income
taxes payable. As a result, such shares of Class&nbsp;A common stock have been recorded at redemption amount and classified as
temporary equity, in accordance with Financial Accounting Standards Board (&#8220;FASB&#8221;) Accounting Standards Codification
(&#8220;ASC&#8221;) 480, &#8220;Distinguishing Liabilities from Equity.&#8221;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<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"><B><I><U>Going Concern and Liquidity</U></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The Company has until May&nbsp;14,
2021 to complete its initial business combination. If the Company does not complete an initial business combination within
this period of time, it shall (i)&nbsp;cease all operations except for the purpose of winding up, (ii)&nbsp;as promptly as
reasonably possible but not more than ten business days thereafter, redeem the public shares, at a per-share price, payable
in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest earned on the funds held in
the Trust Account and not previously released to us to fund our working capital requirements (subject to an annual limit
of&#8201; $250,000) (less taxes payable and up to $100,000 of interest to pay dissolution expenses), divided by the number of
then outstanding public shares, which redemption will completely extinguish public stockholders&#8217; rights as stockholders
(including the right to receive further liquidation distributions, if any), and (iii)&nbsp;as promptly as reasonably possible
following such redemption, subject to the approval of our remaining stockholders and our board of directors, liquidate and
dissolve, subject in the case of clauses (ii)&nbsp;and (iii)&nbsp;to our obligations under Delaware law to provide for claims
of creditors and in all cases subject to the other requirements of applicable law. The Sponsor, Harry E. Sloan and the
Company&#8217;s executive officers and directors (the &#8220;initial stockholders&#8221;) have entered into letter agreements
with the Company, pursuant to which they have waived their rights to participate in any redemption with respect to their
Founder Shares (as defined below); however, if the initial stockholders or any of the Company&#8217;s officers, directors or
affiliates acquire shares of Class&nbsp;A common stock in or after the Public Offering, they will be entitled to a
pro&nbsp;rata share of the Trust Account upon the Company&#8217;s redemption or liquidation in the event the Company does not
complete an initial business combination within the required time period. In the event of such distribution, it is possible
that the per share value of the residual assets remaining available for distribution (including Trust Account assets) will be
less than the initial public offering price per Unit in the Public Offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">As of December&nbsp;31, 2019, the Company
had $491,225 in cash and a working capital deficit of $682,669. In connection with the Company&#8217;s assessment of going concern
considerations in accordance with ASU 2014-15, &#8220;Disclosures of Uncertainties about an Entity&#8217;s Ability to Continue
as a Going Concern&#8221; as of December&nbsp;31, 2019, the Company does not have sufficient liquidity to meet its current obligations.
However, management has determined that the Company has access to funds from the Sponsor entity, in the form of Working Capital
Loans, that are sufficient to fund the working capital needs of the Company until the earlier of the consummation of an initial
business combination or a minimum one year from the date of issuance of these consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>2.</B></TD><TD STYLE="text-align: justify"><B>Significant Accounting Policies</B></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"><B><I><U>Basis of Presentation</U></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The accompanying consolidated financial
statements of the Company are presented in U.S. dollars in conformity with accounting principles generally accepted in the United
States of America and pursuant to the rules&nbsp;and regulations of the SEC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I><U>Net Income (Loss) Per Share</U></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">Net income (loss) per common share is computed
by dividing net income (loss) by the weighted average number of common shares outstanding for the period. The Company has not considered
the effect of the warrants sold in the Public Offering (including the over-allotment) and private placement warrants to purchase
approximately 13,333,333 and 6,333,334 shares of the Company&#8217;s Class&nbsp;A common stock, respectively, in the calculation
of diluted income per share, since their inclusion would be anti-dilutive.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The Company&#8217;s consolidated statement
of operations includes a presentation of net income per share for common shares subject to redemption in a manner similar to the
two-class method of net income (loss) per share. Net income (loss) per common share for basic and diluted Class&nbsp;A common stock
is calculated by dividing the interest income earned on the Trust Account of&#8201; $5,111,208, net of applicable franchise taxes
of $153,971, working capital up to $250,000 annually, and income taxes of&#8201; $944,494, by the weighted average number of Class&nbsp;A
common stock since issuance. Net loss per common share for basic and diluted for Class&nbsp;B common stock is calculated by dividing
the net loss of&#8201; $1,453,333, which excludes income attributable to Class&nbsp;A common stock, by the weighted average number
of Class&nbsp;B common stock outstanding for the period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I><U>Emerging Growth Company</U></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">Section&nbsp;102(b)(1)&nbsp;of the Jumpstart
Our Business Startups Act of 2012 (the &#8220;JOBS Act&#8221;) exempts emerging growth companies from being required to comply
with new or revised financial accounting standards until private companies (that is, those that have not had a registration statement
under the Securities Act of 1933, as amended (the &#8220;Securities Act&#8221;), declared effective or do not have a class of securities
registered under the Securities Exchange Act of 1934, as amended (the &#8220;Exchange Act&#8221;) are required to comply with the
new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition
period and comply with the requirements that apply to non-emerging growth companies but any such an election to opt out is irrevocable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The Company has elected not to opt out
of such extended transition period which means that when a standard is issued or revised and it has different application dates
for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time
private companies adopt the new or revised standard. This may make comparison of the Company&#8217;s consolidated financial statements
with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using
the extended transition period difficult or impossible because of the potential differences in accounting standards used.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I><U>Concentration of Credit Risk</U></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">Financial instruments that potentially
subject the Company to concentration of credit risk consist of cash accounts in a financial institution which, at times, may exceed
the Federal depository insurance coverage of&#8201; $250,000. The Company has not experienced losses on these accounts and management
believes the Company is not exposed to significant risks on such accounts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I><U>Fair Value of Financial Instruments</U></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The fair value of the Company&#8217;s assets
and liabilities, which qualify as financial instruments under FASB ASC 820, &#8220;Fair Value Measurements and Disclosures,&#8221;
approximates the carrying amounts represented in the consolidated balance sheet with the exception of investments in Trust, as
they are carried at amortized cost.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I><U>Use of Estimates</U></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The preparation of consolidated financial
statements in conformity with accounting principles generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period.
Actual results could differ from those estimates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I><U>Offering Costs</U></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The Company complies with the requirements
of the ASC 340-10-S99-1. Offering costs of&#8201; $22,555,869 consisting principally of underwriters&#8217; discounts of&#8201;
$22,000,000 (including $14,000,000 of which payment is deferred) and $555,869 of professional, printing, filing, regulatory and
other costs were charged to additional paid-in capital upon completion of the Public Offering. Approximately $224,395 of such offering
expenses were accrued but unpaid at December&nbsp;31, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I><U>Redeemable Shares</U></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">As discussed in Note 1, all of the 40,000,000
shares of Class&nbsp;A common stock sold as parts of the Units in the Public Offering contain a redemption feature which allows
for the redemption of shares of Class&nbsp;A common stock under the Company&#8217;s Charter. In accordance with FASB ASC 480, redemption
provisions not solely within the control of the Company require the security to be classified outside of permanent equity. Ordinary
liquidation events, which involve the redemption and liquidation of all of the entity&#8217;s equity instruments, are excluded
from the provisions of FASB ASC 480. Although the Company has not specified a maximum redemption threshold, its Charter provides
that in no event will the Company redeem its public shares in an amount that would cause its net tangible assets to be less than
$5,000,001.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<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-indent: 0.25in">The Company recognizes changes in redemption
value immediately as they occur and will adjust the carrying value of the security at the end of each reporting period. Increases
or decreases in the carrying amount of redeemable shares of Class&nbsp;A common stock shall be affected by charges against additional
paid in capital.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">Accordingly, at December&nbsp;31, 2019,
38,427,853 shares of the 40,000,000 shares of Class&nbsp;A common stock included in the Units were classified outside of permanent
equity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I><U>Income Taxes</U></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The Company complies with the accounting
and reporting requirements of Financial Accounting Standards Board Accounting Standard Codification, or FASB ASC, 740, &#8220;Income
Taxes,&#8221; which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income
tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities
that will result in future taxable or deductible amounts, based on enacted tax laws and rates applicable to the periods in which
the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred
tax assets to the amount expected to be realized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">There were no unrecognized tax
benefits as of December&nbsp;31, 2019. FASB ASC 740 prescribes a recognition threshold and a measurement attribute for the
financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those
benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing
authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax
expense. No amounts were accrued for the payment of interest and penalties at December&nbsp;31, 2019. The Company is
currently not aware of any issues under review that could result in significant payments, accruals or material deviation from
its position. The Company is subject to income tax examinations by major taxing authorities since inception. The
Company&#8217;s currently taxable income primarily consists of interest income on the Trust Account. The Company&#8217;s
general and administrative costs are generally considered start-up costs and are not currently deductible. During the period
from March&nbsp;27, 2019 (inception) to December&nbsp;31, 2019, the Company recorded an income tax expense of $944,494.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I><U>Recent Accounting Pronouncements</U></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">Management does not believe that any recently
issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material effect on the Company&#8217;s
consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>3.</B></TD><TD STYLE="text-align: justify"><B>Public Offering</B></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-indent: 0.25in">On May&nbsp;14, 2019, the Company sold
40,000,000&nbsp;Units at a price of&#8201; $10.00 per unit in the Public Offering. Each Unit consists of one share of Class&nbsp;A
common stock of the Company, $0.0001 par value per share (the &#8220;Public Shares&#8221;), and one-third of one warrant to purchase
one share of Class&nbsp;A common stock (the &#8220;Public Warrants&#8221;). The closing of the Public Offering included a partial
exercise (5,000,000&nbsp;Units) of the overallotment option granted to the underwriters.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">Each whole Public Warrant entitles
the holder to purchase one share of Class&nbsp;A common stock at a price of&#8201; $11.50 per share. No fractional shares
will be issued upon exercise of the Public Warrants. If, upon exercise of the Public Warrants, a holder would be entitled to
receive a fractional interest in a share, the Company will, upon exercise, round down to the nearest whole number the number
of shares of Class&nbsp;A common stock to be issued to the Public Warrant holder. Each Public Warrant will become exercisable
on the later of 30&nbsp;days after the completion of an initial business combination and 12&nbsp;months from the closing of
the Public Offering. However, if the Company does not complete an initial business combination on or prior to the 24-month
period allotted to complete an initial business combination, the Public Warrants will expire at the end of such period. Under
the terms of a warrant agreement between the Company and Continental Stock Transfer&nbsp;&amp; Trust Company, as warrant
agent, the Company has agreed to, following the completion of an initial business combination, use its best efforts to file a
new registration statement under the Securities Act for the registration of the shares of Class&nbsp;A common stock issuable
upon exercise of the Public Warrants. If the Company is unable to deliver registered shares of Class&nbsp;A common stock to
the holder upon exercise of Public Warrants issued in connection with the 40,000,000&nbsp;Units during the exercise period,
there will be no net cash settlement of these Public Warrants and the Public Warrants will expire worthless, unless they may
be exercised on a cashless basis in the circumstances described in the warrant agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<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-indent: 0.25in">The Company granted the underwriters
a 45-day option to purchase up to 5,250,000 additional Units to cover any over-allotments at the Public Offering price less
the underwriting discounts and commissions. The Units that were issued in connection with the over-allotment option are
identical to the Units issued in the Public Offering. Prior to the Public Offering, the underwriters&#8217; elected to
exercise a portion of the over-allotment option for 5,000,000 additional Units for additional gross proceeds of&#8201;
$50&nbsp;million. The partial exercise resulted in a reduction of 62,500 shares of Class&nbsp;B common stock subject to
forfeiture and are considered as forfeited in the accompanying consolidated balance sheet.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The Company paid an upfront underwriting
discount of&#8201; $8,000,000 ($0.20 per Unit sold) in the aggregate to the underwriters at the closing of the Public Offering,
with an additional fee (the &#8220;Deferred Discount&#8221;) equal to $14,000,000 ($0.35 per Unit sold) to become payable to the
underwriters from the amounts held in the Trust Account solely in the event the Company completes an initial business combination.
The underwriters are not entitled to any interest accrued on the Deferred Discount.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>4.</B></TD><TD STYLE="text-align: justify"><B>Related Party Transactions</B></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"><B><I><U>Founder Shares</U></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">On March&nbsp;28, 2019, the Sponsor received
10,062,500 shares of Class&nbsp;B common stock (the &#8220;Founder Shares&#8221;) in exchange for a capital contribution of&#8201;
$25,000, or approximately $0.002 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The Founder Shares are identical to the
shares of Class&nbsp;A common stock included in the Units sold in the Public Offering except that the Founder Shares are subject
to certain transfer restrictions, as described in more detail below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">On April&nbsp;10, 2019, the Sponsor transferred
4,930,625 Founder Shares to Harry E. Sloan (together with the Sponsor, the &#8220;initial stockholders&#8221;) for a purchase price
of&#8201; $12,250 (the same per-share price initially paid by the Sponsor), resulting in the Sponsor holding 5,131,875 Founder
Shares. On May&nbsp;10, 2019, the Sponsor and Mr.&nbsp;Sloan each forfeited at no cost 31,875 and 30,625 Founder Shares, respectively,
to the Company in connection with the election by the underwriters of the Public Offering to exercise their over-allotment option
in part and not in full, resulting in an aggregate of 10,000,000 Founder Shares outstanding. On December&nbsp;31, 2019, the Sponsor
transferred 20,000 Founder Shares to each of the Company&#8217;s independent directors, resulting in the Sponsor holding 5,020,000
Founder Shares, for the same per-share purchase price initially paid by the Sponsor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The initial stockholders and the Company&#8217;s
independent directors have agreed not to transfer, assign or sell any of their Founder Shares until the earlier of&#8201; (A)&nbsp;one
year after the completion of the Company&#8217;s initial Business Combination, or earlier if, subsequent to the Company&#8217;s
initial Business Combination, the closing price of the Company&#8217;s common stock equals or exceeds $12.00 per share (as adjusted
for stock splits, stock capitalizations, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading
day period commencing at least 150&nbsp;days after the Company&#8217;s initial Business Combination, and (B)&nbsp;the date on which
the Company completes a liquidation, merger, capital stock exchange or other similar transaction after the initial Business Combination
that results in all of the Company&#8217;s stockholders having the right to exchange their common stock for cash, securities or
other property.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Rights</U></I></B></FONT>&#8201;&#8212;&#8201;The
Founder Shares are identical to the Public Shares except that (i)&nbsp;the Founder Shares are subject to certain transfer restrictions,
as described above, and (ii)&nbsp;the initial stockholders have agreed to waive their redemption rights in connection with an initial
business combination with respect to the Founder Shares and any Public Shares they may purchase, and to waive their redemption
rights with respect to the Founder Shares if the Company fails to complete an initial business combination within 24&nbsp;months
from the closing of the Public Offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"><B><I><U>Voting</U></I></B>&#8201;&#8212;&#8201;If
the Company seeks stockholder approval of an initial business combination, the initial stockholders have agreed to vote their Founder
Shares and any Public Shares purchased during or after the Public Offering in favor of an initial business combination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Liquidation</U></I></B></FONT>&#8201;&#8212;&#8201;Although
the initial stockholders and their permitted transferees have waived their redemption rights with respect to the Founder Shares
if the Company fails to complete an initial business combination within the prescribed time frame, they will be entitled to redemption
rights with respect to any Public Shares they may own.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I><U>Private Placement Warrants</U></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">In conjunction with the Public Offering,
the Sponsor and Harry E. Sloan purchased an aggregate of 6,333,334 private placement warrants (the &#8220;Private Placement Warrants&#8221;),
at a price of&#8201; $1.50 per warrant (approximately $9,500,000 in the aggregate) in the Private Placement. Each Private Placement
Warrant entitles the holder to purchase one share of Class&nbsp;A common stock at $11.50 per share. A portion of the purchase price
of the Private Placement Warrants was added to the proceeds from the Public Offering to be held in the Trust Account such that
at closing of the Public Offering, $400,000,000 was placed in the Trust Account. On December&nbsp;31, 2019, the Sponsor transferred
66,666 Private Placement Warrants to Scott Delman and 133,333 Private Placement Warrants to each of Joshua Kazam and Fredric Rosen
for the same per-warrant purchase price initially paid by the Sponsor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The Private Placement Warrants (including
the shares of common stock issuable upon exercise of the Private Placement Warrants) are not transferable, assignable or salable
until 30&nbsp;days after the completion of the initial business combination and they are non-redeemable for cash so long as they
are held by the initial purchasers of the Private Placement Warrants or their permitted transferees. If the Private Placement Warrants
are held by someone other than the initial purchasers of the Private Placement Warrants or their permitted transferees, the Private
Placement Warrants will be redeemable for cash by the Company and exercisable by such holders on the same basis as the warrants
included in the Units sold in the Public Offering. Otherwise, the Private Placement Warrants have terms and provisions that are
identical to those of the Warrants sold as part of the Units in the Public Offering and have no net cash settlement provisions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">If the Company does not complete an initial
business combination, then the proceeds will be part of the liquidating distribution to the public stockholders and the Private
Placement Warrants issued to the Sponsor, Scott Delman, Fredric Rosen, Joshua Kazam and Harry E. Sloan will expire worthless.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I><U>Registration Rights</U></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The holders of the Founder Shares, Private
Placement Warrants and Warrants that may be issued upon conversion of working capital loans (and any Class&nbsp;A common stock
issuable upon the exercise of the Private Placement Warrants and warrants that may be issued upon conversion of working capital
loans and upon conversion of the Founder Shares) are entitled to registration rights pursuant to a registration rights agreement,
requiring the Company to register such securities for resale. The holders of these securities are entitled to make up to three
demands, excluding short form demands, that we register such securities. In addition, the holders have certain &#8220;piggy-back&#8221;
registration rights with respect to registration statements filed subsequent to our completion of our initial business combination.
The Company will bear the expenses incurred in connection with the filing of any such registration statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I><U>Related Party Loans</U></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The Sponsor agreed to loan the Company
up to an aggregate of&#8201;&#8201;$300,000 by the issuance of an unsecured promissory note (the &#8220;Note&#8221;) to cover expenses
related to the Public Offering. These loans were payable without interest on the earlier of December&nbsp;31, 2019 or the completion
of the Public Offering. Upon completion of the Public Offering, $60,675 was repaid in full. At December&nbsp;31, 2019, there were
no amounts outstanding under the Note.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I><U>Administrative Services</U></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The Company will reimburse the
Sponsor for office space, secretarial and administrative services provided to members of the Company&#8217;s management team
by the Sponsor, members of the Sponsor, and the Company&#8217;s management team or their affiliates in an amount not to
exceed $15,000 per month in the event such space and/or services are utilized and the Company does not pay a third party
directly for such services, from the date of closing of the Public Offering. As of December&nbsp;31, 2019, $90,000 of
administrative expenses were incurred under this agreement and paid to the Sponsor. Upon completion of an initial business
combination or the Company&#8217;s liquidation, the Company will cease paying these monthly fees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<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"><B><I><U>Working Capital Loans</U></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">In order to finance transaction costs in
connection with an intended initial business combination, the Sponsor or an affiliate of the Sponsor or certain of the Company&#8217;s
officers and directors intend to loan the Company funds as may be required. Up to $1,500,000 of such loans may be convertible into
warrants of the post-business combination entity at a price of&#8201;&#8201;$1.50 per warrant at the option of the lender. Such
warrants would be identical to the Private Placement Warrants. Except for the foregoing, the terms of such loans, if any, have
not been determined and no written agreements exist with respect to such loans. No amounts were borrowed under this arrangement
as of December&nbsp;31, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>5.</B></TD><TD STYLE="text-align: justify"><B>Commitments and Contingencies</B></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-indent: 0.25in">The Company is committed to pay the Deferred
Discount totaling $14,000,000, or 3.5% of the gross offering proceeds of the Public Offering, to the underwriters upon the Company&#8217;s
consummation of an initial business combination. The underwriters will not be entitled to any interest accrued on the Deferred
Discount, and no Deferred Discount is payable to the underwriters if there is no business combination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>6.</B></TD><TD STYLE="text-align: justify"><B>Trust Account and Fair Value Measurements</B></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-indent: 0.25in">As of December&nbsp;31, 2019, investment
securities in the Company&#8217;s Trust Account consisted of $403,960,089 in United States Treasury Bills and another $1,120 held
as cash and cash equivalents. The Company classifies its Treasury Instruments and equivalent securities as held-to-maturity in
accordance with FASB ASC 320 &#8220;Investments&#8201;&#8212;&#8201;Debt and Equity Securities&#8221;. Held-to-maturity securities
are those securities which the Company has the ability and intent to hold until maturity. Held-to-maturity treasury securities
are recorded at amortized cost on the accompanying December&nbsp;31, 2019 consolidated balance sheet and adjusted for the amortization
or accretion of premiums or discounts. The following table presents information about the Company&#8217;s assets that are measured
at fair value on a recurring basis as of December&nbsp;31, 2019 and indicates the fair value hierarchy of the valuation techniques
the Company utilized to determine such fair value. In addition, the table presents the carrying value under ASC 320, excluding
accrued interest income and gross unrealized holding gain. Since all of the Company&#8217;s permitted investments consist of U.S.
government treasury bills and cash, fair values of its investments are determined by Level&nbsp;1 inputs utilizing quoted prices
(unadjusted) in active markets for identical assets as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap">&#8203;&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; white-space: nowrap; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Carrying Value at<BR> December&nbsp;31,<BR>
 2019</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; white-space: nowrap; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Gross unrealized<BR> Holding Gain</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; white-space: nowrap; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Quoted prices in<BR> Active Markets<BR> (Level&nbsp;1)</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; width: 61%; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">Treasury
    Securities Held as of December&nbsp;31, 2019<SUP>(1)</SUP></FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; width: 1%; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; width: 10%; font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">403,960,089</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; width: 1%; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; width: 10%; font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">31,347</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; width: 1%; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; width: 10%; font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">403,991,436</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&nbsp;</FONT></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>

<!-- Field: Rule-Page --><DIV STYLE="margin-top: 3pt; margin-bottom: 3pt; width: 25%"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">(1)</TD><TD STYLE="text-align: justify">Maturity date March&nbsp;24, 2020.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>7.</B></TD><TD STYLE="text-align: justify"><B>Stockholders&#8217; Equity</B></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-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Common
Stock</U></I></B></FONT>&#8201;&#8212;&#8201;The authorized shares of common stock of the Company include up to 400,000,000
shares, including 380,000,000 shares of Class&nbsp;A common stock and 20,000,000 shares of Class&nbsp;B common stock. Holders
of the shares of Class&nbsp;A common stock and holders of the shares of Class&nbsp;B common stock vote together as a single
class on all matters submitted to a vote of the Company&#8217;s stockholders, except as required by law. Each share of common
stock has one vote. At December&nbsp;31, 2019, there were 40,000,000 shares of Class&nbsp;A common stock outstanding and
10,000,000 shares of Class&nbsp;B common stock outstanding. In connection with the underwriters&#8217; partial exercise of
their over-allotment option prior to the closing of the Public Offering, on May&nbsp;10, 2019, the Sponsor and Harry E. Sloan
surrendered an aggregate of 62,500 Founder Shares (consisting of 31,875 by the Sponsor and 30,625 by Harry E. Sloan) to the
Company for no consideration, resulting in the Sponsor holding 5,100,000 Founder Shares and Harry E. Sloan holding 4,900,000
Founder Shares. On December&nbsp;31, 2019, the Sponsor transferred 20,000 Founder Shares to each of the Company&#8217;s
independent directors, resulting in the Sponsor holding 5,020,000 Founder Shares, for the same per-share purchase price
initially paid by the Sponsor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<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-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Preferred
Stock</U></I></B></FONT>&#8201;&#8212;&#8201;The Company is authorized to issue 1,000,000 preferred shares. At December&nbsp;31,
2019, no preferred shares were outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I><U>Warrants </U></I></B></FONT>&#8201;&#8212;&#8201;Public
Warrants may only be exercised for a whole number of shares. The Public Warrants will become exercisable on the later
of&#8201; (a)&nbsp;30&nbsp;days after the completion of an initial business combination or (b)&nbsp;12&nbsp;months from the
closing of the Public Offering; provided in each case that the Company has an effective registration statement under the
Securities Act covering the shares of Class&nbsp;A common stock issuable upon exercise of the Public Warrants and a current
prospectus relating to them is available (or the Company permits holders to exercise their Public Warrants on a cashless
basis and such cashless exercise is exempt from registration under the Securities Act). The Company has agreed that as soon
as practicable, but in no event later than 15 business days after the closing of an initial business combination, the Company
will use its best efforts to file with the SEC a registration statement for the registration, under the Securities Act, of
the shares of Class&nbsp;A common stock issuable upon exercise of the Public Warrants. The Company will use its best efforts
to cause the same to become effective and to maintain the effectiveness of such registration statement, and a current
prospectus relating thereto, until the expiration of the Public Warrants in accordance with the provisions of the warrant
agreement relating to the warrants. If a registration statement covering the shares of Class&nbsp;A common stock issuable
upon exercise of the warrants is not effective by the sixtieth (60th) day after the closing of the initial business
combination, warrant holders may, until such time as there is an effective registration statement and during any period when
the Company will have failed to maintain an effective registration statement, exercise warrants on a &#8220;cashless
basis&#8221; in accordance with Section&nbsp;3(a)(9)&nbsp;of the Securities Act or another exemption. The Public Warrants
will expire five&nbsp;years after the completion of an initial business combination or earlier upon redemption or
liquidation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The Private Placement Warrants are identical
to the Public Warrants underlying the Units sold in the Public Offering, except that the Private Placement Warrants and the shares
of Class&nbsp;A common stock issuable upon exercise of the Private Placement Warrants will not be transferable, assignable or salable
until 30&nbsp;days after the completion of an initial business combination, subject to certain limited exceptions. Additionally,
the Private Placement Warrants will be non-redeemable so long as they are held by the initial purchasers or such purchasers&#8217;
permitted transferees. If the Private Placement Warrants are held by someone other than their initial purchasers or their permitted
transferees, the Private Placement Warrants will be redeemable by the Company and exercisable by such holders on the same basis
as the Public Warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The Company may call the warrants for redemption
(except with respect to the Private Placement Warrants):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">in whole and not in part;</TD>
</TR>     <TR STYLE="vertical-align: top; text-align: justify">
<TD>&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
</TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">at a price of&#8201; $0.01 per warrant;</TD>
</TR>     <TR STYLE="vertical-align: top; text-align: justify">
<TD>&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
</TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">upon a minimum of 30&nbsp;days&#8217; prior written notice
of redemption; and</TD>
</TR>     <TR STYLE="vertical-align: top; text-align: justify">
<TD>&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
</TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">if, and only if, the last reported closing price of the
Class&nbsp;A common stock equals or exceeds $18.00 per share for any 20 trading days within a 30-trading day period ending on
the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders.</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">Additionally, commencing ninety days after
the Warrants become exercisable, the Company may redeem its outstanding warrants in whole and not in part, for the number of shares
of Class&nbsp;A common stock determined by reference to the table set forth in the Company&#8217;s prospectus relating to the
Public Offering based on the redemption date and the &#8220;fair market value&#8221; of the Class&nbsp;A common stock, upon a
minimum of 30&nbsp;days&#8217; prior written notice of redemption and if, and only if, the last sale price of the shares of Class&nbsp;A
common stock equals or exceeds $10.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations
and the like) on the trading day prior to the date on which the Company sends the notice of redemption to the warrant holders,
if, and only if, the Private Placement Warrants are also concurrently exchanged at the same price (equal to a number of shares
of Class&nbsp;A common stock) as the outstanding warrants, as described above and if, and only if, there is an effective registration
statement covering the shares of Class&nbsp;A common stock issuable upon exercise of the Warrants and a current prospectus relating
thereto available throughout the 30-day period after written notice of redemption is given. The &ldquo;fair market value&rdquo;
of the shares of Class&nbsp;A common stock is the average last reported sale price of the Class&nbsp;A common stock for the 10
trading days ending on the third trading day prior to the date on which the notice of redemption is sent to the holders of warrants.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<!-- Field: Split-Segment; Name: a4 --><P STYLE="color: #003366; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 8pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="width: 0in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: left"><B>8.</B></TD>
    <TD STYLE="text-align: justify"><B>Income Tax</B></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8203;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Company incurred United States federal
income tax expense of approximately $944,494 for the period from March&nbsp;27, 2019 (date of inception) through December&nbsp;31,
2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Company made three estimated quarterly
tax payments of&thinsp; $383,333 each, to the Internal Revenue Service (&ldquo;IRS&rdquo;) for federal income taxes estimated for
2019 on interest earned in the Trust Account. The funds were paid from the Trust Account. At December&nbsp;31, 2019, the Company
had prepaid federal income taxes of&thinsp; $205,505 included in prepaid expenses on the accompanying consolidated balance sheet.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Company&rsquo;s provision for income
tax consists of the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 93%; font: 8pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">For&nbsp;the&nbsp;Period<BR> Ended<BR> December&nbsp;31,<BR> 2019</TD>
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt">Federal</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: right">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 87%; font-size: 10pt; padding-left: 0.125in">Current</TD>
    <TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD>
    <TD STYLE="width: 10%; font-size: 10pt; text-align: right">944,494</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; padding-left: 0.125in">Deferred</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: right">(261,174</TD>
    <TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">State</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; padding-left: 0.125in">Current</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; padding-left: 0.125in">Deferred</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Change in valuation allowance</TD>
    <TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">261,174</TD>
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 2.5pt">Income tax provision</TD>
    <TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">944,494</TD>
    <TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Company incurred costs of&thinsp; $1,237,757
related to its search to complete a business combination which are not deductible for federal income tax purposes and resulted
in the generation of a deferred tax asset of&thinsp; $261,174 which is available to offset future taxable income.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">In assessing the realization of deferred
tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not
be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the
periods in which temporary differences representing net future deductible amounts become deductible. The Company considers the
scheduled reversal of deferred tax assets, projected future taxable income and tax planning strategies in making this assessment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">A reconciliation of the federal income tax
rate to the Company&rsquo;s effective tax rate at December&nbsp;31, 2019 is as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 93%; font: 8pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">For&nbsp;the&nbsp;Period<BR> Ended<BR> December&nbsp;31,<BR> 2019</TD>
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 87%; font-size: 10pt; text-align: left; text-indent: -10.1pt; padding-left: 10.1pt">Statutory federal income tax rate</TD>
    <TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; font-size: 10pt; text-align: right">21.0</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -10.1pt; padding-left: 10.1pt">State taxes, net of federal tax benefit</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: right">0.0</TD>
    <TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -10.1pt; padding-left: 10.1pt">Deferred tax rate change</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: -10.1pt; padding-left: 10.1pt">Change in valuation allowance</TD>
    <TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">8.0</TD>
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 2.5pt; text-indent: -10.1pt; padding-left: 10.1pt">Income tax provision</TD>
    <TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">29.0</TD>
    <TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">%</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 8pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="width: 0in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: left"><B>9.</B></TD>
    <TD STYLE="text-align: justify"><B>Business Combination</B></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-indent: 20pt">&#8203;On December&nbsp;22, 2019, the Company
entered into a business combination agreement (the &ldquo;Business Combination Agreement&rdquo;) with DraftKings Inc., a Delaware
corporation (&ldquo;DK&rdquo;), SBTech (Global) Limited, a company limited by shares, incorporated in Gibraltar and continued as
a company under the Isle of Man Companies Act 2006, with registration number 014119V (&ldquo;SBT&rdquo;), the shareholders of SBT
(the &ldquo;SBT Sellers&rdquo;), Shalom Meckenzie, in his capacity as the SBT Sellers&rsquo; Representative, DEAC NV Merger Corp.,
a Nevada corporation and a wholly-owned subsidiary of the Company (&ldquo;DEAC Nevada&rdquo;) and DEAC Merger Sub Inc., a Delaware
corporation and a wholly-owned subsidiary of the Company (&ldquo;Merger Sub&rdquo;), pursuant to which (i)&nbsp;the Company will
change its jurisdiction of incorporation to Nevada by merging with and into DEAC Nevada, with DEAC Nevada surviving the merger
(the &ldquo;reincorporation&rdquo;), (ii)&nbsp;Merger Sub will merge with and into DK with DK surviving the merger (the &ldquo;DK
Merger&rdquo;), and (iii)&nbsp;immediately following the DK Merger, New DraftKings (as defined below) will acquire all of the issued
and outstanding share capital of SBT. Upon consummation of the transactions contemplated by the Business Combination Agreement,
DraftKings and SBT will become wholly owned subsidiaries of DEAC Nevada, which will be renamed &ldquo;DraftKings Inc.&rdquo; and
is referred to herein as &ldquo;New DraftKings&rdquo; both as of the time of the reincorporation and following such name change.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">DK is a digital sports entertainment and
gaming company. DK provides users with daily fantasy sports, sports betting and iGaming opportunities. SBT&rsquo;s principal business
activities involve the design and development of sports betting and casino gaming platform software for online and retail sportsbook
and casino gaming products.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The aggregate value of the consideration
to be paid to DK and SBT shareholders in the Business Combination is approximately $2.7&nbsp;billion, of which (A)&nbsp;approximately
$2.055&nbsp;billion will be paid to (i)&nbsp;the current equityholders of DK (the &ldquo;DK Sellers&rdquo;) in the form of shares
of Class&nbsp;A common stock of New DraftKings (&ldquo;New DraftKings Class&nbsp;A common stock&rdquo;), valued at the redemption
price for the Company&rsquo;s public shares in the Business Combination, plus in the case of Jason Robins, such additional number
of shares of Class&nbsp;B common stock of New DraftKings (&ldquo;New DraftKings Class&nbsp;B common stock&rdquo;) such that as
of immediately following the completion of the Business Combination, Mr.&nbsp;Robins shall have approximately ninety&nbsp;percent
(90%) of the voting power of the capital stock of New DraftKings on a fully-diluted basis, and (ii)&nbsp;holders of vested in-the-money
options and warrants exercisable for DK equity in the form of newly issued options and warrants of New DraftKings exercisable for
New DraftKings Class&nbsp;A common stock, and (B)&nbsp;approximately &euro;590&nbsp;million will be paid to the SBT Sellers and
holders of vested options exercisable for equity of SBT, consisting of&thinsp; (i)&nbsp;&euro;180&nbsp;million in cash, subject
to customary net debt and working capital adjustments as well as certain other specified items (the &ldquo;Cash Consideration&rdquo;)
payable in respect of the ordinary shares of SBT and 30% of the in-the-money vested options of SBT and (ii)&nbsp;approximately
 &euro;410&nbsp;million in shares of New DraftKings Class&nbsp;A common stock, valued at the redemption price for the Company&rsquo;s
public shares in the Business Combination, and in the form of newly issued in-the-money vested options of New DraftKings exercisable
for New DraftKings Class&nbsp;A common stock. Outstanding options exercisable for DK or SBT equity (other than cashed-out options
of SBT, for which the holders will receive a portion of the Cash Consideration for such options) will be converted into options
exercisable for shares of New DraftKings Class&nbsp;A common stock. After the execution of the BCA, DK granted restricted stock&nbsp;units
to certain of its employees, which will be converted into restricted stock&nbsp;units denominated in New DraftKings Class&nbsp;A
common stock. The Cash Consideration will come from the following sources: (1)&nbsp;proceeds available from the Company&rsquo;s
Trust Account, after giving effect to any and all redemptions; and (2)&nbsp;proceeds from private placements of shares of the Company&rsquo;s
Class&nbsp;A common stock to certain institutional investors to occur immediately prior to the closing of the Business Combination,
of which the Company currently has commitments for $304.7&nbsp;million of proceeds.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Additional information regarding DK, SBT
and the Business Combination is available in the definitive proxy statement/prospectus filed with the SEC on January&nbsp;6, 2020.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="f_007"></A>Report of Independent Registered Public
Accounting Firm</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Stockholders and Board of Directors<BR STYLE="clear: both">
DraftKings Inc.<BR STYLE="clear: both">
Boston, MA</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Opinion on the Consolidated Financial Statements </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">We have audited the accompanying consolidated
balance sheets of DraftKings Inc. (the &ldquo;Company&rdquo;) as of December 31, 2019 and 2018, the related consolidated statements
of operations, redeemable convertible preferred stock and stockholders&rsquo; deficit, and cash flows for each of the years in
the three-year period ended December 31, 2019, and the related notes (collectively referred to as the &ldquo;consolidated financial
statements&rdquo;). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial
position of the Company at December 31, 2019 and 2018, and the results of its operations and its cash flows for each of the years
in the three-year period ended December 31, 2019, in conformity with accounting principles generally accepted in the United States
of America.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Emphasis of Matter Regarding Going Concern</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The accompanying consolidated financial statements
have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the consolidated financial
statements, the Company has suffered recurring losses from operations, negative cash flows from operations, and a significant accumulated
deficit that raise substantial doubt about its ability to continue as a going concern. Management&rsquo;s plans in regard to these
matters are also described in Note 2. The consolidated financial statements do not include any adjustments that might result from
the outcome of this uncertainty.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Emphasis of Matter Regarding Novel Coronavirus</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">As more fully described in Note 1 to the
consolidated financial statements, the Company has been negatively impacted by the outbreak of a novel coronavirus (COVID-19),
which was declared a global pandemic by the World Health Organization in March 2020.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Basis for Opinion </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">These consolidated financial statements are
the responsibility of the Company&rsquo;s management. Our responsibility is to express an opinion on the Company&rsquo;s consolidated
financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight
Board (United States) (&ldquo;PCAOB&rdquo;) and are required to be independent with respect to the Company in accordance with the
U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">We conducted our audits in accordance with
the standards of the PCAOB and in accordance with auditing standards generally accepted in the United States of America. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements
are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks
of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that
respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in
the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates
made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our
audits provide a reasonable basis for our opinion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">/s/ BDO USA, LLP</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have served as the Company&rsquo;s auditor since 2015.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Boston, MA<BR STYLE="clear: both">
March&nbsp;12, 2020, except for footnotes 1 and 18 which are dated March 26, 2020</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&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;<FONT STYLE="font-family: Times New Roman, Times, Serif">&#8203;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="f_008"></A>DRAFTKINGS INC. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CONSOLIDATED BALANCE SHEETS<BR STYLE="clear: both">
</B>(Amounts in thousands)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</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="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December&nbsp;31,</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2019</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2018</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold">Assets</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Current assets:</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; width: 74%">Cash</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 10%; text-align: right">76,533</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 10%; text-align: right">117,908</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">Cash reserved for users</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">144,000</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">111,698</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left">Receivables reserved for users</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">19,828</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">21,334</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">Prepaid expenses and other current assets</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">20,787</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">11,233</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.25in; font-weight: bold; text-align: left"><B>Total current assets</B></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right"><B>261,148</B></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right"><B>262,173</B></TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Property and equipment, net</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25,945</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">14,102</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">Intangible assets, net</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">33,939</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">16,876</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Goodwill</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,738</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,738</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">Equity method investment</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,521</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&mdash;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Deposits</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">2,434</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,504</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.25in; font-weight: bold; text-align: left"><B>Total assets</B></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><B>$</B></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><B>330,725</B></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><B>$</B></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><B>299,393</B></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">Liabilities, redeemable convertible preferred stock and stockholders&rsquo; deficit</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Current liabilities:</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">Accounts payable and accrued expenses</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">85,295</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">56,149</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left">Liabilities to users</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">163,035</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">132,769</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">Term note</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,750</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,750</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left">Settlement liability</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">3,272</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in; font-weight: bold; text-align: left"><B>Total current liabilities</B></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right"><B>255,080</B></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right"><B>195,940</B></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">Convertible promissory notes</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">68,363</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&mdash;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Other long-term liabilities</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">56,862</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">27,403</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.25in; font-weight: bold; text-align: left"><B>Total liabilities</B></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><B>$</B></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right"><B>380,305</B></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><B>$</B></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right"><B>223,343</B></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">Commitments and contingencies (note 13)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>See accompanying notes to consolidated
financial statements.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&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; text-align: center"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DRAFTKINGS INC. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CONSOLIDATED BALANCE SHEETS<BR STYLE="clear: both">
</B>(Amounts in thousands)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December&nbsp;31,</TD>
    <TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2019</TD>
    <TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2018</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="font-weight: bold; text-align: left">Redeemable convertible preferred stock:</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; width: 74%; text-align: left"><B>Series&nbsp;E-1 redeemable convertible preferred stock</B>, $0.001 par value; 54,901 shares authorized, issued and outstanding at December&nbsp;31, 2019 and 2018; liquidation preference of&thinsp; $120,943 as of December&nbsp;31, 2019</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 10%; text-align: right">119,752</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 10%; text-align: right">119,427</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left; padding-bottom: 1pt"><B>Series&nbsp;F redeemable convertible preferred stock</B>, $0.001 par value; 78,445 shares authorized, 55,349 and 57,068 shares issued and outstanding at December&nbsp;31, 2019 and 2018, respectively; liquidation preference of&thinsp; $141,117 and $145,499 as of December&nbsp;31, 2019 and 2018, respectively</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">138,619</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">141,850</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in; font-weight: bold; text-align: left; padding-bottom: 1pt">Total redeemable convertible preferred stock</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">258,371</TD>
    <TD STYLE="padding-bottom: 1pt; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">261,277</TD>
    <TD STYLE="padding-bottom: 1pt; font-weight: bold; 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">Stockholders&rsquo; deficit:</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.25in; text-align: left">Common stock, $0.001 par value; 735,000 shares authorized as at December&nbsp;31, 2019 and 2018; 389,610 and 384,009 shares issued and outstanding at December&nbsp;31, 2019 and 2018, respectively</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">390</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">384</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left">Additional paid-in capital</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">690,443</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">670,439</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left; padding-bottom: 1pt">Accumulated deficit</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">(998,784</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">(856,050</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.25in; font-weight: bold; text-align: left; padding-bottom: 1pt">Total stockholders&rsquo; deficit</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">(307,951</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">(185,227</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 2.5pt">Total liabilities, redeemable convertible preferred stock and stockholders&rsquo; deficit</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">330,725</TD>
    <TD STYLE="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">299,393</TD>
    <TD STYLE="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>See accompanying notes to consolidated
financial statements.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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    <!-- Field: /Page --><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="f_009"></A>DRAFTKINGS INC. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CONSOLIDATED STATEMENTS OF OPERATIONS<BR STYLE="clear: both">
</B>(Amounts in thousands, except per share data)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Years Ended December&nbsp;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">2019</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">2018</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">2017</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: 61%; font-weight: bold">Revenue</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 10%; text-align: right">323,410</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 10%; text-align: right">226,277</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 10%; text-align: right">191,844</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in">Cost of revenue</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">103,889</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">48,689</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">31,750</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left">Sales and marketing</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">185,269</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">145,580</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">156,632</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">Product and technology</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">55,929</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">32,885</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">20,212</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left; padding-bottom: 1pt">General and administrative</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">124,868</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">75,904</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">56,448</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Loss from operations</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right">(146,545</TD>
    <TD STYLE="font-weight: bold; text-align: left">)</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right">(76,781</TD>
    <TD STYLE="font-weight: bold; text-align: left">)</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right">(73,198</TD>
    <TD STYLE="font-weight: bold; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Other income (expense):</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">Interest income (expense), net</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,348</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">666</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(1,541</TD>
    <TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left">Gain on initial equity method investment</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,000</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&mdash;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&mdash;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left; padding-bottom: 1pt">Other expense, net</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;</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">(607</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Loss before income tax provision</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right">(142,197</TD>
    <TD STYLE="font-weight: bold; text-align: left">)</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right">(76,115</TD>
    <TD STYLE="font-weight: bold; text-align: left">)</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right">(75,346</TD>
    <TD STYLE="font-weight: bold; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Income tax provision</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">58</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">105</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">210</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">Loss from equity method investment</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">479</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt"><B>Net loss</B></TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><B>$</B></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><B>(142,734</B></TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left"><B>)</B></TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><B>$</B></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><B>(76,220</B></TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left"><B>)</B></TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><B>$</B></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><B>(75,556</B></TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left"><B>)</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Loss per share attributable to common stockholders:</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">Basic and diluted</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">(0.37</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">(0.20</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">(0.54</TD>
    <TD STYLE="text-align: left">)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>See accompanying notes to consolidated
financial statements.&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&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; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="f_010"></A>DRAFTKINGS INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CONSOLIDATED STATEMENTS OF REDEEMABLE
CONVERTIBLE PREFERRED STOCK AND<BR STYLE="clear: both">
STOCKHOLDERS&rsquo; DEFICIT<BR STYLE="clear: both">
</B>(Amounts in thousands)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-size: 10pt; font-weight: bold; text-align: center">Redeemable&nbsp;Convertible</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: center"><B>Additional</B></TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: center"><B>Total</B></TD><TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Preferred Stock</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Common Stock</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center">Paid-in</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: center"><B>Accumulated</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: center"><B>Stockholders&rsquo;</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Shares</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Amount</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Shares</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Amount</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Capital</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Deficit</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Deficit</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 23%; font-size: 10pt; text-indent: -10.1pt; padding-left: 10.1pt"><B>Balances at December&nbsp;31, 2016</B></TD><TD STYLE="width: 1%; font-size: 10pt"><B>&nbsp;</B></TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="width: 8%; font-size: 10pt; text-align: right"><B>184,499</B></TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="width: 1%; font-size: 10pt"><B>&nbsp;</B></TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left"><B>$</B></TD><TD STYLE="width: 8%; font-size: 10pt; text-align: right"><B>490,971</B></TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="width: 1%; font-size: 10pt"><B>&nbsp;</B></TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="width: 8%; font-size: 10pt; text-align: right"><B>22,291</B></TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="width: 1%; font-size: 10pt"><B>&nbsp;</B></TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left"><B>$</B></TD><TD STYLE="width: 8%; font-size: 10pt; text-align: right"><B>22</B></TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="width: 1%; font-size: 10pt"><B>&nbsp;</B></TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left"><B>$</B></TD><TD STYLE="width: 8%; font-size: 10pt; text-align: right"><B>3,998</B></TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="width: 1%; font-size: 10pt"><B>&nbsp;</B></TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left"><B>$</B></TD><TD STYLE="width: 8%; font-size: 10pt; text-align: right"><B>(704,274</B></TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left"><B>)</B></TD><TD STYLE="width: 1%; font-size: 10pt"><B>&nbsp;</B></TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left"><B>$</B></TD><TD STYLE="width: 8%; font-size: 10pt; text-align: right"><B>(700,254</B></TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left"><B>)</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -10.1pt; padding-left: 10.1pt">Conversion of Debt to Series&nbsp;E Preferred Stock</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">103,077</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">160,928</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -10.1pt; padding-left: 10.1pt">Issuance of Series&nbsp;E-1 Redeemable Convertible Preferred Stock</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">54,901</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">118,623</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -10.1pt; padding-left: 10.1pt">Issuance of Series&nbsp;D Redeemable Convertible Preferred Stock for In-kind Transfer</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">714</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,077</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -10.1pt; padding-left: 10.1pt">Conversion of Preferred Stock to Common Stock</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(288,290</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(654,103</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">353,850</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">354</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">653,749</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">654,103</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-indent: -10.1pt; padding-left: 10.1pt">Exercise of Stock Options</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,233</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">179</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">180</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -10.1pt; padding-left: 10.1pt">Issuance of Common Stock for
    In-kind Transfer</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2,558</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">3</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">172</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">175</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -10.1pt; padding-left: 10.1pt">Accretion of Preferred Stock Issuance Cost</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,513</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(1,513</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(1,513</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -10.1pt; padding-left: 10.1pt">Stock-Based Compensation Expense</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">4,500</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">4,500</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left; text-indent: -10.1pt; padding-left: 10.1pt">Net Loss</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(75,556</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(75,556</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-indent: -10.1pt; padding-left: 10.1pt"><B>Balances at December&nbsp;31, 2017</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt"><B>&nbsp;</B></TD>
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><B>54,901</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><B>119,009</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt"><B>&nbsp;</B></TD>
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><B>379,932</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><B>380</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><B>661,085</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><B>(779,830</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left"><B>)</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><B>(118,365</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left"><B>)</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -10.1pt; padding-left: 10.1pt">Issuance of Series&nbsp;F Preferred Stock</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">57,068</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">141,590</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-indent: -10.1pt; padding-left: 10.1pt">Exercise of Stock Options</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2,385</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">550</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">552</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -10.1pt; padding-left: 10.1pt">Common Stock Issued</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">393</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">339</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">340</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -10.1pt; padding-left: 10.1pt">Issuance of Common Stock for
    In-kind Transfer</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,299</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,933</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,934</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -10.1pt; padding-left: 10.1pt">Accretion of Preferred Stock Issuance Cost</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">678</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(678</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(678</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -10.1pt; padding-left: 10.1pt">Stock-Based Compensation Expense</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">7,210</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">7,210</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left; text-indent: -10.1pt; padding-left: 10.1pt">Net Loss</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(76,220</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(76,220</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-indent: -10.1pt; padding-left: 10.1pt"><B>Balances at December&nbsp;31, 2018</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt"><B>&nbsp;</B></TD>
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><B>111,969</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><B>261,277</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt"><B>&nbsp;</B></TD>
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><B>384,009</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><B>384</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><B>670,439</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><B>(856,050</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left"><B>)</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><B>(185,227</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left"><B>)</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -10.1pt; padding-left: 10.1pt">Issuance of Series&nbsp;F Preferred Stock</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2,879</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">7,824</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-indent: -10.1pt; padding-left: 10.1pt">Exercise of Stock Options</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2,873</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">3</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,145</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,148</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -10.1pt; padding-left: 10.1pt">Common Stock Issued</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,906</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">437</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">439</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -10.1pt; padding-left: 10.1pt">Issuance of Common Stock for
    In-kind Transfer</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">822</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,363</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,364</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -10.1pt; padding-left: 10.1pt">Repurchase of Preferred Stock and Issuance of Promissory Note</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(4,598</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(11,722</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -10.1pt; padding-left: 10.1pt">Accretion of Preferred Stock Issuance Cost</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">992</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(992</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(992</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -10.1pt; padding-left: 10.1pt">Stock-Based Compensation Expense</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">17,613</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">17,613</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-indent: -10.1pt; padding-left: 10.1pt">Issuance of warrants</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">438</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">438</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left; text-indent: -10.1pt; padding-left: 10.1pt">Net Loss</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(142,734</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(142,734</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-indent: -10.1pt; padding-left: 10.1pt"><B>Balances at December&nbsp;31, 2019</B></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt"><B>&nbsp;</B></TD>
    <TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><B>110,250</B></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><B>258,371</B></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt"><B>&nbsp;</B></TD>
    <TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><B>389,610</B></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><B>390</B></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><B>690,443</B></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><B>(998,784</B></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"><B>)</B></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><B>(307,951</B></TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"><B>)</B></TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>See accompanying notes to consolidated
financial statements.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="f_011"></A>DRAFTKINGS INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CONSOLIDATED STATEMENT OF CASH FLOWS<BR STYLE="clear: both">
</B>(Amounts in thousands)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Years Ended December 31,</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2019</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2018</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2017</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">Cash Flows from Operating Activities:</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 61%; font-size: 10pt; text-align: left; padding-left: 0.125in">Net loss</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">(142,734</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">)</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">(76,220</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">)</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">(75,556</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0.125in">Adjustments to reconcile net loss to cash used in operating activities:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0.25in">Depreciation and amortization</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">13,636</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">7,499</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">6,301</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0.25in">Non-cash rent expense</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">377</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">37</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(120</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0.25in">Non-cash interest expense</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">424</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">31</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,487</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0.25in">Stock-based compensation expense</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">17,613</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">7,210</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">4,500</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0.25in">Advertising expense paid through issuance of common stock and warrants</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,802</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,934</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,252</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0.25in">Amortization of debt discount</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">141</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0.25in">Gain on derivative fair value adjustment</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(184</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0.25in">Loss on exit activities</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">179</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">877</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0.25in">Loss on disposal of assets</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">730</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">185</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0.25in">Loss on conversion of promissory notes</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">650</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0.25in">Loss from equity method investment</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">479</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0.25in">Gain on initial equity method investment</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(3,000</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0.25in">Deferred income taxes</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">54</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">19</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">145</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0.125in">Changes in operating assets and liabilities:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0.25in">Cash reserved for users</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(32,302</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(22,633</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(17,346</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0.25in">Receivables reserved for users</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,506</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(4,087</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">5,680</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0.25in">Prepaid expenses and other current assets</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(9,554</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(2,214</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(4,175</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; padding-left: 0.25in">Deposits</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(930</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">728</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(133</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0.25in">Accounts payable and accrued expenses</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">27,946</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">5,699</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(29,793</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0.25in">Other long-term liabilities</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">18,028</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">12,068</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">5,307</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0.25in">Settlement liability</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(3,400</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(2,212</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">783</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 0.25in">Liabilities to users</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">30,266</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">26,562</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">11,562</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 1pt"><B>Net cash used in Operating Activities</B></TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><B>(78,880</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left"><B>)</B></TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><B>(45,579</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left"><B>)</B></TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><B>(88,437</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left"><B>)</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">Cash Flows from Investing Activities:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0.125in">Purchases of property and equipment</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(16,703</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(13,683</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(599</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0.125in">Capitalization of internal-use software costs</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(14,816</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(12,738</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(7,116</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 0.125in">Acquisition of state licenses</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(10,752</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(251</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 1pt">Net cash used in Investing Activities</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">(42,271</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">(26,672</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">(7,715</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">Cash Flows from Financing Activities:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0.125in">Proceeds from term note</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">3,000</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0.125in">Repayment of notes payable</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(1,250</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0.125in">Net proceeds from issuance of common stock</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">439</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0.125in">Net cost due to conversion of Series&nbsp;E Stock</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(272</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0.125in">Net proceeds due to issuance of Series&nbsp;E-1 Redeemable Convertible Preferred Stock</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">118,623</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0.125in">Net proceeds due to issuance of Series&nbsp;F Redeemable Convertible Preferred Stock</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">7,824</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">141,590</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0.125in">Repurchase of Series&nbsp;F Redeemable Convertible Preferred Stock</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(722</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0.125in">Net proceeds from issuance of convertible promissory notes</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">68,087</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 0.125in">Proceeds from exercise of stock options</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">1,148</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">552</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">180</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 1pt">Net cash provided by Financing Activities</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">79,776</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">140,892</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">118,531</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">Net (Decrease) Increase in Cash</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(41,375</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">68,641</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">22,379</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 1pt">Cash at Beginning of Year</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">117,908</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">49,267</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">26,888</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 2.5pt">Cash at End of Year</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: right">76,533</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: right">117,908</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: right">49,267</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">Supplemental Disclosure of Non-Cash Investing and Financing Activities:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -0.125in; padding-left: 0.25in">Non-cash redemption of Series&nbsp;F redeemable convertible preferred to stock through issuance of promissory notes</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">11,000</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0.125in">Accretion of Series&nbsp;E-1 and F Redeemable Convertible Preferred Stock</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">992</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">678</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,513</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0.125in">Conversion of Series&nbsp;A through E of preferred stock to common stock</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">654,103</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0.125in">Conversion of convertible notes into preferred stock</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">160,928</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0.125in">Common stock issued</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">340</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0.125in">Acquisition of state licenses included in accounts payable and accrued expenses</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,000</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">Supplemental Disclosure of Cash Activities:</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0.125in">Cash paid for interest</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">260</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">261</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">285</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>See accompanying notes to consolidated
financial statements.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I></I>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="f_012"></A>DRAFTKINGS INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR STYLE="clear: both">
(Amounts in thousands)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>1.</B></TD><TD STYLE="text-align: justify"><B>Description of Business</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">DraftKings Inc. (the &ldquo;Company&rdquo;
or &ldquo;DraftKings&rdquo;) was incorporated in Delaware on December&nbsp;31, 2011. The Company provides online and retail sports
wagering offerings, online daily fantasy sports contests, and online casino games. The Company is headquartered in Boston, MA.
The Company began accepting users in the United States and Canada in 2012. The Company began accepting users in the United Kingdom
in 2016, and in Germany, Malta, Netherlands, Ireland, and Austria in 2017 and in Australia in 2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">From 2015 through 2017, the daily fantasy
sports industry was subject to government inquiries in the United States. State Attorneys General in Delaware, Georgia, Hawaii,
Illinois, Maryland, Mississippi, Nevada, New York, Ohio, Rhode Island, Tennessee, Texas and West Virginia issued advisory opinions
regarding the legality of daily fantasy sports in their respective states. As of February&nbsp;20, 2020, the Company had reached
agreements with the Attorneys General of Alabama, Hawaii and Idaho to suspend offering paid contests to individuals physically
present at the time of contest entry in those states until such time a legislative solution is reached. A law authorizing fantasy
sports was enacted by the Alabama legislature this year and DraftKings reentered the state to offer paid fantasy sports contests
on June&nbsp;18, 2019. The Company has suspended permitting participation in paid contests from Nevada and is currently seeking
judicial clarifications with respect to offering paid contests to individuals in Texas, while continuing to permit participation
from that state.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Due to the Company&rsquo;s interpretation
of existing laws in Arizona, Louisiana, Montana, and Washington, the Company has not historically permitted individuals in those
states to participate in paid contests. In April&nbsp;2019, the Iowa legislature passed a bill to legalize fantasy sports and,
in May&nbsp;2019, the bill was signed into law by the Governor of Iowa. DraftKings launched paid fantasy sports contests in Iowa
on October&nbsp;24, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Laws defining fantasy sports contests as
games of skill and requiring certain consumer protections have been enacted in New York, Mississippi, Massachusetts, Virginia,
Missouri, Indiana, Colorado, Kansas, Maryland, Arkansas, Tennessee, New Jersey, Delaware, New Hampshire, Vermont, Maine, Connecticut,
Ohio, Alabama, Pennsylvania, Iowa, and Michigan. Of the remaining 20 states (and Washington, D.C.) that the Company operates in,
two states (Kentucky and Nebraska) and one state the Company does not currently operate in (Arizona) have introduced legislation
to authorize and regulate fantasy sports. Two states currently enjoy positive legal opinions from the states Attorneys General
(West Virginia and Rhode Island).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">In May&nbsp;2018, the Supreme Court (the
 &ldquo;Court&rdquo;) struck down on constitutional grounds the Professional and Amateur Sports Protection Act of 1992 (&ldquo;PASPA&rdquo;),
a law that prohibited most states from authorizing and regulating sports betting. Since the Court&rsquo;s decision, states have
moved quickly to legalize and regulate sports betting. U.S. jurisdictions with statutes legalizing statewide online sports betting
as of December&nbsp;31, 2019 are Nevada, New Jersey, West Virginia, Delaware, Pennsylvania, Indiana, Iowa, Tennessee, New Hampshire,
Washington, D.C, and Rhode Island. States with current or in process statutes for online gaming are Colorado, Illinois, Indiana,
Iowa, Nevada, New Hampshire, New Jersey, Oregon, Pennsylvania, Rhode Island, Tennessee, Washington, D.C. and West Virginia. Colorado
enacted a law that became effective after approval by voters in a referendum in November&nbsp;2019. States authorizing and regulating
sports betting at specific retail locations are Nevada, New York, North Carolina, Illinois, Iowa, Indiana, New Hampshire, Washington,
D.C., New Jersey, West Virginia, Mississippi, Rhode Island, Delaware, Pennsylvania, Arkansas and Colorado. Some states have passed
laws authorizing sports wagering on the Internet or in retail locations, but no operators are offering live betting yet. The Company
currently operates Internet sports betting in Indiana, Iowa, New Hampshire, New Jersey Pennsylvania, and West Virginia. The Company
has retail sportsbooks in Mississippi, New York, New Jersey and at three locations in Iowa. The Company also has multi-state agreements
in place to expand operations upon the passing of the appropriate laws and regulations and the receipt of the appropriate license.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DRAFTKINGS INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR STYLE="clear: both">
(Amounts in thousands)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in">The Company launched an online casino product in
New Jersey in December&nbsp;2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Recently, the outbreak of the novel coronavirus
(&ldquo;COVID-19&rdquo;) has adversely impacted global commercial activity and contributed to significant declines and volatility
in financial markets. The COVID-19 pandemic and government responses are creating disruption in global supply chains and adversely
impacting many industries. The outbreak could have a continued material adverse impact on economic and market conditions and trigger
a period of global economic slowdown. The rapid development and fluidity of this situation precludes any prediction as to the ultimate
material adverse impact of COVID-19. Nevertheless, COVID-19 presents material uncertainty and risk with respect to the Company,
its performance, and its financial results and could adversely affect the Company's financial information.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>2.</B></TD><TD STYLE="text-align: justify"><B>Summary of Significant Accounting Policies and Practices</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Basis of Presentation and Principles of Consolidation</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The accompanying consolidated financial statements
are presented in conformity with accounting principles generally accepted in the United States of America (&ldquo;U.S. GAAP&rdquo;)
and pursuant to the rules and regulations of the Securities and Exchange Commission (&ldquo;SEC&rdquo;). The consolidated financial
statements include the accounts and operations of the Company and its wholly-owned subsidiaries. All intercompany accounts and
transactions have been eliminated upon consolidation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Going Concern</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Since its inception, the Company has funded
its operations primarily with proceeds from sales of convertible preferred stock (including proceeds from convertible debt, which
converted into convertible preferred stock) and borrowings under loan and security agreements. The Company has experienced operating
losses for the&nbsp;years ended December&nbsp;31, 2019, 2018 and 2017. In addition, as of December&nbsp;31, 2019, 2018 and 2017,
the Company had negative operating cash flows of&thinsp; $78,880, $45,579 and $88,437, respectively. The Company expects to continue
to incur operating losses for the foreseeable future. As of March&nbsp;12, 2020, the issuance date of the annual consolidated financial
statements for the year ended December&nbsp;31, 2019, the Company does not expect that its cash and cash equivalents, cash provided
by financing activities (including those disclosed in Note 7) and the ability to draw down on its line of credit, will be sufficient
to fund its operating expenses, capital expenditure requirements and debt service payments through March 12, 2021.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Company plans to seek additional funding
through equity financings or other capital sources, including collaborations with other companies or other strategic transactions.
The Company may not be able to obtain financing on acceptable terms, or at all. The terms of any financing may adversely affect
the holdings or the rights of the Company&rsquo;s stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">If the Company is unable to obtain funding,
the Company will be forced to delay or reduce some of its product portfolio expansion efforts, which could adversely affect its
business prospects, or the Company may be unable to continue operations. Although management continues to pursue these plans, there
is no assurance that the Company will be successful in obtaining sufficient funding on terms acceptable to the Company to fund
continuing operations, if at all.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Based on its recurring losses from operations
incurred, expectation of continuing operating losses for the foreseeable future, and need to raise additional capital to finance
its future operations, as of the issuance date of the annual consolidated financial statements for the year ended December&nbsp;31,
2019, the Company has concluded that there is substantial doubt about its ability to continue as a going concern within one year
after the date that the consolidated financial statements are issued.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The accompanying consolidated financial
statements do not include any adjustments that might result from the outcome of this uncertainty. Accordingly, the consolidated
financial statements have been prepared on a basis that assumes the Company will continue as a going concern and which contemplates
the realization of assets and satisfaction of liabilities and commitments in the ordinary course of business.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DRAFTKINGS INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR STYLE="clear: both">
(Amounts in thousands)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Emerging Growth Company</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Section&nbsp;102(b)(1) of the JOBS Act exempts
emerging growth companies from being required to comply with new or revised financial accounting standards until private companies
(that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities
registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act
provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging
growth companies, but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition
period, which means that when a standard is issued or revised and it has different application dates for public or private companies,
the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or
revised standard. This may make comparison of the Company&rsquo;s consolidated financial statements with another public company
which is neither an emerging growth company nor an emerging growth company, which has opted out of using the extended transition
period, difficult or impossible because of the potential differences in accounting standards used.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Use of Estimates</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The preparation of financial statements in
conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates and
assumptions reflected in the financial statements relate to and include, but are not limited to, the valuation of equity awards;
fair value estimates of embedded derivatives; purchase price allocations, including fair value estimates of intangible assets and
long-term contingent liabilities; the estimated useful lives of fixed assets and intangible assets, including internally developed
software costs; and accrued expenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Acquisitions</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Company accounts for business combinations
under the acquisition method of accounting, in accordance with Accounting Standards Codification (&ldquo;ASC&rdquo;) Topic 805,
<I>Business Combinations</I>, which requires assets acquired and liabilities assumed to be recognized at their fair values on the
acquisition date. Any excess of the fair value of purchase consideration over the fair value of the assets acquired less liabilities
assumed is recorded as goodwill. The fair values of the assets acquired and liabilities assumed are determined based upon the valuation
of the acquired business and involves management making significant estimates and assumptions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Cash</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Cash includes highly liquid checking and
instant access internet banking accounts which are owned by the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Cash Reserved for Users</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Company maintains separate bank accounts
to segregate users&rsquo; funds from operational funds. In certain regulated jurisdictions, user funds are titled to DK Player
Reserve, LLC, a wholly-owned subsidiary of the Company, which was organized in the State of Delaware, for the purpose of protect
users&rsquo; funds in the event of creditor claims.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DRAFTKINGS INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR STYLE="clear: both">
(Amounts in thousands)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Receivables Reserved for Users</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">User deposit receivables are stated at the
amount the Company expects to collect from a payment processor. These arise due to the timing differences between a user&rsquo;s
deposit and the receipt of the payment into the Company&rsquo;s bank accounts. Receivables also arise as the result of the securitization
policies of certain payment processors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Property and Equipment, net</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Property and equipment are carried at cost,
net of accumulated depreciation. Depreciation is computed utilizing the straight-line method over the estimated useful life of
the asset. Leasehold improvements depreciation is computed over the shorter of the lease term or estimated useful life of the asset.
Additions and improvements are capitalized, while repairs and maintenance are expensed as incurred. Useful lives of each asset
class are as follows:</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: 1%; padding-top: 8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="width: 48%; padding-top: 8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Computer equipment and software </FONT></TD>
    <TD STYLE="width: 1%; padding-top: 8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="width: 1%; padding-top: 8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="width: 48%; padding-top: 8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3&nbsp;years </FONT></TD>
    <TD STYLE="width: 1%; padding-top: 8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Furniture and fixtures </FONT></TD>
    <TD STYLE="padding-top: 8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">7&nbsp;years </FONT></TD>
    <TD STYLE="padding-top: 8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Leasehold improvements </FONT></TD>
    <TD STYLE="padding-top: 8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Lesser of the lease terms or the estimated useful lives of the improvements, generally 1&thinsp;&ndash;&thinsp;10&nbsp;years</FONT></TD>
    <TD STYLE="padding-top: 8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></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"><B><I>Intangible Assets, Net </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Intangible assets acquired in a business
combination are recognized at fair value using generally accepted valuation methods deemed appropriate for the type of intangible
asset acquired and reported net of accumulated amortization, separately from goodwill. Intangible assets with finite lives are
amortized on a straight-line basis over their estimated useful lives.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>User Relationships</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">User relationships are finite-lived intangible
assets which are amortized over their estimated useful lives, ranging from six&nbsp;months to eleven&nbsp;years. User relationships
are typically generated through business combinations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Internally Developed Software</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Software that is developed for internal use
is accounted for pursuant to ASC Topic 350-40, Intangibles, Goodwill and Other&thinsp;&mdash;&thinsp;Internal-Use Software. Qualifying
costs incurred to develop internal-use software are capitalized when (i)&nbsp;the preliminary project stage is completed, (ii)&nbsp;management
has authorized further funding for the completion of the project and (iii)&nbsp;it is probable that the project will be completed
and performed as intended. These capitalized costs include salaries for employees who devote time directly to developing internal-use
software and external direct costs of services consumed in developing the software. Capitalization of these costs ceases once the
project is substantially complete and the software is ready for its intended purpose. Internally developed software is amortized
using the straight-line method over an estimated useful life of three&nbsp;years and the related amortization expense is classified
as cost of revenue in the consolidated statements of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>State Licenses</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Company incurs costs in connection with
operating in certain regulated jurisdictions, including applying for licenses, compliance costs and the purchase of business licenses.
The cost of purchasing business licenses and subsequent renewals of business licenses are capitalized and amortized over the estimated
useful life of the asset or straight-line method, whichever is greater.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DRAFTKINGS INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR STYLE="clear: both">
(Amounts in thousands)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B><I>Goodwill</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Company performs its annual impairment
testing at December&nbsp;31. In testing goodwill for impairment, the Company first considers qualitative factors to determine whether
it is more likely than not that the fair value of a reporting unit containing goodwill is less than its carrying value. Such qualitative
factors include macroeconomic conditions, industry and market considerations, cost factors, entity-specific financial performance
and other events, such as changes in management, strategy and primary user base. If the Company determines that it is more likely
than not that the fair value of a reporting unit is less than its carrying value, the Company performs a two-step goodwill impairment
test. The two-step test starts with comparing the fair value of the reporting unit to the carrying amount of a reporting unit,
including goodwill. If the fair value exceeds the carrying amount, no impairment loss is recognized. However, if the carrying amount
of the reporting unit exceeds its fair value, the second step is performed to determine if goodwill is impaired. If the Company
determines that goodwill is impaired, an impairment charge is recorded in the consolidated statements of operations. Based on the
assessment performed during the&nbsp;years ended December&nbsp;31, 2019 and 2018, the Company determined it was more likely than
not that goodwill is not impaired.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Impairment of Long-Lived Assets</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Long-lived assets, except for goodwill, consist
of property and equipment and finite-lived acquired intangible assets, such as internal-use software, state licenses and user relationships.
Long-lived assets, except for goodwill, are tested for recoverability whenever events or changes in business circumstances indicate
that the carrying amount of the assets may not be fully recoverable. An impairment loss would be recognized when the estimated
undiscounted future cash flows expected to result from the asset group are less than its carrying amount. The impairment loss would
be based on the excess of the carrying value of the impaired asset group over its fair value, determined based on discounted future
cash flows. There were immaterial impairments related to previously capitalized software that were not placed in service during
the&nbsp;years ended December&nbsp;31, 2019 and 2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Equity Method Investment</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Company owns 46% of the common stock
of DKFS, LLC. The Company uses the equity method to account for investments in which the Company has the ability to exercise significant
influence over operating and financial policies of the investee, but do not control. The Company&rsquo;s carrying value in the
equity method investee is reflected in the caption &ldquo;Equity method investment&rdquo; on the consolidated balance sheets and
changes in value are recorded in other income (expenses), net on the consolidated statements of operations. The Company&rsquo;s
judgment regarding the level of influence over the equity method investee includes considering key factors, such as ownership interest,
representation on the board of directors, and participation in policy-making decisions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Under the equity method, the Company&rsquo;s
investment is initially measured at cost and subsequently increased or decreased to recognize the Company&rsquo;s share of income
and losses of the investee, dividends received, capital contributions and distributions and impairment losses. The Company performs
a qualitative assessment quarterly and recognizes an impairment if there are sufficient indicators that the fair value of the investment
is less than carrying value.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Deposits</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Company has security deposits with the
lessors of the Company&rsquo;s operating facilities totaling $2,434 and $1,504 as of December&nbsp;31, 2019 and 2018, respectively.
These balances include approximately $403 held in a certificate of deposit collateralizing the amounts outstanding on the credit
cards.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Liabilities to Users</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Company records liabilities for amounts
due to users which consist of user deposits, plus contest winnings and prizes awarded, less user withdrawals, contest entry fees,
and contest margin earned by the Company. The Company maintains separate bank accounts for the amounts due to users. Total user
liabilities are fully reserved by the cash reserved for users and receivables reserved for users.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DRAFTKINGS INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR STYLE="clear: both">
(Amounts in thousands)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Concentrations of Credit Risk</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Financial instruments that potentially subject
the Company to concentrations of credit risk consist primarily of operating cash and cash reserved for users. The Company maintains
cash and cash reserves for users primarily across five financial institutions; however, the vast majority is held with one financial
institution within separate bank accounts, which management believes to be of a high credit quality, in amounts that exceed federally
insured limits. The Company does not believe that it is subject to unusual credit risk beyond the normal credit risk associated
with commercial banking relationships.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Leases</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Company accounts for leases under the
provisions of ASC Topic 840, <I>Leases</I>, which requires that leases be evaluated and classified as operating or capital leases
for financial reporting purposes. The terms used for the evaluation include renewal option periods in instances in which the exercise
of the renewal option can be reasonably assured and failure to exercise such option would result in an economic penalty. Leases
are classified as capital leases whenever the terms of the lease transfer substantially all of the risks and rewards of ownership
to the lessee. All other leases are recorded as operating leases. As of December&nbsp;31, 2019 and 2018, all of the Company&rsquo;s
leases were operating leases.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Company recognizes rent expense on operating
leases on a straight-line basis over the non-cancellable lease term. Operating leases with landlord-funded leasehold improvements
are considered tenant allowances and are amortized as a reduction of rent expense over the non-cancellable lease term. Deferred
rent liability, which is calculated as the difference between contractual lease payments and the rent expense, is recorded in other
long-term liabilities in the consolidated balance sheets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Revenue Recognition</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">In 2014, the Financial Accounting Standards
Board (&ldquo;FASB&rdquo;) issued Accounting Standards Update (&ldquo;ASU&rdquo;) 2014-09, <I>Revenue from Contracts with Customers
(Topic 606)</I> (&ldquo;New Revenue Standard&rdquo;). The New Revenue Standard requires companies to recognize revenue in a way
that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the
entity expects to be entitled in exchange for those goods or services. In addition, the New Revenue Standard requires disclosures
of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted
the New Revenue Standard effective January&nbsp;1, 2019 using the modified retrospective method and the cumulative effect was immaterial
to the consolidated financial statements. See Note 15 for a discussion of the effect of the New Revenue Standard on the consolidate<FONT STYLE="font-size: 10pt">d
financial statements.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in">The Company determines revenue recognition through
the following steps:</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%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">Identifying the contract, or contracts, with the customer;</FONT></TD></TR>
</TABLE>
<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%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">Identifying the performance obligations in the contract;</FONT></TD></TR>
</TABLE>
<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%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">Determining the transaction price;</FONT></TD></TR>
</TABLE>
<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%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">Allocating the transaction price to performance obligations in the contract; and</FONT></TD></TR>
</TABLE>
<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%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Recognizing revenue when, or as, the Company satisfies performance obligations by transferring the promised good or services.</FONT></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: left; text-indent: 0.25in">The Company is currently
engaged in the business of digital sports entertainment and gaming and provides users with daily fantasy sports content and online
gaming opportunities. The following is a description of the Company&rsquo;s revenue streams:&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&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; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DRAFTKINGS INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR STYLE="clear: both">
(Amounts in thousands)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Daily Fantasy Sports (&ldquo;DFS&rdquo;)
is a peer-to-peer platform in which users compete against one another for prizes. Users pay an entry fee (ranging from $0 to $10,000
per user) to join an event and compete against each other in short-duration contests for cash prizes, where the prize money is
distributed to the highest performing competitors in the contest as defined by the prize table. DFS revenue is generated from contest
entry fees from users, net of amounts paid out as prizes and customer incentives. Sportsbook or Sports betting involves a user
placing a bet by wagering money on an event at some fixed odds (&ldquo;proposition&rdquo;) determined by the Company. In the event
the user wins, the Company pays out the bet. Sportsbook revenue is generated by setting odds such that there is a built-in theoretical
margin in each proposition offered to the users. iGaming, or online casino, offerings typically include the full suite of games
available in land-based casinos, such as blackjack, roulette and slot machines. For these offerings, the Company functions similarly
to land-based casinos, generating revenue through hold, or gross winnings, as users play against the house.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">DFS, Sportsbook and iGaming as described
above create a single performance obligation for the Company to operate the contest and award payouts to users based on the contest
results. Revenue is recognized at the end of the respective event. Additionally, frequent player rewards given to customers for
participation in gaming contests create material rights and represent separate performance obligations. Player awards create a
liability when issued to players and are recognized as revenue when redeemed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Other revenue represents revenue generated
from media services, advertising and sponsored content provided by the Company and other miscellaneous revenue generating Sportsbook
operations. Advertising and sponsored games represent a series of distinct services that are combined into a single performance
obligation. Revenue from all other sources is recognized as control is transferred which is generally when the services are rendered.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Transaction Price Considerations</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Variable Consideration: Variability in the
transaction price arises primarily due to market-based pricing and cash discounts. DraftKings offers loyalty programs, free plays,
deposit bonuses, discounts, rebates or other rewards and incentives to its customers in the form of marketing and promotion activities.
Revenue for DFS, Sportsbook and iGaming is collected prior to the contest and is fixed for the arrangement. Player awards are recognized
when awarded to the player. Media contracts typically do not contain variable payments or consideration payable to the customer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Allocation of transaction price to performance
obligations: Contracts with customers may include multiple performance obligations. For such arrangements, the transaction price
is allocated to performance obligations on a relative standalone selling price basis. Standalone selling prices are estimated based
on observable data of the Company&rsquo;s sales of such products and services to similar customers and in similar circumstances
on a standalone basis. For DFS, Sportsbook and iGaming, the Company will allocate a portion of the transaction price to frequent
player awards that create material rights. In addition, the Company will allocate a portion of the transaction price from qualifier
events to the related live final event within the DFS revenue stream.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Certain costs to obtain or fulfill contracts</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Under the New Revenue Standard, certain
costs to obtain or fulfill a contract with a customer must be capitalized, to the extent recoverable from the associated contract
margin, and subsequently amortized as the products or services are delivered to the customer. These costs are capitalized as contract
acquisition costs and are amortized over the period of benefit to the customer. For the Company, the period of benefit has been
determined to be less than or equal to 1 year. As such, the Company applied the practical expedient and contract acquisition costs
are expensed immediately. Customer contract costs which do not qualify for capitalization as contract fulfillment costs are expensed
as incurred.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DRAFTKINGS INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B>NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS<BR STYLE="clear: both">
(Amounts in thousands)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><I>Contract balances</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Contract assets and liabilities represent
the differences in the timing of revenue recognition from the receipt of cash from the Company&rsquo;s customers and billings.
Contract assets reflect revenue recognized and performance obligations satisfied in advance of customer billing. The Company currently
does not have contractual terms that require it to satisfy or partially satisfy its performance obligations in advance of customer
billings.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Deferred revenue relates to payments received
in advance of the satisfaction of performance under the contract. The Company maintains various customer loyalty programs, which
allows users to earn frequent player rewards for playing in DraftKings contests. Player awards represents a material right to the
customer, and awards may be redeemed for future services. Player awards earned by users, but not yet redeemed, are included within
liabilities to users on the consolidated balance sheets. When a user redeems awards, the Company recognizes income in revenue on
the consolidated statements of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Certain player awards do not expire, and
the Company recognizes breakage (amounts not expected to be redeemed) to the extent there is no requirement for remitting balances
to governmental agencies under unclaimed property laws. Revenue from breakage is recognized in proportion to customer redemptions.
Revenue recognized related to breakage was $1,179, $421 and $1,800 in 2019, 2018 and 2017, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Refer to Note 15 for further information,
including changes in deferred revenue during the period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Cost of Revenue</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Cost of revenue consists primarily of variable
costs. These include mainly (i)&nbsp;payment processing fees and chargebacks, (ii)&nbsp;product taxes, (iii)&nbsp;platform costs
and (iv)&nbsp;revenue share / market access arrangements. The Company incurs payment processing costs on user deposits and occasionally
chargebacks as a result of user complaints (chargebacks have not been material to date).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Sales and Marketing</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Sales and marketing expenses consist primarily
of expenses associated with advertising, strategic league and team partnerships and costs related to promotional contests (free
contests funded entirely by the Company), including related personnel costs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Product and Technology</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Product and technology expenses consist of
platform and software development costs prior to product launch, comprised mainly of product development and support personnel
costs, including stock compensation expense, and related professional services, as well as depreciation of related hardware and
software.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>General and Administrative</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">General and administrative expenses consist
primarily of administrative personnel costs, including executive salaries, stock compensation expense and benefits, professional
services (including legal, regulatory, audit, licensing-related, deal-related consulting and lobbying services), rent and facilities
maintenance, legal settlements and contingencies, insurance and depreciation of leasehold improvements and furniture and fixtures.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Advertising and Promotion Costs</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Advertising costs and promotion costs are
expensed as incurred and are included in sales and marketing expense in the consolidated statements of operations. During the&nbsp;years
ended December&nbsp;31, 2019, 2018 and 2017, advertising and promotion costs were $152,203, $124,541 and $137,121, respectively.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DRAFTKINGS INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR STYLE="clear: both">
(Amounts in thousands)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Stock-based Compensation</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Company measures compensation expense
for stock options and other stock awards in accordance with ASC Topic 718, <I>Compensation&thinsp;&mdash;&thinsp;Stock Compensation</I>.
Stock-based compensation is measured at fair value on the grant date and recognized as compensation expense over the requisite
service period. Generally, the Company issues stock options to employees with service-based, market based, or performance-based
vesting conditions. For awards with only service- based vesting conditions, the Company records compensation cost for these awards
using the straight-line method. For awards with performance-based vesting conditions, the Company recognizes compensation cost
on a tranche- by tranche basis (the accelerated attribution method).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Under the provisions of ASC Topic 505-50,
<I>Equity-Based Payments to Non-Employees</I>, the Company measures stock-based awards granted to non-employees based on the fair
value of the award on the date on which the related service is completed. Compensation expense is recognized over the period during
which services are rendered by non-employees until completed. At the end of each financial reporting period prior to completion
of the service, the fair value of these awards is remeasured using the then-current fair value of the Company&rsquo;s common stock
and updated assumption inputs in the Black-Scholes option-pricing model. The Company classifies stock-based compensation expense
in its consolidated statements of operations in the same manner in which the award recipient&rsquo;s payroll costs are classified
or in which the award recipient&rsquo;s service payments are classified.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Income Taxes</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Company accounts for income taxes using
the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax
consequences of events that have been recognized in the consolidated financial statements or in the Company&rsquo;s tax returns.
Deferred tax assets and liabilities are determined on the basis of the differences between the financial statements and tax bases
of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Changes
in deferred tax assets and liabilities are recorded in the provision for income taxes. The Company assesses the likelihood that
its deferred tax assets will be recovered from future taxable income and, to the extent it believes, based upon the weight of available
evidence, that it is more likely than not that all or a portion of the deferred tax assets will not be realized, a valuation allowance
is established through a charge to income tax provision. Potential for recovery of deferred tax assets is evaluated by considering
taxable income in carryback&nbsp;years, existing taxable temporary differences, prudent and feasible tax planning strategies and
estimated future taxable profits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Company accounts for uncertainty in income
taxes recognized in the consolidated financial statements by applying a two-step process to determine the amount of tax benefit
to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external
examination by the taxing authorities. If the tax position is deemed more-likely-than-not to be sustained, the tax position is
then assessed to determine the amount of benefit to recognize in the consolidated financial statements. The amount of the benefit
that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement.
The provision for income taxes includes the effects of any resulting tax reserves, or unrecognized tax benefits, that are considered
appropriate, as well as the related net interest and penalties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Fair Value Measurements</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Certain assets and liabilities are carried
at fair value under U.S. GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer
a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction
between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of
observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be
classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered
observable and the last is considered unobservable:&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DRAFTKINGS INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR STYLE="clear: both">
(Amounts in thousands)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level&nbsp;1&thinsp;&mdash;&thinsp;Quoted prices in active markets for identical assets or liabilities.</FONT></TD></TR>
</TABLE>
<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%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level&nbsp;2&thinsp;&mdash;&thinsp;Observable inputs (other than Level&nbsp;1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data.</FONT></TD></TR>
</TABLE>
<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%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level&nbsp;3&thinsp;&mdash;&thinsp;Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques.</FONT></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"><B><I>Earnings (loss) per share</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Basic earnings (loss) per share (&ldquo;EPS&rdquo;)
is calculated using the two-class method. Under the two-class method, basic earnings (loss) is computed by dividing net income
(loss) available to common stockholders by the weighted-average number of common shares outstanding during the period after deducting
contractual amounts of accretion on Series&nbsp;E-1 and Series&nbsp;F preferred shares and excluding the effects of any potentially
dilutive securities. Diluted loss per share is computed similar to basic loss per share, except that the denominator is increased
to include the number of additional common shares that would have been outstanding if potential common shares had been issued if
such additional common shares were dilutive. Since the Company had net losses for all the periods presented, basic and diluted
loss per share are the same, and additional potential common shares have been excluded, as their effect would be anti-dilutive.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B><I>Recently Adopted Accounting Pronouncements</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">As noted in the Company&rsquo;s Revenue Recognition
accounting policy above, the Company adopted Accounting Standards Updates (&ldquo;ASU&rdquo;) No. 2014-09, <I>Revenue from Contracts
with Customers (Topic 606)</I> (&ldquo;ASU 2014-09&rdquo;) effective January&nbsp;1, 2019. The guidance in ASU 2014-09 and subsequently
issued amendments outlines a comprehensive model for all entities to use in accounting for revenue arising from contracts with
customers as well as required disclosures.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">DraftKings adopted Topic 606, applying the
modified retrospective method to all contracts that were not completed as of January&nbsp;1, 2019. For contracts that were modified
before the date of adoption, the Company elected to reflect the aggregate effect of all modifications when (i)&nbsp;identifying
the satisfied and unsatisfied performance obligations, (ii)&nbsp;determining the transaction price, and (iii)&nbsp;allocating the
transaction price to the satisfied and unsatisfied performance obligations. The comparative information has not been restated and
continues to be reported under the accounting standards in effect for these periods. The Company expects the timing of revenue
recognition for its significant revenue streams to remain substantially unchanged, with no material effect on revenue. The adoption
of this ASU did not have a material impact on the Company&rsquo;s consolidated financial statements. See Note 15&thinsp;&mdash;&thinsp;Revenue
Recognition, for further details.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">In March&nbsp;2016, the FASB issued ASU
2016-09, <I>Compensation&thinsp;&mdash;&thinsp;Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting
</I>(&ldquo;ASU 2016-09&rdquo;). The ASU is intended to simplify various aspects of accounting for share-based compensation arrangements,
including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement
of cash flows. For example, the new guidance requires all excess tax benefits and tax deficiencies related to share-based payments
to be recognized in income tax provision, and for those excess tax benefits to be recognized regardless of whether it reduces
current taxes payable. The ASU also allows an entity-wide accounting policy election to either estimate the number of awards that
are expected to vest or account for forfeitures as they occur. ASU 2016-09 is effective for annual periods beginning after December&nbsp;15,
2017. The Company adopted this ASU as of January&nbsp;1, 2018 and elected to estimate the number of awards that are expected to
vest. The Company included the impact of ASU 2016-09 in its consolidated financial statements.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DRAFTKINGS INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR STYLE="clear: both">
(Amounts in thousands)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">In November&nbsp;2015, the FASB issued ASU
No. 2015-17, <I>Income Taxes (Topic 740)</I> (&ldquo;ASU 2015-17&rdquo;) to simplify the presentation of deferred taxes in a classified
statement of financial position by requiring classification of all deferred tax positions as noncurrent, including valuation allowances,
by jurisdiction. ASU 2015-17 is effective for all other entities for fiscal&nbsp;years beginning after December&nbsp;15, 2017 and
interim periods within annual periods beginning after December&nbsp;15, 2018. The Company adopted this ASU as of January&nbsp;1,
2018 and all deferred tax positions are classified as noncurrent in the Company&rsquo;s consolidated balance sheets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Recent Accounting Pronouncements Not Yet Adopted</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">In December&nbsp;2019, the FASB issued ASU
2019-12, <I>Simplifying the Accounting for Income Taxes</I>. ASU&nbsp;2019-12 eliminates certain exceptions related to the approach
for intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred
tax liabilities for outside basis differences. It also clarifies and simplifies other aspects of the accounting for income taxes.
The Update is effective for fiscal&nbsp;years beginning after December&nbsp;15, 2021, and interim periods within fiscal&nbsp;years
beginning after December&nbsp;15, 2022. Early adoption is permitted. The Company is currently in process of evaluating the impact
of this new standard.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">In August&nbsp;2018, the FASB issued ASU
2018-15, <I>Intangibles&thinsp;&mdash;&thinsp;Goodwill and Other&thinsp;&mdash;&thinsp;Internal-Use Software (Subtopic 350-40)</I>.
This Update addresses users&rsquo; accounting for implementation costs incurred in a cloud computing arrangement that is a service
contract and also adds certain disclosure requirements related to implementation costs incurred for internal-use software and cloud
computing arrangements. The amendment aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement
that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use
software (and hosting arrangements that include an internal-use software license). This Update is effective for fiscal&nbsp;years
beginning after December&nbsp;15, 2020, and interim periods in annual periods beginning after December&nbsp;15, 2021. The amendments
in this Update can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption.
The Company is currently in the process of evaluating the impact of this new standard.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">In June&nbsp;2018, the FASB issued ASU No.
2018-07, <I>Compensation&thinsp;&mdash;&thinsp;Stock Compensation (Topic 718)</I>, to simplify the accounting for share-based payments
to non-employees by aligning it with the accounting for share-based payments to employees, with certain exceptions. Under the new
standard, equity-classified non-employee awards will be initially measured on the grant date and re-measured only upon modification,
rather than at each reporting period. Measurement will be based on an estimate of the fair value of the equity instruments to be
issued. The standard is effective in fiscal&nbsp;years beginning after December&nbsp;15, 2019 and interim periods within fiscal&nbsp;years
beginning after December&nbsp;15, 2020. Early adoption is not permitted before an entity&rsquo;s adoption of ASC 606. The Company
is currently in the process of evaluating the impact of this new standard.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">In February&nbsp;2016, the FASB issued ASU
No. 2016-02, <I>Leases (Topic 842)</I> (&ldquo;ASU 2016-02&rdquo;). ASU&nbsp;2016-02 increases transparency and comparability
among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about
leasing arrangements. ASU&nbsp;2016-02 is effective for fiscal&nbsp;years beginning after December&nbsp;15, 2019, and interim
periods beginning after December&nbsp;15, 2020. In November&nbsp;2019, the FASB issued ASU 2019-10, <I>Financial Instruments &mdash;
Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842)</I>, to delay the adoption date for ASU
2016-02. ASU 2016-02 is now effective for fiscal&nbsp;years beginning after December&nbsp;15, 2020, and interim periods within
fiscal&nbsp;years beginning after December&nbsp;15, 2021. Early adoption is still permitted. The Company is currently in the process
of evaluating the impact of this new standard.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DRAFTKINGS INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR STYLE="clear: both">
(Amounts in thousands)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>3.</B></TD><TD STYLE="text-align: justify"><B>Property and Equipment</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Property and equipment, net consists of the
following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 90%; 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">December&nbsp;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">2019</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">2018</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: 74%; text-align: left">Computer equipment and software</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 10%; text-align: right">9,685</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 10%; text-align: right">5,537</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Furniture and fixtures</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,891</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,018</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">Leasehold improvements</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">17,373</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">7,924</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><B>Property and Equipment</B></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right"><B>32,949</B></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right"><B>17,479</B></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">Accumulated depreciation</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">(7,004</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">(3,377</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt"><B>Property and Equipment, net</B></TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><B>$</B></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><B>25,945</B></TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><B>$</B></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><B>14,102</B></TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Depreciation expense on property and equipment
was $4,131, $1,185 and $1,934 during the&nbsp;years ended December&nbsp;31, 2019, 2018 and 2017, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">In 2019, the Company disposed of furniture
and fixtures that were no longer in use. The loss on disposal of fixed assets for the year ended December&nbsp;31, 2019, 2018 and
2017 totaled $730, $0, and $185, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>4.</B></TD><TD STYLE="text-align: justify"><B>Intangible Assets and Goodwill</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Company has the following intangible
assets, net at December&nbsp;31, 2019:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 90%; 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 STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Weighted-<BR> Average<BR> Amortization<BR> Period</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">Gross<BR> Carrying<BR> Amount</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">Accumulated<BR> Amortization</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">Net</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: 49%; text-align: left">User relationships</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: left">&mdash;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 10%; text-align: right">3,328</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 10%; text-align: right">(3,328</TD>
    <TD STYLE="width: 1%; text-align: left">)</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 10%; text-align: right">&mdash;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Internally developed software</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">2.35&#8199;years</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">43,753</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(21,188</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">22,565</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">State licenses</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">4.86&#8199;years</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">12,003</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">(629</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">11,374</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt"><B>Intangible Assets, net</B></TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><B>$</B></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><B>59,084</B></TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><B>$</B></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><B>(25,145</B></TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left"><B>)</B></TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><B>$</B></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><B>33,939</B></TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&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-indent: 20pt">The Company has the following intangible
assets, net at December&nbsp;31, 2018:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 90%; 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 STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Weighted-<BR> Average<BR> Amortization<BR> Period</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">Gross<BR> Carrying<BR> Amount</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">Accumulated<BR> Amortization</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">Net</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: 49%; text-align: left">User relationships</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: left">0.5&nbsp;years</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 10%; text-align: right">3,328</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 10%; text-align: right">(3,013</TD>
    <TD STYLE="width: 1%; text-align: left">)</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 10%; text-align: right">315</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Internally developed software</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">2.45&nbsp;years</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">28,937</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(12,572</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">16,365</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">State licenses</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">0.75&nbsp;years</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">251</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">(55</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">196</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt"><B>Intangible Assets, net</B></TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><B>$</B></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><B>32,516</B></TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><B>$</B></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><B>(15,640</B></TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left"><B>)</B></TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><B>$</B></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><B>16,876</B></TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Company recorded amortization expense
of&thinsp; $9,505, $6,314 and $4,367 for the&nbsp;years ended December&nbsp;31, 2019, 2018 and 2017, respectively.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<FONT STYLE="font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->37<!-- Field: /Sequence --></FONT></P></DIV>
    <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; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DRAFTKINGS INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR STYLE="clear: both">
(Amounts in thousands)<BR STYLE="clear: both">
 &#8199;</B></P>

<P STYLE="text-indent: 20pt; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">At December&nbsp;31, 2019, estimated future amortization of
intangible assets is as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 93%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal">Year
    ending December&nbsp;31,</FONT></TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt"><FONT STYLE="font-style: normal">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt"><FONT STYLE="font-style: normal">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">2020</FONT></TD><TD STYLE="width: 1%; font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">$</FONT></TD><TD STYLE="width: 10%; font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">13,048</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">2021</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">10,250</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">2022</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">6,241</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">2023</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">2,200</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">2024
    and thereafter </FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">2,200</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal">Total</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-style: normal">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal">33,939</FONT></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"><B><I>Goodwill</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The changes in the carrying amount of goodwill
for the&nbsp;years ended December&nbsp;31, 2019 and 2018 are as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 93%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 88%; font: normal 10pt Times New Roman, Times, Serif"><B>Balance as of December&nbsp;31, 2017</B></TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></TD>
    <TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left"><B>$</B></TD><TD STYLE="width: 10%; font: normal 10pt Times New Roman, Times, Serif; text-align: right"><B>4,399</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Goodwill acquired</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">339</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><B>Balance as of December&nbsp;31, 2018</B></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left"><B>$</B></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><B>4,738</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Goodwill acquired</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><B>Balance as of December&nbsp;31, 2019</B></TD><TD STYLE="font-size: 10pt; font-weight: normal; font-style: normal; padding-bottom: 2.5pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: normal; font-style: normal; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: normal; font-style: normal; text-align: right"><B>4,738</B></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Company recorded an increase of&thinsp;
$339 to goodwill in connection with an immaterial acquisition during the year ended December&nbsp;31, 2018. No impairment of goodwill
was recorded in the&nbsp;years ended December&nbsp;31, 2019, 2018 and 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>5.</B></TD><TD STYLE="text-align: justify"><B>Accounts Payable and Accrued Expenses</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="text-indent: 20pt; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8203;Accounts payable and accrued expenses consist of the
following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 93%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; font-weight: normal">&#8203;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-style: normal">December&nbsp;31,</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; font-weight: normal">&#8203;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-style: normal">2019</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-style: normal">2018</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; width: 75%; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">Accounts
    payable</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">$</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; width: 10%; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">16,618</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">$</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; width: 10%; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">11,626</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">Accrued
    payroll and related expenses</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">17,770</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">9,857</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">Accrued
    litigation, lobbying and compliance</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">6,153</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">5,566</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">Accrued
    loyalty points</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">4,131</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">7,272</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">Accrued
    marketing fees</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">11,855</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">3,237</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">Accrued
    operating taxes</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">5,745</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">2,741</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">Accrued
    partnership fees</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">7,868</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">4,340</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">Accrued
    professional fees</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">4,191</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">1,978</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">Accrued
    software and licenses</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">1,589</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">2,263</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-style: normal; font-weight: normal">Accrued
    other</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">9,375</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">7,269</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-style: normal"><B>Total</B></FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>$</B></FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal"><B>85,295</B></FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"><FONT STYLE="font-style: normal"><B>$</B></FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><FONT STYLE="font-style: normal"><B>56,149</B></FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></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; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DRAFTKINGS INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR STYLE="clear: both">
(Amounts in thousands)<BR STYLE="clear: both">
 &#8199;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>6.</B></TD><TD STYLE="text-align: justify"><B>Current and Long-term Liabilities</B></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"><B><I>Term Note </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">In October&nbsp;2016, the Company entered
into an amended and restated loan and security agreement with Pacific Western Bank, which was most recently amended in August&nbsp;2019
(as amended, the &ldquo;Credit Agreement&rdquo;). The Credit Agreement provides a revolving line of credit of up to $50,000. The
Credit Agreement has a maturity date of September&nbsp;15, 2020. As of December&nbsp;31, 2019 and 2018, the Credit Agreement provided
a revolving line of credit of up to $50,000 and $40,000, respectively. Principal amounts outstanding under the Credit Agreement
totaled $6,750 and $3,750 as of December&nbsp;31, 2019 and 2018, respectively. Net facility available from the Credit Agreement
as of December 31, 2019 and 2018 totaled $38,769 and $31,769, respectively, which exclude the letters of credit outlined in Note
13.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Borrowings under the Credit Agreement bear
interest at a variable annual rate equal to the greater of (i)&nbsp;1.00% above the prime rate then in effect and (ii)&nbsp;6.50%,
and the Credit Agreement requires monthly, interest-only payments. In addition, the Company is required to pay quarterly in arrears
a fee equal to 0.25% per annum of the unused portion of the revolving line of credit. Upon the earlier of&thinsp; (i)&nbsp;an Acquisition,
as defined in the Credit Agreement, or (ii)&nbsp;the closing of an initial public offering, in either case, the Company will also
be required to pay a success fee to Pacific Western Bank in the amount of&thinsp; $600 or $650 if the outstanding principal amount
exceeds $45,000 at any time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">As of December&nbsp;31, 2019, the Company
did not meet all financial and non-financial covenants per the Credit Agreement; however, the Company has received waivers from
Pacific Western Bank for all covenants not met.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Borrowings under the Credit Agreement are
secured by a first lien on all issued and outstanding shares of capital stock of the Company&rsquo;s subsidiaries (except for any
foreign subsidiaries, for which 65% of such capital stock is pledged) and on all assets, including intellectual property.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Pursuant to the Credit Agreement, the Company
is required to maintain substantially all depository, operating and investment accounts, excluding any proceeds from the Company&rsquo;s
gaming business, with Pacific Western Bank. The Company is also subject to certain affirmative and negative covenants until maturity.
These covenants include limitations on the Company&rsquo;s ability to incur additional indebtedness and to pay dividends. Obligations
under the Credit Agreement are subject to acceleration upon the occurrence of specified events of default, including failure to
comply with covenants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">In connection with entering into the Credit
Agreement, DraftKings issued a warrant to Pacific Western Bank to purchase 173,913 shares of its common stock at an exercise price
of&thinsp; $0.23 per share. The warrant is immediately exercisable and expires in October&nbsp;2020.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Amounts outstanding, were recorded as current
liabilities in the consolidated balance sheets as of December&nbsp;31, 2019 and 2018. The interest rate in effect at December&nbsp;31,
2019 and 2018 was 6.5%. The Company recorded interest expense of&thinsp; $258, $256 and $284 as of December&nbsp;31, 2019, 2018
and 2017, respectively, which is included in interest income (expense), net on the consolidated statements of operations. The amount
allocated to the warrants in October&nbsp;2013 was recorded as a debt discount and was fully amortized as of December&nbsp;31,
2017. The amount was recognized as interest expense over the term of the Credit Agreement using the effective interest method.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DRAFTKINGS INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR STYLE="clear: both">
(Amounts in thousands)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Preferred Stock Investor in Series&nbsp;F Note </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">On September&nbsp;26, 2019, the Company
entered into share redemption agreements with certain funds managed by Preferred Stock Investor in Series&nbsp;F (the &ldquo;Preferred
Stock Investor in Series&nbsp;F Funds&rdquo;), pursuant to which the Company repurchased and redeemed shares of its preferred
stock held by the Preferred Stock Investor in Series&nbsp;F Funds (the &ldquo;Preferred Stock Investor in Series&nbsp;F Redemption&rdquo;).
A portion of the consideration paid by DraftKings in connection with the Preferred Stock Investor in Series&nbsp;F Redemption,
equaling approximately $11,000, was paid by the issuance of promissory notes to certain of the Preferred Stock Investor in Series&nbsp;F
Funds (the &ldquo;Preferred Stock Investor in Series&nbsp;F Notes&rdquo;). The Preferred Stock Investor in Series&nbsp;F Notes
have a maturity date of the earlier of September&nbsp;26, 2021 and the date on which DraftKings closes an equity financing with
gross proceeds to DraftKings of at least $100&nbsp;million. Until December&nbsp;31, 2019, unpaid interest will accrue on the Preferred
Stock Investor in Series&nbsp;F Notes at a rate of 2.33% per annum, computed on a basis of a 365-day year and payable annually
in arrears. Following December&nbsp;31, 2019, unpaid interest will accrue at a rate of 7.5% per annum, computed on a basis of
a 365-day year and payable annually in arrears. Upon any event of default, as defined in the Preferred Stock Investor in Series&nbsp;F
Notes, and at the option and upon the declaration of the holder thereof, the Preferred Stock Investor in Series&nbsp;F Notes will
accelerate, and all principal and unpaid accrued interest will become due and payable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Preferred Stock Investor in Series&nbsp;F
Notes are subordinated to the Credit Agreement and any indebtedness or debentures, notes or other such indebtedness issued in exchange
for the Credit Agreement, pursuant to a subordination agreement entered into by and among the relevant Preferred Stock Investor
in Series&nbsp;F Funds, the Company and Pacific Western Bank, dated as of September&nbsp;25, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Indirect Taxes </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Taxation of e-commerce is becoming more prevalent
and could negatively affect the Company&rsquo;s business and its users. The ultimate impact of indirect taxes on the Company&rsquo;s
business is uncertain, as is the period required to resolve this uncertainty. The Company&rsquo;s estimated contingent liability
for indirect taxes represents the Company&rsquo;s best estimate of tax liability in jurisdictions in which the Company believes
taxation is probable. The Company frequently reevaluates its tax positions for appropriateness.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Indirect taxation laws are complex and subject
to differences in application and interpretation. Tax authorities may interpret laws originally enacted for mature industries and
apply it to newer industries, such as the Company&rsquo;s, and that application may be inconsistent from jurisdiction to jurisdiction.
Tax authorities may impose indirect taxes on Internet-delivered activities based on statutes and regulations which, in some cases,
were established prior to the advent of the Internet and do not apply with certainty to the Company&rsquo;s business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Additionally, the Company&rsquo;s jurisdictional
activities may vary from period to period which could result in differences in nexus from period to period. Lastly, the Company&rsquo;s
estimated contingent liability for indirect taxes may be materially impacted by future indirect tax audit results, litigation and
settlements, should they occur.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">As of December&nbsp;31, 2019 and 2018, the
Company&rsquo;s estimated contingent liability for indirect taxes was $35,899, and $27,238, respectively. This is recorded within
other long-term liabilities on the consolidated balance sheets and general and administrative expenses on the consolidated statements
of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Deferred Rent </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">In conjunction with its newly leased business
facilities, the Company receives incentives from landlords for tenant owned leasehold improvements. These short-term and long-term
amounts are recorded as deferred rent reported in the accounts payable and accrued expenses and other long-term liabilities sections
of the consolidated balance sheet. These amounts are released ratably over the lease term, with an offset to current period lease
expense. As of December&nbsp;31, 2019, rent expense has been reduced by $377 due to the release of the deferred rent balance.
Short-term and long-term balances of deferred rent are $1,125 and $9,747, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt"></P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DRAFTKINGS INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR STYLE="clear: both">
(Amounts in thousands)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>7.</B></TD><TD STYLE="text-align: justify"><B>Convertible Promissory Notes</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Beginning in December&nbsp;2019, DraftKings
issued subordinated convertible promissory notes to certain investors (the &ldquo;Convertible Notes&rdquo;). The aggregate principal
amount outstanding under the Convertible Notes was approximately $69,123 (the &ldquo;Convertible Notes&rdquo;). Interest accrues
on the Convertible Notes at a rate of 10% per annum and is automatically capitalized and added to the outstanding principal amount
of each Convertible Note on each anniversary of the date of issuance of such Convertible Note. The Convertible Notes may only be
prepaid with the consent of the holders of a majority of the then-outstanding principal amount (the &ldquo;Majority Holders&rdquo;).
In connection with issuance of the Convertible Notes, the Company incurred fees in the amount of 1.5% of the gross proceeds, payable
to a related party as described in Note&nbsp;12. These fees are capitalized as debt issuance costs and are recorded in the convertible
promissory notes in the consolidated balance sheets. The amount owed to the related party is recorded in accounts payable and accrued
expenses in the consolidated balance sheets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Convertible Notes automatically convert
into equity upon (i)&nbsp;a business combination transaction that results in common shares of DraftKings, its successor or a new
parent company being listed on a national securities exchange (a &ldquo;Qualified Business Combination&rdquo;), (ii)&nbsp;the issuance
of equity securities of DraftKings that results in DraftKings receiving a minimum of&thinsp; $100,000 in proceeds (a &ldquo;Qualified
Financing&rdquo;) or (iii)&nbsp;an initial public offering of the equity securities of DraftKings pursuant to a registration statement
under the Securities Act of 1933, as amended (an &ldquo;IPO&rdquo;). In the case of a Qualified Business Combination, the outstanding
principal and interest on the Convertible Notes will convert into listed common shares of DraftKings, its successor or the new
parent entity, as applicable, at a price per share equal to (i)&nbsp;in the case of the closing of the Private Investment in Public
Entity (&ldquo;PIPE&rdquo;) Transaction, the price paid by the cash investors purchasing PIPE Shares in the PIPE Transaction and
(ii)&nbsp;in all other cases, the volume weighted average trading price of such shares for the five consecutive trading days ending
on the trading day immediately preceding the closing of the Qualified Business Combination. In the case of a Qualified Financing,
the outstanding principal and interest on the Convertible Notes will convert into the equity securities sold to the cash investors
in such Qualified Financing, at a price per share equal to the price paid by the cash investors in such Qualified Financing. In
the case of an IPO, the outstanding principal and interest on the Convertible Notes will convert into the equity securities sold
in such IPO, at a price per share equal to the initial public offering price.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">At the election of the Majority Holders,
the Convertible Notes are convertible into equity upon the issuance of equity securities of DraftKings that results in DraftKings
receiving less than $100,000 in proceeds (a &ldquo;Non- Qualified Financing&rdquo;). In the case of a Non-Qualified Financing,
the outstanding principal and interest on the Convertible Notes will convert into the equity securities sold to the cash investors
in such Non-Qualified Financing, at a price per share equal to the price paid by the cash investors in such Non-Qualified Financing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">In the event of a combination, consolidation
or merger, other than a Qualified Business Combination, or a transfer of more than 50% of the voting power of DraftKings&rsquo;
stock to stockholders that were not stockholders on the date of issuance of the Convertible Notes, the Company will be obligated
to repay the Convertible Notes, an amount equal to the outstanding principal and interest, plus a prepayment premium equal to 15%
of the original principal amount.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">In addition to the foregoing, in the event
that the Convertible Notes remain outstanding on December&nbsp;16, 2022 (the &ldquo;CN Maturity Date&rdquo;), the Convertible
Notes will convert as of the CN Maturity Date into shares of a newly created series of DraftKings&rsquo; preferred stock having
substantially the same rights, privileges and preferences as DraftKings&rsquo; existing Series&nbsp;F Preferred Stock at a conversion
price equal to $3.31 (as adjusted for any stock split, stock dividend, combination, recapitalization or similar transaction).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt"></P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DRAFTKINGS INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR STYLE="clear: both">
(Amounts in thousands)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Convertible Notes are subordinated to
the Credit Agreement and any indebtedness or debentures, notes or other such indebtedness issued in exchange for the Credit Agreement,
pursuant to a subordination agreement entered into by and among the holders of the Convertible Notes, DraftKings and Pacific Western
Bank.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Convertible Notes have a provision requiring
the repayment of the notes at a premium upon a change of control, which constitutes an embedded compound derivative that is being
accounted for separately. Each reporting period, the Company will record the derivative liability at fair value, with any changes
in fair value recorded in the consolidated statements of operations. The Company determined that the fair value of this embedded
compound derivative was $457 at December&nbsp;31, 2019. The derivative was recorded as a debt discount and will be amortized as
interest expense using the effective interest method. The Company recorded total interest expense of&thinsp; $276 for the year
ended December&nbsp;31, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>8.</B></TD><TD STYLE="text-align: justify"><B>Redeemable Convertible Preferred Stock</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Company had the following shares of preferred
stock authorized and outstanding at December&nbsp;31, 2019:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&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><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal"><B>Preferred<BR>
    Shares<BR>
    Authorized</B></FONT></TD>
    <TD><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal"><B>Preferred<BR>
    Shares Issued<BR>
    and<BR>
    Outstanding</B></FONT></TD>
    <TD><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal"><B>Carrying
    Value</B></FONT></TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 62%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">Series&nbsp;E-1
    redeemable convertible preferred stock</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">54,901</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">54,901</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">$</FONT></TD>
    <TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">119,752</FONT></TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">Series&nbsp;F
    redeemable convertible preferred stock</FONT></TD>
    <TD><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">78,445</FONT></TD>
    <TD><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">55,349</FONT></TD>
    <TD><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">138,619</FONT></TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Total</B></FONT></TD>
    <TD><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: black 2.25pt double"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>133,346</B></FONT></TD>
    <TD><B>&nbsp;</B></TD>
    <TD><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: black 2.25pt double"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>110,250</B></FONT></TD>
    <TD><B>&nbsp;</B></TD>
    <TD><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>$</B></FONT></TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>258,371</B></FONT></TD>
    </TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Company had the following shares of preferred
stock authorized and outstanding at December&nbsp;31, 2018:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal">&#8203;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-style: normal">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-style: normal">Preferred<BR>
    Shares<BR> Authorized</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-style: normal">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-style: normal">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-style: normal">Preferred<BR>
    Shares Issued<BR> and<BR> Outstanding</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-style: normal">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-style: normal">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-style: normal">Carrying
    Value</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; width: 62%; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">Series&nbsp;E-1
    redeemable convertible preferred stock</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; width: 10%; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">54,901</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; width: 10%; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">54,901</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD><TD STYLE="width: 1%; font-size: 10pt"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">$</FONT></TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">119,427</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-style: normal; font-weight: normal">Series&nbsp;F
    redeemable convertible preferred stock</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">78,445</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">57,068</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">141,850</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><B>Total</B></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><B>&nbsp;</B></TD><TD STYLE="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right"><B>133,346</B></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><B>&nbsp;</B></TD><TD STYLE="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right"><B>111,969</B></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><B>261,277</B></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Company had the following shares of preferred
stock authorized and outstanding at December&nbsp;31, 2017:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&#8203;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Preferred<BR> Shares<BR> Authorized</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Preferred<BR> Shares Issued<BR> and<BR> Outstanding</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Carrying Value</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 62%; font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><B>Series&nbsp;E-1
    redeemable convertible preferred stock</B></TD><TD STYLE="width: 1%; font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><B>&nbsp;</B></TD>
    <TD STYLE="width: 1%; border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><B>&nbsp;</B></TD><TD STYLE="width: 10%; border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right"><B>54,901</B></TD><TD STYLE="width: 1%; padding-bottom: 2.5pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><B>&nbsp;</B></TD><TD STYLE="width: 1%; font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><B>&nbsp;</B></TD>
    <TD STYLE="width: 1%; border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><B>&nbsp;</B></TD><TD STYLE="width: 10%; border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right"><B>54,901</B></TD><TD STYLE="width: 1%; padding-bottom: 2.5pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><B>&nbsp;</B></TD><TD STYLE="width: 1%; font-size: 10pt; padding-bottom: 2.5pt"><B>&nbsp;</B></TD>
    <TD STYLE="width: 1%; border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"><B>$</B></TD><TD STYLE="width: 10%; border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><B>119,009</B></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">In September&nbsp;2019, the Company repurchased
4,598 of Series&nbsp;F preferred stock through the issuance of&thinsp; $11,000 convertible notes and a cash payment of&thinsp;
$722 as described in Note 6. As of December&nbsp;31, 2019, the Company had 54,901 and 55,349 Series&nbsp;E-1 and Series&nbsp;F
convertible preferred stock with conversion rates of approximately 1.57 and 2.55 per share, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">As of December&nbsp;31, 2018, the Company
had 54,901 and 57,068 Series&nbsp;E-1 and Series&nbsp;F convertible preferred stock with conversion rates of approximately 1.57,
and 2.55 per share, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DRAFTKINGS INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR STYLE="clear: both">
(Amounts in thousands)<BR STYLE="clear: both">
 &#8199;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">As of December&nbsp;31, 2017, the Company
had 54,901 Series&nbsp;E-1 convertible preferred stock issued and outstanding with a conversion rate of approximately 1.12 per
share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Voting </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Each holder of each series of preferred stock
shall be entitled to vote on all matters and shall be entitled to the number of votes equal to the number of whole shares of common
stock into which such holder&rsquo;s shares of preferred stock could be converted, as defined below. Except as otherwise required
by law, or by the provisions of the Certificate of Incorporation, the holders of preferred stock shall vote together with the holders
of common stock as a single class.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Dividends </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The holders of Series&nbsp;E-1 and Series&nbsp;F
preferred stock are generally not entitled to any dividends. However, no dividends shall be declared or paid on shares of any other
classes or series of capital stock of the Company, unless the holders of preferred stock first receive a dividend, with the preferred
stock dividend calculated in such a manner that it would result in the highest possible preferred stock dividend. As of December&nbsp;31,
2019, no dividends have been declared for either Series&nbsp;E-1 or Series&nbsp;F.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Liquidation </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">In the event of any voluntary or involuntary
liquidation, dissolution or winding up of the Company, the holders of Series&nbsp;E-1 or Series&nbsp;F shall be entitled to be
paid out of the assets of the Company on a pari&nbsp;passu basis before any payments are made to the holders of common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Conversion </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Each share of preferred stock is convertible
at the option of the holder by dividing the original issue price by the applicable conversion price. The original issue prices
for Series&nbsp;E-1 and Series&nbsp;F were approximately $2.20 and $2.55, respectively. The conversion prices in effect as of December&nbsp;31,
2019 for Series&nbsp;E-1 and Series&nbsp;F preferred stock are approximately $1.57 and $2.55, respectively, which result in share
conversion factors of approximately 1.40 for Series&nbsp;E-1 and 1.00 for Series&nbsp;F. If all preferred stock converts to common
stock, the Company would issue 77,132 shares of common stock to the holders of Series&nbsp;E-1 and 55,349 shares of common stock
to the holders of Series&nbsp;F.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The applicable conversion prices are subject
to adjustment, as defined in the Certificate of Incorporation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Redemption </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">At any time on or after August&nbsp;17,
2023, with respect to the Series&nbsp;E-1, the Series&nbsp;E-1 majority and with respect to the Series&nbsp;F, the Series&nbsp;F
majority (each as defined in the Certificate of Incorporation) may request to redeem the applicable original issue price per share
plus all declared but unpaid dividends on each series of preferred stock, in three annual installments commencing not more than
sixty days after receipt by the Company of a written notice requesting redemption. Due to this contingent redemption feature that
is outside of the Company&rsquo;s control and, accordingly, pursuant to ASC 480-10-S99, the preferred shares are recorded at their
redemption value, outside of stockholder&rsquo;s equity (mezzanine equity). Subsequent to the date of the Business Combination
Agreement, the instruments will be assessed to determine whether it is probable of the instruments being redeemed as a result
of a contingency being resolved. When it is deemed probable, the fair value will be adjusted to the new estimate of the fair value
in that period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DRAFTKINGS INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR STYLE="clear: both">
(Amounts in thousands)<BR STYLE="clear: both">
 &#8199;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>9.</B></TD><TD STYLE="text-align: justify"><B>Common Stock</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Per the Company&rsquo;s Ninth Amended and
Restated Certificate of Incorporation, the Company is authorized to issue 735,000 shares of&thinsp; $0.001 par value common stock.
As of December&nbsp;31, 2019 and 2018, 389,610 and 384,009 shares, respectively, of&thinsp; $0.001 par value common stock were
issued and outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Each share of common stock entitles the holder
to one vote on all matters submitted to a vote of the Company&rsquo;s stockholders. Common stockholders are entitled to receive
dividends, if any, as may be declared by the board of directors, subject to the preferential dividend rights of the preferred stockholders.
No dividends have been declared through December&nbsp;31, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>10.</B></TD><TD STYLE="text-align: justify"><B>Stock-Based Compensation</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">In 2012, the Board of Directors adopted the
2012 Stock Option and Restricted Stock Incentive Plan (the &ldquo;2012 Plan&rdquo;), which provides for the granting of incentive
and nonqualified stock options, shares of restricted stock, and other equity interests or awards in the Company. As of December&nbsp;31,
2019 and 2018, the total number of shares available for issuance under the 2012 Plan were 5,614 and 12,313, respectively. Stock
options are generally granted with an exercise price equal to the fair value of the common stock at the grant date, a graded vesting
period of four&nbsp;years and a 10-year contractual term. Incentive stock options may only be granted to employees and the exercise
price shall not be less than the fair value of the stock on the grant date. If an employee owns more than 10% of the combined voting
stock of the Company, the exercise price may not be less than 110% of the fair market value of the stock on the grant date. The
Company only issued service-based vesting awards under the 2012 Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">In 2017, the Board approved the 2017 Equity
Incentive Plan (the &ldquo;2017 Plan&rdquo; and, together with the 2012 Plan, the &ldquo;Plans&rdquo;). No new awards have been
issued under the 2012 Plan following the approval of the 2017 Plan. The 2017 Plan provides for the granting of incentive and nonqualified
stock options, shares of restricted stock, and other equity interests or awards in the Company. As of December&nbsp;31, 2019, the
total number of shares available for issuance under the Plan was 75,671 shares. As of December&nbsp;31, 2019, a share reserve established
that the aggregate number of shares may not exceed 130,825 shares under the Plans. The exercise price of stock options issued under
the 2017 Plan will generally not be less than 100% of the fair market value of the Company&rsquo;s common stock on the date of
grant, as determined by the board of directors. The Company issued service-based and performance-based vesting awards under the
2017 Plan. The service-based awards generally vest over a four-year period with graded vesting and expire no later than ten&nbsp;years
from the date of grant. The Company issues two types of performance- based option awards pursuant to the 2017 Plan: Long Term Incentive
Plan (&ldquo;LTIP&rdquo;) and Performance-Based Stock Compensation Plan (&ldquo;PSP&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The LTIP is a performance-based stock compensation
plan that utilizes long-term financial metrics to incentivize key executives and align growth objectives between executives and
the Company. The LTIP has vesting targets based on any one of the following thresholds related to annual revenue, annual earnings
before interest, taxes, depreciation and amortization (&ldquo;EBITDA&rdquo;) or the fair value of the Company&rsquo;s common stock
in the event of an initial public offering, change in control or majority transaction, as defined per the LTIP.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The PSP is a short-term performance-based
stock compensation plan. It was designed to incentivize key members of management and align short-term growth objectives related
to the Company. PSP awards vest based on meeting both revenue and EBITDA targets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">As of December&nbsp;31, 2019 and 2018, the
Company has only issued stock options that are settled in the Company&rsquo;s common stock. No restricted stock or other forms
of equity-based awards have been issued.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DRAFTKINGS INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR STYLE="clear: both">
(Amounts in thousands)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The fair value of each option is estimated
on the grant date using the Black-Scholes option-pricing model and the assumptions noted in the table below. The fair value is
recognized over the requisite service period of the awards, which is generally the vesting period. For awards with only service-based
vesting conditions, the Company recognizes compensation cost using the straight-line method. Expected volatility is based on average
volatility for a representative sample of comparable public companies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The expected term represents the period of
time that the options are expected to be outstanding. The expected term is estimated using the midpoint between the requisite service
period and the contractual term of the option. The risk-free interest rate is estimated using the rate of return on U.S. treasury
notes with a life that approximates the expected life of the option. The fair value of the stock options issued was measured using
the following assumptions for the&nbsp;years ended December&nbsp;31:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 93%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><B>2019</B></TD>
    <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>2018</B></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 74%">Risk free interest rate</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">1.95</TD>
    <TD STYLE="width: 1%">%</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">2.80</TD>
    <TD STYLE="width: 1%">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Expected term (in&nbsp;years)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">6.02</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">6.11</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Expected volatility</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">41.48</TD>
    <TD>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">41.98</TD>
    <TD>%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Expected dividend yield</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD>
    <TD>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD>
    <TD>%</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The weighted-average grant-date fair values
of options granted during the&nbsp;years ended December&nbsp;31, 2019 and 2018 were $0.72 and $0.54 per share, respectively. During
the&nbsp;years ended December&nbsp;31, 2019 and 2018, the Company received proceeds from the exercise of stock options of&thinsp;
$1,148 and $552, respectively, and the aggregate intrinsic value of those stock options exercised was $3,406 and $2,234, respectively.
The total grant date fair value of stock options that vested during the&nbsp;years ended December&nbsp;31, 2019, 2018 and 2017
was $9,803, $7,334 and $3,351, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">As of December&nbsp;31, 2019, total unrecognized
stock-based compensation expense of&thinsp; $19,769 related to unvested share-based compensation arrangements granted under the
Plan is expected to be recognized over a weighted-average period of 2.03&nbsp;years. Total stock-based compensation expense of&thinsp;
$17,614, $7,210 and $4,500 was recognized for the&nbsp;years ended December&nbsp;31, 2019, 2018 and 2017, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>LTIP options </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">LTIP awards have been issued since November&nbsp;2017
pursuant to the Company&rsquo;s 2017 Plan. The fair value of each LTIP option is estimated on the grant date using the Black-Scholes
option-pricing model for those awards, with only performance conditions and the assumptions noted in the table above. Awards that
vest based on market conditions are valued using a Monte-Carlo model however no compensation cost will be recognized unless an
IPO or liquidity event occurs. Awards vest based on a combination of factors, including achievement of revenue, EBITDA, and stock
value targets measured upon an IPO or liquidity event. For the year ended December&nbsp;31, 2019, the Company recognized compensation
costs of&thinsp; $5,236 for LTIP awards. No compensation cost has been recognized for the LTIP for the year ended December&nbsp;31,
2018 and 2017 because no awards were considered probable of vesting as of December&nbsp;31, 2018 and 2017 as per the terms of the
LTIP plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>PSP options </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">PSP awards have been issued since November&nbsp;2017
pursuant to the terms of the 2017 Plan. The Plan grants options to key executives that vest based on achievement of short-term
revenue and EBITDA targets. PSP options are valued using the Black-Scholes option-pricing model with the assumptions noted in the
table above. Based on the results of fiscal year 2018 the PSP targets were not achieved. PSP options vested in 2019 after board
approval and $5,221 of compensation costs were recorded for PSP options during the year ended December&nbsp;31, 2019. Total stock-based
compensation cost of&thinsp; $0 and $0 was recognized for the&nbsp;years ended December&nbsp;31, 2018 and 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt"></P>

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<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DRAFTKINGS INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR STYLE="clear: both">
(Amounts in thousands)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;<B></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Non-Employee Warrants </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">In September&nbsp;2019, the Company issued
warrants to a non-employee vendor providing marketing services. The warrant allows the vendor to purchase 341 shares of common
stock for an exercise price of $0.01 per share over a 5-year term. The warrants were issued for marketing services provided to
the Company, were fully vested, and had no future requisite service period. Compensation cost of&thinsp; $444 was recognized entirely
in the year ended December&nbsp;31, 2019. Compensation cost for this warrant is presented within general and administrative expenses
in the consolidated statement of operations. As of December&nbsp;31, 2019, the warrant remains unexercised.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The following table shows stock option activity
for the&nbsp;years ended December&nbsp;31, 2019, 2018 and 2017:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="14" STYLE="font: bold 8pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">Number
    of Shares</FONT></TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 8pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">Weighted<BR>
Average</FONT></TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 8pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">Weighted<BR>
    Average<BR> Remaining</FONT></TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 8pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">Aggregate</FONT></TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 8pt Times New Roman, Times, Serif; vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt; font: 8pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 8pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>Time<BR>
    Based</B></FONT></TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 8pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>PSP</B></FONT></TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 8pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>LTIP</B></FONT></TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 8pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>Total</B></FONT></TD><TD STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>Exercise<BR>
    Price</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: center"><B>Term<BR> (years)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></B></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>Intrinsic<BR>
    Value</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD></TR>
<TR STYLE="font: 8pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 37%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>Outstanding
    at December&nbsp;31, 2016</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>$</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 6%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>44,530</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 6%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&mdash;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 6%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&mdash;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 6%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>44,530</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>$</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 6%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>0.22</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 6%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>8.24</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>$</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 6%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>30,680</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD></TR>
<TR STYLE="font: 8pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-indent: 0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">Granted</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">14,165</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&mdash;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">5,131</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">19,296</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">1.17</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&#8203;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&#8203;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 8pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-indent: 0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">Exercised</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">(1,306</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">)</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&mdash;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&mdash;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">(1,306</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">)</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">0.15</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&#8203;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&#8203;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 8pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-indent: 0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">Forfeited</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">(958</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">)</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&mdash;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&mdash;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">(958</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">)</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">0.61</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&#8203;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&#8203;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 8pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>Outstanding
    at December&nbsp;31, 2017</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>$</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>56,431</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&mdash;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>5,131</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>61,562</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><B>$</B></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>0.51</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>8.00</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>$</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>32,401</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD></TR>
<TR STYLE="font: 8pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-indent: 0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">Granted</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">13,564</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">5,320</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">35,058</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">53,942</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">1.18</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&#8203;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&#8203;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 8pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-indent: 0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">Exercised</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">(2,297</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">)</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&mdash;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&mdash;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">(2,297</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">)</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">0.25</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&#8203;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&#8203;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 8pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-indent: 0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">Forfeited</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">(1,171</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">)</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">(159</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">)</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&mdash;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">(1,330</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">)</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">0.88</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&#8203;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&#8203;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 8pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>Outstanding
    at December&nbsp;31, 2018</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>$</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>66,527</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>5,161</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>40,189</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>111,877</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>$</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>0.84</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>8.15</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>$</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>69,765</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD></TR>
<TR STYLE="font: 8pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-indent: 0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">Granted</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">16,278</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">6,263</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">5,628</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">28,169</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">1.65</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&#8203;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&#8203;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 8pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-indent: 0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">Exercised</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">(2,837</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">)</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">(112</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">)</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&mdash;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">(2,949</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">)</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">0.41</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&#8203;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&#8203;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 8pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-indent: 0.125in; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">Forfeited</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">(1,196</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">)</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">(79</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">)</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&mdash;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">(1,275</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">)</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">1.19</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&#8203;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&#8203;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 8pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>Outstanding
    at December&nbsp;31, 2019</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>$</B></FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>78,772</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>11,233</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>45,817</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>135,822</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>1.01</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>7.64</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>$</B></FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>203,431</B></FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>&nbsp;</B></FONT></TD></TR>
<TR STYLE="font: 8pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-indent: 0.125in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">Time
    Vesting*</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&#8203;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&#8203;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&#8203;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">75,170</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">0.84</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">7.01</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">$</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">125,849</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 8pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-indent: 0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">PSP**</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&#8203;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&#8203;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&#8203;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">10,719</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">1.44</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">8.92</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">$</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">11,484</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 8pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-indent: 0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">LTIP**</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&#8203;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&#8203;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&#8203;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">8,568</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">1.21</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">8.42</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">$</FONT></TD><TD STYLE="font: 8pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">11,129</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt"></P>

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<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">*</TD><TD STYLE="text-align: justify">Adjusted for assumed forfeitures</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; background-color: White; width: 0in"></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; background-color: White; width: 0.25in">**</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; background-color: White">Adjusted for assumed forfeitures, excludes post-2019 vesting</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DRAFTKINGS INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR STYLE="clear: both">
(Amounts in thousands)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>11.</B></TD><TD STYLE="text-align: justify"><B>Income Taxes</B></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-indent: 20pt">Loss before provision for (benefit from)
income taxes for the&nbsp;years ended December&nbsp;31, 2019, 2018 and 2017 consist of the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif; margin-left: 20pt">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Year Ended December&nbsp;31,</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&#8203;</B></FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2019</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2018</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2017</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="font: normal 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; width: 61%; text-align: left">United States</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; width: 1%">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; width: 10%; text-align: right">(142,198</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; width: 1%">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; width: 10%; text-align: right">(76,122</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; width: 1%">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; width: 10%; text-align: right">(75,445</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">)</TD></TR>
<TR STYLE="font: normal 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">Foreign</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">1</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">7</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">99</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="font: normal 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt">Loss before provision for (benefit from) income taxes</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">(142,197</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">(76,115</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">(75,346</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">)</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-indent: 20pt">The components of the provision (benefit) for income taxes consisted
of the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif; margin-left: 20pt">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.125in; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Year Ended December&nbsp;31,</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.125in; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2019</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2018</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2017</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-left: 0in">Current:</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&#8203;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&#8203;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&#8203;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; font: normal 10pt Times New Roman, Times, Serif">Federal</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">$</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">$</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">$</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; font: normal 10pt Times New Roman, Times, Serif">State</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; width: 61%; font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">Foreign</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">4</TD><TD STYLE="width: 1%; padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">86</TD><TD STYLE="width: 1%; padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">65</TD><TD STYLE="width: 1%; padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-left: 0.25in; text-align: left">Total current provision</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">4</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">86</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">65</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-left: 0in">Deferred:</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#8203;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#8203;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#8203;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; font: normal 10pt Times New Roman, Times, Serif">Federal</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">9</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">36</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; font: normal 10pt Times New Roman, Times, Serif">State</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">54</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">10</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">109</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">Foreign</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-left: 0.25in; text-align: left; padding-bottom: 1pt">Total deferred provision</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">54</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">19</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">145</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; font: normal 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt">Total provision</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">58</TD><TD STYLE="padding-bottom: 2.5pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">105</TD><TD STYLE="padding-bottom: 2.5pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">210</TD><TD STYLE="padding-bottom: 2.5pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&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-indent: 20pt">The reconciliation between income taxes
computed at the U.S. statutory income tax rate to our provision for income taxes for the&nbsp;years ended December&nbsp;31, 2019,
2018 and 2017 are as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif; margin-left: 20pt">
<TR STYLE="font-style: normal; vertical-align: bottom; font-weight: normal">
    <TD STYLE="font-style: normal; font-size: 10pt; font-weight: normal"><B>&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></B></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="10" STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: center"><B>Year
    Ended December&nbsp;31,</B></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><B>&nbsp;</B></TD></TR>
<TR STYLE="font-style: normal; vertical-align: bottom; font-weight: normal">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><B>&#8203;&nbsp;</B></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: center"><B>2019</B></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><B>&nbsp;</B></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: center"><B>2018</B></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><B>&nbsp;</B></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: center"><B>2017</B></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><B>&nbsp;</B></TD></TR>
<TR STYLE="font-style: normal; vertical-align: bottom; background-color: rgb(204,238,255); font-weight: normal">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; width: 61%; text-align: left">Provision for income taxes at statutory rate</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; width: 1%">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; width: 10%; text-align: right">(29,863</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; width: 1%">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; width: 10%; text-align: right">(15,984</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; width: 1%">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; width: 10%; text-align: right">(25,400</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">)</TD></TR>
<TR STYLE="font-style: normal; vertical-align: bottom; background-color: White; font-weight: normal">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">Prior year provision true-ups</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">3,164</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">(157</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">982</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="font-style: normal; vertical-align: bottom; background-color: rgb(204,238,255); font-weight: normal">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">State taxes, net of federal benefit</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">(7,522</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">(7,525</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">(2,769</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="font-style: normal; vertical-align: bottom; background-color: White; font-weight: normal">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">Certain stock-based compensation expenses</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">2,412</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">430</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">536</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="font-style: normal; vertical-align: bottom; background-color: rgb(204,238,255); font-weight: normal">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">Non-deductible lobbying expenses</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">1,885</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">1,352</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">2,505</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="font-style: normal; vertical-align: bottom; background-color: White; font-weight: normal">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">Non-deductible acquisition expenses</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">2,068</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="font-style: normal; vertical-align: bottom; background-color: rgb(204,238,255); font-weight: normal">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">Change in valuation allowance</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">19,988</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">21,584</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">(66,370</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="font-style: normal; vertical-align: bottom; background-color: White; font-weight: normal">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">Impact of federal rate change on net deferred taxes</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">90,889</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="font-style: normal; vertical-align: bottom; background-color: rgb(204,238,255); font-weight: normal">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">Net operating loss write-off</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">7,246</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="font-style: normal; vertical-align: bottom; background-color: White; font-weight: normal">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">Other</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">680</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">405</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">(163</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="font-style: normal; vertical-align: bottom; background-color: rgb(204,238,255); font-weight: normal">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt">Provision for income taxes</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">58</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">105</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">210</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left">&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: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DRAFTKINGS INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR STYLE="clear: both">
(Amounts in thousands)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">In 2019, the Company wrote off&#8201; $7,246
of the net operating loss deferred tax asset due to the IRC Section&nbsp;382 limitation discussed below, with a corresponding reduction
to the valuation allowance of&#8201; $7,246 for a net provision impact of&#8201; $0.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Tax Cuts and Jobs Act was enacted on
December&nbsp;22, 2017 (&#8220;the Act&#8221;). The Act contains significant changes to corporate taxation including, but not limited
to, reducing the U.S. federal corporate tax rate from a top marginal rate of 35% to 21%, requiring companies to pay a one-time
transition tax on earnings of certain foreign subsidiaries that were previously tax deferred, and creating new taxes on certain
foreign sourced earnings. On December&nbsp;22, 2017, Staff Accounting Bulletin No.&nbsp;118 (&#8220;SAB 118&#8221;) was issued
to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared,
or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">As of December&nbsp;31, 2017, the Company
re-measured U.S. federal deferred tax assets and liabilities based on the rates at which they are anticipated to reverse in the
future, which is generally 21%. The amount recorded related to the re-measurement of our deferred tax asset balance was a decrease
of&#8201; $90,890, with a corresponding reduction to the valuation allowance of&#8201; $91,050 for a net benefit of&#8201; $160.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Act limited the deduction for net operating
loss carryovers generated in the taxable years beginning after December&nbsp;31, 2017, to 80% of taxable income computed without
regard to the deduction and extended the life of these net operating losses to an indefinite carryforward. Due to the indefinite
life of the net operating losses generated after December&nbsp;31, 2017 and the annual 80% NOL utilization limitation that would
be imposed in the year of use, the Act resulted in the indefinite life deferred tax liability becoming a source of income against
the realization of the indefinite lived portion of the NOLs and certain deferred tax assets that the Company expects to become
indefinite lived NOLs when they reverse in future years. As of December&nbsp;31, 2017, the amount recorded related to the scheduling
of the indefinite-lived intangibles was a benefit of&#8201; $230.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The one-time transition tax is based on
our total post-1986 earnings and profits (&#8220;E&amp;P&#8221;) for which we have previously deferred from U.S. income taxes.
We recorded a provisional amount for our one-time transition tax liability of&#8201; $36 for our foreign subsidiaries, resulting
in an increase of income tax provision of $0 as we are utilizing net operating losses, which had a full valuation allowance, against
the one-time transition tax liability. During the year ended December&nbsp;31, 2018 we completed our calculation of the total post-1986
foreign E&amp;P for these foreign subsidiaries and increased the one-time transition tax liability by $15, resulting in no change
to income tax expense as we utilized net operating losses, which had a full valuation allowance, against the one-time transition
tax liability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">As a result of the Act and the current
U.S. taxation of deemed repatriated earnings, the additional taxes that might be payable upon repatriation of foreign earnings
are not significant. However, we do not have any current plans to repatriate these earnings because the underlying cash will be
used to fund the ongoing operations of the foreign subsidiaries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">As of December&nbsp;31, 2018, we have completed
our accounting for the effects of the Act, including the transition tax, remeasurement of deferred taxes, our reassessment of valuation
allowance and electing to account for global intangible low-taxed income (&#8220;GILTI&#8221;) as a period expense. There were
no additional expenses recognized in the year ended December&nbsp;31, 2018 to adjust the provisional amounts recorded in 2017 related
to the Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<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>DRAFTKINGS INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR STYLE="clear: both">
(Amounts in thousands)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Significant components of the Company&#8217;s
deferred tax assets (liabilities) as of December&nbsp;31, 2019 and 2018 are as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif; margin-left: 20pt">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">As of December&nbsp;31,</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold; font-style: normal"><FONT STYLE="font-style: normal">&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></FONT></TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2019</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2018</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif">Deferred tax assets:</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&#8203;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&#8203;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; width: 74%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">Stock-based compensation</TD><TD STYLE="width: 1%; font-size: 10pt; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; font-weight: normal; font-style: normal; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; font-weight: normal; font-style: normal; text-align: right">4,552</TD><TD STYLE="width: 1%; font-size: 10pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 10%; font: normal 10pt Times New Roman, Times, Serif; text-align: right">3,472</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; font: normal 10pt Times New Roman, Times, Serif; text-align: left">Intangible assets</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">123</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">187</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; font: normal 10pt Times New Roman, Times, Serif; text-align: left">Fixed assets</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">365</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; font: normal 10pt Times New Roman, Times, Serif; text-align: left">Accrual and other temporary differences</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">20,907</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">12,273</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; font: normal 10pt Times New Roman, Times, Serif; text-align: left">Credit carryforwards</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">15</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">15</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; font: normal 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Net operating loss carryforwards</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">217,836</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">203,180</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><B>Total deferred tax assets:</B></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right"><B>243,433</B></TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left"><B>&nbsp;</B></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right"><B>219,492</B></TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left"><B>&nbsp;</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">Deferred tax liability:</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#8203;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#8203;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; font: normal 10pt Times New Roman, Times, Serif; text-align: left">Capitalized software costs</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">(6,335</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">(4,364</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; font: normal 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Fixed assets</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">(2,035</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; font: normal 10pt Times New Roman, Times, Serif; text-align: left">Total Net Deferred Tax Assets</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">235,063</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">215,128</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Valuation allowance</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">(235,280</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">(215,292</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt">Net deferred tax liabilities</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">(217</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1.3pt; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">(164</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1.3pt; text-align: left">)</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-indent: 20pt">The Company has provided a valuation allowance
against the net deferred tax assets since realization of any future benefit from deductible temporary differences and net operating
loss and tax credit carryforwards cannot be sufficiently assured as of December&nbsp;31, 2019. In computing our valuation allowance
needs, we include the deferred tax liability associated with assets that have an indefinite life for US GAAP purposes because they
provide a source of income against the realization of the indefinite lived portion of the NOLs and certain deferred tax assets
that the Company expects to become indefinite lived NOLs when they reverse in future&nbsp;years. For the year ended December&nbsp;31,
2019, the valuation allowance increased by approximately $19,988.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">As of December&nbsp;31, 2019, the Company
had federal and state tax net operating loss carryforwards of approximately $676,040 and $759,040, respectively, which may be available
to offset future income tax liabilities and expire at various dates through 2039. The aggregate amount of federal NOLs that are
not expected to be utilized due to the annual Section&nbsp;382 limitations is $34,504 and the tax effect of&#8201; $7,246 was written
off during the year ended December&nbsp;31, 2019, as discussed in more detail below. Additionally, the Company has $134,400 of
federal net operating loss carryforwards which carryforward indefinitely, subject to an 80% taxable income limitation in the year
of utilization. The Company has generated $171 and $100 of operating loss carryforwards in Malta and Australia, respectively, both
of which carryforward indefinitely. The Company has approximately $15 of federal research credit carryforwards available that expire
through 2032.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Utilization of the NOL carryforwards may
be subject to limitation under Section&nbsp;382 of the Internal Revenue Code of 1986 due to ownership change limitations that
have occurred previously or that could occur in the future. These ownership changes may limit the amount of NOL and tax credit
carryforwards that can be utilized annually to offset future taxable income and tax, respectively. The Company completed a Section&nbsp;382
study through December&nbsp;31, 2019 to assess whether an ownership change had occurred, or whether there had been multiple ownership
changes since its formation. The Company concluded that ownership changes occurred in November&nbsp;2013 and March&nbsp;2017.
As a result, the Company&#8217;s use of NOL carryforwards as of March&nbsp;2017 are subject to annual limitations through 2037.
For the tax year ending December&nbsp;31, 2020, these NOLs are subject to a cumulative limitation of&#8201; $295,605 and each
year after is subject to an annual limitation of&thinsp; $77,069 in 2021, $25,247 in 2022 and $15,051 through 2037. Annual limitations
under Section&nbsp;382 that go unused can be carried forward to allow for an increased limitation in future years. The federal
net operating losses incurred by the Company after February 2017 are not impacted by these limitations as of December&nbsp;31,
2019. There could be additional ownership changes in the future, which may result in additional limitations on the utilization
of the NOL and tax credit carryforwards.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<!-- Field: Split-Segment; Name: a10 --><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DRAFTKINGS INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR STYLE="clear: both">
(Amounts in thousands)<BR STYLE="clear: both">
 &nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">With limited exception, the Company is no
longer subject to U.S. federal and state income tax audits by taxing authorities for&nbsp;years through 2015. The&nbsp;years subsequent
to 2015 contain matters that could be subject to differing interpretations of applicable tax laws and regulations as it relates
to the amount and/or timing of income, deductions and tax credits. Although the timing and outcome of tax audits is always uncertain,
management has analyzed the Company&rsquo;s income tax positions taken for all open&nbsp;years and has concluded that no provision
for uncertain tax positions is required in the consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>12.</B></TD><TD STYLE="text-align: justify"><B>Related-Party Transactions</B></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"><B><I>Media Purchase Agreement (&ldquo;MPA&rdquo;) </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">In July&nbsp;2015, the Company entered into
a MPA with a related party purchaser for various media placements from 2015 through 2018. The MPA was amended to extend through
2021. The annual commitment for calendar&nbsp;years 2017 through 2021 was $15,000 per year plus an additional contingent commitment
of&thinsp; $5,000 per year. The contingent commitment relates to the Company&rsquo;s allocation of its non-integration advertising
with other advertisers. Effective January&nbsp;2019, the future minimum commitments related to the MPA were reduced to $15,000
in aggregate through December&nbsp;31, 2021 ($5,000 per year) and the contingent commitment was removed. If the Company satisfies
the $15,000 commitment prior to December&nbsp;31, 2021, the MPA will expire unless the Company elects to extend the MPA through
the next NFL season with no required minimum. The Company recorded expense of&thinsp; $8,411 and $23,313 related to the MPA for
the&nbsp;years ended December&nbsp;31, 2019 and 2018, respectively, in sales and marketing expenses in the consolidated statements
of operations. As of December&nbsp;31, 2019, and 2018, $2,413 and $428, respectively, of MPA contractual obligations were unpaid
and included in accounts payable and accrued expenses in the consolidated balance sheets. Future minimum obligations under the
MPA are included in the other contractual obligations table in Note 13.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Private Placement Agent </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">In March&nbsp;2015, the Company entered into
an engagement letter with a related party (the &ldquo;Private Placement Agent&rdquo;), pursuant to which the related party served
as a private placement agent for DraftKings in connection with DraftKings&rsquo; Series&nbsp;E and Series&nbsp;E-1 preferred stock
financings. The engagement letter terminated in June&nbsp;2018. Of the Company&rsquo;s Series&nbsp;E-1 redeemable convertible preferred
stock issued and outstanding, $119,752 and $119,427 as of December&nbsp;31, 2019 and 2018, respectively, is held by the related
party. Redeemable convertible preferred stock is discussed in Note 8. In connection with the Company&rsquo;s Series&nbsp;E-1 redeemable
convertible preferred stock issuance, $2,066 of fees were incurred during the year ended December&nbsp;31, 2017 and $0 in fees
were incurred during the&nbsp;years ended December&nbsp;31, 2019 and 2018. The 2017 fees are accreted ratably over the expected
life of Series&nbsp;E-1. These fees are presented in the Series&nbsp;E-1 redeemable convertible preferred stock in the consolidated
balance sheets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Company also entered into an engagement
letter in August&nbsp;2019, and amended in December&nbsp;2019, with the Private Placement Agent. Pursuant to the engagement letter,
the Private Placement Agent has acted as the exclusive financial advisor to DraftKings, and the Company has agreed to pay certain
acquisition and financing fees in connection with potential transactions. Refer to Note 7 for a description of the financing fee
incurred in 2019.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DRAFTKINGS INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR STYLE="clear: both">
(Amounts in thousands)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B><I>Receivables from Equity Method Investment
</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Company provides office space and general
overhead support to DKFS, LLC, an equity-method affiliate. The overhead support relates to rent, utilities and general and administrative
support services. As of December&nbsp;31, 2019, the Company had $959 of receivables from the entity related to these services and
is included within current assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>13.</B></TD><TD STYLE="text-align: justify"><B>Commitments and Contingencies</B></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"><B><I>Leases </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Company rents its corporate office facilities
under long-term lease arrangements in New York, NY and Boston, MA. The terms of the leases include scheduled base rent increases,
and obligations to pay for a proportionate share of each property&rsquo;s operating costs and tax escalations as defined in each
lease. The total amount of rental payments due over each lease term is charged to rent expense ratably over the life of each lease.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">In November&nbsp;2019, the Company entered
into an agreement to lease office space in Dublin, Ireland. Pursuant to the lease agreement, the lease term is 12&nbsp;months,
commencing in December&nbsp;2019. The total payment for the 12-month period is $651 (&euro;598), exclusive of value added taxes,
which will be charged at the prevailing rate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Company rents its corporate office facilities
under a 10-year long-term lease arrangement commencing in April&nbsp;2019. The total lease commitment is $35,642. The Company also
opened a line of credit in the amount of&thinsp; $3,409 in escrow to act as a security deposit on the lease. The total amount of
rental payments due over each lease term is charged to rent expense ratably over the life of each lease.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Total rent expense for the&nbsp;years ended
December&nbsp;31, 2019, 2018 and 2017 was $10,412, $5,266 and $3,431, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Future minimum lease payments are as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 93%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">Years ending December&nbsp;31,</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 87%; text-align: left">2020</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 10%; text-align: right">10,067</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">2021</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,300</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">2022</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,374</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">2023</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,292</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">2024</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">7,310</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">Thereafter</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">23,685</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt">Total</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">66,028</TD>
    <TD STYLE="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&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"><B><I>Other Contractual Obligations and Contingencies </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Company is a party to several non-cancelable
contracts with vendors and licensors for marketing and other strategic partnership related agreements where the Company is obligated
to make future minimum payments under the non-cancelable terms of these contracts as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 93%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">Years ending December&nbsp;31,</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: right">&#8203;</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: 87%; text-align: left">2020<SUP>(a)</SUP></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 10%; text-align: right">74,390</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">2021</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">54,725</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">2022</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">33,885</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">2023</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">13,689</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">2024</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,950</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">Thereafter</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">4,100</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt">Total</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">185,739</TD>
    <TD STYLE="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">(a)</TD><TD STYLE="text-align: justify">2020 balance includes $13,880 of contingent success fees.</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-indent: 20pt">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DRAFTKINGS INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR STYLE="clear: both">
(Amounts in thousands)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Included in the above contractual obligations
are related party commitments from the MPA discussed in Note 13.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">In connection with the DraftKings Merger
as described in Note 18, the Company has entered into success fee arrangements with third-party advisors that would require the
Company to pay the Private Placement Agent, a related party as described in Note 12, a fee of&thinsp; $5,000 for services in connection
with the consummation of the SBTech Acquisition and a fee of&thinsp; $7,000 for services in connection with the consummation of
the DraftKings Merger. The Company also has agreements with two separate advisors for a total fee of&thinsp; $1,280 for services
in connection with the consummation of the DraftKings Merger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">In addition, as described in Note 6, upon
the earlier of&thinsp; (i)&nbsp;an Acquisition, as defined in the Credit Agreement, or (ii)&nbsp;the closing of an initial public
offering, in either case, the Company will also be required to pay a success fee to Pacific Western Bank in the amount of&thinsp;
$600 or $650 if the outstanding principal amount exceeds $45,000 at any time. These success fees have not been recorded in the
consolidated balance sheet or consolidated statement of operations as at December&nbsp;31, 2019 but have been recorded in the 2020
other contractual obligations above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Litigation</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">From time to time, and in the ordinary course
of business, the Company may be subject to certain claims, charges and litigation. Much of civil litigation to which the Company
is a party relates to advertising and consumer protection matters. The majority of these cases were consolidated into a multi-district
litigation (&ldquo;MDL&rdquo;) in February 2016 in the U.S. District Court for the District of Massachusetts along with claims
against other entities and individuals within the DFS industry (the &ldquo;DFS defendants&rdquo;). On November&nbsp;27, 2019, the
Court granted in part and denied in part the DFS defendants&rsquo; motions to compel arbitration. The Company intends to vigorously
defend itself. While we do not believe, based on currently available information, that the outcome of this proceeding will have
a material adverse effect on the Company&rsquo;s financial condition, the outcome could be material to the Company&rsquo;s financial
results for any particular period, depending, in part, upon the results for such period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Settlement Liability</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">On October&nbsp;25, 2016, the Company and
The Office of the Attorney General of the State of New York (&ldquo;NYAG&rdquo;) reached a settlement agreement that resolved all
claims, brought forth by the NYAG, relating to deceptive advertising by the Company. The Company will pay a settlement amount of&thinsp;
$6,000 in penalties and costs to the State of New York over a period of four&nbsp;years. As of December&nbsp;31, 2019, the Company
paid all remaining obligations under the agreement. As of December&nbsp;31, 2018, the Company accrued $2,876 and $0 of current
and non-current liabilities, respectively, on the consolidated balance sheet related to the NYAG settlement agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">On September&nbsp;1, 2017, the Company and
the Commonwealth of Massachusetts through the Office of the Massachusetts Attorney General (&ldquo;MAAG&rdquo;) reached a settlement
agreement that resolved all claims, demands, liabilities, and causes of action related to the advertising and offering of the Company&rsquo;s
daily fantasy sports contests and operation of the Company&rsquo;s business activities. The Company agreed to pay a settlement
amount of&thinsp; $1,300 to the Commonwealth of Massachusetts over a period of three&nbsp;years. As of December&nbsp;31, 2019,
the Company has paid all remaining obligations under the agreement. The Company paid $400 and $400 to MAAG in fiscal&nbsp;years
2019 and 2018, respectively, per the terms of the agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Letters of Credit </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">In connection with the Credit Agreement
with Pacific Western Bank, the Company has entered into several letters of credit totaling $4,481 as of December&nbsp;31, 2019
and 2018 for the Company&rsquo;s leases of office space. Refer to Note 6 for further discussion of the Credit Agreement.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DRAFTKINGS INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR STYLE="clear: both">
(Amounts in thousands)<BR STYLE="clear: both">
 &#8199;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>14.</B></TD><TD STYLE="text-align: justify"><B>Retirement Plans</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">In August&nbsp;2017, the Company created
a defined contribution savings plan under Section&nbsp;401(k) of the Internal Revenue Code. All domestic employees who meet minimum
age and service requirements are permitted to participate in this plan. The plan allows participants to defer a portion of their
annual compensation on a pre-tax basis for the calendar&nbsp;years 2019, 2018 and 2017. Company contributions to the plan are made
based on achievement of designated financial goals. During the&nbsp;years ended December&nbsp;31, 2019, 2018 and 2017 the Company
contributed $1,342, $842 and $0 respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>15.</B></TD><TD STYLE="text-align: justify"><B>Revenue Recognition</B></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-indent: 20pt">On January&nbsp;1, 2019, the Company adopted
ASC 606 using the modified retrospective method and, due to the immaterial difference, there was no adjustment to the opening balance
of accumulated deficit at January&nbsp;1, 2019. The adoption of the New Revenue Standard did not have a material impact on the
Company&rsquo;s consolidated financial position, results of operations, or cash flows. The Company expects the impact of the adoption
of the New Revenue Standard will be immaterial to net loss on an ongoing basis.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Deferred Revenue </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Deferred revenue primarily represents contract
liabilities for the Company&rsquo;s obligation to transfer additional goods or services to users for which the Company has received
consideration, such as wagers or entry fees on unscored events and unredeemed player rewards awarded for participation in DFS,
Sportsbook and iGaming events. These create a liability when issued to users and are recognized as revenue when redeemed or settled.
The Company included deferred revenue within accrued expenses and liabilities to users on the consolidated balance sheets. Deferred
revenue was $20,760 and $13,581 as of December&nbsp;31, 2019 and 2018, respectively, relating primarily to unredeemed player awards.
The December&nbsp;31, 2018 deferred revenue balance was recognized as revenue during 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Revenue Disaggregation</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Company disaggregates revenue from contracts
with customers in the following table which is intended to depict how the nature, amount, timing and uncertainty of revenue and
cash flows are affected by economic factors. Disaggregation of revenue for years ended December&nbsp;31, 2019, 2018 and 2017 are
as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 93%; 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="10" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Years&nbsp;Ended&nbsp;December&nbsp;31,</TD>
    <TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 61%; padding-bottom: 1pt; text-indent: -10.1pt; padding-left: 10.1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; width: 10%; font-weight: bold; text-align: center">2019</TD>
    <TD STYLE="width: 1%; padding-bottom: 1pt; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; width: 10%; font-weight: bold; text-align: center">2018<SUP>(a)</SUP></TD>
    <TD STYLE="width: 1%; padding-bottom: 1pt; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; width: 10%; font-weight: bold; text-align: center">2017<SUP>(a)</SUP></TD>
    <TD STYLE="width: 1%; padding-bottom: 1pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10.1pt; padding-left: 10.1pt">Online Gaming<SUP>(b)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">308,177</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">219,131</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">189,779</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; text-indent: -10.1pt; padding-left: 10.1pt">Other</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">15,233</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">7,146</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">2,065</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 2.5pt; text-indent: -10.1pt; padding-left: 10.1pt">Total revenue</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">323,410</TD>
    <TD STYLE="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">226,277</TD>
    <TD STYLE="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">191,844</TD>
    <TD STYLE="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<!-- Field: Rule-Page --><DIV STYLE="margin-top: 3pt; margin-bottom: 3pt; width: 25%"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">(a)</TD><TD STYLE="text-align: left">As disclosed in Note 2, prior period amounts have not
been adjusted under the modified retrospective method of adoption of Topic 606.</TD>
</TR></TABLE>
<P STYLE="text-align: left; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: left; width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">(b)</TD><TD STYLE="text-align: left">Online Gaming includes DFS, iGaming and Sportsbook. These
revenue streams have similar attributes and the same pattern of recognition.</TD>
</TR></TABLE>
<P STYLE="text-align: left; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&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"><B>DRAFTKINGS INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR STYLE="clear: both">
(Amounts in thousands)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>16.</B></TD><TD STYLE="text-align: justify"><B>Loss Per Share</B></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The computation of loss per share and weighted-average
shares of the Company&rsquo;s common stock outstanding for the periods presented are as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 93%; 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="10" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Years ended December&nbsp;31,</TD>
    <TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">(in thousands except per share data):</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">2019</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">2018</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">2017</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: 61%; text-align: left">Net loss</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 10%; text-align: right">(142,734</TD>
    <TD STYLE="width: 1%; text-align: left">)</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 10%; text-align: right">(76,220</TD>
    <TD STYLE="width: 1%; text-align: left">)</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 10%; text-align: right">(75,556</TD>
    <TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 9pt">Less: accretion of preferred share issuance costs</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">(992</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">(678</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">(1,513</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">Net loss attributable to common stockholders</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(143,726</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">$</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(76,898</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(77,069</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 2.5pt">Basic and diluted weighted average common share outstanding</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">386,793</TD>
    <TD STYLE="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">381,821</TD>
    <TD STYLE="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">142,451</TD>
    <TD STYLE="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Loss per share attributable to common shareholders:</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Basic and diluted</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">(0.37</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">(0.20</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">(0.54</TD>
    <TD STYLE="text-align: left">)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">There were no preferred or other dividends
declared for the period. For the periods presented, the following securities and Convertible Notes described in Note 7 were not
required to be included in the computation of diluted shares outstanding:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 93%; 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="10" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Years ended 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">2019</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">2018</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">2017</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: 61%">Warrants</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">515</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">2,422</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">2,080</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Stock options</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">135,823</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">111,877</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">61,562</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">Convertible Notes<SUP>(a)</SUP></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">20,952</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt">Total</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">157,290</TD>
    <TD STYLE="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">114,299</TD>
    <TD STYLE="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">63,642</TD>
    <TD STYLE="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<!-- Field: Rule-Page --><DIV STYLE="margin-top: 3pt; margin-bottom: 3pt; width: 25%"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">(a)</TD><TD STYLE="text-align: left">Represents the conversion of the outstanding balance
plus accrued interest divided by the stated conversion price of 3.31. These notes are contingently issuable as of December&nbsp;31,
2019.</TD>
</TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font-size: 10pt">&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="margin-top: 0pt; margin-bottom: 0pt; font-size: 10pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DRAFTKINGS INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR STYLE="clear: both">
(Amounts in thousands)</B></P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font-size: 10pt"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt"><B>17.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><B>Segment Information</B></FONT></TD>
</TR></TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font-size: 10pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Company operates in a single segment.
Operating segments are identified as components of an enterprise about which separate discrete financial information is available
for evaluation by the chief operating decision maker (&ldquo;CODM&rdquo;) in making decisions regarding resource allocation and
assessing performance. The Company has determined that its Chief Executive Officer is the CODM. To date, the Company&rsquo;s CODM
has made such decisions and assessed performance at the Company-level.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Company attributes revenue to individual
countries based on the location of the Company&rsquo;s customers. The Company&rsquo;s products are primarily sold from the United
States, Canada, United Kingdom, Germany, Malta, Netherlands, Ireland, Austria and Australia.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The following table presents the Company&rsquo;s
revenue by geographic region for the periods indicated:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 93%; 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="10" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Years ended December&nbsp;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">2019</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">2018</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">2017</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: 61%; text-align: left">United States</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 10%; text-align: right">318,144</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 10%; text-align: right">219,415</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 10%; text-align: right">187,261</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">Other</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">5,266</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">6,862</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">4,583</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">Total revenue</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right">323,410</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right">226,277</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right">191,844</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">As of the&nbsp;years ended December&nbsp;31,
2019, and 2018, the Company did not have material assets located outside of the United States.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DRAFTKINGS INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR STYLE="clear: both">
(Amounts in thousands)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>18.</B></TD><TD STYLE="text-align: justify"><B>Subsequent Events</B></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-indent: 20pt">On December&nbsp;22, 2019, Diamond Eagle
Acquisition Corp, a special purpose acquisition company (&ldquo;Diamond Eagle&rdquo;), entered into a Business Combination Agreement
(the &ldquo;Business Combination Agreement&rdquo;) with DraftKings Inc. (&ldquo;DraftKings&rdquo;), the Group, the Group&rsquo;s
shareholders, the representative of the Group&rsquo;s shareholders, DEAC NV Merger Corp., a Nevada corporation and a wholly-owned
subsidiary of DEAC (&ldquo;DEAC Nevada&rdquo;), DEAC Merger Sub Inc., a Delaware corporation and a wholly-owned subsidiary of DEAC
(&ldquo;Merger Sub&rdquo;), pursuant to which (i)&nbsp;Diamond Eagle will merge with and into DEAC Nevada, with DEAC Nevada surviving
the merger (the &ldquo;reincorporation&rdquo;), (ii)&nbsp;following the reincorporation, Merger Sub will merge with and into DraftKings
with DraftKings surviving the merger (the &ldquo;DraftKings Merger&rdquo;), (iii)&nbsp;immediately following the DraftKings Merger,
Diamond Eagle will acquire all of the issued and outstanding share capital of SBTech and vested in-the-money options exercisable
for SBTech share capital (the &ldquo;SBTech Acquisition&rdquo;) for approximately &euro;590,000, consisting of (x)&nbsp;&euro;180,000
in cash, subject to customary net debt and working capital and certain other specified adjustments payable in respect of the SBT
shares and 30% of the in-the-money vested SBT options and (y)&nbsp;approximately &euro;410,000 in shares of New DraftKings Class&nbsp;A
common stock, valued at the redemption price for Diamond Eagle&rsquo;s public shares in the Business Combination, and in the form
of newly issued in-the-money vested options of New DraftKings exercisable for New DraftKings Class&nbsp;A common stock and (iv)&nbsp;DEAC
Nevada will be renamed DraftKings Inc. Each of the DraftKings Merger and the SBTech Acquisition will be on the terms and subject
to the conditions set forth in the Business Combination Agreement. The transaction is expected to close in 2020.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">In January and February 2020, DraftKings
issued $40,042 of additional Convertible Notes. Refer to Note 7 for the associated terms and conditions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">In February&nbsp;2020, the Company paid off
its $6,750 term note outstanding at December&nbsp;31, 2019. In March 2020, the Company withdrew $44,500 in funds from its Credit
Agreement with Pacific Western Bank. The Net facility available from the Credit Agreement for future withdrawals as of March&nbsp;26,
2020 is $1,019, which represents the $50,000 facility less the $44,500 in funds withdrawn and the $4,481 in letters of credit outlined
in Note 13. The $44,500 remains on deposit with Pacific Western Bank on March 26, 2020.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">COVID-19 is having a significant impact on
the Company. The direct impact on the Company beyond disruptions in normal business operations is primarily through the suspension,
postponement and cancellation of major sports seasons and sporting events. Typically, during the March and April time periods,
the Company would have significant user interest and activity in our DFS and Sportsbook product offerings for sporting events such
as the NCAA college basketball tournament, the Masters golf tournament, as well as late season games and early playoff series of
the National Basketball Association and the National Hockey League. The status of most of these sporting events is unknown, including
whether the NBA season will be completed either in part or in its entirety on a delayed schedule or whether the Masters will be
played anytime in calendar year 2020.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The ultimate impact of COVID-19 on the Company&rsquo;s
financial and operating results is unknown and will depend on the length of time that these disruptions exist and whether the sports
seasons and sporting events will ultimately be suspended, postponed, or cancelled; however, COVID-19 has had an impact and may
continue to have an impact, the full extent of which is unknown, but which could be material.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Company considers events or transactions
that occur after the balance sheet date, but before the consolidated financial statements are issued to provide additional evidence
relative to certain estimates or identify matters that require additional disclosures. The Company evaluated subsequent events
through March&nbsp;26, 2020, the date on which the consolidated financial statements were available to be issued. The consolidated
financial statements reflect those material items that arose after the balance sheet date, but prior to this date that would be
considered recognized subsequent events.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

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    <!-- Field: /Page --><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SBTECH (GLOBAL) LIMITED</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CONSOLIDATED FINANCIAL STATEMENTS<BR STYLE="clear: both">
AS OF DECEMBER 31, 2019 &nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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    <!-- 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"><B><A NAME="f_013"></A>Independent Auditor&rsquo;s Report</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Board of Directors<BR STYLE="clear: both">
SBTECH (GLOBAL) LIMITED</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">We have audited the accompanying consolidated
financial statements of SBTech (Global) Limited and its subsidiaries (the &ldquo;Company&rdquo;), which comprise the consolidated
statements of financial position as of December&nbsp;31, 2019 and 2018, the related consolidated statements of comprehensive income,
changes in shareholders&rsquo; equity, and cash flows for the year ended December&nbsp;31, 2019, 2018 and 2017 and the related
notes to the consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Management&rsquo;s Responsibility for the Financial Statements
</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Management is responsible for the preparation
and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards
as issued by the International Accounting Standards Board; this includes the design, implementation, and maintenance of internal
control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement,
whether due to fraud or error.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Auditor&rsquo;s Responsibility </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Our responsibility is to express an opinion
on these consolidated financial statements based on our audits. We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the consolidated financial statements are free from material misstatement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">An audit involves performing procedures to
obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend
on the auditor&rsquo;s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity&rsquo;s
preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity&rsquo;s internal control.
Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and
the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the
consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit opinion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Opinion</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">In our opinion, the consolidated financial
statements referred to above present fairly, in all material respects, the financial position of SBTech (Global) Limited and its
subsidiaries as of December&nbsp;31, 2019 and 2018, and the results of their operations, changes in shareholders&rsquo; equity
and their cash flows for the year ended December&nbsp;31, 2019, 2018 and 2017 in accordance with International Financial Reporting
Standards as issued by the International Accounting Standards Board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Emphasis of Matter</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">As more fully described in Note 19 to the
consolidated financial statements, the Company has been negatively impacted by the outbreak of a novel coronavirus (COVID-19),
which was declared a global pandemic by the World Health Organization in March 2020.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&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: 48%">Tel-Aviv, Israel</TD>
    <TD STYLE="border-bottom: Black 1pt solid; width: 52%; text-align: center">/s/ Ziv haft</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>March 12, 2020, except for footnote 19</TD>
    <TD STYLE="text-align: center">Certified Public Accountants (Isr.)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>which is dated March 26, 2020</TD>
    <TD STYLE="text-align: center">BDO Member Firm</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&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; text-indent: 20pt">&nbsp;</P>

<!-- Field: Split-Segment; Name: a12 -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="f_014"></A>SBTECH (GLOBAL) LIMITED</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CONSOLIDATED STATEMENTS OF FINANCIAL
POSITION<BR STYLE="clear: both">
(in thousands of &euro;) </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&#8203;</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Note</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>December&nbsp;31,<BR>
    2019</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>December&nbsp;31,<BR>
    2018</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>ASSETS</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>CURRENT
    ASSETS:</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in; width: 66%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cash
    and cash equivalents</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 5%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 10%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">8,144</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 10%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,731</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Trade
    receivables, net</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">24,745</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">17,220</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0in; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other
    current assets</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3,258</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2,876</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0.25in; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Total
    current assets</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">36,147</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">40,827</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NON-CURRENT
    ASSETS:</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Intangible
    assets, net</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">26,094</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">21,980</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Right-of-use
    assets</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">15</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">25,779</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Property
    and equipment, net</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">9,930</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">7,926</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Deferred
    tax assets</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">13</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">597</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">235</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other
    non-current assets</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">7</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">306</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,688</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: 0.125in; font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Total
    non-current assets</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">62,706</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">31,829</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>TOTAL
    ASSETS</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">98,853</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">72,656</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>LIABILITIES
    AND SHAREHOLDERS&rsquo; EQUITY</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>CURRENT
    LIABILITIES:</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: 0.125in; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Trade
    payables</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">8,127</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">7,006</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: 0.125in; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Lease
    liabilities</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">15</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3,516</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: 0.125in; font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other
    accounts payable and accrued expenses</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">8</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">11,176</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6,923</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0.25in; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Total
    current liabilities</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">22,819</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">13,929</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NON-CURRENT
    LIABILITIES:</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: 0.125in; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Lease
    liabilities</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">15</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">22,749</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: 0.125in; font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accrued
    severance pay, net</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">408</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">278</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0.25in; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Total
    non-current liabilities</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">23,157</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">278</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>SHAREHOLDERS&rsquo;
    EQUITY:</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: 0.125in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Share
    capital</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">9</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: 0.125in; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Actuarial
    reserve</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(139</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(65</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: 0.125in; font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Retained
    earnings</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">51,956</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">57,928</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0.25in; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Equity
    attributable to owners of the parent</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">51,820</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">57,866</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Non-controlling
    interest</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">18</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,057</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">583</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0.25in; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Total
    shareholders&rsquo; equity</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">52,877</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">58,449</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>TOTAL
    LIABILITIES AND SHAREHOLDERS&rsquo; EQUITY</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">98,853</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">72,656</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="padding-top: 2pt; border-bottom: Black 1pt solid; width: 32%; text-align: center; padding-bottom: 2pt">/s/ Richard Carter</TD>
<TD STYLE="padding-top: 2pt; width: 2%; text-align: center; padding-bottom: 2pt">&nbsp;</TD>
<TD STYLE="padding-top: 2pt; border-bottom: Black 1pt solid; width: 32%; text-align: center; padding-bottom: 2pt">/s/ Shay Berka</TD><TD STYLE="padding-top: 2pt; text-align: center; width: 2%; padding-bottom: 2pt">&nbsp;</TD>
                                                    <TD STYLE="padding-top: 2pt; border-bottom: Black 1pt solid; text-align: center; width: 32%; padding-bottom: 2pt">March&nbsp;26, 2020</TD>
</TR>
<TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="padding-top: 2pt; text-align: center; padding-bottom: 2pt">Richard Carter<BR STYLE="clear: both">
        Chief Executive Officer</TD>
<TD STYLE="padding-top: 2pt; text-align: center; padding-bottom: 2pt">&nbsp;</TD>
<TD STYLE="padding-top: 2pt; text-align: center; padding-bottom: 2pt">Shay Berka<BR STYLE="clear: both">
        Chief Financial Officer</TD><TD STYLE="padding-top: 2pt; text-align: center; padding-bottom: 2pt">&nbsp;</TD>
                                                    <TD STYLE="padding-top: 2pt; text-align: center; padding-bottom: 2pt">Date of approval of the<BR STYLE="clear: both">
        Financial statements</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><I>The accompanying notes are an integral
part of the consolidated financial statements.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="f_015"></A>SBTECH (GLOBAL) LIMITED</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME<BR STYLE="clear: both">
(in thousands of &euro;) </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold"><FONT STYLE="font-style: normal">&#8203;</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-style: normal">Note</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-style: normal">Year ended<BR> December&nbsp;31,<BR> 2019</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-style: normal">Year ended<BR> December&nbsp;31,<BR> 2018</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-style: normal">Year ended<BR> December&nbsp;31,<BR> 2017</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; width: 50%"><FONT STYLE="font-style: normal; font-weight: normal">Revenue</FONT></TD>
    <TD STYLE="font-weight: bold; width: 1%">&nbsp;</TD>
    <TD STYLE="font-weight: bold; width: 10%; text-align: center"><FONT STYLE="font-style: normal; font-weight: normal">10</FONT></TD>
    <TD STYLE="font-weight: bold; width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; width: 1%">&nbsp;</TD>
    <TD STYLE="font-weight: bold; width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; width: 10%; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">96,857</FONT></TD>
    <TD STYLE="font-weight: bold; width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; width: 1%">&nbsp;</TD>
    <TD STYLE="font-weight: bold; width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; width: 10%; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">94,147</FONT></TD>
    <TD STYLE="font-weight: bold; width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; width: 1%">&nbsp;</TD>
    <TD STYLE="font-weight: bold; width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; width: 10%; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">66,087</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-style: normal; font-weight: normal">Cost of revenue</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-style: normal; font-weight: normal">11</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">54,173</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">45,087</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">31,844</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-style: normal">Gross profit</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#8203;</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">42,684</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">49,060</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">34,243</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">Operating expenses:</FONT></TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#8203;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#8203;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#8203;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#8203;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">Research and development expenses</FONT></TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#8203;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">18,103</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">10,115</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">8,693</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">Selling and marketing expenses</FONT></TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#8203;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">6,772</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">3,722</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">2,964</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-style: normal; font-weight: normal">General and administrative expenses</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#8203;</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">11,772</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">7,636</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">5,892</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-style: normal; font-weight: normal">Total operating expenses</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#8203;</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">36,647</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">21,473</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">17,549</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-style: normal">Profit from operations</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#8203;</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">6,037</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">27,587</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">16,694</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">Financial income</FONT></TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#8203;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">23</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">97</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">37</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-style: normal; font-weight: normal">Financial expense</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#8203;</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">846</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">340</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">177</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-style: normal">Profit before tax</FONT></TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#8203;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">5,214</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">27,344</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">16,554</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-style: normal; font-weight: normal">Tax expenses</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-style: normal; font-weight: normal">13</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">638</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">565</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">264</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 2.5pt"><FONT STYLE="font-style: normal">Net profit</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#8203;</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">4,576</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">26,779</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">16,290</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">Other comprehensive loss:</FONT></TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#8203;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#8203;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#8203;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#8203;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-style: normal">Items that will not be reclassified to profit or loss:</FONT></TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#8203;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#8203;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#8203;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#8203;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-style: normal; font-weight: normal">Re-measurements of accrued severance pay</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#8203;</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">148</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">40</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">17</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-style: normal; font-weight: normal">Total comprehensive income for the year</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#8203;</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">4,428</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">26,739</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">16,273</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">Profit for the year attributed to:</FONT></TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#8203;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#8203;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#8203;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#8203;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">Owners of the parent</FONT></TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#8203;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">4,028</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">26,509</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">16,110</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-style: normal; font-weight: normal">Non-controlling interest</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#8203;</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">548</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">270</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">180</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt"><FONT STYLE="font-style: normal; font-weight: normal">&#8203;</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#8203;</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">4,576</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">26,779</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">16,290</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">Total comprehensive income for the year attributed to:</FONT></TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#8203;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#8203;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#8203;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#8203;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">Owners of the parent</FONT></TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#8203;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">3,954</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">26,489</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">16,102</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-style: normal; font-weight: normal">Non-controlling interest</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#8203;</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">474</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">250</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">171</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt"><FONT STYLE="font-style: normal; font-weight: normal">&#8203;</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#8203;</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">4,428</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">26,739</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">16,273</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>The accompanying notes are an integral
part of the consolidated financial statements.&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&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; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="f_016"></A>SBTECH (GLOBAL) LIMITED</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CONSOLIDATED STATEMENTS OF CHANGES IN
SHAREHOLDERS&rsquo; EQUITY<BR STYLE="clear: both">
(in thousands of &euro;) </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="14" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Owners of the parent</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center"><B>Non-</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center"><B>Total</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Share<BR> capital</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Actuarial<BR> reserve</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Retained<BR> earnings</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Total</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: center; font-size: 10pt"><B>controlling<BR> interest</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; text-align: center"><B>Shareholders&rsquo;<BR> equity</B></TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 34%; font-size: 10pt; padding-bottom: 2.5pt"><B>Balance at December&nbsp;31, 2016</B></TD><TD STYLE="width: 1%; font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; width: 8%; font-size: 10pt; text-align: right">3</TD><TD STYLE="width: 1%; padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; width: 8%; font-size: 10pt; text-align: right">(37</TD><TD STYLE="width: 1%; padding-bottom: 1.2pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="width: 1%; font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; width: 8%; font-size: 10pt; text-align: right">17,489</TD><TD STYLE="width: 1%; padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; width: 8%; font-size: 10pt; text-align: right">17,455</TD><TD STYLE="width: 1%; padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; width: 8%; font-size: 10pt; text-align: right">162</TD><TD STYLE="width: 1%; padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; width: 8%; font-size: 10pt; text-align: right">17,617</TD><TD STYLE="width: 1%; padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left"><B>Changes during 2017:</B></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; font-size: 10pt; text-align: left">Net profit</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">16,110</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">16,110</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">180</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">16,290</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; font-size: 10pt; text-align: left; padding-bottom: 1pt">Other comprehensive loss</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(8</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(8</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(9</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(17</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.25in; font-size: 10pt; text-align: left">Total comprehensive income for the year</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(8</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">16,110</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">16,102</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">171</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">16,273</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; font-size: 10pt; text-align: left">Dividend declared</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(687</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(687</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(687</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; font-size: 10pt; text-align: left; padding-bottom: 1pt">Dividend declared and paid</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(313</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(313</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(313</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; padding-bottom: 1pt"><B>Balance at December&nbsp;31, 2017</B></TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">3</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(45</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">32,599</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">32,557</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">333</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">32,890</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.25in; font-size: 10pt; text-align: left; padding-bottom: 1pt">Changes in accounting policy&thinsp;&mdash;&thinsp;IFRS
    9 Financial Instruments</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(1,180</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(1,180</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(1,180</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font-size: 10pt; padding-bottom: 2.5pt"><B>Balance at January&nbsp;1, 2018 as restated</B></TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">3</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">(45</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">31,419</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">31,377</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">333</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">31,710</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left"><B>Changes during 2018:</B></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; font-size: 10pt; text-align: left">Net profit</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">26,509</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">26,509</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">270</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">26,779</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; font-size: 10pt; text-align: left; padding-bottom: 1pt">Other comprehensive loss</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(20</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(20</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(20</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(40</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.25in; font-size: 10pt; text-align: left; padding-bottom: 1pt">Total comprehensive income for the year</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(20</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">26,509</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">26,489</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">250</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">26,739</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; padding-bottom: 2.5pt"><B>Balance at December&nbsp;31, 2018</B></TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">3</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">(65</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">57,928</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">57,866</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">583</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">58,449</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left"><B>Changes during 2019:</B></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; font-size: 10pt; text-align: left">Net profit</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">4,028</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">4,028</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">548</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">4,576</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; font-size: 10pt; text-align: left; padding-bottom: 1pt">Other comprehensive loss</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(74</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&#8199;&#8199;&#8199;&#8199;&#8199;&#8199;(74)</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(74</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(148</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.25in; font-size: 10pt; text-align: left">Total comprehensive income for the year</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(74</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">4,028</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">3,954</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">474</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">4,428</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; font-size: 10pt; text-align: left; padding-bottom: 1pt">Dividend paid</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(10,000</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(10,000</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(10,000</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; padding-bottom: 2.5pt"><B>Balance at December&nbsp;31, 2019</B></TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">3</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">(139</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">51,956</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">51,820</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">1,057</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">52,877</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>The accompanying notes are an integral
part of the consolidated financial statements.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="f_017"></A>SBTECH (GLOBAL) LIMITED </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CONSOLIDATED STATEMENTS OF CASH FLOWS<BR STYLE="clear: both">
(in thousands of &euro;) </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.25in; white-space: nowrap">&nbsp;&#8203;</TD><TD STYLE="white-space: nowrap; font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Note</TD><TD STYLE="white-space: nowrap; font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Year ended<BR> December&nbsp;31, <BR>
2019</TD><TD STYLE="white-space: nowrap; padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="white-space: nowrap; font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Year ended<BR> December&nbsp;31, <BR>
2018</TD><TD STYLE="white-space: nowrap; padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="white-space: nowrap; font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Year ended<BR> December&nbsp;31, <BR>
2017</TD><TD STYLE="white-space: nowrap; padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.125in; text-align: left"><B>CASH
    FLOWS FROM OPERATING ACTIVITIES:</B></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center">&#8203;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">&#8203;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">&#8203;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">&#8203;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.25in; width: 48%; text-align: left">Net profit for the year</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 12%; font: normal 10pt Times New Roman, Times, Serif; text-align: center">&#8203;</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: normal 10pt Times New Roman, Times, Serif; text-align: right">4,576</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: normal 10pt Times New Roman, Times, Serif; text-align: right">26,779</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: normal 10pt Times New Roman, Times, Serif; text-align: right">16,290</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.25in; text-align: left">Adjustments required to reflect the cash flows from operating activities:</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center">&#8203;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">&#8203;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">&#8203;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">&#8203;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.25in; text-align: left">Depreciation and amortization</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center">5,6,15</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">16,045</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">8,325</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">4,222</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.25in; text-align: left">Interest charged on lease liabilities</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center">15</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">677</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.25in; text-align: left">Gain on sale of fixed assets</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center">5</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">(14</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.25in; text-align: left">Increase in trade receivables</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center">&#8203;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">(7,408</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">(6,706</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">(7,602</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.25in; text-align: left">Decrease (increase) in other current assets</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center">4</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">1,065</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">(1,833</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">(245</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.25in; text-align: left">Increase in contract costs</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center">6</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">(443</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.25in; text-align: left">Decrease (increase) in other non-current assets</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center">7</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">(40</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">34</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">(46</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.25in; text-align: left">Increase in deferred tax assets</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center">13</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">(362</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">(34</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">(56</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.25in; text-align: left">Increase in trade payables</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center">&#8203;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">1,180</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">2,402</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">3,295</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.25in; text-align: left">Increase (decrease) in accrued severance pay</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center">&#8203;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">(18</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">(107</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">13</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.25in; text-align: left">Increase in other accounts payable and accrued expenses</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center">8</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">4,050</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">1,903</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">2,255</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.25in; text-align: left; padding-bottom: 1pt">Income tax expenses</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt">13</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">1,000</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">565</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">264</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.25in; text-align: left">Cash generated from operations</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center">&#8203;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">20,322</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">31,314</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">18,390</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.25in; text-align: left; padding-bottom: 1pt">Income tax paid</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt">13</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">(797</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">(365</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">(130</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.375in; text-align: left; padding-bottom: 1pt"><B>Net
    cash provided by operating activities</B></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt">&#8203;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">19,525</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">30,949</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">18,260</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.125in; text-align: left"><B>CASH
    FLOWS FROM INVESTING ACTIVITIES:</B></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center">&#8203;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">&#8203;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">&#8203;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">&#8203;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.25in; text-align: left">Purchase of property, plant and equipment</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center">5</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">(4,934</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">(5,865</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">(3,225</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.25in; text-align: left">Disposal of fixed assets</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center">5</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">35</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.25in; text-align: left">Purchase of software and licenses</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center">6</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">(392</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">(388</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">(215</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.25in; text-align: left">Proceeds from sale of fixed assets</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center">5</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">55</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.25in; text-align: left">Decrease (increase) in restricted deposits</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center">&#8203;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">(25</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">250</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">467</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.25in; text-align: left">Increase in deposits</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center">7</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">(60</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">(72</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.25in; text-align: left">Loans granted to related party</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center">14</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">(50</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.25in; text-align: left">Repayment of loan from related party</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center">14</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">1,200</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.25in; text-align: left; padding-bottom: 1pt">Internally generated intangible assets</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt">6</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">(13,048</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">(12,611</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">(11,212</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.375in; text-align: left; padding-bottom: 1pt"><B>Net
    cash used in investing activities</B></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt">&#8203;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">(18,399</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">(17,384</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">(14,307</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.125in; text-align: left"><B>CASH
    FLOWS FROM FINANCING ACTIVITIES:</B></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center">&#8203;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">&#8203;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">&#8203;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">&#8203;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.25in; text-align: left">Dividend paid</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center">9</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">(10,000</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">(687</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">(313</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.25in; text-align: left">Principal paid on lease liabilities</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center">15</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">(3,537</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.25in; text-align: left">Loans received from related party</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center">12</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">43</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">503</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.25in; padding-bottom: 1pt">Repayment of loan</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt">12</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">(540</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.25in; text-align: left; padding-bottom: 1pt"><B>Net
    cash provided by (used in) financing activities</B></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt">&#8203;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">(13,537</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">(1,184</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">190</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.125in; text-align: left; padding-bottom: 1pt"><B>Effects
    of exchange rate changes on cash and cash equivalents</B></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt">&#8203;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">(176</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">(104</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">(6</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.125in; text-align: left"><B>Net
    increase (decrease) in cash and cash equivalents</B></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center">&#8203;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">(12,587</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">12,277</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">4,137</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.125in; text-align: left; padding-bottom: 1pt"><B>Cash
    and cash equivalents at beginning of the year</B></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt">&#8203;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">20,731</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">8,454</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">4,317</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.125in; text-align: left; padding-bottom: 2.5pt"><B>Cash
    and cash equivalents at the end of the year</B></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 2.5pt">&#8203;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">8,144</TD><TD STYLE="padding-bottom: 2.5pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">20,731</TD><TD STYLE="padding-bottom: 2.5pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">8,454</TD><TD STYLE="padding-bottom: 2.5pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.125in; text-align: left"><B>Non-cash
    activities</B></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center">&#8203;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">&#8203;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">&#8203;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">&#8203;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.125in; text-align: left">Dividend declared</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center">&#8203;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">687</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>The accompanying notes are an integral
part of the consolidated financial statements.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<!-- Field: Split-Segment; Name: z15 --><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="s_001"></A>SBTECH (GLOBAL) LIMITED</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Notes to the consolidated financial Statements<BR STYLE="clear: both">
(in thousands of &euro;, except when specified otherwise) </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 1&thinsp;&mdash;&thinsp;GENERAL: </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">SBTech (Global) Limited (the &ldquo;Company&rdquo;)
and its subsidiaries (together, the &ldquo;Group&rdquo;) was founded in July, 2007 in Gibraltar and since November&nbsp;2016 has
been domiciled in 33-37 Athol Street, Douglas, Isle of Man, IM1 1LB (Company number 014119V). The Group is an industry-leading
developer of proprietary iGaming platform and sports betting software and solutions for remote gaming operators. These services
are provided on a business-to-business basis.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 2&thinsp;&mdash;&thinsp;SIGNIFICANT ACCOUNTING POLICIES:
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The principal accounting policies adopted
in the preparation of the consolidated financial statements are set out below. The policies have been consistently applied to all
the&nbsp;years presented, unless otherwise stated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Basis of preparation </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">These consolidated financial statements have
been prepared in accordance with International Financial Reporting Standards (&ldquo;IFRS&rdquo;), as issued by the International
Accounting Standard Board (&ldquo;IASB&rdquo;). The financial statements have been prepared under the historical cost convention,
except for accrued severance pay, which is accounted for at fair value. The Group has elected to present the statements of comprehensive
income using the function of expense method. In addition, these consolidated financial statements are presented in Euros. All currency
amounts have been recorded to the nearest thousand, unless otherwise indicated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Use of estimates and assumptions in the preparation of the
financial statements </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The preparation of financial statements requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent
assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting
periods. By their nature, these estimates are subject to measurement uncertainty and are reviewed periodically and adjustments,
if necessary, are made in the year which they are identified. Actual results could differ from those estimates. See also Note 3.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Principal of consolidation </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The consolidated financial statements include
the accounts of SBTech (Global) Limited Ltd. and its subsidiaries in which it has a controlling interest. All intercompany balances
and transactions have been eliminated upon consolidation. The consolidated financial statements of the Group include the accounts
of the companies detailed in Note 18.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Non-controlling interests </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Total comprehensive income of non-wholly
owned subsidiaries is attributed to owners of the parent and to the non-controlling interests in proportion to their relative ownership
interests.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>New and amended standards and interpretations adopted in
the period </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Group adopted IFRS 16 with a transition
date of January&nbsp;1, 2019. The Group has chosen not to restate comparatives on adoption of the standard, and therefore, the
revised requirements are not reflected in the prior year financial statements. Details of the impact this standard has had are
disclosed below. Other new and amended standards and Interpretations issued by the IASB did not impact the Group as they are either
not relevant to the Group&rsquo;s activities or require accounting which is consistent with the Group&rsquo;s current accounting
policies, such as the implementation of IFRIC Interpretation 23 disclosed below. The Group has not early adopted any standards,
interpretations or amendments that have been issued but are not yet effective.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

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    <!-- Field: /Page --><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SBTECH (GLOBAL) LIMITED</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Notes to the consolidated financial Statements<BR STYLE="clear: both">
(in thousands of&thinsp; &euro;, except when specified otherwise)<BR STYLE="clear: both">
 &#8199;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 2&thinsp;&mdash;&thinsp;SIGNIFICANT ACCOUNTING POLICIES:&thinsp;
(continued)<BR STYLE="clear: both">
 &#8199;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>IFRS 16 Leases</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Effective January&nbsp;1, 2019, IFRS 16 has
replaced IAS 17 Leases and IFRIC 4 Determining whether an Arrangement Contains a Lease. IFRS 16 provides a single lessee accounting
model, requiring the recognition of assets and liabilities for all leases, together with exemptions to exclude leases where the
lease term is 12&nbsp;months or less, or where the underlying asset is of low-value. IFRS 16 substantially carries forward the
lessor accounting in IAS 17, with the distinction between operating leases and finance leases being retained. The Group does not
have significant leasing acting as a lessor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">IFRS 16 provides for certain optional practical
expedients, including those related to the initial application of the standard. The Group applied the following practical expedients
when applying IFRS 16 to leases previously classified as operating leases under IAS 17:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD STYLE="text-align: justify">Applied a single discount rate to a portfolio of leases with reasonably similar characteristics;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8203;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD STYLE="text-align: left">Applied the exemption not to recognize right-of-use assets and liabilities for leases with less than 12&nbsp;months of lease term remaining as of the date of initial application and do not contain a purchase option.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8203;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">As a lessee, the Group previously classified
leases as operating or finance leases based on its assessment of whether the lease transferred substantially all of the risks and
rewards of ownership. Under IFRS 16, the Group recognizes right-of-use assets and lease liabilities for all leases.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Group adopted IFRS 16 using the modified
retrospective approach, with recognition of transitional adjustments on the date of initial application (January&nbsp;1, 2019),
without restatement of comparative figures.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">On initial application of IFRS 16, the Group
recognized right-of-use assets and lease liabilities in relation to leases of office facilities, motor vehicles, and data centers,
which had previously been classified as operating leases. The lease liabilities were measured at the present value of the remaining
lease payments, discounted using the Group&rsquo;s incremental borrowing rate as at January&nbsp;1, 2019. The Group&rsquo;s incremental
borrowing rate is the rate at which a similar borrowing could be obtained from an independent creditor under comparable terms and
conditions. The weighted-average rate applied was 2.98%. Right-of-use assets are measured at an amount equal to the lease liability,
adjusted by the amount of any prepaid or accrued lease payments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The following table presents the impact of
applying IFRS 16 on the consolidated statement of financial position as at January&nbsp;1, 2019:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">&#8203;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Under previous policy</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="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">The change</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="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Under IFRS 16</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Non-current assets:</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&#8203;</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 62%; font-weight: bold; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">Right-of-use assets</FONT></TD>
    <TD STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">&mdash;</FONT></TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">20,769</FONT></TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">20,769</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Current liabilities:</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&#8203;</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">Lease liabilities</FONT></TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">&mdash;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">2,440</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">2,440</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Non-current liabilities:</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&#8203;</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">Lease liabilities</FONT></TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">&mdash;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">18,329</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">18,329</FONT></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-indent: 20pt">For the year ended December&nbsp;31, 2019:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD STYLE="text-align: left">Depreciation expense increased because of the depreciation of right-of-use assets. This resulted in increases in Cost of revenue of 1,792, Research and development expenses of 1,179, Selling and marketing expenses of 10, and General and administrative expenses of 365.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&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"><B>SBTECH (GLOBAL) LIMITED</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Notes to the consolidated financial Statements<BR STYLE="clear: both">
(in thousands of&thinsp; &euro;, except when specified otherwise)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 2&thinsp;&mdash;&thinsp;SIGNIFICANT ACCOUNTING POLICIES:&thinsp;
(continued)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD STYLE="text-align: left">Lease expense relating to previous operating leases decreased by 1,798 in Cost of revenue, 1,307 in Research and development expenses, 20 in Selling and marketing expenses, and 412 in General and administrative expenses.</TD></TR>
</TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD STYLE="text-align: justify">Financial expense increased by 677 relating to the interest expense on additional lease liabilities recognised.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8203;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD STYLE="text-align: justify">Income tax expenses decreased, and deferred tax asset increased by 73 relating to the tax effect of these changes in expenses.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8203;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD STYLE="text-align: left">Cash flow from operating activities increased by 677 and cash flows from financing activities decreased by 3,537, relating to decrease in operating lease payments and increases in principal and interest payments of lease liabilities.</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"><I>Significant accounting policies subsequent to transition
</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">All leases are accounted for by recognising
a right-of-use asset and a lease liability. Lease liabilities are measured at the present value of the contractual payments due
to the lessor over the lease term, with the discount rate determined by reference to the rate implicit in the lease unless (as
is typically the case) this is not readily determinable, in which case the Group&rsquo;s incremental borrowing rate on commencement
of the lease is used. Variable lease payments are only included in the measurement of the lease liability if they depend on an
index or rate. In such cases, the initial measurement of the lease liability assumes the variable element will remain unchanged
throughout the lease term. Other variable lease payments are expensed in the period to which they relate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On initial recognition, the carrying value of the lease liability
also includes:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD STYLE="text-align: justify">amounts expected to be payable under any residual value guarantee;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD STYLE="text-align: justify">the exercise price of any purchase option granted in favor of the Group if it is reasonably certain to exercise that option;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD STYLE="text-align: justify">any penalties payable for terminating the lease, if the term of the lease has been estimated on the basis of termination option being exercised.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8203;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Right-of-use assets are initially measured
at the amount of the lease liability, reduced for any lease incentives received, and increased for:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD STYLE="text-align: justify">lease payments made at or before commencement of the lease;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD STYLE="text-align: justify">initial direct costs incurred; and</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8203;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD STYLE="text-align: justify">the amount of any provision recognized where the Group is contractually required to dismantle, remove or restore the leased asset.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8203;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Subsequent to initial measurement, lease
liabilities increase as a result of interest charged at a constant rate on the balance outstanding and are reduced for lease payments
made. Right-of-use assets are amortized on a straight-line basis over the remaining term of the lease or over the remaining useful
life of the right-of-use asset, if rarely, this is judged to be shorter than the lease term. In the scenario of a purchase option,
the Group amortizes the right-of-use asset over its useful life. Lease liabilities are remeasured when there is a change in future
lease payments arising from a change in an index or rate or when there is a change in the assessment of the term of any lease
the remeasurement being recognized in front of the right-of-use assets.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<!-- Field: Page; Sequence: 260; Value: 1 -->
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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; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SBTECH (GLOBAL) LIMITED</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Notes to the consolidated financial Statements<BR STYLE="clear: both">
(in thousands of&thinsp; &euro;, except when specified otherwise)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 2&thinsp;&mdash;&thinsp;SIGNIFICANT ACCOUNTING POLICIES:&thinsp;
(continued)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The following is a reconciliation of the
Group&rsquo;s liabilities in respect of operating leases disclosed in the financial statements as of December&nbsp;31, 2018, discounted
at the incremental interest rate on the initial implementation date and lease commitments recognized on January&nbsp;1, 2019:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold"><FONT STYLE="font-style: normal; font-weight: normal">&#8203;</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-style: normal; font-weight: normal">&euro;</FONT></TD>
    <TD STYLE="background-color: White; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; width: 87%"><FONT STYLE="font-style: normal; font-weight: normal">Operating lease commitments as of December&nbsp;31, 2018</FONT></TD>
    <TD STYLE="font-weight: bold; width: 1%">&nbsp;</TD>
    <TD STYLE="font-weight: bold; width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; width: 10%; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">11,309</FONT></TD>
    <TD STYLE="background-color: White; font-weight: bold; width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">Less: short-term leases not recognized under IFRS 16</FONT></TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">(298</FONT></TD>
    <TD STYLE="background-color: White; font-weight: bold; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">Less: effect of termination options reasonably certain to be exercised</FONT></TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">(190</FONT></TD>
    <TD STYLE="background-color: White; font-weight: bold; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-style: normal; font-weight: normal">Plus: effect of extension options reasonably certain to be exercised</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">12,797</FONT></TD>
    <TD STYLE="background-color: White; font-weight: bold; padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">Undiscounted lease payments</FONT></TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">23,618</FONT></TD>
    <TD STYLE="background-color: White; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-style: normal; font-weight: normal">Less: effect of discounting using the weighted average incremental borrowing rate of 2.98% as of January&nbsp;1, 2019</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">(2,849</FONT></TD>
    <TD STYLE="background-color: White; font-weight: bold; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt"><FONT STYLE="font-style: normal">Lease liabilities as of January&nbsp;1, 2019</FONT></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right">20,769</TD>
    <TD STYLE="background-color: White; font-weight: bold; padding-bottom: 2.5pt; text-align: left">&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"><I>Use of estimates and judgements </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">There have been no material revisions to
the nature and amount of estimates of amounts reported in prior periods except where the implementation of IFRS 16 discussed above
requires a different approach to the accounting previously applied. Significant estimates and judgements that have been required
for the implementation of the new standard are:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD STYLE="text-align: justify">The determination of whether an arrangement contains a lease;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8203;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD STYLE="text-align: left">The determination of lease term for some lease contracts in which the Group is a lessee that include renewal options and termination options, and the determination whether the Group is reasonably certain to exercise such option; and</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8203;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD STYLE="text-align: justify">The determination of the incremental borrowing rate used to measure lease liabilities.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8203;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>IFRIC Interpretation 23 Uncertainty over Income Tax Treatments</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Effective January&nbsp;1, 2019, the Interpretation
addresses the accounting for income taxes when tax treatments involve uncertainty that affects the application of IAS 12 Income
Taxes. It does not apply to taxes or levies outside the scope of IAS 12, nor does it specifically include requirements relating
to interest and penalties associated with uncertain tax treatments. The Interpretation specifically addresses the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD STYLE="text-align: justify">Whether an entity considers uncertain tax treatments separately</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8203;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD STYLE="text-align: justify">The assumptions an entity makes about the examination of tax treatments by taxation authorities</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8203;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD STYLE="text-align: justify">How an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8203;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD STYLE="text-align: justify">How an entity considers changes in facts and circumstances</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8203;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; text-indent: 20pt; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt">The
Group determines whether to consider each uncertain tax treatment separately or together with one or more other uncertain tax
treatments and uses the approach that better predicts the resolution of the uncertainty. The Interpretation did not have an impact
on the consolidated financial statements of the Group.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

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    <!-- Field: /Page --><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SBTECH (GLOBAL) LIMITED</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Notes to the consolidated financial Statements<BR STYLE="clear: both">
(in thousands of&thinsp; &euro;, except when specified otherwise)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B>NOTE 2&thinsp;&mdash;&thinsp;SIGNIFICANT
ACCOUNTING POLICIES:&thinsp; (continued)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>New standards, interpretations and amendments not yet effective
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">There are a number of standards, amendments
to standards, and interpretations which have been issued by the IASB that are effective in future accounting periods that the Group
has decided not to adopt early.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Amendments to IAS 1 and IAS 8: <I>Definition of Material</I></U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">In October&nbsp;2018, the IASB issued amendments
to IAS 1 Presentation of Financial Statements and IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors to align
the definition of&thinsp; &ldquo;material&rdquo; across the standards and to clarify certain aspects of the definition. The new
definition states that, &ldquo;Information is material if omitting, misstating or obscuring it could reasonably be expected to
influence decisions that the primary users of general-purpose financial statements make on the basis of those financial statements,
which provide financial information about a specific reporting entity&rdquo;. The amendments are effective for annual reporting
periods beginning on or after January&nbsp;1, 2020. The amendments to the definition of material is not expected to have a significant
impact on the Group&rsquo;s consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Amendments to IAS 1: <I>Presentation of Financial Statements</I></U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">In January&nbsp;2020, the IASB issued amendments
to IAS 1, which clarify the criteria used to determine whether liabilities are classified as current or non-current. These amendments
clarify that current or non-current classification is based on whether an entity has a right at the end of the reporting period
to defer settlement of the liability for at least twelve&nbsp;months after the reporting period. The amendments also clarify that
 &ldquo;settlement&rdquo; includes the transfer of cash, goods, services, or equity instruments unless the obligation to transfer
equity instruments arises from a conversion feature classified as an equity instrument separately from the liability component
of a compound financial instrument. The amendments are effective for annual reporting periods beginning on or after January&nbsp;1,
2022. The Group is currently assessing the impact of these new accounting standards and amendments. The Group does not believe
that the amendments to IAS 1 will have a significant impact on the Group&rsquo;s consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Group does not expect any other standards
issued by the IASB, but not yet effective, to have a material impact on the Group&rsquo;s consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Foreign currency </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The financial information of the Group is
presented in Euro which is the Group&rsquo;s functional currency and is the currency that best reflects the economic substance
of the underlying events and circumstances relevant to the Group. Transactions and balances in foreign currencies are converted
into Euro in accordance with the principles set forth by IAS 21 (&ldquo;The Effects of Changes in Foreign Exchange Rates&rdquo;).
Accordingly, transactions and balances have been converted as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD STYLE="text-align: justify">Monetary assets and liabilities&thinsp;&mdash;&thinsp;at the rate of exchange applicable at the consolidated statements of financial position date.</TD></TR>
</TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD STYLE="text-align: justify">Income and expense items&thinsp;&mdash;&thinsp;at exchange rates applicable as of the date of recognition of those items.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8203;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD STYLE="text-align: justify">Non-monetary items are converted at the rate of exchange used to convert the related balance sheet items i.e. at the time of the transaction.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8203;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD STYLE="text-align: justify">Exchange gains and losses from the aforementioned conversion are recognized in profit or loss.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SBTECH (GLOBAL) LIMITED</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Notes to the consolidated financial Statements<BR STYLE="clear: both">
(in thousands of&thinsp; &euro;, except when specified otherwise)<BR STYLE="clear: both">
 &#8199;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 2&thinsp;&mdash;&thinsp;SIGNIFICANT ACCOUNTING POLICIES:&thinsp;
(continued)<BR STYLE="clear: both">
 &#8199;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Cash and cash equivalents </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Cash equivalents are considered by the Group
to be highly-liquid investments, including, inter alia, short-term deposits with banks, the maturity of which do not exceed three&nbsp;months
at the time of deposit and which are not restricted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Fair value measurement </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Fair value is the price that would be received
to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The carrying value of cash and cash equivalents, trade receivables, net and other current assets, and trade payables and other
accounts payables and accrued expenses approximate their fair value due to the short-term nature of these instruments. The fair
value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: left">A.</TD>
    <TD STYLE="text-align: justify">In the principal market for the asset or liability; or</TD></TR>
</TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: left">B.</TD>
    <TD STYLE="text-align: justify">In the absence of a principal market, in the most advantageous market for the asset or liability.</TD></TR>
</TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="text-indent: 20pt; margin: 0pt 0">The principal or the most advantageous market must be accessible by the Group.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The fair value of an asset or a liability
is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market
participants act in their economic best interest.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">A fair value measurement of a non-financial
asset takes into account a market participant&rsquo;s ability to generate economic benefits by using the asset in its highest and
best use or by selling it to another market participant that would use the asset in its highest and best use. When there are no
quoted prices in active markets for identical assets or liabilities, the Group uses valuation techniques that are appropriate in
the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable
inputs and minimizing the use of unobservable inputs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Classification by fair value hierarchy</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Assets and liabilities presented in the consolidated
statements of financial position at fair value are grouped into classes with similar characteristics using the following fair value
hierarchy which is determined based on the source of input used in measuring fair value:</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level&nbsp;1</FONT></TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&thinsp;&mdash;&thinsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Quoted prices (unadjusted) in active markets for identical assets or liabilities. </FONT></TD></TR>
</TABLE>
<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: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level&nbsp;2</FONT></TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&thinsp;&mdash;&thinsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Inputs other than quoted prices included within Level&nbsp;1 that are observable either directly or indirectly. </FONT></TD></TR>
</TABLE>
<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: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level&nbsp;3</FONT></TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&thinsp;&mdash;&thinsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Inputs that are not based on observable market data (valuation techniques that use inputs that are not based on observable market data). </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">For assets and liabilities that are recognized
in the financial statements at fair value on a recurring basis, the Group determines whether transfers have occurred between levels
in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement
as a whole) at the end of each reporting period.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&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; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SBTECH (GLOBAL) LIMITED</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Notes to the consolidated financial Statements<BR STYLE="clear: both">
(in thousands of&thinsp; &euro;, except when specified otherwise)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B>NOTE 2&thinsp;&mdash;&thinsp;SIGNIFICANT
ACCOUNTING POLICIES:&thinsp; (continued)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Financial instruments</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1. <U>Financial Assets</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Group classifies its financial assets
into the following category, based on the business model for managing the financial asset and its contractual cash flow characteristics.
The Group&rsquo;s accounting policy for the relevant category is as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Amortized cost: These assets arise principally
from the services rendered to customers (e.g. trade receivables), but also incorporate other types of financial assets where the
objective is to hold these assets in order to collect contractual cash flows and the contractual cash flows are solely payments
of principal and interest. They are initially recognized at fair value plus transaction costs that are directly attributable to
their acquisition or issue, and are subsequently carried at amortized cost using the effective interest rate method, less provision
for impairment. Impairment provisions for trade receivable are recognized based on the simplified approach within IFRS 9 using
a provision in the determination of the lifetime expected credit losses. During this process the probability of the non-payment
of the trade receivables is assessed. This probability is then multiplied by the amount of the expected loss arising from default
to determine the lifetime expected credit loss for the trade receivables. For trade receivables, which are reported net, such provisions
are recorded in a separate provision account with the loss being recognized within general and administrative expenses in the consolidated
statements of comprehensive income. On assessment that the trade receivable will not be collectable, the gross carrying value of
the asset is written off against the associated provision.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">2. <U>Financial Liabilities</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Group classifies its financial liabilities
based on the purpose for which the liability was acquired. The Group&rsquo;s accounting policy is as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Fair value through profit or loss: The Group
does not have any liabilities held for trading nor has it designated any financial liabilities as being at fair value through profit
or loss.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Amortized cost: Trade payables and certain
other accounts payable and accrued expenses are initially recognized at fair value and subsequently carried at amortized cost using
the effective interest method.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">3. <U>De-recognition</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD STYLE="text-align: left">Financial Assets&thinsp;&mdash;&thinsp;The Group derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the rights to receive the contractual cash flows.</TD></TR>
</TABLE>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD STYLE="text-align: justify">Financial Liabilities&thinsp;&mdash;&thinsp;The Group derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire.</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">4. <U>Impairment of financial assets</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Group assesses at the end of each reporting
period whether there is any objective evidence of impairment of financial assets carried at amortized cost. The Group recognizes
an allowance for expected credit losses (&ldquo;ECL&rdquo;) for all debt instruments not held at fair value through profit or
loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash
flows that the Group expects to receive, discounted at an approximation of the original effective interest rate. ECLs are recognized
in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition,
ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL).
For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance
is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime
ECL). For trade receivables and contract assets, the Group applies a simplified approach in calculating ECLs. Therefore, the Group
does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each reporting date.
The Group has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking
factors specific to the debtors and the economic environment. The Group assessed its financial assets that are subject to the
expected credit loss model. In order to manage the credit risks associated with customer receivables, the Group aims to secure
certain financial guarantees prior to entering into business relationships with its customers. Payment terms with customers from
different geographical areas are similar.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SBTECH (GLOBAL) LIMITED</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Notes to the consolidated financial Statements<BR STYLE="clear: both">
(in thousands of&thinsp; &euro;, except when specified otherwise)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 2&thinsp;&mdash;&thinsp;SIGNIFICANT ACCOUNTING POLICIES:&thinsp;
(continued)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">To this end, the Group developed a matrix,
which is based on past experience and historical data along with projections into consideration, in order to group the ECL:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: left">1.</TD>
    <TD STYLE="text-align: justify">Receivables with a short billing cycle (&ldquo;Payment option 1&rdquo;).</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: left">2.</TD>
    <TD STYLE="text-align: justify">Receivables from related party (&ldquo;Payment option 2&rdquo;).</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-indent: 20pt">ECLs are measured as the unbiased probability-weighted
present value of all cash shortfalls over the expected life of each financial asset. ECLs are mainly calculated with a statistical
model using three major risk parameters: probability of default, loss given default and exposure at default. The estimation of
these risk parameters incorporates all available relevant information, not only historical and current loss data, but also reasonable
and supportable forward-looking information reflected by the future expectation factors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">This information includes macroeconomic factors
(e.g., gross domestic product growth, unemployment rate, cost performance index) and forecasts of future economic conditions. For
receivables from financial services, these forecasts are performed using a scenario analysis (base case, adverse and optimistic
scenarios).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Definition of default, including reasons for selecting
the definition </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Prior to commencing a business relationship,
the Group will enter into an agreement with the customer. The agreement or contract typically includes details of the terms of
payment to which the Group is entitled. In most cases, the customer updates the Group if there is a delay in the payment beyond
the terms of the agreement. Any delays in payment for more than two&nbsp;months are subject to approval of management. If a customer&rsquo;s
scheduled payment is delayed by more than two&nbsp;months and such delay is not approved by the Group&rsquo;s management, the sale
department will typically make direct contact with the customer&rsquo;s management and inform them of the overdue obligation and
the Group will pursue remedies available (such as legal notice, suspend fully or partially service) to collect the overdue payment.
If the customer and the Group are not able to resolve the matter at that time, the receivable is considered to be in default as
the collectability is no longer certain. If the collection effort is not successful, the Group will retain legal counsel in the
applicable country to assist with collection and sends a demand letter to that effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Write-off policy </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Group writes off its financial assets
if any of the following occur:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD STYLE="text-align: justify">Inability to locate the debtor.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8203;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD STYLE="text-align: justify">Discharge of the debt in a bankruptcy.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8203;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD STYLE="text-align: justify">It is determined that the efforts to collect the debt are no longer cost effective given the size of receivable.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8203;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The collections department must comply with
the collection efforts outlined in the policy to collect on delinquent customer accounts before any write-offs are made.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SBTECH (GLOBAL) LIMITED</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Notes to the consolidated financial Statements<BR STYLE="clear: both">
(in thousands of&thinsp; &euro;, except when specified otherwise)<BR STYLE="clear: both">
 &#8199;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 2&thinsp;&mdash;&thinsp;SIGNIFICANT ACCOUNTING POLICIES:&thinsp;
(continued)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Aging Schedule based on due date </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
    of December&nbsp;31, 2019</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Within<BR>
    payment<BR> terms</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0-90&nbsp;days
    over<BR> payment terms</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">90+
    days over<BR> payment terms</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 48%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Payment
    option 1</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 10%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">14,884</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 10%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4,574</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 10%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,430</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 10%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,888</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Payment
    option 2</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">544</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">158</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3,323</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4,025</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Total</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">15,428</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4,732</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4,753</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">24,913</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>As
    of December&nbsp;31, 2018</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Within<BR>
    payment<BR> terms</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>0-90&nbsp;days
    over<BR> payment terms</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>90+
    days over<BR> payment terms</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Total</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 48%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Payment
    option 1</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 10%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">8,890</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 10%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,366</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 10%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3,226</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 10%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">13,482</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Payment
    option 2</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">459</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">275</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3,872</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4,606</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Total</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">9,349</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,641</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">7,098</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">18,088</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Trade receivables by geographic area </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&#8203;</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>As
    of<BR> December&nbsp;31, 2019</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>As
    of<BR> December&nbsp;31, 2018</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 71%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Europe</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">11,623</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">9,018</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Rest
    of the world</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">13,290</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">9,070</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Total</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">24,913</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">18,088</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Two level matrix </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&#8203;</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>As
    of<BR> December&nbsp;31, 2019</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>As
    of<BR> December&nbsp;31, 2018</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 71%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Payment
    option 1</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,888</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">13,482</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Payment
    option 2</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4,025</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4,606</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Total</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">24,913</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">18,088</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">At every reporting date the historical observed
default rates are updated and changes in the forward-looking estimates are analyzed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Level provision matrix </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-indent: 20pt; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Group estimated the following provision matrix:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&#8203;</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Default
    rate</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>As
    of<BR> December&nbsp;31, 2019</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>ECL</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 61%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Payment
    option 1</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 10%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0.8</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 10%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,888</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 10%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">167</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Payment
    option 2</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0.04</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4,025</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Total</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">24,913</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">168</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&#8203;</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Default
    rate</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>As
    of<BR> December&nbsp;31, 2018</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>ECL</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 61%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Payment
    option 1</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 10%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0.62</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 10%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">13,482</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 10%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">84</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Payment
    option 2</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">17.02</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4,606</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">784</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Total</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">18,088</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">868</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SBTECH (GLOBAL) LIMITED</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Notes to the consolidated financial
Statements<BR STYLE="clear: both">
(in thousands of&thinsp; &euro;, except when specified otherwise)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 2&thinsp;&mdash;&thinsp;SIGNIFICANT ACCOUNTING POLICIES:&thinsp;
(continued)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Movements in the impairment allowance for trade receivables
are as follows: </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&#8203;</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>2019</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>2018</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>2017</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">At
    January&nbsp;1 (under IAS 39)</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 61%; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Restated
    through opening retained earnings</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,180</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">At
    January&nbsp;1 (under IFRS 9)</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">868</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,180</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Decrease
    during the year</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(700</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(312</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>At
    December&nbsp;31</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">168</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">868</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-indent: 20pt; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of December&nbsp;31, 2019, and 2018, ECL for trade receivables
were 168 and 868, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Intangible assets </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Intangible assets include internally generated
capitalized software development costs. Intangible assets with a finite useful life are amortized over their estimated useful lives
and reviewed for impairment whenever there is an indication that the asset may be impaired. The amortization period and the amortization
method for an intangible asset are reviewed at least at each year end. The carrying amount of these assets is reviewed whenever
events or changes in circumstances indicate that the carrying value of an asset may not be recoverable (see also Note 2&thinsp;&mdash;&thinsp;Impairment
of non-financial assets).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Expenditure incurred on development activities
including the Group&rsquo;s software development is capitalized only where the expenditure will lead to new or substantially improved
products, the products are technically and commercially feasible and the Group has sufficient resources to complete the development
and reach the stage for which the product is ready for use. Capitalized development costs are amortized on a straight-line basis
over their estimated useful lives of 4&nbsp;years once the development is completed and the assets are in use. Subsequent expenditure
on capitalized intangible assets is capitalized only where it clearly increases the economic benefits to be derived from the asset
to which it relates. All other expenditure, including that incurred in order to maintain an intangible asset&rsquo;s current level
of performance, is expensed as incurred (see also Note 2&thinsp;&mdash;&thinsp;Research and development costs). Externally purchased
software and licenses are amortized on a straight-line basis over the period of the software and licenses, which ranges between
two to three&nbsp;years.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Property, plant and equipment </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Items of property, plant and equipment are
initially recognized at cost. Cost includes directly attributable costs and the estimated present value of any future costs of
dismantling and removing items. Depreciation is computed by the straight-line method, based on the estimated useful lives of the
assets, as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 95%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&#8203;</B></FONT></TD><TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Annual
    depreciation rate (%)</B></FONT></TD><TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Main
    annual depreciation rate (%)</B></FONT></TD><TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 33%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Motor
    vehicle</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 33%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">15</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 30%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">15</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Computers</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">15-50</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">33</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Furniture
    and office equipment</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">7-15</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">15</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Leasehold
    improvements</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Over
    the shorter of the term of the<BR> lease or useful life</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></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; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SBTECH (GLOBAL) LIMITED</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Notes to the consolidated financial Statements<BR STYLE="clear: both">
(in thousands of&thinsp; &euro;, except when specified otherwise)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 2&thinsp;&mdash;&thinsp;SIGNIFICANT ACCOUNTING POLICIES:&thinsp;
(continued)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Leasehold improvements are depreciated over
the term of the expected lease including optional extension, or the estimated useful lives of the improvements, whichever is shorter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Impairment of non-financial assets </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Non-financial assets are subject to impairment
test whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Where the carrying
value of the non-financial asset exceeds its recoverable amount (i.e. the higher of value in use and fair value less costs to dispose),
the asset is written down and impairment charge is recognized accordingly. Where it is not possible to estimate the recoverable
amount of an individual asset, the impairment test is carried out on the asset&rsquo;s cash-generating unit (i.e. the smallest
group of assets to which the asset belongs that generates cash inflow that are largely independent of cash inflows from other assets).
An impairment loss allocated to an asset, is reversed only if there have been changes in the estimates used to determine the asset&rsquo;s
recoverable amount since the last impairment loss was recognized. Reversal of an impairment loss, as above, is limited to the lower
of the carrying amount of the asset that would have been determined (net of depreciation or amortization) had no impairment loss
been recognized for the asset in prior&nbsp;years and the assets recoverable amount. After an impairment of non-financial asset
is recognized, the Group examines at each reporting date whether there are indications that the impairment which was recognized
in the past no longer exists or should be reduced. The reversal of impairment loss of an asset is recognized in profit or loss.
Impairment charges are included in general and administrative expenses. During the&nbsp;years ended December&nbsp;31, 2019, 2018
and 2017 no impairment charges of non-financial assets were recognized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Research and development costs </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Expenditure on research activities is recognized
in profit or loss as incurred. Expenditure incurred on development activities including the Group&rsquo;s development is capitalized
where the expenditure will lead to new or substantially improved products and only if all the following can be demonstrated:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in; text-align: center"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">The product is technically and commercially feasible.</TD>
</TR>                                                                                                                                                           <TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: center"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">The Group intends to complete the product so that it will be
available for use or sale.</TD></TR>
<TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: center"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">The Group has the ability to use the product or sell it.</TD></TR>
<TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: center"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">The Group has the technical, financial and other resources to
complete the development and to use or sell the product.</TD></TR>
<TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: center"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">The Group can demonstrate the probability that the product will
generate future economic benefits.</TD></TR>
<TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in; text-align: center"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">The Group is able to measure reliably the expenditure attributable
to the product during the development.</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-indent: 20pt">Capitalized development costs are amortized
on a straight-line basis over their estimated useful lives of four&nbsp;years once the development is completed and the assets
are in use. Subsequent expenditure on capitalized intangible assets is capitalized only where it clearly increases the economic
benefits to be derived from the asset to which it relates. All other expenditure, including that incurred in order to maintain
an intangible asset&rsquo;s current level of performance, is expensed as incurred.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Share based payment </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Group measures the share-based expense
and the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date
at which they are granted. The fair value is determined by using the Black-Scholes and Merton (BSM) model which considers the terms
and conditions upon which the instruments were granted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt"></P>

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<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SBTECH (GLOBAL) LIMITED</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Notes to the consolidated financial Statements<BR STYLE="clear: both">
(in thousands of&thinsp; &euro;, except when specified otherwise)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 2&thinsp;&mdash;&thinsp;SIGNIFICANT ACCOUNTING POLICIES:&thinsp;
(continued)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Deferred taxes </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Deferred taxes are computed in respect of
temporary differences between the carrying amounts of assets and liabilities in the financial statements and the amounts attributable
for tax purposes. Deferred taxes are recognized in other comprehensive income or directly in equity if the tax relates to those
items.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Deferred taxes are measured at the tax rates
that are expected to apply in the period when the temporary differences are reversed in profit or loss, other comprehensive income
or equity, based on tax laws that have been enacted or substantively enacted at the end of the reporting period. Deferred taxes
in profit or loss represent the changes in the carrying amount of deferred tax balances during the reporting period, excluding
changes attributable to items recognized in other comprehensive income or directly in equity. Deferred tax assets are reviewed
at the end of each reporting period and reduced to the extent that it is not probable that they will be utilized. In addition,
temporary differences (such as carry forward losses) for which deferred tax assets have not been recognized are reassessed and
deferred tax assets are recognized to the extent that their recoverability is probable. Any resulting reduction or reversal is
recognized on &ldquo;income tax&rdquo; within the statements of comprehensive income. Taxes that would apply in the event of the
disposal of investments in investees have not been taken into account, as long as the disposal of such investments is not expected
in the foreseeable future and the Group has control over such disposal. The Group&rsquo;s policy is not to initiate distribution
of dividends that triggers an additional tax liability. All deferred tax assets and liabilities are presented in the consolidated
statement of financial position as non-current items, respectively. Deferred taxes are offset in the consolidated statement of
financial position if there is a legally enforceable right to offset a current tax asset against a current tax liability and the
deferred taxes relate to the same taxpayer and the same taxation authority.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Current taxes </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The current taxes is calculated on the basis
of the tax laws enacted at the statement of financial position date in countries where the Group operates and generates taxable
income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation
is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax
authorities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Revenue recognition </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Revenue from contracts with customers is
recognized when control of the services are transferred to the customer at an amount that reflects the consideration to which the
Group expects to be entitled in exchange for those services. The Group&rsquo;s key revenue is derived from contracting parties
and comprises as a&nbsp;percentage of the revenue generated by the contracting party from use of the Group&rsquo;s intellectual
property in trading activities. Revenue share income is based on the underlying gaming revenue earned by our licensees and is recognized
in the accounting periods in which the gaming transactions occur. In reseller arrangements, the Group&rsquo;s revenue is comprised
of a base fixed monthly fee plus a fixed monthly fee for each end-user that the reseller contracts with to access the Group&rsquo;s
intellectual property in trading activities. The arrangements with customers do not provide the customer with the right to take
possession of the Group&rsquo;s software suite at any time. Instead, customers are granted continuous access to the Group&rsquo;s
software suite over the contractual period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt"></P>

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<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SBTECH (GLOBAL) LIMITED</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Notes to the consolidated financial Statements<BR STYLE="clear: both">
(in thousands of&thinsp; &euro;, except when specified otherwise)<BR STYLE="clear: both">
 &#8199;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 3&thinsp;&mdash;&thinsp;CRITICAL ACCOUNTING ESTIMATES
AND JUDGEMENTS: </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The areas requiring the use of estimates
and critical judgments that may potentially have a significant impact on the Group&rsquo;s earnings and financial position are:
capitalization and amortization of development costs and the useful life of property and equipment and of intangible assets. Upon
adoption of IFRS 16 as of January&nbsp;1, 2019, areas requiring the use of estimates and critical judgments also include the determination
of whether an arrangement is or contains a lease, the determination of lease term in contracts in which the Group is a lessee (including
the assessment of whether the Group is reasonably certain to exercise lessee extension or termination options), and the determination
of the incremental borrowing rate used to measure lease liabilities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Amortization of capitalized development costs and the useful
life of property and equipment </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Intangible assets and property and equipment
are amortized or depreciated over their useful lives. Useful lives are based on management&rsquo;s estimates of the period that
the assets will generate revenue, which are periodically reviewed for continued appropriateness. Changes to estimates can result
in significant variations in the amounts charged to the consolidated statements of comprehensive income in specific periods.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Share based payment </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Group has a share-based remuneration
scheme for employees. The share options plan has a &ldquo;Transaction Event&rdquo; as described in Note 9.C other than continued
service. As of the balance sheet date, the Group does not expect the occurrence of the Transaction Event to be considered as probable.
As a result, no expense has been recorded.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 4&thinsp;&mdash;&thinsp;OTHER CURRENT ASSETS: </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 95%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&#8203;</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>December&nbsp;31,<BR>
    2019</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>December&nbsp;31,<BR>
    2018</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 74%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Related
    parties (see Note 7)</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 10%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,503</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 10%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">86</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Prepaid
    expenses</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,352</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,286</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Institutions</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">207</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">567</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other
    receivables</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">196</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">937</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Total</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3,258</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2,876</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 5&thinsp;&mdash;&thinsp;PROPERTY AND EQUIPMENT, NET:
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&#8203;</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Leasehold<BR>
    Improvements</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Computers</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Furniture
    and<BR> Office <BR> Equipment</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Total</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Cost</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 0in; width: 48%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>At
    January&nbsp;1, 2019</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 10%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2,374</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 10%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">7,800</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 10%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">710</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 10%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10,884</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Additions</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">547</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4,196</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">191</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4,934</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>At
    December&nbsp;31, 2019</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2,921</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">11,996</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">901</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">15,818</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Accumulated
    depreciation</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>At
    January&nbsp;1, 2019</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(393</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2,352</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(213</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2,958</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Depreciation</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(220</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2,616</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(94</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2,930</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>At
    December&nbsp;31, 2019</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(613</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(4,968</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(307</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(5,888</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Net
    book value at December&nbsp;31, 2019</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2,308</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">7,028</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">594</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">9,930</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<FONT STYLE="font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->75<!-- Field: /Sequence --></FONT></P></DIV>
    <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; text-align: center">&nbsp;</P>

<!-- Field: Split-Segment; Name: a17 --><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SBTECH (GLOBAL) LIMITED</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Notes to the consolidated financial Statements<BR STYLE="clear: both">
(in thousands of&thinsp; &euro;, except when specified otherwise)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 5&thinsp;&mdash;&thinsp;PROPERTY AND EQUIPMENT, NET:&thinsp;
(continued)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 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; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Leasehold<BR> Improvements</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">Motor<BR> Vehicle</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">Computers</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">Furniture and<BR> Office Equipment</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">Total</TD>
    <TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><B>Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 35%"><B>At January&nbsp;1, 2018</B></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">783</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">121</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">4,263</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">375</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">5,542</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in">Additions</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,601</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&mdash;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,848</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">416</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,865</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; padding-bottom: 1pt">Disposals</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">(10</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">(121</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">(311</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">(81</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">(523</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.25in"><B>At December&nbsp;31, 2018</B></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,374</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&mdash;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">7,800</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">710</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10,884</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><B>Accumulated depreciation</B></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><B>At January&nbsp;1, 2018</B></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(79</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(33</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(1,338</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(170</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(1,620</TD>
    <TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in">Depreciation</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(319</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(18</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(1,324</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(124</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(1,785</TD>
    <TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; padding-bottom: 1pt">Disposals</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</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">51</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">310</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">81</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">447</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in"><B>At December&nbsp;31, 2018</B></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(393</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&mdash;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(2,352</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(213</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(2,958</TD>
    <TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt"><B>Net book value at December&nbsp;31, 2018</B></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">1,981</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right">5,448</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right">497</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right">7,926</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Leasehold<BR> Improvements</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">Motor<BR> Vehicle</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">Computers</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">Furniture and<BR> Office&nbsp;Equipment</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">Total</TD>
    <TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><B>Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 35%"><B>At January&nbsp;1, 2017</B></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">313</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">121</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">1,591</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">310</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">2,335</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in">Additions</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">470</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&mdash;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,690</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">65</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,225</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; padding-bottom: 1pt">Disposals</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;</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">(18</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;</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">(18</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.25in"><B>At December&nbsp;31, 2017</B></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">783</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">121</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,263</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">375</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,542</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><B>Accumulated depreciation</B></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><B>At January&nbsp;1, 2017</B></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(46</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(14</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(650</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(135</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(845</TD>
    <TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in">Depreciation</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(33</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(19</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(706</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(35</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(793</TD>
    <TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; padding-bottom: 1pt">Disposals</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;</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">18</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;</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">18</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in"><B>At December&nbsp;31, 2017</B></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(79</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(33</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(1,338</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(170</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(1,620</TD>
    <TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt"><B>Net book value at December&nbsp;31, 2017</B></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">704</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right">88</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right">2,925</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right">205</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right">3,922</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&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"><B>NOTE 6&thinsp;&mdash;&thinsp;INTANGIBLE ASSETS, NET:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Internally<BR> generated<BR> intangible assets</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">Software<BR> and licenses</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">Others</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">Total</TD>
    <TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><B>Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 48%"><B>At January&nbsp;1, 2019</B></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">32,681</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">603</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">&mdash;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">33,284</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; padding-bottom: 1pt">Additions</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">13,048</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">392</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">443</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">13,883</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in"><B>At December&nbsp;31, 2019</B></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">45,729</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">995</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">443</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">47,167</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"><B>Accumulated Amortization</B></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><B>At January&nbsp;1, 2019</B></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(11,110</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(194</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&mdash;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(11,304</TD>
    <TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; padding-bottom: 1pt">Amortization</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">(9,601</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">(161</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">(7</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">(9,769</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in"><B>At December&nbsp;31, 2019</B></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(20,711</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(355</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(7</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(21,073</TD>
    <TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt"><B>Net book value at December&nbsp;31, 2019</B></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">25,018</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right">640</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right">436</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right">26,094</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<!-- Field: Page; Sequence: 271; Value: 1 -->
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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; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SBTECH (GLOBAL) LIMITED</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Notes to the consolidated financial Statements<BR STYLE="clear: both">
(in thousands of&thinsp; &euro;, except when specified otherwise)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 6&thinsp;&mdash;&thinsp;INTANGIBLE ASSETS, NET:&thinsp;
(continued)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Internally<BR> generated<BR> intangible&nbsp;assets</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">Software<BR> and licenses</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">Total</TD>
    <TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><B>Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 61%"><B>At January&nbsp;1, 2018</B></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">20,070</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">215</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">20,285</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; padding-bottom: 1pt">Additions</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">12,611</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">388</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">12,999</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in"><B>At December&nbsp;31, 2018</B></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">32,681</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">603</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">33,284</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"><B>Accumulated Amortization</B></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><B>At January&nbsp;1, 2018</B></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(4,705</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(59</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(4,764</TD>
    <TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; padding-bottom: 1pt">Amortization</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">(6,405</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">(135</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">(6,540</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in"><B>At December&nbsp;31, 2018</B></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(11,110</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(194</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(11,304</TD>
    <TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt"><B>Net book value at December&nbsp;31, 2018</B></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">21,571</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right">409</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right">21,980</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Internally<BR> generated<BR> intangible&nbsp;assets</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">Software<BR> and licenses</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">Total</TD>
    <TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><B>Cost</B></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 61%"><B>At January&nbsp;1, 2017</B></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">8,858</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">&mdash;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">8,858</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; padding-bottom: 1pt">Additions</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">11,212</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">215</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">11,427</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in"><B>At December&nbsp;31, 2017</B></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">20,070</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">215</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">20,285</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"><B>Accumulated Amortization</B></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><B>At January&nbsp;1, 2017</B></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(1,335</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&mdash;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(1,335</TD>
    <TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; padding-bottom: 1pt">Amortization</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">(3,370</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">(59</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">(3,429</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in"><B>At December&nbsp;31, 2017</B></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(4,705</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(59</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(4,764</TD>
    <TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt"><B>Net book value at December&nbsp;31, 2017</B></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">15,365</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right">156</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right">15,521</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&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"><B>NOTE 7&thinsp;&mdash;&thinsp;OTHER NON-CURRENT ASSETS:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December&nbsp;31, 2019</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">December&nbsp;31, 2018</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: 74%; text-align: left">Related parties (see also Note 14)*</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">&mdash;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">1,407</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">Deposit</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">306</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">281</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt"><B>Total</B></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">306</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,688</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<!-- Field: Rule-Page --><DIV STYLE="margin-top: 3pt; margin-bottom: 3pt; width: 25%"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%">
<TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="width: 0in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: left">*</TD>
    <TD STYLE="text-align: left">Other non-current assets for related parties includes as of December&nbsp;31, 2018 a loan the Group provided to a related party during the&nbsp;years 2015&thinsp;&mdash;&thinsp;2018 in the amount of 2,810. The loan bears interest of Libor+2.25% per annum. In 2019 there were no repayments against this loan. In 2018 the Group received repayments which amounted to 1,550. As of December&nbsp;31, 2019, the loan amounted to 1,430 and was classified as short term (see also Note 4). As of December&nbsp;31, 2018, the loan amounted to 1,407 and was classified as long term.</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<!-- Field: Page; Sequence: 272; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<FONT STYLE="font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->77<!-- Field: /Sequence --></FONT></P></DIV>
    <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; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B>SBTECH (GLOBAL)
LIMITED</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Notes to the consolidated financial Statements<BR STYLE="clear: both">
(in thousands of&thinsp; &euro;, except when specified otherwise)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 8&thinsp;&mdash;&thinsp;OTHER ACCOUNTS PAYABLE AND ACCRUED
EXPENSES:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 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; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December&nbsp;31, 2019</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">December&nbsp;31, 2018</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: 74%; text-align: left">Employees, salaries and related liabilities</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">5,657</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">3,684</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">VAT and income tax payable</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,859</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">373</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">Accrued expenses</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,772</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">123</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Provision for vacation</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,177</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">976</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">Advances and deposits from customers</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">711</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,767</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; padding-bottom: 2.5pt"><B>Total</B></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">11,176</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right">6,923</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&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"><B>NOTE 9&thinsp;&mdash;&thinsp;SHAREHOLDERS&rsquo; EQUITY:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>A. Composed as follows as of December&nbsp;31, 2019:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 90%; 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="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Authorized</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">Issued and<BR> outstanding</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="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Amount</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: 74%; padding-bottom: 2.5pt">Ordinary shares of USD 0.1 per share</TD>
    <TD STYLE="width: 1%; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; border-bottom: Black 2.5pt double; text-align: right">72,000</TD>
    <TD STYLE="width: 1%; padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; border-bottom: Black 2.5pt double; text-align: right">40,800</TD>
    <TD STYLE="width: 1%; padding-bottom: 2.5pt; text-align: left">&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 0pt 0.5in"><B>Composed as follows as of December&nbsp;31, 2018:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 90%; 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="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Authorized</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">Issued and<BR> outstanding</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="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Amount</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: 74%; font-weight: bold; padding-bottom: 2.5pt">Ordinary shares of USD 0.1 per share</TD>
    <TD STYLE="width: 1%; font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">72,000</TD>
    <TD STYLE="width: 1%; padding-bottom: 2.5pt; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">40,800</TD>
    <TD STYLE="width: 1%; padding-bottom: 2.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Ordinary shares confer upon their holders
the rights to receive notice to participate and vote in general meeting of the Group, and the right to receive dividends if declared.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>B. Dividend</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">On January&nbsp;10, 2019 and April&nbsp;8,
2019, the Group&rsquo;s board of directors declared dividends to its shareholders totaling 10,000 (&euro;245.10 per share). In
2019, the dividend has been paid in full to the shareholders. On September&nbsp;28, 2017, the Group&rsquo;s board of directors
declared a total amount of 1,000 dividend to its shareholders (&euro;24.51 per share), 313 of which was paid to its shareholders
in 2017 and the remaining 687 was paid in 2018. No dividends were declared in 2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>C. Share Based payments</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">On July&nbsp;20, 2011 the Company established
a share option plan (the &ldquo;Plan&rdquo;). The Company has assigned up to 15% of its share capital as a pool for options. According
to the Plan, the exercise of the granted options depends on two main cumulative conditions, the maturity of the option after a
certain vesting period and the occurrence of a Transaction Event. A Transaction Event is defined in the Plan as any (i)&nbsp;merger,
consolidation or reorganization of the Company with one or more other entities in which the Company is not the surviving entity;
(ii)&nbsp;sale of all or substantially all of the assets or shares of the Company to another entity; or (iii)&nbsp;IPO.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">As of the balance sheet date, the Group
does not expect the occurrence of the Transaction Event. Thus, no expense has been recorded.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SBTECH (GLOBAL) LIMITED</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Notes to the consolidated financial Statements<BR STYLE="clear: both">
(in thousands of&thinsp; &euro;, except when specified otherwise)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 9&thinsp;&mdash;&thinsp;SHAREHOLDERS&rsquo; EQUITY:&thinsp;
(continued)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 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; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Share Option Plan: 2019</TD>
    <TD STYLE="padding-bottom: 1pt; font-weight: bold">&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">Share Option Plan: 2018</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">Number of<BR> Options</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">Weighted<BR> Average Exercise<BR> Price</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">Number of<BR> Options</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">Weighted<BR> Average<BR> Exercise Price</TD>
    <TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"><B>&euro;</B></TD>
    <TD STYLE="padding-bottom: 1pt; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"><B>&euro;</B></TD>
    <TD STYLE="padding-bottom: 1pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 48%; text-align: left">Options outstanding at beginning of year</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">5,217</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">927</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">3,120</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">130</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Changes during the year:</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Granted</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">676</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10,720</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,337</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,998</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">Cancelled</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;</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">240</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">997</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">Options outstanding at end of year</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">5,893</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right">2,330</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right">5,217</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right">927</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&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"><B>NOTE 10&thinsp;&mdash;&thinsp;REVENUE: </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Geographical analysis of revenue</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 90%; 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="10" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">For the year ended<BR> December&nbsp;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">2019</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">2018</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">2017</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: 61%">Europe</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">37</TD>
    <TD STYLE="width: 1%; text-align: left">%</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">34</TD>
    <TD STYLE="width: 1%; text-align: left">%</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">48</TD>
    <TD STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Rest of the world</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">63</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">66</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">52</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right">100</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">100</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">100</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">%</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"><B>Major customers (in thousands and as a&nbsp;percentage of
total revenues) </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 90%; 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="22" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Year ended December&nbsp;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="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2019</TD>
    <TD STYLE="padding-bottom: 1pt; font-weight: bold">&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">2018</TD>
    <TD STYLE="padding-bottom: 1pt; font-weight: bold">&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">2017</TD>
    <TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: center; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"><B>&euro;</B></TD>
    <TD STYLE="padding-bottom: 1pt; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"><B>% </B></TD>
    <TD STYLE="padding-bottom: 1pt; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"><B>&euro;</B></TD>
    <TD STYLE="padding-bottom: 1pt; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"><B>% </B></TD>
    <TD STYLE="padding-bottom: 1pt; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"><B>&euro;</B></TD>
    <TD STYLE="padding-bottom: 1pt; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"><B>% </B></TD>
    <TD STYLE="padding-bottom: 1pt; font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 22%; text-align: left">Customer A</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">44,445</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">46</TD>
    <TD STYLE="width: 1%; text-align: left">%</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">35,510</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">38</TD>
    <TD STYLE="width: 1%; text-align: left">%</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">26,840</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">41</TD>
    <TD STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Customer B</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">7,980</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8</TD>
    <TD STYLE="text-align: left">%</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">14,300</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">15</TD>
    <TD STYLE="text-align: left">%</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,950</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">14</TD>
    <TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Customer C</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,265</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6</TD>
    <TD STYLE="text-align: left">%</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,870</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">7</TD>
    <TD STYLE="text-align: left">%</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,765</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">13</TD>
    <TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Customer D</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,553</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4</TD>
    <TD STYLE="text-align: left">%</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,432</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6</TD>
    <TD STYLE="text-align: left">%</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,548</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4</TD>
    <TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt">Others</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">34,614</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">36</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">32,035</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">34</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">18,984</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">28</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right">96,857</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right">100</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">94,147</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right">100</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">66,087</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right">100</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">%</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"><B>NOTE 11&thinsp;&mdash;&thinsp;COST OF REVENUE:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 90%; 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="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Year ended<BR> December&nbsp;31,<BR> 2019</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">Year ended<BR> December&nbsp;31,<BR> 2018</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">Year ended<BR> December&nbsp;31,<BR> 2017</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: 61%; text-align: left">Payroll and related expenses</TD>
    <TD STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">21,448</TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">18,934</TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">15,683</TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Depreciation and amortization</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">13,750</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">7,962</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,972</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Games, data providers and related fees</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">9,785</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10,936</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">7,068</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>IT</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">7,220</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,917</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,526</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt">Others</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,970</TD>
    <TD STYLE="padding-bottom: 1pt; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">3,338</TD>
    <TD STYLE="padding-bottom: 1pt; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,595</TD>
    <TD STYLE="padding-bottom: 1pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; font-weight: bold; padding-bottom: 2.5pt">Total</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right">54,173</TD>
    <TD STYLE="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right">45,087</TD>
    <TD STYLE="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right">31,844</TD>
    <TD STYLE="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<!-- Field: Page; Sequence: 274; Value: 1 -->
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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>

<!-- Field: Split-Segment; Name: a18 -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SBTECH (GLOBAL) LIMITED</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Notes to the consolidated financial
Statements<BR STYLE="clear: both">
(in thousands of&thinsp; &euro;, except when specified otherwise)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 12&thinsp;&mdash;&thinsp;FINANCING ACTIVITIES IN THE
STATEMENT OF CASH FLOWS: </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Reconciliation of the changes in liabilities
for which cash flows have been, or will be classified as financing activities in the consolidated statements of cash flows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 93%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Loans from<BR> related parties</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold">As of January&nbsp;1, 2017</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Changes from financing cash flows:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 87%; font-size: 10pt; text-align: left">Loan received from related party</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">(503</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Exchange rate differences</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">6</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt">As of December&nbsp;31, 2017</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">(497</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Changes from financing cash flows:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Loan received from related party</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(43</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Exchange rate differences</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(27</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt">Interest</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(28</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Repayment of loan including interest</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">595</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt">As of December&nbsp;31, 2018</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Changes from financing cash flows:</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt">As of December&nbsp;31, 2019</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; font-weight: bold; text-align: left">&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"><B>NOTE 13&thinsp;&mdash;&thinsp;TAXES ON INCOME: </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>1.</B></TD><TD STYLE="text-align: justify"><B>Taxes on income</B></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-indent: 20pt; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Isle of Man </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Company has been domiciled in Isle of
Man and under the local current laws; the Company is not subject to corporate income tax.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="text-indent: 20pt; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Israel </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-indent: 20pt; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The tax rates that apply in Israel are 23% in 2019 and 2018,
and 24% in 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-indent: 20pt; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Bulgaria </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-indent: 20pt; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The tax rates that apply in Bulgaria are 10% in 2019, 2018 and
2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-indent: 20pt; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Ukraine </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-indent: 20pt; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The tax rates that apply in Ukraine are 18% in 2019, 2018 and
2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-indent: 20pt; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Malta </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-indent: 20pt; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The tax rates that apply in Malta are 35% in 2019, 2018 and
2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 20pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SBTECH (GLOBAL) LIMITED</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Notes to the consolidated financial Statements<BR STYLE="clear: both">
(in thousands of&thinsp; &euro;, except when specified otherwise)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 13&thinsp;&mdash;&thinsp;TAXES ON INCOME:&thinsp; (continued)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>2.</B></TD><TD STYLE="text-align: justify"><B>Deferred tax assets</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#8203;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Deferred tax assets reflect the net tax effects
of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts
used for income tax purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="text-indent: 20pt; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Group&rsquo;s deferred tax assets result from:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 93%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Year ended<BR> December&nbsp;31, 2019</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Year ended<BR> December&nbsp;31, 2018</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; font-size: 10pt; text-align: left">Other provisions and employee-related obligations</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 15%; font-size: 10pt; text-align: right">300</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 15%; font-size: 10pt; text-align: right">171</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Property and equipment, net</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">131</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Accrued severance pay, net</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">93</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">64</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; padding-bottom: 1pt">Other</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">73</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 2.5pt">Deferred tax assets</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">597</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">235</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 20pt; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 20pt; margin: 0pt 0">The movement on the deferred tax account is as shown below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 93%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Year ended<BR> December&nbsp;31, 2019</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Year ended<BR> December&nbsp;31, 2018</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Year ended<BR> December&nbsp;31, 2017</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 46%; font-size: 10pt">At January&nbsp;1</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 15%; font-size: 10pt; text-align: right">235</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 15%; font-size: 10pt; text-align: right">201</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 15%; font-size: 10pt; text-align: right">145</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Recognized in profit and loss&thinsp;&mdash;&thinsp;tax income</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">362</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">34</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">56</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt">At December&nbsp;31</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">597</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">235</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">201</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>3.</B></TD><TD STYLE="text-align: justify"><B>Composition</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 93%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><B>Year ended<BR>
December&nbsp;31, 2019</B></TD>
    <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>Year ended<BR>
December&nbsp;31, 2018</B></TD>
    <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>Year ended<BR>
December&nbsp;31, 2017</B></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 46%">Current tax</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 15%; text-align: right">1,000</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 15%; text-align: right">599</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 15%; text-align: right">320</TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-bottom: 1pt">Change in deferred tax</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">(362</TD>
    <TD STYLE="padding-bottom: 1pt">)</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">(34</TD>
    <TD STYLE="padding-bottom: 1pt">)</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">(56</TD>
    <TD STYLE="padding-bottom: 1pt">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 0.125in; padding-bottom: 2.5pt"><B>Total</B></TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">638</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">565</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">264</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>4.</B></TD><TD STYLE="text-align: justify"><B>Reconciliation between the theoretical tax on the
pre-tax income and the tax expense:</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 93%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Year ended<BR> December&nbsp;31, 2019</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Year ended<BR> December&nbsp;31, 2018</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Year ended<BR> December&nbsp;31, 2017</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 46%; font-size: 10pt; text-align: left">Profit before taxation</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 15%; font-size: 10pt; text-align: right">5,214</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 15%; font-size: 10pt; text-align: right">27,344</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 15%; font-size: 10pt; text-align: right">16,554</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Theoretical tax credit at applicable statutory 0%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font-size: 10pt; text-align: left">Tax Rate difference between Isle of Man and the Group&rsquo;s subsidiaries</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">891</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">463</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">188</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Non-allowable expenses</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">58</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">21</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">14</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Recognition of deferred tax assets</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(362</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(34</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(56</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; padding-bottom: 1pt">Miscellaneous</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">51</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">115</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">118</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 2.5pt">Tax on income</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">638</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">565</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">264</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&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: center"></P>

<!-- Field: Page; Sequence: 276; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<FONT STYLE="font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->81<!-- Field: /Sequence --></FONT></P></DIV>
    <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; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SBTECH (GLOBAL) LIMITED</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Notes to the consolidated financial
Statements<BR STYLE="clear: both">
(in thousands of&thinsp; &euro;, except when specified otherwise)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 14&thinsp;&mdash;&thinsp;RELATED PARTIES: </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Parties are considered to be related if one
party has the ability to control the other party or exercise significant influence over the other party&rsquo;s making of financial
or operational decisions, or if both parties are controlled by the same third party. The Group is controlled by a major shareholder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Terms and conditions of transactions with related parties</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The sales to and purchases from related parties
are made on terms equivalent to those that prevail in arm&rsquo;s length transactions. Outstanding balances at the year-end are
unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party
receivables or payables.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Related party transactions</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 93%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><B>Year ended<BR>
December&nbsp;31, 2019</B></TD>
    <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>Year ended<BR>
December&nbsp;31, 2018</B></TD>
    <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>Year ended<BR>
December&nbsp;31, 2017</B></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 46%">Revenue received from related party</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 15%; text-align: right">6,265</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 15%; text-align: right">6,870</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 15%; text-align: right">8,765</TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Lease paid to related party</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">627</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">480</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">127</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Salary to related parties</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">126</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">395</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">331</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Proceeds from sale of vehicle</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&mdash;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">55</TD>
    <TD>&nbsp;</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: #CCEEFF">
    <TD STYLE="padding-left: 9pt; text-indent: -9pt">Interest income (expense) on loan to (from) related party</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">23</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(40</TD>
    <TD>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">113</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"><B>Receivables from related parties</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 93%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid">Name</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Nature of transaction</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">December&nbsp;31, 2019</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">December&nbsp;31, 2018</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 48%; font: 10pt Times New Roman, Times, Serif; text-align: left">Related company</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 15%; font: 10pt Times New Roman, Times, Serif; text-align: left">Trade receivables, net</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 15%; font: 10pt Times New Roman, Times, Serif; text-align: right">4,025</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 15%; font: 10pt Times New Roman, Times, Serif; text-align: right">3,823</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Related company</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Loan granted*</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1,430</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1,407</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Major shareholder</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Ongoing transaction</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">73</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">86</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&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"></P>

<!-- Field: Rule-Page --><DIV STYLE="margin-top: 3pt; margin-bottom: 3pt; width: 25%"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">*</TD><TD STYLE="text-align: justify">The Group provided a loan to a related party during the&nbsp;years
2015&thinsp;&mdash;&thinsp;2018. See also Note 7.</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"><B>Payables to related parties</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B></B>&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 93%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid">Name</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Nature of transaction</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">December&nbsp;31, 2019</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">December&nbsp;31, 2018</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 48%; text-align: left">Related company</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 15%; text-align: left">Ongoing transaction</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 15%; text-align: right">139</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 15%; text-align: right">&mdash;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">&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"><B>Key management personnel compensation </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Key management personnel are those persons
having authority and responsibility for planning, directing and controlling the activities of the Group.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December&nbsp;31, 2019</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December&nbsp;31, 2018</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December&nbsp;31, 2017</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; font-size: 10pt; text-align: left">Salary, benefits and others</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 13%; font-size: 10pt; text-align: right">1,907</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 13%; font-size: 10pt; text-align: right">947</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 13%; font-size: 10pt; text-align: right">814</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<!-- Field: Page; Sequence: 277; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<FONT STYLE="font-size: 10pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->82<!-- Field: /Sequence --></FONT></P></DIV>
    <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; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SBTECH (GLOBAL) LIMITED</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Notes to the consolidated financial
Statements<BR STYLE="clear: both">
(in thousands of&#8201; &#8364;, except when specified otherwise)<BR STYLE="clear: both">
 &nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 15&#8201;&#8212;&#8201;LEASES:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Group has lease contracts for office
facilities, motor vehicles, and data centers used in its operations. Leases of office facilities generally have lease terms between
2 and 10&nbsp;years, motor vehicles generally have lease terms between 3 and 4&nbsp;years, and data centers generally have lease
terms between 1 and 4&nbsp;years. The Group has several lease contracts that include extension options. These options are negotiated
by management to provide flexibility in managing the leased-asset portfolio and align with the Group&#8217;s business needs. Management
exercises significant judgement in determining whether these extension and termination options are reasonably certain to be exercised
in assessing the lease terms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Group also has certain leases of office
facilities with lease terms of 12&nbsp;months or less. The Group applies the &#8220;short-term lease&#8221; recognition exemption
for these leases.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Set out below are the carrying amounts
of right-of-use assets recognized and the movements during the period:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif; margin-left: 20pt">
<TR STYLE="font-weight: bold; vertical-align: bottom">
    <TD STYLE="font-weight: bold; font-size: 10pt">&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal">&#8203;</FONT></TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: normal bold 10pt Times New Roman, Times, Serif; text-align: center">Office<BR>
 facilities</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: normal bold 10pt Times New Roman, Times, Serif; text-align: center">Motor<BR> vehicles</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: normal bold 10pt Times New Roman, Times, Serif; text-align: center">Data<BR> centers</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: normal bold 10pt Times New Roman, Times, Serif; text-align: center">Total</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 48%; font: normal 10pt Times New Roman, Times, Serif"><B>As of January&nbsp;1, 2019</B></TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: normal 10pt Times New Roman, Times, Serif; text-align: right">20,569</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: normal 10pt Times New Roman, Times, Serif; text-align: right">200</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: normal 10pt Times New Roman, Times, Serif; text-align: right">20,769</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif">Additions</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">5,490</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">16</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">2,850</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">8,356</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Depreciation expense</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">(2,833</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">(98</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">(415</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">(3,346</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><B>As of December&nbsp;31, 2019</B></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">23,226</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">118</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">2,435</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">25,779</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&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-indent: 20pt">Set out below are the carrying amounts of lease liabilities
and the movements during the period:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif; margin-left: 20pt">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><B>&#8203;&nbsp;</B></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><B>2019</B></TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 87%; font: normal 10pt Times New Roman, Times, Serif"><B>As of January&nbsp;1, 2019</B></TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: normal 10pt Times New Roman, Times, Serif; text-align: right">20,769</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif">Additions</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">8,356</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif">Accretion of interest</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">677</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">Payments</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">(3,537</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><B>As of December&nbsp;31, 2019</B></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">26,265</TD><TD STYLE="padding-bottom: 2.5pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif">Current</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">3,516</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif">Non-current</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">22,749</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&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-indent: 20pt">The following are the amounts recognized in profit or loss:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif; margin-left: 20pt">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&#8203;</B></FONT></TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">2019</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 87%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">Depreciation expense of right-of-use assets</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: normal 10pt Times New Roman, Times, Serif; text-align: right">3,346</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">Interest expense on lease liabilities</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">677</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Expense relating to short-term leases</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">319</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt"><B>Total amount recognized
    in profit or loss</B></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">4,342</TD><TD STYLE="padding-bottom: 2.5pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&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-indent: 20pt">The Group had total cash outflows for leases
of 3,537 in 2019. The Group also had non-cash additions to right-of-use assets and lease liabilities of 8,356 in 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Group has several lease contracts that
include extension and termination options. These options are negotiated by management to provide flexibility in managing the leased-asset
portfolio and align with the Group&#8217;s business needs. Management exercises significant judgement in determining whether these
extension and termination options are reasonably certain to be exercised.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SBTECH (GLOBAL) LIMITED</B></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Notes to the consolidated financial
Statements<BR STYLE="clear: both">
(in thousands of&#8201; &#8364;, except when specified otherwise)<BR STYLE="clear: both">
 &#8199;&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 15&#8201;&#8212;&#8201;LEASES:&#8201; (continued)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B></B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Set out below are the undiscounted potential
future rental payments relating to periods following the exercise date of extension and termination options that are not included
in the lease term:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 93%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><B>Within five<BR>
years</B></TD>
    <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>More than<BR>
five&nbsp;years</B></TD>
    <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>Total</B></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Extension options expected not to be exercised</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&mdash;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&mdash;</TD>
    <TD>&nbsp;</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="width: 61%; padding-bottom: 1pt">Termination options expected to be exercised</TD>
    <TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 10%; border-bottom: black 1pt solid; text-align: right">190</TD>
    <TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 10%; border-bottom: black 1pt solid; text-align: right">&mdash;</TD>
    <TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 10%; border-bottom: black 1pt solid; text-align: right">190</TD>
    <TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">190</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&mdash;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">190</TD>
    <TD STYLE="padding-bottom: 2.5pt">&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"><B>NOTE 16&#8201;&#8212;&#8201;COMMITMENTS AND CONTINGENT LIABILITIES:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">As part of the Board&#8217;s ongoing regulatory
compliance process, the Board continues to monitor legal and regulatory developments and their potential impact on the Group. Management
is not aware of any contingencies that may have a significant impact on the financial position of the Group.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">In connection with the anticipated transaction
(see Note 19), which is expected to close in 2020, the Group entered into an agreement with a financial advisor. Pursuant to the
agreement, the Group agreed to pay for success fees equal to (i)&nbsp;USD 2.5&nbsp;million (&#8364;2.2&nbsp;million), in the event
the sale includes participation by a special purpose acquisition company (&#8220;SPAC&#8221;), or (ii)&nbsp;USD 2&nbsp;million
(&#8364;1.8&nbsp;million), in the event that the sale does not include participation by a SPAC. In the event that a sale is not
consummated by the Group and the Group receives a termination or break-up fee, the Group will pay the financial advisor a cash
fee equal to 15% of the termination or break-up fee received by the Group. In addition, the Group entered into an agreement with
a legal advisor by which the Group agreed to pay for fees based on time involved in the engagement and internal time charges. However,
to the extent that the deal is abandoned, the fees will be capped at USD 0.5&nbsp;million (&#8364;0.4&nbsp;million).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 17&#8201;&#8212;&#8201;FINANCIAL INSTRUMENTS AND RISK
MANAGEMENT:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Group is exposed to a variety of financial
risks, which results from its financing, operating and investing activities. The objective of financial risk management is to contain,
where appropriate, exposures in these financial risks to limit any negative impact on the Group&#8217;s financial performance and
position. The Group&#8217;s financial instruments are its cash, trade receivables, partly other current and non-current assets,
trade payables and other payables. The main purpose of these financial instruments is to raise finance for the Group&#8217;s operation.
The Group actively measures, monitors and manages its financial risk exposures by various functions pursuant to the segregation
of duties and principals. The risks arising from the Group&#8217;s financial instruments are mainly credit risk, currency and liquidity
risk. The risk and capital management policies employed by the Group to manage these risks are discussed below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Capital management</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The Group&#8217;s objective is to maintain,
as possible, a stable capital structure. In the opinion of the Group&#8217;s management, its current capital structure is stable.
Consistent with others in the industry, the Group maintains or changes the capital structure by adjusting the dividend payments
to shareholders or selling assets in order to repay liabilities. No changes were made in the objectives, policies or processes
for managing capital during the&nbsp;years ended December&nbsp;31, 2019 and 2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<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>SBTECH (GLOBAL) LIMITED</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Notes to the consolidated financial Statements<BR STYLE="clear: both">
(in thousands of&#8201; &#8364;, except when specified otherwise)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 17&#8201;&#8212;&#8201;FINANCIAL INSTRUMENTS AND RISK
MANAGEMENT:&#8201; (continued)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Risk management</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Financial assets:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;&#8203;</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Fair value through<BR> profit or loss</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Amortized cost</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Fair value through other<BR> comprehensive income</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font: normal bold 10pt Times New Roman, Times, Serif">&#8203;&nbsp;</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">December&nbsp;31,<BR> 2019</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">December&nbsp;31,<BR> 2018</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">December&nbsp;31,<BR> 2019</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">December&nbsp;31,<BR> 2018</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">December&nbsp;31,<BR> 2019</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">December&nbsp;31,<BR> 2018</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; width: 22%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">Cash and cash equivalents</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: normal 10pt Times New Roman, Times, Serif; text-align: right">8,144</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: normal 10pt Times New Roman, Times, Serif; text-align: right">20,731</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font: normal 10pt Times New Roman, Times, Serif; text-align: left">Trade receivables</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">24,745</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">17,220</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font: normal 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Other current and non-current assets</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">1,685</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">2,713</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><B>Total</B></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&mdash;</TD><TD STYLE="padding-bottom: 2.5pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&mdash;</TD><TD STYLE="padding-bottom: 2.5pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">34,574</TD><TD STYLE="padding-bottom: 2.5pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">40,664</TD><TD STYLE="padding-bottom: 2.5pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&mdash;</TD><TD STYLE="padding-bottom: 2.5pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&mdash;</TD><TD STYLE="padding-bottom: 2.5pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&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-indent: 20pt">Financial liabilities:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font: normal bold 10pt Times New Roman, Times, Serif">&#8203;&nbsp;</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Fair value through<BR> profit or loss</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Amortized cost</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font: normal bold 10pt Times New Roman, Times, Serif">&#8203;&nbsp;</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">December&nbsp;31,<BR> 2019</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">December&nbsp;31,<BR> 2018</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">December&nbsp;31,<BR> 2019</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">December&nbsp;31,<BR> 2018</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; width: 48%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">Trade payables</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: normal 10pt Times New Roman, Times, Serif; text-align: right">8,127</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: normal 10pt Times New Roman, Times, Serif; text-align: right">7,006</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font: normal 10pt Times New Roman, Times, Serif; text-align: left">Other accounts payable and accrued expenses</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">1,772</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font: normal 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Lease liabilities</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">26,265</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><B>Total</B></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&mdash;</TD><TD STYLE="padding-bottom: 2.5pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&mdash;</TD><TD STYLE="padding-bottom: 2.5pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">36,164</TD><TD STYLE="padding-bottom: 2.5pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">7,006</TD><TD STYLE="padding-bottom: 2.5pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&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"><B>Credit risk</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Credit risk arises when a failure by counterparties
to discharge their obligations could reduce the amount of future cash inflows from financial assets on hand at the balance sheet
date. The Group closely monitors the activities of its counterparties and controls the access to its intellectual property which
enables it to ensure the prompt collection of customers&#8217; balances. The Group&#8217;s main financial assets are cash and cash
equivalents as well as trade and other receivables and represent the Group&#8217;s maximum exposure to credit risk in connection
with its financial assets. Trade and other receivables are carried on the balance sheet net of doubtful debt provisions estimated
by the management based on prior year experience and an evaluation of prevailing economic circumstances. The Group holds its funds
with highly reputable financial institutions, the majority of which is held in one UK financial institution. Cash held in UK financial
institutions is protected and insured by the Financial Services Compensation Scheme (FSCS) up to &pound;85,000 per authorized firm.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The carrying amount of financial assets
represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date was:</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: 90%; border-collapse: collapse; margin-left: 20pt">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: white 1pt solid; font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;<B>&#8203;</B></FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD COLSPAN="4" STYLE="border-bottom: black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>December&nbsp;31,<BR STYLE="clear: both">
    2019 </B></FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD COLSPAN="4" STYLE="border-bottom: black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>December&nbsp;31,<BR STYLE="clear: both">
    2018 </B></FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&#8203;</B></FONT></TD></TR>
<TR STYLE="font: normal 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; width: 401px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cash
    and cash equivalents </FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; width: 8px; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; width: 8px; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; width: 0px; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">8,144</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; width: 0px; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; width: 8px; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; width: 8px; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; width: 0px; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,731</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; width: 0px; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; width: 0px; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD></TR>
<TR STYLE="font: normal 10pt Times New Roman, Times, Serif; vertical-align: bottom">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Trade receivables </FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">24,745</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">17,220</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD></TR>
<TR STYLE="font: normal 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other
    current and non-current assets </FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,685</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2,713</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD></TR>
<TR STYLE="font: normal 10pt Times New Roman, Times, Serif; vertical-align: bottom">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Total</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 2.25pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 2.25pt double; font: normal 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">34,574</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 2.25pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 2.25pt double; font: normal 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">40,664</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></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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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><B>SBTECH (GLOBAL) LIMITED</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Notes to the consolidated financial Statements<BR STYLE="clear: both">
(in thousands of&#8201; &#8364;, except when specified otherwise)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 17&#8201;&#8212;&#8201;FINANCIAL INSTRUMENTS AND RISK
MANAGEMENT:&#8201; (continued)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Currency risk</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Currency risk is the risk that the value
of financial instruments will fluctuate due to changes in foreign exchange rates. Currency risk arises when future commercial transactions
and recognized assets and liabilities are denominated in a currency that is not the Group&#8217;s functional currency. The Group
is exposed to foreign exchange risk arising from various currency exposures primarily with respect to the New Israeli Shekel (&#8220;NIS&#8221;),
U.S. Dollar (&#8220;USD&#8221;), British Pound (&#8220;GBP&#8221;) and Ukrainian Hryvnia (&#8220;UAH&#8221;). The Group&#8217;s
policy is not to enter into any currency hedging transactions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The carrying amounts of the Group&#8217;s
foreign currency denominated monetary assets and monetary liabilities at the reporting date are as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&#8203;</B></FONT></TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">December&nbsp;31, 2019</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">December&nbsp;31, 2018</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif">&#8203;&nbsp;</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Assets</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Liabilities</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Total</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Assets</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Liabilities</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Total</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 22%; font: normal 10pt Times New Roman, Times, Serif">NIS</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: normal 10pt Times New Roman, Times, Serif; text-align: right">99</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: normal 10pt Times New Roman, Times, Serif; text-align: right">(346</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: normal 10pt Times New Roman, Times, Serif; text-align: right">(247</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: normal 10pt Times New Roman, Times, Serif; text-align: right">631</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: normal 10pt Times New Roman, Times, Serif; text-align: right">(523</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: normal 10pt Times New Roman, Times, Serif; text-align: right">108</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif">USD</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">2,743</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">(4,593</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">(1,850</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">868</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">(2,304</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">(1,436</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif">GBP</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">6,053</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">(747</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">5,306</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">1,796</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">(1,688</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">108</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">UAH</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">117</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">(37</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">80</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">14</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">(58</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">(44</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&#8203;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">9,012</TD><TD STYLE="padding-bottom: 2.5pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">(5,723</TD><TD STYLE="padding-bottom: 2.5pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">3,289</TD><TD STYLE="padding-bottom: 2.5pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">3,309</TD><TD STYLE="padding-bottom: 2.5pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">(4,573</TD><TD STYLE="padding-bottom: 2.5pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">(1,264</TD><TD STYLE="padding-bottom: 2.5pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</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"><B>Sensitivity analysis</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The table below details the effect on profit
before tax of a 10% strengthening (and weakening) in the Euro exchange rate at the statement of financial position date for balance
sheet items denominated in British Pound, New Israeli Shekels, U.S. Dollar and the Ukrainian Hryvnia.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif; margin-left: 20pt">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif">&#8203;&nbsp;</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">December&nbsp;31, 2019</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif">&#8203;&nbsp;</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Weaknesses</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Strengths</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 74%; font: normal 10pt Times New Roman, Times, Serif">NIS</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: normal 10pt Times New Roman, Times, Serif; text-align: right">(25</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: normal 10pt Times New Roman, Times, Serif; text-align: right">25</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif">USD</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">(185</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">185</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif">GBP</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">531</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">(531</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">UAH</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">8</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">(8</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><B>Total</B></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">329</TD><TD STYLE="padding-bottom: 2.5pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">(329</TD><TD STYLE="padding-bottom: 2.5pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
</TABLE>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif; margin-left: 20pt">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 1pt solid; text-align: center"><B>December&nbsp;31, 2018</B></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><B>Weaknesses</B></TD>
    <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>Strengths</B></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 74%">NIS</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">11</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">(11</TD>
    <TD STYLE="width: 1%">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>USD</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(144</TD>
    <TD>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">144</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>GBP</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">11</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(11</TD>
    <TD>)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-bottom: 1pt">UAH</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">(4</TD>
    <TD STYLE="padding-bottom: 1pt">)</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">4</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-bottom: 2.5pt"><B>Total</B></TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">(126</TD>
    <TD STYLE="padding-bottom: 2.5pt">)</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">126</TD>
    <TD STYLE="padding-bottom: 2.5pt">&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: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SBTECH (GLOBAL) LIMITED</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Notes to the consolidated financial Statements<BR STYLE="clear: both">
(in thousands of&#8201; &#8364;, except when specified otherwise)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 17&#8201;&#8212;&#8201;FINANCIAL INSTRUMENTS AND RISK
MANAGEMENT:&#8201; (continued)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif; margin-left: 20pt">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif">&#8203;&nbsp;</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">December&nbsp;31, 2017</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif">&#8203;&nbsp;</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Weaknesses</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Strengths</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 74%; font: normal 10pt Times New Roman, Times, Serif">NIS</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: normal 10pt Times New Roman, Times, Serif; text-align: right">21</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: normal 10pt Times New Roman, Times, Serif; text-align: right">(21</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif">USD</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">(116</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">116</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif">GBP</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">(19</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">19</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">UAH</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">(1</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">1</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><B>Total</B></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">(115</TD><TD STYLE="padding-bottom: 2.5pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">115</TD><TD STYLE="padding-bottom: 2.5pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&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"><B>Liquidity risks</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Liquidity risk is the risk that arises
when the maturity of assets and the maturity of liabilities do not match. An unmatched position potentially enhances profitability
but can also increase the risk of loss. The Group has procedures with the objective of minimizing such loss by maintaining sufficient
cash and other highly liquid current assets and by having available an adequate amount of committed credit facilities. Accordingly,
the Group has a positive working capital.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">The following tables detail the Group&#8217;s
remaining contractual maturity for its financial liabilities. The tables have been drawn up based on the undiscounted cash flows
of financial liabilities based on the earliest date on which the Group can be required to pay.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif; margin-left: 20pt">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap; font: normal 10pt Times New Roman, Times, Serif">&nbsp;<B>&#8203;</B></TD><TD STYLE="white-space: nowrap; font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; font: normal 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><B>December&nbsp;31,<BR>

    2019</B></TD><TD STYLE="white-space: nowrap; padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></TD><TD STYLE="white-space: nowrap; font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; font: normal 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><B>December&nbsp;31,<BR>

    2018</B></TD><TD STYLE="white-space: nowrap; padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 74%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">Current assets</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: normal 10pt Times New Roman, Times, Serif; text-align: right">36,147</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: normal 10pt Times New Roman, Times, Serif; text-align: right">40,827</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Current liabilities</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">22,819</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">13,929</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt">Working capital</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">13,328</TD><TD STYLE="padding-bottom: 2.5pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">26,898</TD><TD STYLE="padding-bottom: 2.5pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&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-indent: 0.25in">The following table sets out the contractual maturities of financial
liabilities:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&#8203;</B></FONT></TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Up to<BR> 3&nbsp;months</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Between 3 and<BR> 12&nbsp;months</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Between 1 and<BR> 2&nbsp;years</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Between 2 and<BR> 5&nbsp;years</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Over 5&nbsp;years</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><B>At December&nbsp;31, 2019</B></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; width: 35%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">Trade payables</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: normal 10pt Times New Roman, Times, Serif; text-align: right">8,127</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; font: normal 10pt Times New Roman, Times, Serif; padding-left: 0.25in; text-align: left">Other accounts payable and accrued expenses</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">27</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">1,745</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; font: normal 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Lease liabilities</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">838</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">2,678</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">3,625</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">9,291</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">9,833</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><B>Total</B></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">8,992</TD><TD STYLE="padding-bottom: 2.5pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">4,423</TD><TD STYLE="padding-bottom: 2.5pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">3,625</TD><TD STYLE="padding-bottom: 2.5pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">9,291</TD><TD STYLE="padding-bottom: 2.5pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">9,833</TD><TD STYLE="padding-bottom: 2.5pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif">&#8203;&nbsp;&nbsp;</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Up to<BR> 3&nbsp;months</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Between 3 and<BR> 12&nbsp;months</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Between 1 and<BR> 2&nbsp;years</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Between 2 and<BR> 5&nbsp;years</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: normal bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Over 5&nbsp;years</TD><TD STYLE="padding-bottom: 1pt; font: normal bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif">At December&nbsp;31, 2018</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 35%; font: normal 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 0.125in">Trade and other payables</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">12,677</TD><TD STYLE="width: 1%; padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">839</TD><TD STYLE="width: 1%; padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">413</TD><TD STYLE="width: 1%; padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&mdash;</TD><TD STYLE="width: 1%; padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&mdash;</TD><TD STYLE="width: 1%; padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: normal bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">Total</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">12,677</TD><TD STYLE="padding-bottom: 2.5pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">839</TD><TD STYLE="padding-bottom: 2.5pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">413</TD><TD STYLE="padding-bottom: 2.5pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 2.5pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 2.5pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&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"></P>

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<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>SBTECH (GLOBAL) LIMITED</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Notes to the consolidated financial Statements<BR STYLE="clear: both">
(in thousands of&#8201; &#8364;, except when specified otherwise)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 18&#8201;&#8212;&#8201;SUBSIDIARIES:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">Details of the Group&#8217;s subsidiaries are as below:</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="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: black 1pt solid; width: 23%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Name
    </B></FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: white 1pt solid; width: 1%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: white 1pt solid; width: 1%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: black 1pt solid; width: 13%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Country
    of<BR STYLE="clear: both">
    incorporation </B></FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: white 1pt solid; width: 1%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: white 1pt solid; width: 1%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: black 1pt solid; width: 11%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Proportion
    of<BR STYLE="clear: both">
    voting rights<BR STYLE="clear: both">
    and ordinary<BR STYLE="clear: both">
    share capital<BR STYLE="clear: both">
    held </B></FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: white 1pt solid; width: 1%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: white 1pt solid; width: 1%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: black 1pt solid; width: 25%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Nature
    of business </B></FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: white 1pt solid; width: 1%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: white 1pt solid; width: 1%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: black 1pt solid; width: 19%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Held
    by </B></FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: white 1pt solid; width: 1%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&#8203;</B></FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Gaming
    Tech Ltd* </FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Israel
    </FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">50%
    </FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">General
    and administration, marketing support and research&nbsp;&amp; development </FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SBTech
    (Global) Limited </FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SBTech
    (Global) Limited&#8201;&#8212;&#8201;Subsidiary Bulgaria </FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Bulgaria
    </FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">100%
    </FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Research,
    development and marketing support </FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
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<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
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<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
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<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
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    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">100%
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<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
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    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">100%
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    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
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    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
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<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
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    <TD STYLE="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">100%
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    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
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    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Software
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    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
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    US Inc. </FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
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    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">100%
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    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
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<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
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    Green Leaf Limited </FONT></TD>
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    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">100%
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    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;</FONT></TD>
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    Malta Limited</FONT></TD>
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</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>

<!-- Field: Rule-Page --><DIV STYLE="margin-top: 3pt; margin-bottom: 3pt; width: 25%"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">*</TD><TD STYLE="text-align: left">The owner of the additional 50% of voting rights and
ordinary share capital of the subsidiary has assigned and transferred all his board of director&#8217;s rights to the Company.
As such, Gaming Tech Ltd. is consolidated in the Group&#8217;s consolidated financial statements.</TD>
</TR></TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif; margin-left: 20pt">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&#8203;&nbsp;&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Gaming Tech Ltd</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap; font: bold 10pt Times New Roman, Times, Serif">&#8203;&nbsp;&nbsp;</TD><TD STYLE="white-space: nowrap; font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">December&nbsp;31,<BR>
 2019</TD><TD STYLE="white-space: nowrap; padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="white-space: nowrap; font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">December&nbsp;31,<BR>
 2018</TD><TD STYLE="white-space: nowrap; padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 74%; font: 10pt Times New Roman, Times, Serif; text-align: left">Current assets</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">3,689</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">1,891</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Non&#8201;&mdash;&#8201;current assets</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1,723</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1,581</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Current liabilities</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(2,708</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(1,981</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Non&#8201;&mdash;&#8201;current liabilities</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">(589</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">(325</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; font: normal 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt">Total assets, net</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">2,115</TD><TD STYLE="padding-bottom: 2.5pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: normal 10pt Times New Roman, Times, Serif; text-align: right">1,166</TD><TD STYLE="padding-bottom: 2.5pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">NCI</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">1,057</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: normal 10pt Times New Roman, Times, Serif; text-align: right">583</TD><TD STYLE="padding-bottom: 1pt; font: normal 10pt Times New Roman, Times, Serif; text-align: left">&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: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SBTECH (GLOBAL) LIMITED</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Notes to the consolidated financial Statements<BR>
(in thousands of&#8201; &#8364;, except when specified otherwise)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 19&#8201;&#8212;&#8201;SUBSEQUENT EVENTS:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">1.</TD><TD STYLE="text-align: left">On January&nbsp;30, 2020 the Group&#8217;s board of directors declared a dividend in a total
                                                                               amount of 3,000 (&#8364;73.53 per share) to its shareholders. The Group paid 2,000 on February 7, 2020.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">2.</TD><TD STYLE="text-align: left">On December&nbsp;22, 2019, Diamond Eagle Acquisition
Corp, a special purpose acquisition company (&#8220;Diamond Eagle&#8221;), entered into a Business Combination Agreement (the
 &#8220;Business Combination Agreement&#8221;) with DraftKings Inc. (&#8220;DraftKings&#8221;), the Group, the Group&#8217;s shareholders,
the representative of the Group&#8217;s shareholders, DEAC NV Merger Corp., a Nevada corporation and a wholly-owned subsidiary
of DEAC (&#8220;DEAC Nevada&#8221;), DEAC Merger Sub Inc., a Delaware corporation and a wholly-owned subsidiary of DEAC (&#8220;Merger
Sub&#8221;), pursuant to which (i)&nbsp;Diamond Eagle will merge with and into DEAC Nevada, with DEAC Nevada surviving the merger
(the &#8220;reincorporation&#8221;), (ii)&nbsp;following the reincorporation, Merger Sub will merge with and into DraftKings with
DraftKings surviving the merger (the &#8220;DraftKings Merger&#8221;), (iii)&nbsp;immediately following the DraftKings Merger,
Diamond Eagle will acquire all of the issued and outstanding share capital of SBTech and vested in-the-money options exercisable
for SBTech share capital (the &#8220;SBTech Acquisition&#8221;) for approximately 590,000, consisting of&#8201; (x)&nbsp;180,000
in cash, subject to customary net debt and working capital and certain other specified adjustments payable in respect of the SBT
shares and 30% of the in-the-money vested SBT options and (y)&nbsp;approximately 410,000 in shares of New DraftKings Class&nbsp;A
common stock, valued at the redemption price for Diamond Eagle&#8217;s public shares in the Business Combination, and in the form
of newly issued in-the-money vested options of New DraftKings exercisable for New DraftKings Class&nbsp;A common stock and (iv)&nbsp;DEAC
Nevada will be renamed DraftKings Inc. Each of the DraftKings Merger and the SBTech Acquisition will be on the terms and subject
to the conditions set forth in the Business Combination Agreement. The transaction is expected to close in 2020.</TD>
</TR></TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">3.</TD><TD STYLE="text-align: left">The novel coronavirus (COVID-19) is having a significant
impact on the Company. The direct impact on the Company beyond disruptions in normal business operations in several of our offices
is primarily through the suspension, postponement and cancellation of major sports seasons and sporting events. The status of
most of these sporting events is that they are postponed or unknown as to when they will restart. The ultimate impact of COVID-19
on our financial and operating results is unknown and will depend on the length of time that these disruptions exist and whether
the sports seasons and sporting events will ultimately be suspended, postponed, or cancelled; however, COVID-19 has had a significant
impact and may continue to have a significant impact, the full extent of which is unknown, but which could be material.</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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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">PART II<BR>
<BR>
INFORMATION NOT REQUIRED IN PROSPECTUS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <B>Item 13.</B> <B>Other Expenses of Issuance and Distribution.</B></P>



<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following table sets forth the estimated
expenses to be borne by the registrant in connection with the issuance and distribution of the shares of common stock being registered
hereby.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 87%; padding-right: 1pt; padding-left: 2pt">Securities and Exchange Commission registration fee </TD>
    <TD STYLE="width: 1%; padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="width: 2%; padding-right: 3pt; padding-left: 3pt">$</TD>
    <TD STYLE="width: 10%; padding-right: 3pt; padding-left: 3pt; text-align: right">80,302.28</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #FEFEFE">
    <TD STYLE="padding-right: 1pt; padding-left: 2pt">Accounting fees and expenses </TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt; text-align: right">20,000</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-right: 1pt; padding-left: 2pt">Legal fees and expenses </TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt; text-align: right">50,000</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #FEFEFE">
    <TD STYLE="padding-right: 1pt; padding-left: 2pt">Financial printing and miscellaneous expenses </TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; padding-right: 3pt; padding-left: 3pt; text-align: right">30,000</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-right: 1pt; padding-left: 2pt">Total </TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4.5pt double; padding-right: 3pt; padding-left: 3pt">$</TD>
    <TD STYLE="border-bottom: Black 4.5pt double; padding-right: 3pt; padding-left: 3pt; text-align: right">180,302.28</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Item 14. Indemnification of Directors and Officers.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DEAC Nevada&rsquo;s articles of incorporation
eliminate the liability of DEAC Nevada officers and directors to the fullest extent permitted by Nevada law. Nevada law provides
that DEAC Nevada directors and officers will not be individually liable to us, DEAC Nevada stockholders or DEAC Nevada creditors
for any damages for any act or failure to act in the capacity of a director or officer other than in circumstances where both (i)
the presumption that the director or officer acted in good faith, on an informed basis and with a view to the interests of the
corporation has been rebutted, and (ii) the act or failure to act of the director or officer is proven to have been a breach of
his or her fiduciary duties as a director or officer and such breach is proven to have involved intentional misconduct, fraud or
a knowing violation of law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DEAC Nevada&rsquo;s articles of incorporation
and bylaws also provide for indemnification for DEAC Nevada&rsquo;s directors and officers to the fullest extent permitted by Nevada
law. DEAC Nevada intends to enter into indemnification agreements with each of its directors that may, in some cases, be broader
than the specific indemnification provisions contained under Nevada law. The effect of these provisions is to restrict NEAC Nevada
rights and the rights of DEAC Nevada stockholders in derivative suits to recover any damages against a director for breach of fiduciary
duties as a director, because a director will not be individually liable for acts or omissions, except where the act or failure
to act constituted a breach of fiduciary duty and such breach involved intentional misconduct, fraud or a knowing violation of
law, and the presumption that the director or officer acted in good faith, on an informed basis, and with a view to the interests
of the corporation, has been rebutted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">These provisions may be held not to be enforceable
for certain violations of the federal securities laws of the United States.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">DEAC Nevada is also expressly authorized
to carry directors&rsquo; and officers&rsquo; insurance to protect its directors, officers, employees and agents against certain
liabilities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The limitation of liability and indemnification
provisions under Nevada law and in DEAC Nevada&rsquo;s articles of incorporation and amended and restated bylaws may discourage
stockholders from bringing a lawsuit against directors for breach of their fiduciary duties. These provisions may also have the
effect of reducing the likelihood of derivative litigation against directors and officers, even though such an action, if successful,
might otherwise benefit DEAC Nevada and DEAC Nevada stockholders. However, these provisions do not limit or eliminate DEAC Nevada
rights, or those of any stockholder, to seek non-monetary relief such as injunction or rescission in the event of a breach of a
director&rsquo;s fiduciary duties. Moreover, the provisions do not alter the liability of directors under the federal securities
laws. In addition, your investment may be adversely affected to the extent that, in a class action or direct suit, DEAC Nevada
pays the costs of settlement and damage awards against directors and officers pursuant to these indemnification provisions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Item 15. Recent Sales of Unregistered Securities.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">None.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Item 16. Exhibits and Financial Statements.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">(a) <I>Exhibits</I>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following exhibits
are being followed herewith:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></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: 8%">Exhibit No.</TD>
    <TD STYLE="border-bottom: white 1pt solid; width: 2%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; width: 90%">Description</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081-s4a.htm#tANAAcov" STYLE="-sec-extract: exhibit">2.1&dagger;</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081-s4a.htm#tANAAcov" STYLE="-sec-extract: exhibit">Business Combination Agreement, dated as of December 22, 2019, among DraftKings Inc., SBTech (Global) Limited, SBTech&rsquo;s shareholders, Diamond Eagle Acquisition Corp., DEAC NV Merger Corp. and a wholly-owned subsidiary of DEAC (incorporated by reference to Exhibit 2.1 of DEAC NV Merger Corp.&rsquo;s Registration Statement on Form S-4 (Reg. No. 333-235805&#8203;), filed with the SEC on April 14, 2020).</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081-s4a.htm#tANAB" STYLE="-sec-extract: exhibit">2.2</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081-s4a.htm#tANAB" STYLE="-sec-extract: exhibit">Form of Stockholders Agreement (incorporated by reference to Exhibit 2.2 of DEAC NV Merger Corp.&rsquo;s Registration Statement on Form S-4 (Reg. No. 333-235805&#8203;), filed with the SEC on April 14, 2020).</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081-s4a.htm#tANAI" STYLE="-sec-extract: exhibit">2.3</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081-s4a.htm#tANAI" STYLE="-sec-extract: exhibit">Agreement and Plan of Merger, dated as of March 12, 2020, by and among Diamond Eagle Acquisition Corp. and DEAC NV Merger Corp. (incorporated by reference to Exhibit 2.3 of DEAC NV Merger Corp.&rsquo;s Registration Statement on Form S-4 (Reg. No. 333-235805&#8203;), filed with the SEC on April 14, 2020).</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081-s4a.htm#tANNJ" STYLE="-sec-extract: exhibit">2.4</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081-s4a.htm#tANNJ" STYLE="-sec-extract: exhibit">Amendment to Business Combination Agreement, dated as of April 7, 2020, among DraftKings Inc., SBTech (Global) Limited, SBTech&rsquo;s shareholders, Diamond Eagle Acquisition Corp., DEAC NV Merger Corp. and a wholly-owned subsidiary of DEAC (incorporated by reference to Exhibit 2.4 of DEAC NV Merger Corp.&rsquo;s Registration Statement on Form S-4 (Reg. No. 333-235805&#8203;), filed with the SEC on April 14, 2020).</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920001249/tv535007_ex3-1.htm" STYLE="-sec-extract: exhibit">3.1</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920001249/tv535007_ex3-1.htm" STYLE="-sec-extract: exhibit">Articles of Incorporation of DEAC NV Merger Corp (incorporated by reference to Exhibit 3.1 of DEAC NV Merger Corp.&rsquo;s Registration Statement on Form S-4 (Reg. No. 333-235805&#8203;), filed with the SEC on April 14, 2020).</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920001249/tv535007_ex3-2.htm" STYLE="-sec-extract: exhibit">3.2</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920001249/tv535007_ex3-2.htm" STYLE="-sec-extract: exhibit">Bylaws of DEAC NV Merger Corp (incorporated by reference to Exhibit 3.2 of DEAC NV Merger Corp.&rsquo;s Registration Statement on Form S-4 (Reg. No. 333-235805&#8203;), filed with the SEC on April 14, 2020).</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081-s4a.htm#tANAE" STYLE="-sec-extract: exhibit">3.3</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081-s4a.htm#tANAE" STYLE="-sec-extract: exhibit">Form of Amended and Restated Articles of Incorporation of New DraftKings (incorporated by reference to Exhibit 3.3 of DEAC NV Merger Corp.&rsquo;s Registration Statement on Form S-4 (Reg. No. 333-235805&#8203;), filed with the SEC on April 14, 2020).&#8201;</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081-s4a.htm#tANAF" STYLE="-sec-extract: exhibit">3.4</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081-s4a.htm#tANAF" STYLE="-sec-extract: exhibit">Form of Amended and Restated Bylaws of New DraftKings (incorporated by reference to Exhibit 3.1 of DEAC NV Merger Corp.&rsquo;s Registration Statement on Form S-4 (Reg. No. 333-235805&#8203;), filed with the SEC on April 14, 2020).</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920039031/tv538896_ex4-1.htm" STYLE="-sec-extract: exhibit">4.1</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920039031/tv538896_ex4-1.htm" STYLE="-sec-extract: exhibit">Specimen Class A Common Stock Certificate of New DraftKings (incorporated by reference to Exhibit 4.1 of DEAC NV Merger Corp.&rsquo;s Registration Statement on Form S-4 (Reg. No. 333-235805&#8203;), filed with the SEC on April 14, 2020).</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000114420419025917/tv521448_ex4-1.htm" STYLE="-sec-extract: exhibit">4.2</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000114420419025917/tv521448_ex4-1.htm" STYLE="-sec-extract: exhibit">Warrant Agreement, dated May 10, 2019, by and between Diamond Eagle Acquisition Corp. and Continental Stock Transfer &amp; Trust Company, as warrant agent (incorporated by reference to Exhibit 4.1 of Diamond Eagle Acquisition Corp.&rsquo;s Current Report on Form 8-K filed on May 14, 2019).</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="tm2015692d1_ex5-1.htm" STYLE="-sec-extract: exhibit">5.1</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="tm2015692d1_ex5-1.htm" STYLE="-sec-extract: exhibit">Opinion of Greenberg Traurig, LLP as to the validity of the shares of New DraftKings common stock.</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="tm2015692d1_ex5-2.htm" STYLE="-sec-extract: exhibit">5.2</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="tm2015692d1_ex5-2.htm" STYLE="-sec-extract: exhibit">Opinion of Winston &amp; Strawn LLP as to the validity of the warrants of New DraftKings.</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081-s4a.htm#tANAG" STYLE="-sec-extract: exhibit">10.1</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081-s4a.htm#tANAG" STYLE="-sec-extract: exhibit">Form of DraftKings Inc. 2020 Incentive Award Plan (incorporated by reference to Exhibit 10.1 of DEAC NV Merger Corp.&rsquo;s Registration Statement on Form S-4 (Reg. No. 333-235805&#8203;), filed with the SEC on April 14, 2020.</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081-s4a.htm#tANAC" STYLE="-sec-extract: exhibit">10.2</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081-s4a.htm#tANAC" STYLE="-sec-extract: exhibit">Form of Subscription Agreement, dated December 22, 2019, by and between Diamond Eagle Acquisition Corp. and the undersigned subscriber party thereto (incorporated by reference to Exhibit 10.2 of DEAC NV Merger Corp.&rsquo;s Registration Statement on Form S-4 (Reg. No. 333-235805&#8203;), filed with the SEC on April 14, 2020.</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920020316/tv535895_ex10-3.htm" STYLE="-sec-extract: exhibit">10.3</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920020316/tv535895_ex10-3.htm" STYLE="-sec-extract: exhibit">Executive Employment Agreement, dated May 30, 2019, between DraftKings Inc. and Jason Park (incorporated by reference to Exhibit 10.3 of DEAC NV Merger Corp.&rsquo;s Registration Statement on Form S-4 (Reg. No. 333-235805&#8203;), filed with the SEC on April 14, 2020.</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081-s4a.htm#tANNH" STYLE="-sec-extract: exhibit">10.4</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081-s4a.htm#tANNH" STYLE="-sec-extract: exhibit">Form
of DraftKings Inc. Employee Stock Purchase Plan (incorporated by reference to Exhibit 10.4 of DEAC NV Merger Corp.&rsquo;s Registration
Statement on Form S-4 (Reg. No. 333-235805&#8203;), filed with the SEC on April 14, 2020.<SUP></SUP></A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920039031/tv538896_ex10-5.htm" STYLE="-sec-extract: exhibit">10.5&dagger;*</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920039031/tv538896_ex10-5.htm" STYLE="-sec-extract: exhibit">Agreement for the Provision of a Sports Betting Solution (&ldquo;License Agreement&rdquo;), between Sports Information Services
Limited and Crown Gaming Inc., dated as of June 19, 2018 (incorporated by reference to Exhibit 10.5 of DEAC NV Merger Corp.'s
Registration Statement on Form S-4 (Reg. No. 333-235805), filed with the SEC on April 14, 2020).</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920039031/tv538896_ex10-6.htm" STYLE="-sec-extract: exhibit">10.6&dagger;*</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920039031/tv538896_ex10-6.htm" STYLE="-sec-extract: exhibit">Addendum to License Agreement, between Sports Information Services Limited and Crown Gaming Inc., dated as of August 22, 2019
(incorporated by reference to Exhibit 10.6 of DEAC NV Merger Corp.'s Registration Statement on Form S-4 (Reg. No. 333-235805),
filed with the SEC on April 14, 2020).</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081_ex10-7.htm" STYLE="-sec-extract: exhibit">10.7</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081_ex10-7.htm" STYLE="-sec-extract: exhibit">Amended and Restated Loan and Security Agreement (the &lsquo;&lsquo;LSA&rsquo;&rsquo;), dated October 21, 2016, by and between
DraftKings Inc. and Pacific Western Bank (incorporated by reference to Exhibit 10.7 of DEAC NV Merger Corp.'s Registration
Statement on Form S-4 (Reg. No. 333-235805), filed with the SEC on April 14, 2020).</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081_ex10-8.htm" STYLE="-sec-extract: exhibit">10.8</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081_ex10-8.htm" STYLE="-sec-extract: exhibit">First Amendment to the LSA, dated July 28, 2017, by and between DraftKings Inc. and Pacific Western Bank (incorporated by
reference to Exhibit 10.8 of DEAC NV Merger Corp.'s Registration Statement on Form S-4 (Reg. No. 333-235805), filed with the
SEC on April 14, 2020).</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081_ex10-9.htm" STYLE="-sec-extract: exhibit">10.9</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081_ex10-9.htm" STYLE="-sec-extract: exhibit">Second Amendment to the LSA, dated December 28, 2017, by and between DraftKings Inc. and Pacific Western Bank (incorporated
by reference to Exhibit 10.9 of DEAC NV Merger Corp.'s Registration Statement on Form S-4 (Reg. No. 333-235805), filed with
the SEC on April 14, 2020).</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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<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: top">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081_ex10-10.htm" STYLE="-sec-extract: exhibit">10.10</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081_ex10-10.htm" STYLE="-sec-extract: exhibit">Third Amendment and Joinder to the LSA, dated July 3, 2018, by and among DraftKings Inc., Crown Gaming Inc., Crown DFS Inc.
and Pacific Western Bank (incorporated by reference to Exhibit 10.10 of DEAC NV Merger Corp.'s Registration Statement on Form
S-4 (Reg. No. 333-235805), filed with the SEC on April 14, 2020).</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081_ex10-11.htm" STYLE="-sec-extract: exhibit">10.11</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081_ex10-11.htm" STYLE="-sec-extract: exhibit">Fourth Amendment to the LSA, dated December 19, 2018, by and among DraftKings Inc., Crown Gaming Inc., Crown DFS Inc. and
Pacific Western Bank (incorporated by reference to Exhibit 10.11 of DEAC NV Merger Corp.'s Registration Statement on Form
S-4 (Reg. No. 333-235805), filed with the SEC on April 14, 2020).</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081_ex10-12.htm" STYLE="-sec-extract: exhibit">10.12</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081_ex10-12.htm" STYLE="-sec-extract: exhibit">Fifth Amendment to the LSA, dated March 28, 2019 by and among DraftKings Inc., Crown Gaming Inc., Crown DFS Inc. and Pacific
Western Bank (incorporated by reference to Exhibit 10.12 of DEAC NV Merger Corp.'s Registration Statement on Form S-4 (Reg.
No. 333-235805), filed with the SEC on April 14, 2020).</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081_ex10-13.htm" STYLE="-sec-extract: exhibit">10.13</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081_ex10-13.htm" STYLE="-sec-extract: exhibit">Sixth Amendment to the LSA, dated August 15, 2019, by and among DraftKings Inc., Crown Gaming Inc., Crown DFS Inc. and Pacific
Western Bank (incorporated by reference to Exhibit 10.13 of DEAC NV Merger Corp.'s Registration Statement on Form S-4 (Reg.
No. 333-235805), filed with the SEC on April 14, 2020).</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 8%"><A HREF="tm2015692d1_ex23-1.htm" STYLE="-sec-extract: exhibit">23.1</A></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 90%"><A HREF="tm2015692d1_ex23-1.htm" STYLE="-sec-extract: exhibit">Consent of WithumSmith+Brown, PC, independent registered public accounting firm of Diamond Eagle Acquisition Corp.</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="tm2015692d1_ex23-2.htm" STYLE="-sec-extract: exhibit">23.2</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="tm2015692d1_ex23-2.htm" STYLE="-sec-extract: exhibit">Consent of BDO USA, LLP, independent registered public accounting firm of DraftKings Inc.</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="tm2015692d1_ex23-3.htm" STYLE="-sec-extract: exhibit">23.3</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="tm2015692d1_ex23-3.htm" STYLE="-sec-extract: exhibit">Consent of Ziv Haft, CPA (Isr.), a BDO Member Firm, independent registered public accounting firm of SBTech (Global) Limited.</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="tm2015692d1_ex5-1.htm" STYLE="-sec-extract: exhibit">23.4</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="tm2015692d1_ex5-1.htm" STYLE="-sec-extract: exhibit">Consent of Greenberg Traurig, LLP, (included as part of Exhibit 5.1).</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="tm2015692d1_ex5-2.htm" STYLE="-sec-extract: exhibit">23.5</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="tm2015692d1_ex5-2.htm" STYLE="-sec-extract: exhibit">Consent of Winston &amp; Strawn LLP (includes as part of Exhibit 5.2).</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="#POA" STYLE="-sec-extract: exhibit">24.1</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="#POA" STYLE="-sec-extract: exhibit">Power of Attorney (included on signature page of this registration statement).</A></TD></TR>

<TR STYLE="vertical-align: top">
    <TD><A HREF="tm2015692d1_ex99-1.htm" STYLE="-sec-extract: exhibit">99.1</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="tm2015692d1_ex99-1.htm" STYLE="-sec-extract: exhibit">Consent of Michael Gavin Isaacs.</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="tm2015692d1_ex99-2.htm" STYLE="-sec-extract: exhibit">99.2</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="tm2015692d1_ex99-2.htm" STYLE="-sec-extract: exhibit">Consent of Matthew Kalish.</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="tm2015692d1_ex99-3.htm" STYLE="-sec-extract: exhibit">99.3</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="tm2015692d1_ex99-3.htm" STYLE="-sec-extract: exhibit">Consent of Woodrow H. Levin.</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="tm2015692d1_ex99-4.htm" STYLE="-sec-extract: exhibit">99.4</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="tm2015692d1_ex99-4.htm" STYLE="-sec-extract: exhibit">Consent of Paul Liberman.</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="tm2015692d1_ex99-5.htm" STYLE="-sec-extract: exhibit">99.5</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="tm2015692d1_ex99-5.htm" STYLE="-sec-extract: exhibit">Consent of Shalom Meckenzie.</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="tm2015692d1_ex99-6.htm" STYLE="-sec-extract: exhibit">99.6</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="tm2015692d1_ex99-6.htm" STYLE="-sec-extract: exhibit">Consent of Ryan R. Moore.</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="tm2015692d1_ex99-7.htm" STYLE="-sec-extract: exhibit">99.7</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="tm2015692d1_ex99-7.htm" STYLE="-sec-extract: exhibit">Consent of Steven J. Murray.</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="tm2015692d1_ex99-8.htm" STYLE="-sec-extract: exhibit">99.8</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="tm2015692d1_ex99-8.htm" STYLE="-sec-extract: exhibit">Consent of Hany M. Nada.</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="tm2015692d1_ex99-9.htm" STYLE="-sec-extract: exhibit">99.9</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="tm2015692d1_ex99-9.htm" STYLE="-sec-extract: exhibit">Consent of Jason D. Robins.</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="tm2015692d1_ex99-10.htm" STYLE="-sec-extract: exhibit">99.10</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="tm2015692d1_ex99-10.htm" STYLE="-sec-extract: exhibit">Consent of Richard Rosenblatt.</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="tm2015692d1_ex99-11.htm" STYLE="-sec-extract: exhibit">99.11</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="tm2015692d1_ex99-11.htm" STYLE="-sec-extract: exhibit">Consent of John S. Salter.</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="tm2015692d1_ex99-12.htm" STYLE="-sec-extract: exhibit">99.12</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="tm2015692d1_ex99-12.htm" STYLE="-sec-extract: exhibit">Consent of Harry E. Sloan.</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="tm2015692d1_ex99-13.htm" STYLE="-sec-extract: exhibit">99.13</A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="tm2015692d1_ex99-13.htm" STYLE="-sec-extract: exhibit">Consent of Marni M. Walden.</A></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&dagger;&nbsp;Certain
of the exhibits and schedules to this Exhibit have been omitted in accordance with Regulation S-K Item 601(a)(5). The Registrant
agrees to furnish a copy of all omitted exhibits and schedules to the SEC upon its request.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">* Certain portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv). The Registrant agrees
to furnish an unredacted copy of the exhibit to the SEC upon its request.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">(b) <I>Financial Statements</I>. The financial
statements filed as part of this registration statement are listed in the index to the financial statements immediately preceding
such financial statements, which index to the financial statements is incorporated herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Item 17. Undertakings.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The undersigned registrant, hereby undertakes:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 27pt">(1)</TD><TD>To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 63pt"></TD><TD STYLE="width: 27pt">i.</TD><TD>To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 63pt"></TD><TD STYLE="width: 27pt">ii.</TD><TD>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 Commission pursuant
to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 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;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 63pt"></TD><TD STYLE="width: 27pt">iii.</TD><TD>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.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 27pt">(2)</TD><TD>That, for the purpose of determining any liability under the Securities Act of 1933, 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 <I>bona fide</I> offering thereof.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 27pt">(3)</TD><TD>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.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 27pt">(4)</TD><TD>That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser, 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.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 27pt">(5)</TD><TD>That, for the purpose of determining any liability under the Securities Act of 1933 to any purchaser in the initial distribution
of the 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:</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 63pt"></TD><TD STYLE="width: 27pt">i.</TD><TD>Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant
to Rule 424;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 63pt"></TD><TD STYLE="width: 27pt">ii.</TD><TD>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;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 63pt"></TD><TD STYLE="width: 27pt">iii.</TD><TD>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</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 63pt"></TD><TD STYLE="width: 27pt">iv.</TD><TD>Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Insofar as indemnification for liabilities
arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the undersigned pursuant
to the foregoing provisions, or otherwise, the undersigned has been advised that in the opinion of the SEC 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 the payment by the undersigned of expenses incurred or paid by a director, officer or controlling
person of the undersigned 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 undersigned will, unless in the opinion of its counsel
the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification
by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"></P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">SIGNATURES</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Pursuant to the requirements of the Securities
Act of 1933, as amended, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of Los Angeles, State of California, on the 15th day of April 2020.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><B>DEAC NV Merger Corp.</B>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="width: 46%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>By:&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">/s/ Jeff Sagansky </TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Name: Jeff Sagansky</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Title: President&nbsp;and Chairman</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="POA"></A>POWER OF
ATTORNEY</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Each person whose signature appears below
constitutes and appoints each of Jeff Sagansky and Eli Baker, acting alone or together with another attorney-in-fact, as his or
her true and lawful attorney-in-fact and agent, with full power of substitution and resubstitution, for such person and in his
or her name, place and stead, in any and all capacities, to sign any or all further amendments (including post-effective amendments)
to this registration statement (and any additional registration statement related hereto permitted by Rule 462(b) promulgated under
the Securities Act of 1933 (and all further amendments, including post-effective amendments, thereto)), and to file the same, with
all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said
attorneys-in-fact and agents, and each of them, 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 to all intents and purposes as he might or could do in person, hereby
ratifying and confirming all that said attorney-in-fact and agent, or his or her substitute or substitutes, 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-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Pursuant to the requirements of the Securities
Act, this registration statement has been signed by the following persons in the capacities and on April 15, 2020.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid; width: 25%; padding-right: 3pt; padding-left: 3pt"><B>Name</B>&nbsp;</TD>
    <TD STYLE="width: 2%; padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; width: 56%; padding-right: 3pt; padding-left: 3pt; text-align: center"><B>Position</B>&nbsp;</TD>
    <TD STYLE="width: 2%; padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; width: 15%; padding-right: 3pt; padding-left: 3pt; text-align: center"><B>Date</B>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 3pt; padding-left: 3pt">/s/ Jeff Sagansky </TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">President and Chairman </TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt; text-align: center">April 15, 2020</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">Jeff Sagansky </TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">(Principal Executive Officer) </TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 3pt; padding-left: 3pt">/s/ Eli Baker </TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">Secretary and Vice Chairman </TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt; text-align: center">April 15, 2020</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">Eli Baker </TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">(Principal Financial and Accounting Officer) </TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="padding-right: 3pt; padding-left: 3pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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[{"type": "S-1", "sequence": "1", "filename": "tm2015692d1_s1.htm", "description": "FORM S-1", "secsgml_size_bytes": 4328754}]
{"company-data": {"conformed-name": "DEAC NV Merger Corp.", "cik": "0001797122", "assigned-sic": "7990", "irs-number": "000000000", "state-of-incorporation": "NV", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "S-1", "act": "33", "file-number": "333-237693", "film-number": "20793905"}, "business-address": {"street1": "2121 AVENUE OF THE STARS, SUITE 2300", "city": "LOS ANGELES", "state": "CA", "zip": "90067", "phone": "(310) 209-7280"}, "mail-address": {"street1": "2121 AVENUE OF THE STARS, SUITE 2300", "city": "LOS ANGELES", "state": "CA", "zip": "90067"}}
As filed with the Securities and Exchange Commission on April 15, 2020
Registration No. 333-
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-1
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
DEAC NV Merger Corp.
(Exact name of registrant as specified in
its charter)
Nevada
6770
84-4052441
(State or other jurisdiction of
incorporation or organization)
(Primary Standard Industrial
Classification Code Number)
(I.R.S. Employer
Identification No.)
2121 Avenue of the Stars, Suite 2300
Los Angeles, CA 90067
(310) 209-7280
(Address, including zip code, and telephone
number, including area code, of registrant's principal executive offices)
Eli Baker
Secretary and Vice Chairman
2121 Avenue of the Stars, Suite 2300
Los Angeles, CA 90067
(310) 209-7280
(Name, address, including zip code, and
telephone number, including area code, of agent for service)
Copies
to:
Joel L. Rubinstein
Jonathan P. Rochwarger
Elliott M. Smith
Winston & Strawn LLP
200 Park Avenue
New York, New York 10166
Tel: (212) 294-6700
Scott D. Miller
Sullivan & Cromwell LLP
125 Broad Street
New York, New York 10004
Tel: (212) 558-4000
R. Stanton Dodge
DraftKings Inc.
222 Berkeley Street, 5th Floor
Boston, Massachusetts 02116
​
Approximate date of commencement of proposed
sale to the public
: From time to time after this Registration Statement becomes effective.
If any of the securities being registered
on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933 check the
following box:
x
If this form is filed to register additional
securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act
registration statement number of the earlier effective registration statement for the same offering.
¨
If this form is a post-effective amendment
filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement
number of the earlier effective registration statement for the same offering.
¨
If this form is a post-effective amendment
filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement
number of the earlier effective registration statement for the same offering.
¨
Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company.
See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company,"
and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
¨
Accelerated filer
¨
Non-accelerated filer
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 pursuant to Section 7(a)(2)(B) of the Securities Act.
x
CALCULATION OF REGISTRATION FEE
Title of Each Class of Securities to be Registered
(1)
Amount
to be Registered
(2)
Proposed Maximum
Offering Price
Per Share
Proposed Maximum
Aggregate
Offering Price
Amount of
Registration Fee
(3)
Class A common stock
30,471,352
(4)
$
14.00
(5)
$
426,598,928
(5)
$
55,372.54
Class A common stock underlying convertible notes
11,254,479
(6)
$
14.00
(5)
$
157,562,706
(5)
$
20,451.64
Warrants to purchase Class A common stock
3,000,000
(7)
—
—
—
(8)
Class A common stock underlying warrants
3,000,000
(9)
$
11.50
(10)
$
34,500,000
$
4,478.10
Totals
$
618,661,634
$
80,302.28
(11)
(1)
All securities being registered will be issued by DEAC NV Merger Corp. ("DEAC Nevada"), a Nevada corporation and
wholly-owned subsidiary of Diamond Eagle Acquisition Corp., a Delaware corporation ("DEAC") in connection with DEAC's
previously announced initial business combination (the "Business Combination") with DEAC Nevada, DraftKings Inc. ("DK"
or "DraftKings") and SBTech (Global) Limited ("SBT" or "SBTech"), pursuant to which DEAC intends
to merge with and into DEAC Nevada, with DEAC Nevada surviving the merger (the "reincorporation"). Upon consummation
of the reincorporation and the Business Combination, DEAC Nevada will be renamed DraftKings Inc. (referred to, both upon the reincorporation
and subsequent to such change of name, as "New DraftKings"). In connection with the closing of the Business Combination,
all issued and outstanding shares of DEAC's Class A common stock, par value $0.0001 per share ("DEAC Class A common
stock") will be exchanged, on a one-for-one basis, for shares of New DraftKings' Class A common stock, par value $0.0001
per share ("New DraftKings Class A common stock"). Similarly, all of DEAC's outstanding warrants will become
warrants to acquire shares of New DraftKings Class A common stock on the same terms as DEAC's currently outstanding warrants.
(2)
Pursuant to Rule 416 under the Securities Act of 1933, as amended (the "Securities Act"), the registrant is also
registering an indeterminate number of additional shares of Class A common stock that may become issuable as a result of any stock
dividend, stock split, recapitalization or other similar transaction.
(3)
Calculated by multiplying the proposed maximum aggregate offering price of securities to be registered by 0.0001298.
(4)
Represents the resale of 30,471,352 shares of New DraftKings Class A common stock that will be issued upon the exchange of
30,471,352 shares of DEAC Class A common stock to be issued to certain institutions and accredited investors in a private placement
(the "Private Placement") upon the closing of the Business Combination.
(5)
Pursuant to Rule 457(c) under the Securities Act, and solely for the purpose of calculating the registration fee, the proposed
maximum offering price is $14.00, which is the average of the high and low prices of shares of DEAC Class A common stock on April
13, 2020 (such date being within five business days of the date that this registration statement was filed with the U.S. Securities
and Exchange Commission (the "SEC")) on The Nasdaq Capital Market.
(6)
Represents the resale of 11,254,479 shares of New DraftKings Class A common stock that will be issued upon the exchange of
11,254,479 shares of DEAC Class A common stock to be issued to holders of the subordinated convertible promissory notes of DK (the
 "Convertible Notes") immediately prior to the reincorporation.
(7)
Represents the resale of 3,000,000 warrants to purchase shares of DEAC Class A common stock that will be issued in the Private
Placement, which will, in connection with the closing of the Business Combination, become warrants to acquire shares of New DraftKings
Class A common stock on the same terms as DEAC's currently outstanding warrants (the "PIPE Warrants").
(8)
In accordance with Rule 457(i), the entire registration fee for the PIPE Warrants is allocated to the shares of common stock
underlying the PIPE Warrants, and no separate fee is payable for the PIPE Warrants.
(9)
Represents the resale of 3,000,000 shares of New DraftKings Class A common stock issuable upon exercise of the PIPE Warrants.
(10)
Estimated solely for the purpose of the calculation of the registration fee pursuant to Rule 457(g), based on the exercise
price of the warrants.
(11)
Pursuant to Rule 457(p), the registrant is offsetting the registration fee due under this registration statement by $65,587.19,
which represents the portion of the registration fee previously paid with respect to securities that had previously been included
in the registrant's registration statement on Form S-4 (Registration Statement No. 333-235805) initially filed with the
SEC on January 6, 2020.
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 or until this registration statement shall become effective on such date as the Commission, acting pursuant to said
Section 8(a), may determine.
EXPLANATORY NOTE
This registration statement registers the
resale of securities to be issued in a private placement in connection with the consummation of the proposed business combination
(the "Business Combination") between Diamond Eagle Acquisition Corp. ("DEAC"), DEAC NV Merger Corp. ("DEAC
Nevada"), a wholly-owned subsidiary of DEAC, DraftKings Inc. ("DK" or "DraftKings") and SBTech (Global)
Limited ("SBT" or "SBTech"). The shares of Class A common stock registered pursuant to this registration
statement will not be entitled to vote at the special meeting of DEAC's stockholders to be held to approve the Business Combination,
and will not receive any proceeds from the trust account established in connection with DEAC's initial public offering in
the event DEAC does not consummate an initial business combination by the May 14, 2021 deadline in its amended and restated certificate
of incorporation.
The information in this prospectus is not complete
and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission
is effective. This prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities
in any jurisdiction where the offer or sale is not permitted.
SUBJECT TO COMPLETION, DATED
APRIL 15, 2020
PRELIMINARY PROSPECTUS
DEAC NV MERGER CORP.
44,725,831 Shares of Class A Common Stock
3,000,000 Warrants
This prospectus relates to the resale
from time to time of certain securities to be issued pursuant to the terms of those certain subscription agreements and
convertible notes entered into in connection with the proposed business combination (the "Business Combination")
by and among Diamond Eagle Acquisition Corp. ("DEAC"), DEAC NV Merger Corp. ("we," "us,"
 "our," or "DEAC Nevada"), a wholly owned subsidiary of DEAC, DraftKings Inc. ("DK" or
 "DraftKings"), SBTech (Global) Limited ("SBT" or "SBTech"), DEAC Merger Sub
Inc.("Merger Sub"), the shareholders of SBT who are party thereto (the "SBT Sellers") and the SBT
Sellers' Representative. In connection with the Business Combination, DEAC will merge with and into DEAC Nevada, with
DEAC Nevada surviving the merger (the "reincorporation"). Upon consummation of the reincorporation and the
Business Combination described herein, we will be renamed DraftKings Inc. (referred to, both upon the reincorporation and
subsequent to such change of name, as "New DraftKings"). In connection with the closing of the Business
Combination, the currently issued and outstanding shares of DEAC's Class A common stock, par value $0.0001 per share
("DEAC Class A common stock"), will be exchanged, on a one-for-one basis, for shares of New DraftKings Class A
common stock, par value $0.0001 per share ("New DraftKings Class A common stock"). Similarly, all of DEAC's
outstanding warrants will become warrants to acquire shares of New DraftKings Class A common stock on the same terms as
DEAC's currently outstanding warrants. Accordingly, all references in this prospectus to "Class A common
stock" refer to shares of New DraftKings Class A common stock, which will be issued at the closing of the Business
Combination in exchange for all issued and outstanding shares of DEAC Class A common stock.
As described herein, the selling securityholders
named in this prospectus or their permitted transferees (collectively, the "Selling Securityholders"), may sell from
time to time up to (i) 30,471,352 shares of Class A common stock that will be issued to certain institutions in connection with
the closing of the Business Combination (the "Private Placement"), (ii) 3,000,000 shares of Class A common stock underlying
the warrants to purchase shares of Class A common stock that will be issued in the Private Placement (the "PIPE Warrants"),
(iii) 11,254,479 shares of Class A common stock to be issued to the holders of the subordinated convertible promissory notes of
DK (the "Convertible Notes") and (iv) 3,000,000 PIPE Warrants.
We will bear all costs, expenses and
fees in connection with the registration of the Class A common stock and the warrants (collectively, the
 "securities") and will not receive any proceeds from the sale of the securities. The Selling Securityholders will
bear all commissions and discounts, if any, attributable to their respective sales of the securities.
Upon the consummation of the Business Combination,
the Company's Class A common stock and warrants are expected trade on The Nasdaq Global Market ("Nasdaq") under
the proposed symbols "DKNG" and "DKNGW," respectively.
Investing in our securities involves
risks that are described in the "Risk Factors" section beginning on page 11 of this prospectus.
Neither the Securities and Exchange Commission
nor any state securities commission has approved or disapproved of the securities to be issued under this prospectus or determined
if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
The date of this prospectus is                    , 2020.
TABLE OF
CONTENTS
SELECTED DEFINITIONS
ii
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
v
SUMMARY OF THE PROSPECTUS
1
SELECTED HISTORICAL FINANCIAL INFORMATION OF DEAC
5
SELECTED HISTORICAL FINANCIAL INFORMATION OF DRAFTKINGS
6
SELECTED HISTORICAL FINANCIAL INFORMATION OF SBT
8
SUMMARY UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION
9
COMPARATIVE HISTORICAL AND UNAUDITED PRO FORMA PER SHARE FINANCIAL INFORMATION
10
RISK FACTORS
11
USE OF PROCEEDS
49
UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION
50
NOTES TO THE UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS
57
DEAC's MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
66
BUSINESS OF DRAFTKINGS AND SBTECH
70
DRAFTKINGS' INDUSTRY
96
DRAFTKINGS' MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
101
SBT'S MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
122
MANAGEMENT
130
EXECUTIVE COMPENSATION
139
DESCRIPTION OF SECURITIES
150
BENEFICIAL OWNERSHIP OF SECURITIES
164
SELLING SECURITYHOLDERS
168
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
172
UNITED STATES FEDERAL INCOME TAX CONSIDERATIONS
177
PLAN OF DISTRIBUTION
182
LEGAL MATTERS
186
EXPERTS
186
WHERE YOU CAN FIND MORE INFORMATION
186
INDEX TO FINANCIAL STATEMENTS
F-1
You should rely only on the information contained in this prospectus.
No one has been authorized to provide you with information that is different from that contained in this prospectus. This prospectus
is dated as of the date set forth on the cover hereof. You should not assume that the information contained in this prospectus
is accurate as of any date other than that date.
i
SELECTED
DEFINITIONS
·
"BCA" or "Business Combination Agreement" refers to the Business Combination Agreement, dated as of
December 22, 2019, as amended on April 7, 2020, by and among DEAC, DraftKings, SBT, the SBT Sellers party thereto, the SBT Sellers'
Representative, DEAC Nevada and Merger Sub.
·
"Board" refers to DEAC's board of directors, DraftKings' board of directors or New DraftKings'
board of directors, as the context suggests.
·
"Business Combination" refers to the transactions contemplated by the BCA.
·
"Class A common stock" refers to shares of DEAC Class A common stock or to shares of New DraftKings Class A common
stock, which will be issued upon the exchange of shares of DEAC Class A common stock, as the context suggests.
·
"Closing" refers to the closing of the Business Combination.
·
"Closing Date" refers to the date on which the Closing actually occurs.
·
"Continental" refers to Continental Stock Transfer & Trust Company, the transfer agent, warrant agent and escrow
agent of DEAC.
·
"Convertible Notes" refers to those certain subordinated convertible notes, issued by DraftKings on or after December
16, 2019 to certain investors in an aggregate principal amount of approximately $109.2 million.
·
"DEAC" refers to Diamond Eagle Acquisition Corp., a Delaware corporation.
·
"DEAC Class A common stock" refers to the shares of Class A common stock, par value $0.0001 per share, of DEAC.
·
"DEAC Class B common stock" refers to the shares of Class B common stock, par value $0.0001 per share, of DEAC.
·
"DEAC Founder Group" refers to Eagle Equity Partners, LLC, Harry E. Sloan, Jeff Sagansky and Eli Baker.
·
"DEAC Nevada" refers to DEAC NV Merger Corp., a Nevada corporation.
·
"DEAC Shares" refers to shares of DEAC Class A common stock and shares of DEAC Class B common stock.
·
"DEAC Stockholders" refers to, collectively, holders of shares of DEAC Class A common stock and holders of shares
of DEAC Class B common stock, but does not include the PIPE Investors or the holders of the Convertible Notes.
·
"dollars" or "$" refers to U.S. dollars.
·
"DraftKings" refers to DraftKings Inc., a Delaware corporation.
·
"founder shares" refers to shares of DEAC Class B common stock initially purchased by our Sponsor and Harry Sloan
in a private placement prior to DEAC's initial public offering and the shares of Class A common stock that will be issued
upon the automatic conversion of those shares in connection with the Closing.
·
"Merger Sub" refers to DEAC Merger Sub Inc., a Delaware corporation.
·
"New DraftKings" refers to DEAC Nevada following its name change to DraftKings Inc. New DraftKings will be a Nevada
corporation and the combined company following the consummation of the Business Combination.
·
"New DraftKings Class A common stock" refers to the shares of Class A common stock, par value $0.0001 per share,
of New DraftKings.
·
"New DraftKings Class B common stock" refers to the shares of Class B common stock, par value $0.0001 per share,
of New DraftKings.
ii
·
"Nasdaq" refers to The Nasdaq Capital Market, the exchange in which DEAC's securities are listed on, or The
Nasdaq Global Market, the exchange in which New DraftKings' securities will be listed on, as the context suggests.
·
"PIPE Investors" refers to certain institutional and accredited investors who are party to the Subscription Agreements.
·
"PIPE Warrants" refers to the 3.0 million redeemable warrants issued in the Private Placement, each of which is
exercisable for one share of DEAC Class A common stock at an exercise price of $11.50 per share, in accordance with its terms,
and will, upon the Closing, become warrants to acquire shares of New DraftKings Class A common stock on the same terms as DEAC's
currently outstanding warrants.
·
"Private Placement" refers to the issuance of an aggregate of 30,471,352 shares of DEAC Class A common stock and
the PIPE Warrants pursuant to the Subscription Agreements to the PIPE Investors immediately before the Closing, at a purchase price
of $10.00 per share.
·
"private placement warrants" refers to the 6,333,334 warrants initially issued to DEAC's Sponsor and Harry
Sloan in a private placement simultaneously with the closing of DEAC's initial public offering, each of which is exercisable
for one share of DEAC Class A common stock at an exercise price of $11.50 per share, in accordance with its terms.
·
"Proposed Charter" refers to the proposed amended and restated articles of incorporation of New DraftKings, which
will be effective upon consummation of the Business Combination.
·
"Proxy Statement" refers to the definitive proxy statement filed with the SEC by DEAC Nevada on April 15, 2020
in connection with the Business Combination.
·
"public shares" refers to shares of DEAC Class A common stock sold as part of the units in DEAC's initial
public offering (whether they were purchased in that offering or thereafter in the open market), which will become shares of New
DraftKings Class A common stock in connection with the Closing.
·
"public stockholders" refers to the holders of DEAC's public shares, including DEAC's initial stockholders
and management team to the extent DEAC's initial stockholders and/or members of DEAC's management team purchase public
shares, provided that each initial stockholder's and member of DEAC's management team's status as a "public
stockholder" will only exist with respect to such public shares.
·
"public warrants" refers to the warrants to purchase shares of DEAC Class A common stock sold as part of the units
in DEAC's initial public offering, each of which is exercisable for one share of DEAC Class A common stock at an exercise
price of $11.50 per share, in accordance with its terms (whether they were purchased in that offering or thereafter in the
open market), and will, upon the Closing, become warrants to acquire shares of New DraftKings Class A common stock on the same
terms as DEAC's currently outstanding warrants.
·
"reincorporation" refers to the change of DEAC's jurisdiction of incorporation from Delaware to Nevada in
connection with the Business Combination through the merger of DEAC with and into DEAC Nevada, with DEAC Nevada surviving the merger,
pursuant to the terms and subject to the conditions of the Reincorporation Merger Agreement.
·
"Reincorporation Merger Agreement" refers to the Agreement and Plan of Merger, dated as of March 12, 2020, by and
between DEAC and DEAC Nevada.
·
"SBT" or "SBTech" refers to SBTech (Global) Limited, a company limited by shares, originally incorporated
in Gibraltar and continued as a company under the Isle of Man Companies Act 2006, with registration number 014119V.
·
"SBT Sellers" refers to each of the holders of capital stock of SBT party to the BCA.
·
"SBT Sellers' Representative" refers to Shalom Meckenzie in his capacity as representative of the SBT Sellers
under the BCA.
·
"SBT shares" refers to the ordinary shares, par value $0.10 per share, of SBT.
iii
·
"SEC" refers to the U.S. Securities and Exchange Commission.
·
"Sponsor" refers to Eagle Equity Partners, LLC, a Delaware limited liability company controlled by Jeff Sagansky
and Eli Baker.
·
"Special Meeting" refers to the special meeting of DEAC Stockholders initially convened on April 9, 2020 at 10:00
a.m., New York City Time, at the offices of Winston & Strawn LLP, located at 200 Park Avenue, New York, New York 10166 and
reconvened on April 23, 2020 at 10:00 a.m. in virtual format via www.cstproxy.com/diamondeagleacquisitioncorp/sm2020 to vote on matters relating to the Business
Combination.
·
"Subscription Agreements" refers to the subscription agreements, dated December 22, 2019, between DEAC and the
PIPE Investors, pursuant to which DEAC has agreed to issue an aggregate of 30,471,352 shares of DEAC Class A common stock plus
3.0 million PIPE Warrants to the PIPE Investors immediately before the Closing at a purchase price of $10.00 per share. In
connection with the Closing of the Business Combination, the currently issued and outstanding shares of DEAC Class A common stock
will be exchanged, on a one-for-one basis, for shares of New DraftKings Class A common stock and all of DEAC's outstanding
warrants will become warrants to acquire shares of New DraftKings Class A common stock on the same terms as DEAC's currently
outstanding warrants.
iv
CAUTIONARY
NOTE REGARDING FORWARD-LOOKING STATEMENTS
The statements contained in this prospectus
that are not purely historical are forward-looking statements. Our forward-looking statements include, but are not limited to,
statements regarding our or our management team's expectations, hopes, beliefs, intentions or strategies regarding the future.
The information included in this prospectus in relation to DraftKings has been provided by DraftKings and its management team,
and the information included in this prospectus in relation to SBT has been provided by SBT and its management. Forward-looking
statements include statements relating to each of DraftKings' and SBT's management teams' expectations, hopes,
beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other
characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The
words "anticipate," "believe," "continue," "could," "estimate," "expect,"
 "intends," "may," "might," "plan," "possible," "potential,"
 "predict," "project," "should," "would" and similar expressions may identify forward-looking
statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in
this prospectus may include, for example, statements about:
·
DEAC's ability to complete the Business Combination, or, if DEAC does not consummate the Business Combination, any other
initial business combination;
·
satisfaction of conditions to the Business Combination, including the availability of at least $400 million of cash in DEAC's
trust account (and/or from other specified sources, if necessary), after giving effect to redemptions of public shares, if any;
·
the occurrence of any event, change or other circumstances that could give rise to the termination of the BCA;
·
the ability to obtain and/or maintain the listing of the shares of Class A common stock on Nasdaq following the Business Combination;
·
New DraftKings' ability to raise financing in the future;
·
New DraftKings' success in retaining or recruiting, or changes required in, officers, key employees or directors following
the Business Combination;
·
DEAC's directors and officers potentially having conflicts of interest with our business or in approving the Business
Combination, as a result of which they would then receive expense reimbursements;
·
factors relating to the business, operations and financial performance of DraftKings and SBT, including:
·
New DraftKings' ability to effectively compete in the global entertainment and gaming industries;
·
New DraftKings' ability to successfully acquire and integrate new operations;
·
New DraftKings' ability to obtain and maintain licenses with gaming authorities;
·
New DraftKings' inability to recognize deferred tax assets and tax loss carryforwards;
·
market conditions and global and economic factors beyond DraftKings' and SBT's control, including the potential
adverse effects of the ongoing global coronavirus (COVID-19) pandemic;
·
intense competition and competitive pressures from other companies worldwide in the industries in which the combined company
will operate;
·
litigation and the ability to adequately protect New DraftKings' intellectual property rights; and
·
other factors detailed herein under the section entitled "
Risk Factors.
"
v
These forward-looking statements are based
on information available as of the date of this prospectus, and current expectations, forecasts and assumptions, and involve a
number of judgments, risks and uncertainties. Important factors could cause actual results to differ materially from those indicated
or implied by forward-looking statements such as those contained in documents we have filed with the U.S. Securities and Exchange
Commission. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date,
we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they
were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities
laws.
As a result of a number of known and unknown
risks and uncertainties, our actual results or performance may be materially different from those expressed or implied by these
forward-looking statements. For a discussion of the risks involved in our business and investing in our common stock, see the section
entitled "Risk Factors."
Should one or more of these risks or uncertainties
materialize, or should any of the underlying assumptions prove incorrect, actual results may vary in material respects from those
expressed or implied by these forward-looking statements. You should not place undue reliance on these forward-looking statements.
vi
SUMMARY
OF THE PROSPECTUS
This summary highlights selected information
from this prospectus and does not contain all of the information that is important to you in making an investment decision. This
summary is qualified in its entirety by the more detailed information included in this prospectus. Before making your investment
decision with respect to our securities, you should carefully read this entire prospectus, including the information under "Risk
Factors," "DEAC's Management's Discussion and Analysis of Financial Condition and Results of Operations,"
 "DraftKings' Management's Discussion and Analysis of Financial Condition and Results of Operations," "SBT's
Management's Discussion and Analysis of Financial Condition and Results of Operations," and the financial statements
included elsewhere in this prospectus.
Unless otherwise indicated or the context
otherwise requires, references in this prospectus to "we," "our" "us" and other similar terms
refer to DEAC, DEAC Nevada or New DraftKings, as the context suggests.
Information About the Parties to the Business Combination
Diamond Eagle Acquisition Corp.
Diamond Eagle Acquisition Corp., a Delaware
corporation, is a blank check company whose business purpose is to effect a merger, capital stock exchange, asset acquisition,
stock purchase, reorganization or similar business combination with one or more businesses. If DEAC does not consummate the Business
Combination, the shares of common stock and warrants contemplated by this prospectus will not be issued.
DEAC Nevada
DEAC Nevada is a wholly-owned subsidiary
of DEAC formed for the purpose of effecting the Business Combination and the reincorporation. DEAC Nevada was incorporated under
the Nevada Revised Statutes ("NRS") on December 13, 2019. DEAC Nevada owns no material assets and does not operate
any business.
Pursuant to the terms and subject to the
conditions of the Business Combination Agreement, among other things, DEAC will merge with and into DEAC Nevada with DEAC Nevada
surviving the merger.
DraftKings Inc.
DraftKings Inc., a Delaware corporation,
is a digital sports entertainment and gaming company. DraftKings provides users with daily fantasy sports, sports betting and iGaming
opportunities.
SBTech (Global) Limited
SBTech is headquartered in the Isle of Man.
Its principal business activities involve the design and development of sports betting and casino gaming platform software for
online and retail sportsbook and casino gaming products.
Business Combination
In connection with the Business Combination,
(i) DEAC will change its jurisdiction of incorporation to Nevada by merging with and into DEAC Nevada, with DEAC Nevada surviving
the merger and changing its name to "DraftKings Inc." (referred to in this prospectus as "New DraftKings"),
(ii) following the reincorporation, DEAC Merger Sub Inc., a wholly-owned subsidiary of DEAC, will merge with and into DraftKings,
with DraftKings surviving the merger (the "DK Merger") and (iii) immediately following the DK Merger, New DraftKings
will acquire all of the issued and outstanding share capital of SBT. Upon consummation of the foregoing transactions, DraftKings
and SBT will be wholly-owned subsidiaries of New DraftKings. In connection with the closing of the Business Combination, the currently
issued and outstanding shares of DEAC Class A common stock will be exchanged, on a one-for-one basis, for shares of New DraftKings
Class A common stock. Similarly, all of DEAC's outstanding warrants will become warrants to acquire shares of New DraftKings
Class A common stock on the same terms as DEAC's currently outstanding warrants.
The Private Placement
In order to satisfy the minimum proceeds
condition in the BCA that DEAC has at least $400 million in cash at the Closing, DEAC entered into the Subscription Agreements
with the PIPE Investors, pursuant to which, among other things, DEAC agreed to issue and sell in private placements an aggregate
of 30,471,352 shares of DEAC Class A common stock to the PIPE Investors for $10.00 per share, plus the issuance by DEAC to the
PIPE Investors of an aggregate of 3.0 million warrants to purchase shares of DEAC Class A common stock, which warrants are identical
to DEAC's public warrants. The Private Placement is expected to close immediately prior to the Closing. In connection with
the Closing, pursuant to the Reincorporation Merger Agreement, all of the issued and outstanding shares of DEAC Class A common
stock, including the shares of DEAC Class A common stock issued to the PIPE Investors, will be exchanged, on a one-for-one basis,
for shares of New DraftKings Class A common stock. In addition, all of DEAC's outstanding warrants will become warrants
to acquire shares of New DraftKings Class A common stock on the same terms as DEAC's currently outstanding warrants.
1
The Convertible Notes
On and after December 16, 2019, DraftKings
issued subordinated convertible promissory notes to certain investors in an aggregate principal amount of approximately $109.2
million (the "Convertible Notes"). Pursuant to the terms of the Convertible Notes, the outstanding principal and accrued
interest on the Convertible Notes will convert immediately prior to the reincorporation into shares of DEAC Class A common stock,
at a price per share equal to the price per share paid by the PIPE Investors in the Private Placement. The shares of DEAC Class
A common stock issued upon conversion of the Convertible Notes will be converted into shares of New DraftKings Class A common stock
upon consummation of the reincorporation and the Business Combination.
Corporate Information
DEAC Nevada's principal executive
offices are located at 2121 Avenue of the Stars, Suite 2300, Los Angeles, CA 90067, and its telephone number is (310) 209-7280.
Organizational Structure
DEAC Nevada is a Nevada corporation. The
following diagrams depict DEAC Nevada's organizational structure currently and following the Closing, respectively.
2
THE OFFERING
Issuer
DEAC NV Merger Corp., to be renamed DraftKings Inc. upon consummation
        of the Business Combination
Securities that may be offered and sold from time to time by
        the Selling Securityholders named herein:
Class A common stock
44,725,831 (including (i) 30,471,352 shares of Class A common
        stock to be issued in the Private Placement, (ii) 3,000,000 shares of Class A common stock issuable upon exercise of the PIPE Warrants
        and (iii) 11,254,479 shares of Class A common stock to be issued upon conversion of the Convertible Notes)
Warrants
3,000,000 PIPE Warrants
Class A common stock issued and outstanding prior to the consummation
        of the Business Combination and any exercise of warrants
50,000,000
1
Class A common stock to be issued and outstanding after
the consummation of the Business Combination (assuming no redemptions and excluding shares issuable upon exercise of outstanding
warrants)
2
313,077,942
Use of proceeds
All of the shares of Class A common stock and warrants (including
        the shares of Class A common stock underlying such warrants) offered by the Selling Securityholders pursuant to this prospectus
        will be sold by the Selling Securityholders for their respective accounts. We will not receive any of the proceeds from these sales.
        We will receive up to an aggregate of approximately $34,500,000 from the exercise of the PIPE Warrants, assuming the exercise in
        full of all the PIPE Warrants for cash. We expect to use the net proceeds from the exercise of the PIPE Warrants for general corporate
        purposes, which may include acquisitions and other business opportunities and the repayment of indebtedness. Our management will
        have broad discretion over the use of proceeds from the exercise of the PIPE Warrants.
Market for our shares of Class A common stock and warrants
Upon the Closing we expect our Class A shares and warrants will
        be listed on The Nasdaq Global Market. After resale, the PIPE Warrants will also trade under the same CUSIP and ticker symbol as
        the public warrants.
1
Represents the number of currently issued and outstanding shares of DEAC Class A common stock and DEAC Class B common
stock. In connection with the reincorporation and the Closing, (i) the currently issued and outstanding shares of DEAC Class B
common stock will convert on a one-for-one basis into shares of DEAC Class A common stock and (ii) the then currently issued and
outstanding shares of DEAC Class A common stock will be exchanged, on a one-for-one basis, for shares of New DraftKings'
Class A common stock. As of the date of this prospectus, DEAC Nevada had one share of Class A common stock issued and outstanding.
2
Represents the number of shares of New DraftKings Class A common stock outstanding at Closing assuming that none of DEAC's
public stockholders exercise their redemption rights in connection with the Special Meeting.
See
"Beneficial Ownership
of Securities" for more information. Excludes 6,000,000 shares of Class A common stock held in escrow, which may be released
to the Sponsor and Harry E. Sloan (the "DEAC Founders"), the current equityholders of DraftKings (the "DK Equityholders")
and the SBT Sellers subject to the achievement of certain stock price targets.
3
Nasdaq Ticker Symbols
"DEAC" and "DEACW" and, after the Business
        Combination, "DKNG" and "DKNGW"
Risk Factors
Any investment in the securities offered hereby is speculative and involves a high degree of risk. You should carefully consider the information set forth under "Risk Factors" on page 11 of this prospectus.
4
SELECTED
HISTORICAL FINANCIAL INFORMATION OF DEAC
DEAC's consolidated statement of operations
data for the period from March 27, 2019 (date of inception) to December 31, 2019 and balance sheet data as of December 31, 2019
is derived from DEAC's audited consolidated financial statements included elsewhere in this prospectus.
The information is only a summary and should
be read in conjunction with DEAC's consolidated financial statements and related notes and "
DEAC's Management's
Discussion and Analysis of Financial Condition and Results of Operations
" contained elsewhere herein. The historical
results included below and elsewhere in this prospectus are not indicative of the future performance of DEAC.
Statement of Operations Data
For the Period
from
March 27, 2019
(inception) to
December 31, 2019
​
(in actual dollars and shares)
Revenue
$
-
General and administrative expenses
1,857,305
Loss from operations
(1,857,305
)
Other income - interest on Trust Account
5,111,208
Provision for income tax
(944,494
)
Net income
$
2,309,409
Weighted average Class A common stock outstanding
40,000,000
Basic and diluted net income per share, Class A
$
0.09
Weighted average Class B common stock outstanding
10,010,045
Basic and diluted net loss per share, Class B
$
(0.15
)
Balance Sheet Data
December 31, 2019
​
(in actual dollars)
Total assets
$
404,771,673
Total liabilities
15,493,133
Total shareholders' equity and Class A common shares subject to possible redemptions
389,278,540
5
SELECTED
HISTORICAL FINANCIAL INFORMATION OF DRAFTKINGS
The following table shows selected historical
financial information of DraftKings for the periods and as of the dates indicated.
The selected historical financial information
of DraftKings as of December 31, 2019 and 2018, and for the years ended December 31, 2019, 2018 and 2017 was derived from the audited
historical consolidated financial statements of DraftKings included elsewhere in this prospectus.
The following selected historical financial
information should be read together with the consolidated financial statements and accompanying notes and "
DraftKings'
Management's Discussion and Analysis of Financial Condition and Results of Operations
" appearing elsewhere in this
prospectus. The selected historical financial information in this section is not intended to replace DraftKings' consolidated
financial statements and the related notes. DraftKings' historical results are not necessarily indicative of DraftKings'
future results.
As explained elsewhere in this prospectus,
the financial information contained in this section relates to DraftKings, prior to and without giving pro forma effect to the
impact of the Business Combination and, as a result, the results reflected in this section may not be indicative of the results
of New DraftKings going forward. See the section entitled "Unaudited Pro Forma Condensed Combined Financial Information"
included elsewhere in this prospectus.
​
For the year ended December 31,
Statement of Operations Data
2019
2018
2017
​
(in thousands)
Revenue
323,410
$
226,277
$
191,844
Total costs and expenses
469,955
303,058
265,042
Loss from operations
(146,545
)
(76,781
)
(73,198
)
Other income (expense):
​
​
​
Interest income (expense), net
1,348
666
(1,541
)
Gain on initial equity method investment
3,000
-
-
Other expense, net
-
-
(607
)
Income Tax Provision
58
105
210
Loss from equity method investment
479
-
-
Net Loss
$
(142,734
)
$
(76,220
)
$
(75,556
)
Statement of Cash Flows Data
​
​
​
Net cash provided by (used in) operating activities
(78,880
)
(45,579
)
(88,437
)
Net cash provided by (used in) investing activities
(42,271
)
(26,672
)
(7,715
)
Net cash provided by (used in) financing activities
79,776
140,892
118,531
6
As of December 31,
Balance Sheet Data
2019
2018
​
(in thousands)
Total assets
$
330,725
$
299,393
Total liabilities
380,305
223,343
Total redeemable convertible preferred stock and stockholders' deficit
(49,580
)
76,050
Key Performance Indicators
DraftKings' reports the following
financial and operational key performance indicators, which are used by management to assess its performance:
Adjusted EBITDA
. DraftKings'
defines and calculates Adjusted EBITDA as net loss before the impact of interest income or expense, income tax expense and depreciation
and amortization, as further adjusted for the following items: stock-based compensation, transaction-related costs, litigation,
settlement and related costs and certain other non-recurring, non-cash and non-core items. See "
DraftKings' Management's
Discussion and Analysis of Financial Condition and Results of Operations - Non-GAAP Information
" for important
information about the limitations of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net loss, the most directly comparable
financial measure calculated in accordance with U.S. GAAP.
Monthly Unique Payers ("MUPs")
.
We define MUPs as the number of unique paid users ("payers") per month who had a paid engagement (
i.e.
, participated
in a real-money DFS contest, sports betting or casino game) across one or more of our product offerings via our platform. For reported
periods longer than one month, we average the MUPs for the months in the reported period.
A "unique paid user" or "unique
payer" is any person who had one or more paid engagements via our platform during the period (
i.e.
, a user that participates
in a paid engagement across each of our product offerings counts as a single unique payer for the period). This measure does not
include users who have not played with funds deposited in their wallet on our platform. We exclude users who have made a deposit
but have not yet had a paid engagement. Unique payers or unique paid users include users who have participated in a paid engagement
with promotional incentives, which are fungible with other funds deposited in their wallets on our platform; the number of these
users included in MUPs has not been material to date and a substantial majority of such users are repeat users who have had paid
engagements both prior to and after receiving incentives.
Average Revenue per MUP (ARPMUP)
.
We define and calculate ARPMUP as the average monthly revenue for a reporting period, divided by MUPs (
i.e.
, the average
number of unique payers) for the same period.
The following table presents our key performance
indicators for the periods indicated:
​
Year ended December 31,
​
2019
2018
2017
Adjusted EBITDA
(dollars in thousands)
(1)
$
(98,640
)
$
(58,850
)
$
(48,884
)
Monthly Unique Payers (MUPs)
(in thousands)
(2)
684
601
574
Average Revenue per MUP (ARPMUP)
(in whole dollars)
(2)
$
39
$
31
$
28
(1)
Adjusted EBITDA is a non-GAAP financial measure. See
"DraftKings' Management's Discussion and Analysis
of Financial Condition and Results of Operations - Non-GAAP Information"
below for our definition of and
additional information about Adjusted EBITDA and reconciliation to net loss, the most directly comparable U.S. GAAP financial measure.
(2)
For important information about how we use our MUPs and ARPMUP, see
"DraftKings' Management's Discussion
and Analysis of Financial Condition and Results of Operations - Our Business Model - Growing Our User Base."
Our business is seasonal and our results of operations and key performance indicators may not be comparable between fiscal quarters
or between comparative year-over-year periods. See
"DraftKings' Management's Discussion and Analysis of Financial
Condition and Results of Operations - Quarterly Performance Trend and Seasonality."
7
SELECTED
HISTORICAL FINANCIAL INFORMATION OF SBT
The following table shows selected historical
financial information of SBTech for the periods and as of the dates indicated.
The selected historical financial information
of SBTech as of December 31, 2019 and 2018, and for the years ended December 31, 2019, 2018 and 2017 was derived from the audited
historical consolidated financial statements of SBTech included elsewhere in this prospectus.
The following selected historical financial
information should be read together with the consolidated financial statements and accompanying notes and "
SBT's
Management's Discussion and Analysis of Financial Condition and Results of Operations
" appearing elsewhere in this
prospectus. The selected historical financial information in this section is not intended to replace SBTech's consolidated
financial statements and the related notes. SBTech's historical results are not necessarily indicative of SBTech's
future results.
As explained elsewhere in this prospectus,
the financial information contained in this section relates to SBTech, as prepared in accordance with International Financial Reporting
Standards and presented in Euros, prior to and without giving pro forma effect to the impact of the Business Combination and, as
a result, the results reflected in this section may not be indicative of the results of New DraftKings going forward. See the section
entitled "Unaudited Pro Forma Condensed Combined Financial Information" included elsewhere in this prospectus.
​
For the year ended December 31,
Statement of Operations Data
2019
2018
2017
​
(in thousands)
Revenue
€
96,857
€
94,147
€
66,087
Total costs and expenses
90,820
66,560
49,393
Operating income
€
6,037
€
27,587
€
16,694
Other income:
​
​
​
Financial income
23
97
37
Financial expenses
846
340
177
Income tax expense
638
565
264
Net profit
€
4,576
€
26,779
€
16,290
Statement of Cash Flows Data
​
​
​
Net cash provided by (used in) operating activities
€
19,525
€
30,949
€
18,260
Net cash provided by (used in) investing activities
(18,399
)
(17,384
)
(14,307
)
Net cash provided by (used in) financing activities
(13,537
)
(1,184
)
190
​
As of December 31,
Balance Sheet Data
2019
2018
​
(in thousands)
Total assets
€
98,853
€
72,656
Total liabilities
45,976
14,207
Total equity
52,877
58,449
8
SUMMARY
UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION
The following summary unaudited pro forma
condensed combined financial data (the "summary pro forma data") gives effect to the Business Combination contemplated
by the Business Combination Agreement described in the section entitled "
Unaudited Pro Forma Condensed Combined Financial
Information.
" The merger between DraftKings and Merger Sub will be accounted for as a reverse recapitalization, with
no goodwill or other intangible assets recorded, in accordance with U.S. GAAP. Under this method of accounting, DEAC will be treated
as the "acquired" company for financial reporting purposes. Accordingly, for accounting purposes, the Reverse Recapitalization
will be treated as the equivalent of DraftKings issuing stock for the net assets of DEAC, accompanied by a recapitalization. The
net assets of DEAC will be stated at historical cost, with no goodwill or other intangible assets recorded. Operations prior to
the Reverse Recapitalization will be those of DraftKings. The SBTech Acquisition will be treated as a business combination under
Financial Accounting Standards Board's ASC 805, and will be accounted for using the acquisition method of accounting. DraftKings
will record the fair value of assets acquired and liabilities assumed from SBTech. The summary unaudited pro forma condensed combined
balance sheet data as of December 31, 2019 gives pro forma effect to the Business Combination as if it had occurred on December
31, 2019. The summary unaudited pro forma condensed combined statement of operations data for the year ended December 31, 2019
give pro forma effect to the Business Combination as if it had occurred on January 1, 2019.
The summary pro forma data have been derived
from, and should be read in conjunction with, the unaudited pro forma condensed combined financial information of the combined
company appearing elsewhere in this prospectus and the accompanying notes. The unaudited pro forma condensed combined financial
information is based upon, and should be read in conjunction with, the historical consolidated financial statements of DEAC, DraftKings
and SBTech and related notes included in this prospectus. The summary pro forma data have been presented for informational purposes
only and are not necessarily indicative of what the combined company's financial position or results of operations actually
would have been had the Business Combination been completed as of the dates indicated. In addition, the summary pro forma data
do not purport to project the future financial position or operating results of the combined company.
The following table presents summary pro
forma data after giving effect to the Business Combination, assuming two redemption scenarios as follows:
·
Assuming No Redemptions
: This presentation assumes that no public stockholders of DEAC exercise redemption rights with
respect to their public shares for a pro rata share of the funds in the trust account.
·
Assuming Maximum Redemptions
: This presentation assumes that stockholders holding 30,564,789 DEAC public shares will
exercise their redemption rights for their pro rata share (approximately $10.10 per share) of the funds in DEAC's trust account.
This scenario gives effect to DEAC's public share redemptions of 30,564,789 shares for aggregate redemption payments of $308.7
million. The Business Combination Agreement includes as a condition to closing the Business Combination that, at the Closing, DEAC
will have a minimum of $400.0 million in cash comprising (i) the cash held in the trust account after giving effect to DEAC share
redemptions and (ii) proceeds from the Private Placement, provided that DraftKings and SBTech are entitled to waive that condition.
After giving effect to the proceeds from the Private Placement, approximately $95.3 million would be needed from the trust account
in order to meet the Minimum Proceeds Condition of $400.0 million.
​
Pro Forma
Combined
(Assuming No
Redemptions)
Pro Forma
Combined
(Assuming
Maximum
Redemptions)
​
(in thousands, except share and per
share data)
Summary Unaudited Pro Forma Condensed Combined Statement of Operations Data
    Year Ended December 31, 2019
​
​
Revenue
$
431,834
$
431,834
Net loss per share - basic and diluted
$
(0.42
)
$
(0.46
)
Weighted-average Class A shares outstanding - basic and diluted
336,631,006
306,066,216
Summary Unaudited Pro Forma Condensed Combined Balance Sheet
Data as of December 31, 2019
​
​
Total assets
$
1,622,021
$
1,323,346
Total liabilities
363,770
363,770
Total equity
1,258,251
959,576
9
COMPARATIVE
HISTORICAL AND UNAUDITED PRO FORMA PER SHARE FINANCIAL INFORMATION
The following table sets forth historical
comparative share information for DEAC, DraftKings and SBT and unaudited pro forma combined share information after giving effect
to the Business Combination, assuming two redemption scenarios as follows:
·
Assuming No Redemptions
: This presentation assumes that no public stockholders of DEAC exercise redemption rights with
respect to their public shares for a pro rata share of the funds in the trust account.
·
Assuming Maximum Redemptions
: This presentation assumes that stockholders holding 30,564,789 DEAC public shares will
exercise their redemption rights for their pro rata share (approximately $10.10 per share) of the funds in DEAC's trust account.
This scenario gives effect to DEAC's public share redemptions of 30,564,789 shares for aggregate redemption payments of $308.7
million. The Business Combination Agreement includes as a condition to closing the Business Combination that, at the Closing, DEAC
will have a minimum of $400.0 million in cash comprising (i) the cash held in the trust account after giving effect to DEAC share
redemptions and (ii) proceeds from the Private Placement, provided that DraftKings and SBT are entitled to waive that condition.
After giving effect to the proceeds from the Private Placement, approximately $95.3 million would be needed from the trust account
in order to meet the Minimum Proceeds Condition of $400.0 million.
The pro forma book value information reflects
the Business Combination as if it had occurred on December 31, 2019. The weighted average shares outstanding and net earnings per
share information reflect the Business Combination as if it had occurred on January 1, 2019.
This information is only a summary and should
be read together with the selected historical financial information summary included elsewhere in this prospectus, and the historical
financial statements of DEAC, DraftKings, and SBT and related notes. The unaudited pro forma combined per share information of
DEAC, DraftKings, and SBT is derived from, and should be read in conjunction with, the unaudited pro forma condensed combined financial
statements and related notes included elsewhere in this prospectus.
The unaudited pro forma combined earnings
per share information below does not purport to represent the earnings per share which would have occurred had the companies been
combined during the periods presented, nor earnings per share for any future date or period.
​
Combined Pro Forma
​
Diamond
Eagle
(Historical)
Pro Forma
Combined
(Assuming No
Redemption)
Pro Forma
Combined
(Assuming
Maximum
Redemption)
As of and for the Year ended December 31, 2019
​
​
​
Book Value per share
(1)
$
0.10
$
3.74
$
3.14
Weighted average shares outstanding of Class A common stock - basic and diluted
40,000,000
336,631,006
306,066,216
Weighted average shares outstanding of Class B common stock - basic and diluted
10,010,045
​
​
Net income per share of Class A common stock - basic and diluted
$
0.09
​
​
Net loss per share of Class B common stock - basic and diluted
$
(0.15
)
​
​
Net loss per share of Class A common stock - basic and diluted
​
$
(0.42
)
$
(0.46
)
(1)       Book
value per share = (Total equity excluding preferred shares)/shares outstanding.
10
RISK FACTORS
An investment in our securities involves
a high degree of risk. You should carefully consider the risks described below before making an investment decision. Our business,
prospects, financial condition, or operating results could be harmed by any of these risks, as well as other risks not currently
known to us or that we currently consider immaterial. The trading price of our securities could decline due to any of these risks,
and, as a result, you may lose all or part of your investment.
Risk Factors Relating to the Business and Industry of New
DraftKings
Competition within the broader entertainment industry
is intense and our existing and potential users may be attracted to competing forms of entertainment such as television, movies
and sporting events, as well as other entertainment and gaming options on the Internet. If our offerings do not continue to be
popular, our business could be harmed.
New DraftKings will operate in the
global entertainment and gaming industries within the broader entertainment industry with its business-to-consumer offerings
such as DFS, Sportsbook and iGaming, and its business-to-business offerings through the SBT platform. Our users will face a
vast array of entertainment choices. Other forms of entertainment, such as television, movies, sporting events and in-person
casinos, are more well established and may be perceived by our users to offer greater variety, affordability, interactivity
and enjoyment. We will compete with these other forms of entertainment for the discretionary time and income of our users. If
we are unable to sustain sufficient interest in our recently launched sports betting and iGaming platforms in comparison to
other forms of entertainment, including new forms of entertainment, our business model may not continue to be viable.
The specific industries in which New DraftKings
will operate are characterized by dynamic customer demand and technological advances, and there is intense competition among online
gaming and entertainment providers. A number of established, well-financed companies producing online gaming and/or interactive
entertainment products and services compete with our offerings, and other well-capitalized companies may introduce competitive
services. Such competitors may spend more money and time on developing and testing products and services, undertake more extensive
marketing campaigns, adopt more aggressive pricing or promotional policies or otherwise develop more commercially successful products
or services than ours, which could negatively impact our business. Our competitors may also develop products, features, or services
that are similar to ours or that achieve greater market acceptance. Such competitors may also undertake more far-reaching and successful
product development efforts or marketing campaigns, or may adopt more aggressive pricing policies. Furthermore, new competitors,
whether licensed or not, may enter the iGaming industry. There has also been considerable consolidation among competitors in the
entertainment and gaming industries and such consolidation and future consolidation could result in the formation of larger competitors
with increased financial resources and altered cost structures, which may enable them to offer more competitive products, gain
a larger market share, expand offerings and broaden their geographic scope of operations. If we are not able to maintain or improve
our market share, or if our offerings do not continue to be popular, our business could suffer.
Economic downturns and political and market conditions
beyond our control could adversely affect our business, financial condition and results of operations.
Our financial performance will be subject
to global and U.S. economic conditions and their impact on levels of spending by users and advertisers. Economic recessions have
had, and may continue to have, far reaching adverse consequences across many industries, including the global entertainment and
gaming industries, which may adversely affect our business and financial condition. In the past decade, global and U.S. economies
have experienced tepid growth following the financial crisis in 2008 – 2009 and there appears to be an increasing
risk of a recession due to international trade and monetary policy and other changes. If the national and international economic
recovery slows or stalls, these economies experience another recession or any of the relevant regional or local economies suffers
a downturn, we may experience a material adverse effect on our business, financial condition, results of operations or prospects.
In addition, changes in general market,
economic and political conditions in domestic and foreign economies or financial markets, including fluctuation in stock markets
resulting from, among other things, trends in the economy as a whole may reduce users' disposable income and advertisers'
budgets. Any one of these changes could have a material adverse effect on our business, financial condition, results of operations
or prospects.
11
Reductions in discretionary consumer spending could have
an adverse effect on our business, financial condition, results of operations and prospects.
Our business will be particularly sensitive
to reductions from time to time in discretionary consumer spending. Demand for entertainment and leisure activities, including
gaming, can be affected by changes in the economy and consumer tastes, both of which are difficult to predict and beyond our control.
Unfavorable changes in general economic conditions, including recessions, economic slowdowns, sustained high levels of unemployment,
and rising prices or the perception by consumers of weak or weakening economic conditions, may reduce our users' disposable
income or result in fewer individuals engaging in entertainment and leisure activities, such as daily fantasy sports, sports betting
and iGaming. As a result, we cannot ensure that demand for our offerings will remain constant. Adverse developments affecting economies
throughout the world, including a general tightening of availability of credit, decreased liquidity in certain financial markets,
increased interest rates, foreign exchange fluctuations, increased energy costs, acts of war or terrorism, transportation disruptions,
natural disasters, declining consumer confidence, sustained high levels of unemployment or significant declines in stock markets,
as well as concerns regarding pandemics, epidemics and the spread of contagious diseases, could lead to a further reduction in
discretionary spending on leisure activities, such as daily fantasy sports and gaming.
For example, the recent outbreak of the
novel coronavirus ("COVID-19"), a virus causing potentially deadly respiratory tract infections originating in China,
has negatively affected economic conditions regionally as well as globally and has caused a reduction in consumer spending. Efforts
to contain the effect of the virus have included travel restrictions and restrictions on public gatherings. Many businesses have
eliminated non-essential travel and canceled in-person events to reduce instances of employees and others being exposed to large
public gatherings, and governments across the United States have restricted business activities and strongly encouraged, instituted
orders or otherwise restricted individuals from leaving their home. These efforts have intensified significantly in recent weeks
and are likely to expand further. To date, sports seasons and sporting events in multiple countries, including in the United States,
have been canceled or postponed and large public gatherings have been banned. These changes have reduced customers' use of,
and spending on, our product offerings, and have caused us to issue refunds for canceled events and retail casinos where we have
a branded Sportsbook have closed. These changes have significantly impacted our business, and may materially impact our financial
condition and results of operations depending on the length of time that these disruptions exist and whether the sports seasons
and sporting events will ultimately be suspended, postponed, or canceled. Relatedly, if a large number of our employees and/or
a subset of our key employees and executives are impacted by COVID-19, DraftKings' ability to continue to operate effectively
may be negatively impacted. The ultimate severity of the coronavirus outbreak is uncertain at this time and therefore we cannot
predict the full impact it may have on our end markets and our operations; however, the effect on our results could be material
and adverse. Any significant or prolonged decrease in consumer spending on entertainment or leisure activities could adversely
affect the demand for our offerings, reducing our cash flows and revenues, and thereby materially harming our business, financial
condition, results of operations and prospects.
We may experience fluctuations in our operating results,
which make our future results difficult to predict and could cause our operating results to fall below expectations.
DraftKings' quarterly financial results
have fluctuated in the past and we expect New DraftKings financial results to fluctuate in the future. These fluctuations may be
due to a variety of factors, some of which are outside of our control and may not fully reflect the underlying performance of our
business.
New DraftKings' financial
results in any given quarter may be influenced by numerous factors, many of which we are unable to predict or are outside of
our control, including the impact of seasonality and our betting results, and the other risks and uncertainties set forth
herein. In particular our betting operations will have significant exposure to, and may be materially impacted by, sporting
events and seasons, which can result in short-term volatility in betting win margins and user engagement, thus impacting
revenues. While DraftKings has been able to forecast revenues from its daily fantasy sports business with greater precision
than for new offerings, we cannot provide assurances that consumers will engage with our DFS platform on a consistent basis.
Consumer engagement in our daily fantasy sports, sports betting and iGaming services may decline or fluctuate as a result of
a number of factors, including the popularity of the underlying sports, the user's level of satisfaction with our
platforms, our ability to improve and innovate, our ability to adapt our platform, outages and disruptions of online
services, the services offered by our competitors, our marketing and advertising efforts or declines in consumer activity
generally as a result of economic downturns, among others. Any decline or fluctuation in the recurring portion of our
business may have a negative impact on our business, financial condition, results of operations or prospects.
In our iGaming product offering, operator
losses are limited per stake to a maximum payout. When looking at bets across a period of time, however, these losses can potentially
be significant. Our quarterly financial results may also fluctuate based on whether we pay out any jackpots to our iGaming users
during the relevant quarter. As part of our iGaming offering, we offer progressive jackpot games. Each time a progressive jackpot
game is played, a portion of the amount wagered by the user is contributed to the jackpot for that specific game or group of games.
Once a jackpot is won, the progressive jackpot is reset with a predetermined base amount. While we maintain a provision for these
progressive jackpots, the cost of the progressive jackpot payout would be a cash outflow for the business in the period in which
it is won with a potentially significant adverse effect on our financial condition and cash flows. Because winning is underpinned
by a random mechanism, we cannot predict with absolute certainty when a jackpot will be won. In addition, DraftKings does not insure
against random outcomes or jackpot wins.
12
Our projections will be subject to significant risks,
assumptions, estimates and uncertainties, including assumptions regarding future legislation and changes in regulations, both inside
and outside of the United States. As a result, our projected revenues, market share, expenses and profitability may differ materially
from our expectations.
New DraftKings will operate in rapidly changing
and competitive industries and our projections will be subject to the risks and assumptions made by management with respect to
our industries. Operating results are difficult to forecast because they generally depend on our assessment of the timing of adoption
of future legislation and regulations by different states, which are uncertain. Furthermore, if we invest in the development of
new products or distribution channels that do not achieve significant commercial success, whether because of competition or otherwise,
we may not recover the often substantial "up front" costs of developing and marketing those products and distribution
channels, or recover the opportunity cost of diverting management and financial resources away from other products or distribution
channels.
Additionally, as described above under "—
Reductions
in discretionary consumer spending could have an adverse effect on our business
,
financial condition, results of operations
and prospects,
" our business may be affected by reductions in consumer spending from time to time as a result of a number
of factors which may be difficult to predict. This may result in decreased revenue levels, and we may be unable to adopt measures
in a timely manner to compensate for any unexpected shortfall in income. This inability could cause our operating results in a
given quarter to be higher or lower than expected. If actual results differ from our estimates, analysts may negatively react and
our stock price could be materially impacted.
We will have a new business model, which will make it
difficult for us to forecast our financial results, create uncertainty as to how investors will evaluate our prospects, and increase
the risk that we will not be successful.
DraftKings was incorporated in 2011
and began operating the DFS product offering in 2012. DraftKings expanded from its DFS product offering to include Sportsbook
and iGaming product offerings in 2018. New DraftKings will have a new business model, and new offerings, including a sports
betting technology platform. Accordingly, it will be difficult for us to forecast our future financial results, and it will
be uncertain how our new business model will affect investors' perceptions and expectations, which can be idiosyncratic
and vary widely, with respect to our prospects. Additionally, as a result of the Business Combination, we will be the only
vertically integrated U.S.-based sports betting and online gaming company and it may be difficult for investors to evaluate
our business due to the lack of similarly situated competitors. Furthermore, our new business model may not be successful.
Consequently, you should not rely upon DraftKings' past quarterly financial results as indicators of our future
financial performance, and our financial results and stock price may be negatively affected.
13
DraftKings has a history of losses and we may continue
to incur losses in the future.
Since DraftKings was incorporated in 2011,
it has experienced net losses and negative cash flows from operations. DraftKings experienced net losses of $143 million, $76 million
and $76 million in the years ended December 31, 2019, 2018 and 2017, respectively. We may continue to experience
losses in the future, and we cannot assure you that we will achieve profitability. We may continue to incur significant losses
in future periods. We expect our operating expenses to increase in the future as we expand our operations. Furthermore, as a public
company, we will incur additional legal, accounting and other expenses that DraftKings did not incur as a private company. If our
revenue does not grow at a greater rate than our expenses, we will not be able to achieve or maintain profitability. We may incur
significant losses in the future for many reasons, including the other risks and uncertainties described in this ​prospectus.
Additionally, we may encounter unforeseen expenses, operating delays, or other unknown factors that may result in losses in future
periods. If our expenses exceed our revenue, our business may be negatively impacted and we may never achieve or maintain profitability.
Our results of operations may fluctuate due to seasonality
and other factors and, therefore, our periodic operating results will not be guarantees of future performance.
Our DFS and Sportsbook operations may fluctuate
due to seasonal trends and other factors. We believe that significant sporting events such as the playoffs and championship games,
tend to impact, among other things, revenues from operations, key metrics and customer activity, and as such, DraftKings'
historical revenues generally have been highest in the fourth quarter. A majority of DraftKings' current sports betting and
DFS revenue is and will continue to be generated from bets placed on, or contests relating to, the National Football League and
the National Basketball Association, each of which have their own respective off-seasons, which may cause decreases in our future
revenues during such periods. New DraftKings' revenues may also be affected by the scheduling of major sporting events that
do not occur annually, such as the World Cup, or the cancellation of sporting events and races. In addition, certain individuals
or teams advancing or failing to advance and their scores and other results within specific tournaments, games or events may impact
New DraftKings' financial performance.
The success, including win or hold rates, of existing
or future sports betting and iGaming products depends on a variety of factors and is not completely controlled by us.
The sports betting and iGaming industries
are characterized by an element of chance. Accordingly, DraftKings employs theoretical win rates to estimate what a certain type
of sports bet or iGame, on average, will win or lose in the long run. Net win is impacted by variations in the hold percentage
(the ratio of net win to total amount wagered), or actual outcome, on our iGames and sports betting we offer to our users. DraftKings
uses the hold percentage as an indicator of an iGame's or sports bet's performance against its expected outcome.
Although each iGame or sports bet generally performs within a defined statistical range of outcomes, actual outcomes may vary for
any given period. In addition to the element of chance, win rates (hold percentages) may also (depending on the game involved)
be affected by the spread of limits and factors that are beyond our control, such as a user's skill, experience and behavior,
the mix of games played, the financial resources of users, the volume of bets placed and the amount of time spent gambling. As
a result of the variability in these factors, the actual win rates on our online iGames and sports bets may differ from the theoretical
win rates we have estimated and could result in the winnings of our iGame's or sports bet's users exceeding those anticipated.
The variability of win rates (hold rates) also have the potential to negatively impact our financial condition, results of operations,
and cash flows.
Our success also depends in part on
our ability to anticipate and satisfy user preferences in a timely manner. As we will operate in a dynamic environment
characterized by rapidly changing industry and legal standards, our products will be subject to changing consumer preferences
that cannot be predicted with certainty. We will need to continually introduce new offerings and identify future product
offerings that complement our existing platforms, respond to our users' needs and improve and enhance our existing
platforms to maintain or increase our user engagement and growth of our business. We may not be able to compete effectively
unless our product selection keeps up with trends in the digital sports entertainment and gaming industries in which we
compete, or trends in new gaming products.
14
We will rely on information technology and other systems
and platforms, and any failures, errors, defects or disruptions in our systems or platforms could diminish our brand and reputation,
subject us to liability, disrupt our business, affect our ability to scale our technical infrastructure and adversely affect our
operating results and growth prospects. Our games and other software applications and systems, and the third-party platforms upon
which they are made available could contain undetected errors.
Our technology infrastructure will be critical
to the performance of our platform and offerings and to user satisfaction. We devote significant resources to network and data
security to protect our systems and data. However, our systems may not be adequately designed with the necessary reliability and
redundancy to avoid performance delays or outages that could be harmful to our business. We cannot assure you that the measures
we take to prevent or hinder cyber-attacks and protect our systems, data and user information and to prevent outages, data or information
loss, fraud and to prevent or detect security breaches, including a disaster recovery strategy for server and equipment failure
and back-office systems and the use of third parties for certain cybersecurity services, will provide absolute security. DraftKings
and SBT have experienced, and we may in the future experience, website disruptions, outages and other performance problems due
to a variety of factors, including infrastructure changes, human or software errors and capacity constraints. Such disruptions
have not had a material impact on either company, individually or in the aggregate; however, future disruptions from unauthorized
access to, fraudulent manipulation of, or tampering with our computer systems and technological infrastructure, or those of third
parties, could result in a wide range of negative outcomes, each of which could materially adversely affect our business, financial
condition, results of operations and prospects.
Additionally, our products may contain errors,
bugs, flaws or corrupted data, and these defects may only become apparent after their launch. If a particular product offering
is unavailable when users attempt to access it or navigation through our platforms is slower than they expect, users may be unable
to place their bets or set their line-ups in time and may be less likely to return to our platforms as often, if at all. Furthermore,
programming errors, defects and data corruption could disrupt our operations, adversely affect the experience of our users, harm
our reputation, cause our users to stop utilizing our platforms, divert our resources and delay market acceptance of our offerings,
any of which could result in legal liability to us or harm our business, financial condition, results of operations and prospects.
If our user base and engagement continue
to grow, and the amount and types of offerings continue to grow and evolve, we will need an increasing amount of technical infrastructure,
including network capacity and computing power, to continue to satisfy our users' needs. Such infrastructure expansion may
be complex, and unanticipated delays in completing these projects or availability of components may lead to increased project costs,
operational inefficiencies, or interruptions in the delivery or degradation of the quality of our offerings. In addition, there
may be issues related to this infrastructure that are not identified during the testing phases of design and implementation, which
may only become evident after we have started to fully use the underlying equipment or software, that could further degrade the
user experience or increase our costs. As such, New DraftKings could fail to continue to effectively scale and grow our technical
infrastructure to accommodate increased demands. In addition, our business may be subject to interruptions, delays or failures
resulting from adverse weather conditions, other natural disasters, power loss, terrorism, cyber-attacks, public health emergencies
(such as the coronavirus) or other catastrophic events.
We believe that if our users have a negative
experience with our offerings, or if our brand or reputation is negatively affected, users may be less inclined to continue or
resume utilizing our products or recommend our platform to other potential users. As such, a failure or significant interruption
in our service would harm our reputation, business and operating results.
15
Despite our security measures, our information
technology and infrastructure may be vulnerable to attacks by hackers or breached due to employee error, malfeasance or other
disruptions. Any such breach could compromise our networks and the information stored there could be accessed, publicly
disclosed, lost or stolen. Any such access, disclosure or other loss of information could result in legal claims or
proceedings, liability under laws that protect the privacy of personal information, and regulatory penalties, disruption of
our operations and the services we provide to users, damage to our reputation, and a loss of confidence in our products and
services, which could adversely affect our business.
The secure maintenance and transmission
of user information is a critical element of our operations. Our information technology and other systems that maintain and transmit
user information, or those of service providers, business partners or employee information may be compromised by a malicious third-party
penetration of our network security, or that of a third-party service provider or business partner, or impacted by intentional
or unintentional actions or inactions by our employees, or those of a third-party service provider or business partner. As a result,
our users' information may be lost, disclosed, accessed or taken without our guests' consent. We have experienced cyber-attacks,
attempts to breach our systems and other similar incidents in the past. For example, we have been and expect that we will continue
to be subject to attempts to gain unauthorized access to or through our information systems or those we develop for our customers,
whether by our employees or third parties, including cyber-attacks by computer programmers and hackers who may develop and deploy
viruses, worms or other malicious software programs. To date these attacks have not had a material impact on our operations or
financial results, but we cannot provide assurance that they will not have a material impact in the future.
We rely on encryption and authentication
technology licensed from third parties in an effort to securely transmit confidential and sensitive information, including credit
card numbers. Advances in computer capabilities, new technological discoveries or other developments may result in the whole or
partial failure of this technology to protect transaction data or other confidential and sensitive information from being breached
or compromised. In addition, websites are often attacked through compromised credentials, including those obtained through phishing
and credential stuffing. Our security measures, and those of our third-party service providers, may not detect or prevent all attempts
to breach our systems, denial-of-service attacks, viruses, malicious software, break-ins, phishing attacks, social engineering,
security breaches or other attacks and similar disruptions that may jeopardize the security of information stored in or transmitted
by our websites, networks and systems or that we or such third parties otherwise maintain, including payment card systems, which
may subject us to fines or higher transaction fees or limit or terminate our access to certain payment methods. We and such third
parties may not anticipate or prevent all types of attacks until after they have already been launched. Further, techniques used
to obtain unauthorized access to or sabotage systems change frequently and may not be known until launched against us or our third-party
service providers.
In addition, security breaches can also
occur as a result of non-technical issues, including intentional or inadvertent breaches by our employees or by third parties.
These risks may increase over time as the complexity and number of technical systems and applications we use also increases. Breaches
of our security measures or those of our third-party service providers or cybersecurity incidents could result in unauthorized
access to our sites, networks and systems; unauthorized access to and misappropriation of user information, including users'
personally identifiable information, or other confidential or proprietary information of ourselves or third parties; viruses, worms,
spyware or other malware being served from our sites, networks or systems; deletion or modification of content or the display of
unauthorized content on our sites; interruption, disruption or malfunction of operations; costs relating to breach remediation,
deployment of additional personnel and protection technologies, response to governmental investigations and media inquiries and
coverage; engagement of third-party experts and consultants; litigation, regulatory action and other potential liabilities. In
the past, we have experienced social engineering, phishing, malware and similar attacks and threats of denial-of-service attacks,
none of which to date has been material to our business; however, such attacks could in the future have a material adverse effect
on our operations. If any of these breaches of security should occur and be material, our reputation and brand could be damaged,
our business may suffer, we could be required to expend significant capital and other resources to alleviate problems caused by
such breaches, and we could be exposed to a risk of loss, litigation or regulatory action and possible liability. We cannot guarantee
that recovery protocols and backup systems will be sufficient to prevent data loss. Actual or anticipated attacks may cause us
to incur increasing costs, including costs to deploy additional personnel and protection technologies, train employees and engage
third-party experts and consultants.
In addition, any party who is able to illicitly
obtain a user's password could access the user's transaction data or personal information, resulting in the perception
that our systems are insecure. Any compromise or breach of our security measures, or those of our third-party service providers,
could violate applicable privacy, data protection, data security, network and information systems security and other laws and cause
significant legal and financial exposure, adverse publicity and a loss of confidence in our security measures, which could have
a material adverse effect on our business, financial condition, results of operations and prospects. We continue to devote significant
resources to protect against security breaches or we may need to in the future to address problems caused by breaches, including
notifying affected subscribers and responding to any resulting litigation, which in turn, diverts resources from the growth and
expansion of our business.
16
DraftKings primarily relies, and we will rely, on Amazon
Web Services to deliver our offerings to users on our platform and any disruption of or interference with our use of Amazon Web
Services could adversely affect our business, financial condition, results of operations and prospects.
DraftKings currently hosts its sports betting,
iGaming and daily fantasy sports platforms and supports its operations using Amazon Web Services ("AWS"), a third-party
provider of cloud infrastructure services. New DraftKings will continue to rely on AWS in addition to those service providers used
by SBT. We do not, and will not, have control over the operations of the facilities or infrastructure of the third-party service
providers that we use. Such third parties' facilities are vulnerable to damage or interruption from natural disasters, cybersecurity
attacks, terrorist attacks, power outages and similar events or acts of misconduct. Our platform's continuing and uninterrupted
performance will be critical to our success. DraftKings has experienced, and we expect that in the future we will experience, interruptions,
delays and outages in service and availability from these third-party service providers from time to time due to a variety of factors,
including infrastructure changes, human or software errors, website hosting disruptions and capacity constraints. In addition,
any changes in these third parties' service levels may adversely affect our ability to meet the requirements of our users.
Since our platform's continuing and uninterrupted performance is critical to our success, sustained or repeated system failures
would reduce the attractiveness of our offerings. It may become increasingly difficult to maintain and improve our performance,
especially during peak usage times, as we expand and the usage of our offerings increases. Any negative publicity arising from
these disruptions could harm our reputation and brand and may adversely affect the usage of our offerings.
Our commercial agreement with AWS will remain
in effect until terminated by AWS or us. AWS may only terminate the agreement for convenience after complying with the contractual
30 day prior notice requirement, except for extraordinary circumstances as laid out in AWS standard terms. AWS may also terminate
the agreement for cause upon a breach of the agreement or for failure to pay amounts due, in each case, subject to AWS providing
prior written notice and a 30-day cure period. In the event that our agreement with AWS is terminated or we add additional cloud
infrastructure service providers, such as the one currently used by SBT, we may experience significant costs or downtime in connection
with the transfer to, or the addition of, new cloud infrastructure service providers. Although alternative providers could host
our platform on a substantially similar basis to AWS, transitioning the cloud infrastructure currently hosted by AWS to alternative
providers could potentially be disruptive and we could incur significant one-time costs.
Any of the above circumstances or events
may harm our reputation and brand, reduce the availability or usage of our platform, lead to a significant loss of revenue, increase
our costs and impair our ability to attract new users, any of which could adversely affect our business, financial condition and
results of operations.
We rely on third-party providers to validate the identity
and identify the location of our users, and if such providers fail to perform adequately, provide accurate information or we do
not maintain business relationships with them, our business, financial condition and results of operations could be adversely affected.
There is no guarantee that the
third-party geolocation and identity verification systems that we rely on will perform adequately, or be effective. We rely
on our geolocation and identity verification systems to ensure we are in compliance with certain laws and regulations, and
any service disruption to those systems would prohibit us from operating our platform, and would adversely affect our
business. Additionally, incorrect or misleading geolocation and identity verification data with respect to current or
potential users received from third-party service providers may result in us inadvertently allowing access to our offerings
to individuals who should not be permitted to access them, or otherwise inadvertently deny access to individuals who should
be able to access our offerings, in each case based on inaccurate identity or geographic location determination. Our
third-party geolocation services provider relies on its ability to obtain information necessary to determine geolocation from
mobile devices, operating systems, and other sources. Changes, disruptions or temporary or permanent failure to access such
sources by our third-party services providers may result in their inability to accurately determine the location of our
users. Moreover, our inability to maintain our existing contracts with third-party services providers, or to replace them
with equivalent third parties, may result in our inability to access geolocation and identity verification data necessary for
our day-to-day operations. If any of these risks materializes, we may be subject to disciplinary action, fines, lawsuits, and
our business, financial condition and results of operations could be adversely affected.
17
Our platform contains third-party open source software
components, and failure to comply with the terms of the underlying open source software licenses could restrict our ability to
provide our offerings.
Our platform contains software modules licensed
to us by third-party authors under "open source" licenses. Use and distribution of open source software may entail
greater risks than use of third-party commercial software, as open source licensors generally do not provide support, warranties,
indemnification or other contractual protections regarding infringement claims or the quality of the code. In addition, the public
availability of such software may make it easier for others to compromise our platform.
Some open source licenses contain requirements
that we make available source code for modifications or derivative works we create based upon the type of open source software
we use, or grant other licenses to our intellectual property. If we combine our proprietary software with open source software
in a certain manner, we could, under certain open source licenses, be required to release the source code of our proprietary software
to the public. This would allow our competitors to create similar offerings with lower development effort and time and ultimately
could result in a loss of our competitive advantages. Alternatively, to avoid the public release of the affected portions of our
source code, we could be required to expend substantial time and resources to re-engineer some or all of our software.
Although we monitor our use of open source
software to avoid subjecting our platform to conditions we do not intend, the terms of many open source licenses have not been
interpreted by U.S. or foreign courts, and there is a risk that these licenses could be construed in a way that could impose unanticipated
conditions or restrictions on our ability to provide or distribute our platform. From time to time, there have been claims challenging
the ownership of open source software against companies that incorporate open source software into their solutions. As a result,
we could be subject to lawsuits by parties claiming ownership of what we believe to be open source software. Moreover, we cannot
assure you that our processes for controlling our use of open source software in our platform will be effective. If we are held
to have breached or failed to fully comply with all the terms and conditions of an open source software license, we could face
infringement or other liability, or be required to seek costly licenses from third parties to continue providing our offerings
on terms that are not economically feasible, to re-engineer our platform, to discontinue or delay the provision of our offerings
if re-engineering could not be accomplished on a timely basis or to make generally available, in source code form, our proprietary
code, any of which could adversely affect our business, financial condition and results of operations.
We rely on third-party payment processors to process deposits
and withdrawals made by our users into the platform, and if we cannot manage our relationships with such third parties and other
payment-related risks, our business, financial condition and results of operations could be adversely affected.
We rely on a limited number of
third-party payment processors to process deposits and withdrawals made by our users into our platform. If any of our
third-party payment processors terminates its relationship with us or refuses to renew its agreement with us on commercially
reasonable terms, we would need to find an alternate payment processor, and may not be able to secure similar terms or
replace such payment processor in an acceptable time frame. Further, the software and services provided by our third-party
payment processors may not meet our expectations, contain errors or vulnerabilities, be compromised or experience outages.
Any of these risks could cause us to lose our ability to accept online payments or other payment transactions or make timely
payments to users on our platform, any of which could make our platform less trustworthy and convenient and adversely affect
our ability to attract and retain our users.
18
Nearly all of our payments are made by credit
card, debit card or through other third-party payment services, which subjects us to certain regulations and to the risk of fraud.
We may in the future offer new payment options to users that may be subject to additional regulations and risks. We are also subject
to a number of other laws and regulations relating to the payments we accept from our users, including with respect to money laundering,
money transfers, privacy and information security. If we fail to comply with applicable rules and regulations, we may be subject
to civil or criminal penalties, fines and/or higher transaction fees and may lose our ability to accept online payments or other
payment card transactions, which could make our offerings less convenient and attractive to our users. If any of these events were
to occur, our business, financial condition and results of operations could be adversely affected.
For example, if we are deemed to be a money
transmitter as defined by applicable regulation, we could be subject to certain laws, rules and regulations enforced by multiple
authorities and governing bodies in the United States and numerous state and local agencies who may define money transmitter differently.
For example, certain states may have a more expansive view of who qualifies as a money transmitter. Additionally, outside of the
United States, we could be subject to additional laws, rules and regulations related to the provision of payments and financial
services, and if we expand into new jurisdictions, the foreign regulations and regulators governing our business that we are subject
to will expand as well. If we are found to be a money transmitter under any applicable regulation and we are not in compliance
with such regulations, we may be subject to fines or other penalties in one or more jurisdictions levied by federal or state or
local regulators, including state Attorneys General, as well as those levied by foreign regulators. In addition to fines, penalties
for failing to comply with applicable rules and regulations could include criminal and civil proceedings, forfeiture of significant
assets or other enforcement actions. We could also be required to make changes to our business practices or compliance programs
as a result of regulatory scrutiny.
Additionally, our payment processors require
us to comply with payment card network operating rules, which are set and interpreted by the payment card networks. The payment
card networks could adopt new operating rules or interpret or reinterpret existing rules in ways that might prohibit us from providing
certain offerings to some users, be costly to implement or difficult to follow. We have agreed to reimburse our payment processors
for fines they are assessed by payment card networks if we or the users on our platform violate these rules. Any of the foregoing
risks could adversely affect our business, financial condition and results of operations.
We rely on other third-party sports data providers for
real-time and accurate data for sporting events, and if such third parties do not perform adequately or terminate their relationships
with us, our costs may increase and our business, financial condition and results of operations could be adversely affected.
DraftKings and SBT rely on third-party sports
data providers such as SportRadar and BetGenius to obtain accurate information regarding schedules, results, performance and outcomes
of sporting events. We rely on this data to determine when and how bets are settled or how users rank in their fantasy contests.
DraftKings and SBT have experienced, and we may continue to experience, errors in this data feed which may result in us incorrectly
settling bets or ranking users in their contests. If we cannot adequately resolve the issue with our users, our users may have
a negative experience with our offerings, our brand or reputation may be negatively affected and our users may be less inclined
to continue or resume utilizing our products or recommend our platform to other potential users. As such, a failure or significant
interruption in our service would harm our reputation, business and operating results.
Furthermore, if any of our sports data partners
terminates its relationship with us or refuses to renew its agreement with us on commercially reasonable terms, we would need to
find an alternate provider, and may not be able to secure similar terms or replace such providers in an acceptable time frame.
Any of these risks could increase our costs and adversely affect our business, financial condition and results of operations. Further,
any negative publicity related to any of our third-party partners, including any publicity related to regulatory concerns, could
adversely affect our reputation and brand, and could potentially lead to increased regulatory or litigation exposure.
19
We rely on other third-party service providers and if
such third parties do not perform adequately or terminate their relationships with us, our costs may increase and our business,
financial condition and results of operations could be adversely affected.
Our success depends in part on our relationships
with other third-party service providers. For example, we rely on third parties for content delivery, load balancing and protection
against distributed denial-of-service attacks. If those providers do not perform adequately, our users may experience issues or
interruptions with their experiences. Furthermore, if any of our partners terminates its relationship with us or refuses to renew
its agreement with us on commercially reasonable terms, we would need to find an alternate provider, and may not be able to secure
similar terms or replace such providers in an acceptable time frame. We also rely on other software and services supplied by third
parties, such as communications and internal software, and our business may be adversely affected to the extent such software and
services do not meet our expectations, contain errors or vulnerabilities, are compromised or experience outages. Any of these risks
could increase our costs and adversely affect our business, financial condition and results of operations. Further, any negative
publicity related to any of our third-party partners, including any publicity related to regulatory concerns, could adversely affect
our reputation and brand, and could potentially lead to increased regulatory or litigation exposure.
We incorporate technology from third parties
into our platform. We cannot be certain that our licensors are not infringing the intellectual property rights of others or that
the suppliers and licensors have sufficient rights to the technology in all jurisdictions in which we may operate. Some of our
license agreements may be terminated by our licensors for convenience. If we are unable to obtain or maintain rights to any of
this technology because of intellectual property infringement claims brought by third parties against our suppliers and licensors
or against us, or if we are unable to continue to obtain the technology or enter into new agreements on commercially reasonable
terms, our ability to develop our platform containing that technology could be severely limited and our business could be harmed.
Additionally, if we are unable to obtain necessary technology from third parties, we may be forced to acquire or develop alternate
technology, which may require significant time and effort and may be of lower quality or performance standards. This would limit
and delay our ability to provide new or competitive offerings and increase our costs. If alternate technology cannot be obtained
or developed, we may not be able to offer certain functionality as part of our offerings, which could adversely affect our business,
financial condition and results of operations.
If we fail to detect fraud or theft, including by our
users and employees, our reputation may suffer which could harm our brand and reputation and negatively impact our business, financial
condition and results of operations and can subject us to investigations and litigation.
We have in the past incurred, and may in
the future incur, losses from various types of financial fraud, including use of stolen or fraudulent credit card data, claims
of unauthorized payments by a user and attempted payments by users with insufficient funds. Bad actors use increasingly sophisticated
methods to engage in illegal activities involving personal information, such as unauthorized use of another person's identity,
account information or payment information and unauthorized acquisition or use of credit or debit card details, bank account information
and mobile phone numbers and accounts. Under current credit card practices, we may be liable for use of funds on our platform with
fraudulent credit card data, even if the associated financial institution approved the credit card transaction.
Acts of fraud may involve various tactics,
including collusion. Successful exploitation of our systems could have negative effects on our product offerings, services and
user experience and could harm our reputation. Failure to discover such acts or schemes in a timely manner could result in harm
to our operations. In addition, negative publicity related to such schemes could have an adverse effect on our reputation, potentially
causing a material adverse effect on our business, financial condition, results of operations and prospects. In the event of the
occurrence of any such issues with our existing platform or product offerings, substantial engineering and marketing resources
and management attention, may be diverted from other projects to correct these issues, which may delay other projects and the achievement
of our strategic objectives.
In addition, any misappropriation of, or
access to, users' or other proprietary information or other breach of our information security could result in legal claims
or legal proceedings, including regulatory investigations and actions, or liability for failure to comply with privacy and information
security laws, including for failure to protect personal information or for misusing personal information, which could disrupt
our operations, force us to modify our business practices, damage our reputation and expose us to claims from our users, regulators,
employees and other persons, any of which could have an adverse effect on our business, financial condition, results of operations
and prospects.
Despite measures we have taken to detect
and reduce the occurrence of fraudulent or other malicious activity on our platform, we cannot guarantee that any of our measures
will be effective or will scale efficiently with our business. Our failure to adequately detect or prevent fraudulent transactions
could harm our reputation or brand, result in litigation or regulatory action and lead to expenses that could adversely affect
our business, financial condition and results of operations.
20
If Internet and other technology-based service providers
experience service interruptions, our ability to conduct our business may be impaired and our business, financial condition and
results of operations could be adversely affected.
A substantial portion of our network infrastructure
is provided by third parties, including Internet service providers and other technology-based service providers. See "—
DraftKings
primarily relies, and we will rely, on Amazon Web Services to deliver our offerings to users on our platform and any disruption
of or interference with our use of Amazon Web Services could adversely affect our business, financial condition, results of operations
and prospects.
" We require technology-based service providers to implement cyber-attack-resilient systems and processes.
However, if Internet service providers experience service interruptions, including because of cyber-attacks, or due to an event
causing an unusually high volume of Internet use (such as a pandemic or public health emergency), communications over the Internet
may be interrupted and impair our ability to conduct our business. Internet service providers and other technology-based service
providers may in the future roll out upgraded or new mobile or other telecommunications services, such as 5G or 6G services, which
may not be successful and thus may impact the ability of our users to access our platform or offerings in a timely fashion or at
all. In addition, our ability to process e-commerce transactions depends on bank processing and credit card systems. To prepare
for system problems, we continuously seek to strengthen and enhance our current facilities and the capabilities of our system infrastructure
and support. Nevertheless, there can be no assurance that the Internet infrastructure or our own network systems will continue
to be able to meet the demand placed on us by the continued growth of the Internet, the overall online gaming industry and our
users. Any difficulties these providers face, including the potential of certain network traffic receiving priority over other
traffic (
i
.
e
., lack of net neutrality), may adversely affect our business, and we exercise little control over these
providers, which increases our vulnerability to problems with the services they provide. Any system failure as a result of reliance
on third parties, such as network, software or hardware failure, including as a result of cyber-attacks, which causes a loss of
our users' property or personal information or a delay or interruption in our online services and products and e-commerce
services, including our ability to handle existing or increased traffic, could result in a loss of anticipated revenue, interruptions
to our platform and offerings, cause us to incur significant legal, remediation and notification costs, degrade the customer experience
and cause users to lose confidence in our offerings, any of which could have a material adverse effect on our business, financial
condition, results of operations and prospects.
We rely on strategic relationships with casinos, tribes
and horse-tracks in order to be able to offer our products in certain jurisdictions. If we cannot establish and manage such relationships
with such partners, our business, financial condition and results of operations could be adversely affected.
Under some states' sports
betting laws, online sports betting is limited to a finite number of retail operators, such as casinos, tribes or tracks, who
own a "skin" or "skins" under that state's law. A "skin" is a legally-authorized
license from a state to offer online sports betting services provided by a casino. The "skin" provides a market
access opportunity for mobile operators to operate in the jurisdiction pending licensure and other required approvals by the
state's regulator. The entities that control those "skins', and the numbers of  "skins"
available, are typically determined by a state's sports betting law. In most of the jurisdictions in which we offer
sports betting and iGaming, we currently rely on a casino, tribe or track in order to get a "skin." These
 "skins" are what allows us to gain access to jurisdictions where online operators are required to have a retail
relationship. If we cannot establish, renew or manage our relationships, our relationships could terminate and we would not
be allowed to operate in those jurisdictions until we enter into new ones. As a result, our business, financial condition and
results of operations could be adversely affected.
21
Our growth will depend, in part, on the success of our
strategic relationships with third parties. Overreliance on certain third parties, or our inability to extend existing relationships
or agree to new relationships may cause unanticipated costs for us and impact our financial performance in the future.
DraftKings relies, and we expect to continue
to rely, on relationships with sports leagues and teams, professional athletes and athlete organizations, advertisers, casinos
and other third parties in order to attract users to our platform. These relationships along with providers of online services,
search engines, social media, directories and other websites and ecommerce businesses direct consumers to the DraftKings platform.
In addition, many of the parties with whom we have advertising arrangements provide advertising services to other companies, including
other fantasy sports and gaming platforms with whom we compete. While we believe there are other third parties that could drive
users to our platform, adding or transitioning to them may disrupt our business and increase our costs. In the event that any of
DraftKings' existing relationships or our future relationships fails to provide services to us in accordance with the terms
of our arrangement, or at all, and we are not able to find suitable alternatives, this could impact our ability to attract consumers
cost effectively and harm our business, financial condition, results of operations and prospects.
Our growth prospects may suffer if we are unable to develop
successful offerings or if we fail to pursue additional offerings. In addition, if we fail to make the right investment decisions
in our offerings and technology platform, we may not attract and retain key users and our revenue and results of operations may
decline.
DraftKings was founded in 2011 with a singular
focus on the DFS industry and has primarily focused its efforts in the last eight years on growing the DFS product offering.
DraftKings recently expanded its product offerings to include its Sportsbook and iGaming offerings. DraftKings has rapidly expanded
and we anticipate expanding further as new product offerings mature and as we pursue our growth strategies.
The industries in which we operate are subject
to rapid and frequent changes in standards, technologies, products and service offerings, as well as in customer demands and expectations
and regulations. We must continuously make decisions regarding which offerings and technology to invest in to meet customer demand
in compliance with evolving industry standards and regulatory requirements and must continually introduce and successfully market
new and innovative technologies, offerings and enhancements to remain competitive and effectively stimulate customer demand, acceptance
and engagement. Our ability to engage, retain, and increase our user base and to increase our revenue will depend heavily on our
ability to successfully create new offerings, both independently and together with third parties. We may introduce significant
changes to our existing platforms and offerings or develop and introduce new and unproven products, with which we have little or
no prior development or operating experience. The process of developing new offerings and systems is inherently complex and uncertain,
and new offerings may not be well received by users, even if well-reviewed and of high quality. If we are unable to develop technology
and products that address users' needs or enhance and improve our existing platforms and offerings in a timely manner, that
could have a material adverse effect on our business, financial condition, results of operations and prospects.
Although we intend to continue
investing in our research and development efforts, if new or enhanced offerings fail to engage our users or partners, we may
fail to attract or retain users or to generate sufficient revenue, operating margin, or other value to justify our
investments, any of which may seriously harm our business. In addition, management may not properly ascertain or assess the
risks of new initiatives, and subsequent events may alter the risks that were evaluated at the time we decided to execute any
new initiative. Creating additional offerings can also divert our management's attention from other business issues and
opportunities. Even if our new offerings attain market acceptance, those new offerings could exploit the market share of our
existing product offerings or share of our users' wallets in a manner that could negatively impact their ecosystem.
Furthermore, such expansion of our business increases the complexity of our business and places a significant strain on our
management, operations, technical systems and financial resources and we may not recover the often-substantial up-front costs
of developing and marketing new offerings, or recover the opportunity cost of diverting management and financial resources
away from other offerings. In the event of continued growth of our operations, products or in the number of third-party
relationships, we may not have adequate resources, operationally, technologically or otherwise to support such growth and the
quality of our platforms, offerings or our relationships with third parties could suffer. In addition, failure to effectively
identify, pursue and execute new business initiatives, or to efficiently adapt our processes and infrastructure to meet the
needs of our innovations, may adversely affect our business, financial condition, results of operations and prospects.
22
Any new offerings may also require our users
to utilize new skills to use our platform. This could create a lag in adoption of new offerings and new user additions related
to any new offerings. To date, new offerings and enhancements on our existing platforms have not hindered our user growth or engagement,
but that may be the result of a large portion of our user base being in a younger demographic and more willing to invest the time
to learn to use our products most effectively. To the extent that future users, including those in older demographics, are less
willing to invest the time to learn to use our products, and if we are unable to make our products easier to learn to use, our
user growth or engagement could be affected, and our business could be harmed. We may develop new products that increase user engagement
and costs without increasing revenue.
Additionally, we may make bad or unprofitable
decisions regarding these investments. If new or existing competitors offer more attractive offerings, we may lose users or users
may decrease their spending on our platforms. New customer demands, superior competitive offerings, new industry standards or changes
in the regulatory environment could render our existing offerings unattractive, unmarketable or obsolete and require us to make
substantial unanticipated changes to our platforms or business model. Our failure to adapt to a rapidly changing market or evolving
customer demands could harm our business, financial condition, results of operations and prospects.
Our growth will depend on our ability to attract and retain
users, and the loss of our users, failure to attract new users in a cost-effective manner, or failure to effectively manage our
growth could adversely affect our business, financial condition, results of operations and prospects.
Our ability to achieve growth in revenue
in the future will depend, in large part, upon our ability to attract new users to our offerings, retain existing users of our
offerings and reactivate users in a cost-effective manner. Achieving growth in our community of users may require us to increasingly
engage in sophisticated and costly sales and marketing efforts, which may not make sense in terms of return on investment. We expect
to use a variety of free and paid marketing channels, in combination with compelling offers and exciting games to achieve our objectives.
For paid marketing, we intend to leverage a broad array of advertising channels, including television, radio, social media platforms,
such as Facebook, Instagram, Twitter and Snap, affiliates and paid and organic search, and other digital channels, such as mobile
display. If the search engines on which we rely modify their algorithms, change their terms around gaming, or if the prices at
which we may purchase listings increase, then our costs could increase, and fewer users may click through to our website. If links
to our website are not displayed prominently in online search results, if fewer users click through to our website, if our other
digital marketing campaigns are not effective, of it the costs of attracting users using any of our current methods significantly
increase, then our ability to efficiently attract new users could be reduced, our revenue could decline and our business, financial
condition and results of operations could be harmed.
In addition, our ability to increase the
number of users of our offerings will depend on continued user adoption of DFS, Sportsbook and iGaming. Growth in the DFS, Sportsbook
and iGaming industries and the level of demand for and market acceptance of our product offerings will be subject to a high degree
of uncertainty. We cannot assure that consumer adoption of our product offerings will continue or exceed current growth rates,
or that the industry will achieve more widespread acceptance.
Additionally, as technological or regulatory
standards change and we modify our platform to comply with those standards, we may need users to take certain actions to continue
playing, such as performing age verification checks or accepting new terms and conditions. Users may stop using our product offerings
at any time, including if the quality of the user experience on our platform, including our support capabilities in the event of
a problem, does not meet their expectations or keep pace with the quality of the customer experience generally offered by competitive
offerings.
23
Our core values of focusing on our users first and acting
for the long term may conflict with the short-term interests of our business.
One of our operating principles is to put
our users first, which we believe is essential to our success and serves the best, long-term interests of our company and our stakeholders.
Therefore, we have made in the past and we may make in the future, certain investments or changes in strategy that we think will
benefit our users, even if our decision negatively impacts our operating results in the short term.
DraftKings' business model depends upon the continued
compatibility between the DraftKings app and the major mobile operating systems and upon third-party platforms for the distribution
of the DraftKings' product offerings. If Google Play or the Apple App Store prevent users from downloading our apps or block
advertising from being delivered to our users, our ability to grow our revenue, profitability and prospects may be adversely affected.
The substantial majority of DraftKings'
users access its DFS, Sportsbook and iGaming product offerings primarily on mobile devices, and we believe that this will continue
to be increasingly important to New DraftKings' long-term success. DraftKings' business model depends upon the continued
compatibility between the DraftKings app and the major mobile operating systems. Third parties with whom DraftKings does not have
any formal relationships control the design of mobile devices and operating systems. These parties frequently introduce new devices,
and from time to time they may introduce new operating systems or modify existing ones. Network carriers may also impact the ability
to download apps or access specified content on mobile devices.
In addition, DraftKings relies upon third-party
platforms for distribution of its product offerings. The DFS product offering is delivered as a free application through both the
Apple App Store and the Google Play Store and is also accessible via mobile and traditional websites. The Sportsbook and iGaming
product offerings are primarily distributed through the Apple App Store and a traditional website. The Google Play store and Apple
App Store are global application distribution platforms and the main distribution channels for the DraftKings' app. As such,
the promotion, distribution and operation of the DraftKings' app are subject to the respective distribution platforms'
standard terms and policies for application developers, which are very broad and subject to frequent changes and interpretation.
Furthermore, the distribution platforms may not enforce their standard terms and policies for application developers consistently
and uniformly across all applications and with all publishers.
There is no guarantee that popular mobile
devices will start or continue to support or feature our product offerings, or that mobile device users will continue to use our
product offerings rather than competing products. DraftKings is, and we will continue to be, dependent on the interoperability
of our platforms with popular mobile operating systems, technologies, networks and standards that we do not control, such as the
Android and iOS operating systems, and any changes, bugs, technical or regulatory issues in such systems, our relationships with
mobile manufacturers and carriers, or in their terms of service or policies that degrade our offerings' functionality, reduce
or eliminate our ability to distribute our offerings, give preferential treatment to competitive products, limit our ability to
deliver high quality offerings, or impose fees or other charges related to delivering our offerings, could adversely affect our
product usage and monetization on mobile devices.
Moreover, DraftKings' products
require high-bandwidth data capabilities in order to place time-sensitive bets. If the growth of high-bandwidth capabilities,
particularly for mobile devices, is slower than we expect, our user growth, retention, and engagement may be seriously
harmed. Additionally, to deliver high-quality content over mobile cellular networks, DraftKings' product offerings must
work well with a range of mobile technologies, systems, networks, regulations, and standards that DraftKings does not
control. In particular, any future changes to the iOS or Android operating systems may impact the accessibility, speed,
functionality, and other performance aspects of our platforms, which issues are likely to occur in the future from time to
time. In addition, the adoption of any laws or regulations that adversely affect the growth, popularity, or use of the
Internet, including laws governing Internet neutrality, could decrease the demand for our products and increase our cost of
doing business. Specifically, any laws that would allow mobile providers in the United States to impede access to content, or
otherwise discriminate against content providers like us, such as providing for faster or better access to our competitors,
over their data networks, could have a material adverse effect on our business, financial condition, results of operations
and prospects.
24
Furthermore, we may not successfully cultivate
relationships with key industry participants or develop product offerings that operate effectively with these technologies, systems,
networks, regulations, or standards. If it becomes more difficult for our users to access and use our platform on their mobile
devices, if our users choose not to access or use our platform on their mobile devices, or if our users choose to use mobile products
that do not offer access to our platform, our user growth, retention, and engagement could be seriously harmed.
In addition, if any of the third-party platforms
used for distribution of our product offerings were to limit or disable advertising on their platforms, either because of technological
constraints or because the owner of these distribution platforms wished to impair our ability to serve ads on them, our ability
to generate revenue could be harmed. Also, technologies may be developed that can block the display of our ads. These changes could
materially impact the way we do business, and if we or our advertising partners are unable to quickly and effectively adjust to
those changes, there could be an adverse effect on our business, financial condition, results of operations or prospects.
We may require additional capital to support our growth
plans, and such capital may not be available on terms acceptable to us, if at all. This could hamper our growth and adversely affect
our business.
We intend to make significant investments
to support our business growth and may require additional funds to respond to business challenges, including the need to develop
new offerings and features or enhance our existing platform, improve our operating infrastructure or acquire complementary businesses,
personnel and technologies. Accordingly, we may need to engage in equity or debt financings to secure additional funds. Our ability
to obtain additional capital, if and when required, will depend on our business plans, investor demand, our operating performance,
capital markets conditions and other factors. If we raise additional funds by issuing equity, equity-linked or debt securities,
those securities may have rights, preferences or privileges senior to the rights of our currently issued and outstanding equity
or debt, and our existing shareholders may experience dilution. If New DraftKings is unable to obtain additional capital when required,
or on satisfactory terms, our ability to continue to support our business growth or to respond to business opportunities, challenges
or unforeseen circumstances could be adversely affected, and our business may be harmed.
We may invest in or acquire other businesses, and our
business may suffer if we are unable to successfully integrate acquired businesses into our company or otherwise manage the growth
associated with multiple acquisitions.
As part of its business strategy,
DraftKings has made, and New DraftKings intends to continue to make, acquisitions as opportunities arise to add new or
complementary businesses, products, brands or technologies. In some cases, the costs of such acquisitions may be substantial,
including as a result of professional fees and due diligence efforts. There is no assurance that the time and resources
expended on pursuing a particular acquisition will result in a completed transaction, or that any completed transaction will
ultimately be successful. In addition, we may be unable to identify suitable acquisition or strategic investment
opportunities, or may be unable to obtain any required financing or regulatory approvals, and therefore may be unable to
complete such acquisitions or strategic investments on favorable terms, if at all. We may decide to pursue acquisitions with
which our investors may not agree and we cannot assure investors that any acquisition or investment will be successful or
otherwise provide a favorable return on investment. In addition, acquisitions and the integration thereof require significant
time and resources and place significant demands on our management, as well as on our operational and financial
infrastructure. In addition, if we fail to successfully close transactions or integrate new teams, or integrate the products
and technologies associated with these acquisitions into our company, our business could be seriously harmed. Acquisitions
may expose us to operational challenges and risks, including:
·
the ability to profitably
manage acquired businesses or successfully integrate the acquired businesses' operations, personnel, financial reporting,
accounting and internal controls, technologies and products into the New DraftKings' business;
·
increased indebtedness and
the expense of integrating acquired businesses, including significant administrative, operational, economic, geographic or cultural
challenges in managing and integrating the expanded or combined operations;
·
entry into jurisdictions or
acquisition of products or technologies with which we have limited or no prior experience, and the potential of increased competition
with new or existing competitors as a result of such acquisitions;
·
diversion of management's
attention and the over-extension of our operating infrastructure and our management systems, information technology systems, and
internal controls and procedures, which may be inadequate to support growth;
·
the ability to fund our capital
needs and any cash flow shortages that may occur if anticipated revenue is not realized or is delayed, whether by general economic
or market conditions, or unforeseen internal difficulties; and
·
the ability to retain or hire
qualified personnel required for expanded operations.
·
Our acquisition strategy may
not succeed if we are unable to remain attractive to target companies or expeditiously close transactions. Issuing shares of Class A
common stock to fund an acquisition would cause economic dilution to existing stockholders. If we develop a reputation for being
a difficult acquirer or having an unfavorable work environment, or target companies view our Class A common stock unfavorably,
we may be unable to consummate key acquisition transactions essential to our corporate strategy and our business may be seriously
harmed.
25
We may invest or spend the proceeds of the Business Combination
in ways with which the investors may not agree or in ways which may not yield a return.
Our management will have considerable discretion
in the application of the net proceeds of the Business Combination, and our shareholders will not have the opportunity to approve
how the proceeds are being used. If the net proceeds are used for corporate purposes that do not result in an increase to the value
of our business, our stock price could decline.
DraftKings is party to pending litigation in various jurisdictions
and with various plaintiffs and we may be subject to future litigation in the operation of our business. An adverse outcome in
one or more proceedings could adversely affect our business.
As a growing company with expanding operations,
DraftKings and SBT in the past have been parties to, and New DraftKings may in the future increasingly face the risk of, claims,
lawsuits, and other proceedings involving competition and antitrust, intellectual property, privacy, consumer protection, accessibility
claims, securities, tax, labor and employment, commercial disputes, services and other matters. See "
Business of DraftKings
and SBTech — Legal Proceedings
." Litigation to defend us against claims by third parties, or to enforce
any rights that we may have against third parties, may be necessary, which could result in substantial costs and diversion of our
resources, causing a material adverse effect on our business, financial condition, results of operations and prospects.
Any litigation to which we are a party
may result in an onerous or unfavorable judgment that may not be reversed upon appeal, or in payments of substantial monetary
damages or fines, the posting of bonds requiring significant collateral, letters of credit or similar instruments, or we may
decide to settle lawsuits on similarly unfavorable terms. These proceedings could also result in reputational harm, criminal
sanctions, consent decrees or orders preventing us from offering certain products or requiring a change in our business
practices in costly ways or requiring development of non-infringing or otherwise altered products or technologies. Litigation
and other claims and regulatory proceedings against us could result in unexpected disciplinary actions, expenses and
liabilities, which could have a material adverse effect on our business, financial condition, results of operations and
prospects.
26
Our business will be subject to a variety of U.S. and
foreign laws, many of which are unsettled and still developing and which could subject us to claims or otherwise harm our business.
Any change in existing regulations or their interpretation, or the regulatory climate applicable to our products and services,
or changes in tax rules and regulations or interpretation thereof related to our products and services, could adversely impact
our ability to operate our business as currently conducted or as we seek to operate in the future, which could have a material
adverse effect on our financial condition and results of operations.
We are generally subject to laws and regulations
relating to fantasy sports, sports betting and iGaming in the jurisdictions in which we conduct our business or in some circumstances,
of those jurisdictions in which we offer our services or those are available, as well as the general laws and regulations that
apply to all e-commerce businesses, such as those related to privacy and personal information, tax and consumer protection. These
laws and regulations vary from one jurisdiction to another and future legislative and regulatory action, court decisions or other
governmental action, which may be affected by, among other things, political pressures, attitudes and climates, as well as personal
biases, may have a material impact on our operations and financial results. In particular, some jurisdictions have introduced regulations
attempting to restrict or prohibit online gaming, while others have taken the position that online gaming should be licensed and
regulated and have adopted or are in the process of considering legislation and regulations to enable that to happen. Additionally
some jurisdictions in which we may operate could presently be unregulated or partially regulated and therefore more susceptible
to the enactment or change of laws and regulations.
DraftKings offers its DFS product offering
in 22 states that have adopted legislation permitting online fantasy sports. In those states that currently require a license or
registration, DraftKings has either obtained the appropriate license or registration, has obtained a provisional license, or is
operating pursuant to a grandfathering clause that allows operation pending the availability of licensing applications and subsequent
grant of a license. DraftKings also has three foreign licenses and operates under those licenses in eight countries.
DraftKings operates in 21 states and one
country, Canada, that do not have fantasy sports-specific laws or regulations. In those jurisdictions, our business may be subject
to future legislative and regulatory action, court decisions or other governmental action that could alter or eliminate our ability
to operate. On February 6, 2020, a state intermediate appellate court in New York determined in a split decision that a law specifically
authorizing paid fantasy sports contests in New York violated the New York constitution. This decision is currently stayed; however,
if upheld, it could jeopardize our ability to operate our DFS offering in New York. In addition, in certain states in which DraftKings
operates, including Texas, Illinois and Florida, the applicable office of the Attorney General has issued an adverse legal opinion
regarding DFS. In the event that one of those Attorneys General decides to take action on the opinion from their office, we may
have to withdraw our operations from such state, which could have a material adverse effect on our business, financial condition
and results of operations.
In May 2018, the U.S. Supreme
Court struck down as unconstitutional the Professional and Amateur Sports Protection Act of 1992 ("PASPA"). This
decision has the effect of lifting federal restrictions on sports betting and thus allows states to determine by themselves
the legality of sports betting. Since the repeal of PASPA, several states (including Washington D.C.) have legalized online
sports betting. To the extent new real money gaming or sports betting jurisdictions are established or expanded, we cannot
guarantee that we will be successful in penetrating such new jurisdictions or expanding our business or user base in line
with the growth of existing jurisdictions. If we are unable to effectively develop and operate directly or indirectly within
these new jurisdictions or if our competitors are able to successfully penetrate geographic jurisdictions that we cannot
access or where we face other restrictions, there could be a material adverse effect on our business, operating results and
financial condition. Our failure to obtain or maintain the necessary regulatory approvals in jurisdictions, whether
individually or collectively, would have a material adverse effect on our business. See "
Business of DraftKings and
SBTech — Government Regulation.
" To expand into new jurisdictions, we may need to be licensed and
obtain approvals of our product offerings. This is a time-consuming process that can be extremely costly. Any delays in
obtaining or difficulty in maintaining regulatory approvals needed for expansion within existing jurisdictions or into new
jurisdictions can negatively affect our opportunities for growth, including the growth of our customer base, or delay our
ability to recognize revenue from our offerings in any such jurisdictions.
27
Future legislative and regulatory action,
and court decisions or other governmental action, may have a material impact on our operations and financial results. Governmental
authorities could view us as having violated local laws, despite our efforts to obtain all applicable licenses or approvals. There
is also a risk that civil and criminal proceedings, including class actions brought by or on behalf of prosecutors or public entities
or incumbent monopoly providers, or private individuals, could be initiated against us, Internet service providers, credit card
and other payment processors, advertisers and others involved in the DFS, sports betting and iGaming industries. Such potential
proceedings could involve substantial litigation expense, penalties, fines, seizure of assets, injunctions or other restrictions
being imposed upon us or our licensees or other business partners, while diverting the attention of key executives. Such proceedings
could have a material adverse effect on our business, financial condition, results of operations and prospects, as well as impact
our reputation.
There can be no assurance that legally enforceable
legislation will not be proposed and passed in jurisdictions relevant or potentially relevant to our business to prohibit, legislate
or regulate various aspects of the DFS, iGaming and sports betting industries (or that existing laws in those jurisdictions will
not be interpreted negatively). Compliance with any such legislation may have a material adverse effect on our business, financial
condition and results of operations, either as a result of our determination that a jurisdiction should be blocked, or because
a local license or approval may be costly for us or our business partners to obtain and/or such licenses or approvals may contain
other commercially undesirable conditions.
Our growth prospects depend on the legal status of real-money
gaming in various jurisdictions, predominantly within the United States, which is an initial area of focus, and legalization may
not occur in as many states as we expect, or may occur at a slower pace than we anticipate. Additionally, even if jurisdictions
legalize real money gaming, this may be accompanied by legislative or regulatory restrictions and/or taxes that make it impracticable
or less attractive to operate in those jurisdictions, or the process of implementing regulations or securing the necessary licenses
to operate in a particular jurisdiction may take longer than we anticipate, which could adversely affect our future results of
operations and make it more difficult to meet our expectations for financial performance.
A number of states have legalized, or are
currently considering legalizing, real money gaming, and our business, financial condition, results of operations and prospects
are significantly dependent upon legalization of real money gaming. Our business plan is partially based upon the legalization
of real money gaming for a specific percent of the population on a yearly basis and the legalization may not occur as we have
anticipated. Additionally, if a large number of additional states or the federal government enact real money gaming legislation
and we are unable to obtain, or are otherwise delayed in obtaining the necessary licenses to operate online sports betting or iGaming
websites in U.S. jurisdictions where such games are legalized, our future growth in online sports betting and iGaming could be
materially impaired.
As we enter into new jurisdictions, states
or the federal government may legalize real money gaming in a manner that is unfavorable to us. As a result, we may encounter legal,
regulatory and political challenges that are difficult or impossible to foresee and which could result in an unforeseen adverse
impact on planned revenues or costs associated with the new opportunity. For example, certain states require us to have a relationship
with a land-based, licensed casino for online Sportsbook access, which tends to increase our costs of revenue. States that have
established state-run monopolies may limit opportunities for private sector participants like us. States also impose substantial
tax rates on online sports betting and iGaming revenue, in addition to sales taxes in certain jurisdictions and a federal excise
tax of 25 basis points on the amount of each wager. As most state product taxes apply to various measures of modified gross profit,
tax rates, whether federal- or state-based, that are higher than we expect will make it more costly and less desirable for us to
launch in a given jurisdiction, while tax increases in any of our existing jurisdictions may adversely impact our profitability.
Therefore, even in cases in which a jurisdiction
purports to license and regulate DFS, sports betting or iGaming, the licensing and regulatory regimes can vary considerably in
terms of their business-friendliness and at times may be intended to provide incumbent operators with advantages over new licensees.
Therefore, some "liberalized" regulatory regimes are considerably more commercially attractive than others.
28
Failure to comply with regulatory requirements in a particular
jurisdiction, or the failure to successfully obtain a license or permit applied for in a particular jurisdiction, could impact
our ability to comply with licensing and regulatory requirements in other jurisdictions, or could cause the rejection of license
applications or cancelation of existing licenses in other jurisdictions, or could cause financial institutions, online and mobile
platforms, advertisers and distributors to stop providing services to us which we rely upon to receive payments from, or distribute
amounts to, our users, or otherwise to deliver and promote our services.
Compliance with the various regulations
applicable to fantasy sports and real money gaming is costly and time-consuming. Regulatory authorities at the non-U.S., U.S. federal,
state and local levels have broad powers with respect to the regulation and licensing of fantasy sports and real money gaming operations
and may revoke, suspend, condition or limit our fantasy sports or real money gaming licenses, impose substantial fines on us and
take other actions, any one of which could have a material adverse effect on our business, financial condition, results of operations
and prospects. These laws and regulations are dynamic and subject to potentially differing interpretations, and various legislative
and regulatory bodies may expand current laws or regulations or enact new laws and regulations regarding these matters. We will
strive to comply with all applicable laws and regulations relating to our business. It is possible, however, that these requirements
may be interpreted and applied in a manner that is inconsistent from one jurisdiction to another and may conflict with other rules.
Non-compliance with any such law or regulations could expose us to claims, proceedings, litigation and investigations by private
parties and regulatory authorities, as well as substantial fines and negative publicity, each of which may materially and adversely
affect our business.
Any fantasy sports or real money gaming
license could be revoked, suspended or conditioned at any time. The loss of a license in one jurisdiction could trigger the loss
of a license or affect our eligibility for such a license in another jurisdiction, and any of such losses, or potential for such
loss, could cause us to cease offering some or all of our offerings in the impacted jurisdictions. We may be unable to obtain or
maintain all necessary registrations, licenses, permits or approvals, and could incur fines or experience delays related to the
licensing process, which could adversely affect our operations. Our delay or failure to obtain or maintain licenses in any jurisdiction
may prevent us from distributing our offerings, increasing our customer base and/or generating revenues. We cannot assure you that
we will be able to obtain and maintain the licenses and related approvals necessary to conduct our DFS, Sportsbook and iGaming
operations. Any failure to maintain or renew our existing licenses, registrations, permits or approvals could have a material adverse
effect on our business, financial condition, results of operations and prospects.
Our growth prospects and market potential will depend
on our ability to obtain licenses to operate in a number of jurisdictions and if we fail to obtain such licenses our business,
financial condition, results of operations and prospects could be impaired.
Our ability to grow our business will depend
on our ability to obtain and maintain licenses to offer our product offerings in a large number of jurisdictions or in heavily
populated jurisdictions. If we fail to obtain and maintain licenses in large jurisdictions or in a greater number of mid-market
jurisdictions, this may prevent us from expanding the footprint of our product offerings, increasing our user base and/or generating
revenues. We cannot be certain that we will be able to obtain and maintain licenses and related approvals necessary to conduct
our DFS, Sportsbook and iGaming operations. Any failure to obtain and maintain licenses, registrations, permits or approvals could
have a material adverse effect on our business, financial condition, results of operations and prospects.
29
DraftKings and SBT have been the subject of governmental
investigations and inquiries with respect to the operation of their businesses and we could be subject to future governmental investigations
and inquiries, legal proceedings and enforcement actions. Any such investigation, inquiry, proceeding or action, could adversely
affect our business.
DraftKings and SBT have received formal
and informal inquiries from time to time, from government authorities and regulators, including tax authorities and gaming regulators,
regarding compliance with laws and other matters, and we may receive such inquiries in the future, particularly as we grow and
expand our operations. Violation of existing or future regulations, regulatory orders or consent decrees could subject us to substantial
monetary fines and other penalties that could negatively affect our financial condition and results of operations. In addition,
it is possible that future orders issued by, or inquiries or enforcement actions initiated by, government or regulatory authorities
could cause us to incur substantial costs, expose us to unanticipated liability or penalties, or require us to change our business
practices in a manner materially adverse to our business.
Participation in the sports betting industry will expose
us to trading, liability management and pricing risk. We may experience lower than expected profitability and potentially significant
losses as a result of a failure to determine accurately the odds in relation to any particular event and/or any failure of its
sports risk management processes.
DraftKings' fixed-odds betting products
involve betting where winnings are paid on the basis of the stake placed and the odds quoted. Odds are determined with the objective
of providing an average return to the bookmaker over a large number of events and therefore, over the long term, our gross win percentage
has remained fairly constant. However, there can be significant variation in gross win percentage event-by-event and day-by-day.
DraftKings has systems and controls that seek to reduce the risk of daily losses occurring on a gross-win basis, but there can
be no assurance that these will be effective in reducing our exposure, and consequently our exposure to this risk in the future.
As a result, in the short term, there is less certainty of generating a positive gross win, and we may experience (and DraftKings
has from time to time experienced) significant losses with respect to individual events or betting outcomes, in particular if large
individual bets are placed on an event or betting outcome or series of events or betting outcomes. Odds compilers and risk managers
are capable of human error, thus even allowing for the fact that a number of betting products are subject to capped pay-outs, significant
volatility can occur. In addition, it is possible that there may be such a high volume of trading during any particular period
that even automated systems would be unable to address and eradicate all risks. Any significant losses on a gross-win basis could
have a material adverse effect on our business, financial condition and results of operations. In addition, if a jurisdiction where
we hold or wish to apply for a license imposes a high turnover tax for betting (as opposed to a gross-win tax), this too would
impact profitability, particularly with high value/low margin bets, and likewise have a material adverse effect on our business.
Palpable (obvious) errors in Sportsbook odds making occasionally
occur in the normal course of business, sometimes for large liabilities. While it is a worldwide standard business practice to
void bets associated with palpable errors or to correct the odds, there is no guarantee regulators will approve voiding palpable
errors moving forward in every case.
DraftKings' Sportsbook offers a huge
spectrum of betting markets across dozens of sports, and the odds are set through a combination of algorithmic and manual odds
making. Bet acceptance is also a combination of automatic and manual acceptance. In some cases, the odds offered on the website
constitute an obvious error. Examples of such errors are inverted lines between teams, or odds that are significantly different
from the true odds of the outcome in a way that all reasonable persons would agree is an error. It is commonplace virtually worldwide
for operators to void bets associated with such palpable errors, and in most mature jurisdictions these bets can be voided without
regulatory approval at operator discretion. In the U.S., it is unclear long term if state-by-state regulators will consistently
approve voids or re-setting odds to correct odds on such bets. In some cases, we require regulatory approval to void palpable errors
ahead of time. If regulators were to not allow voiding of bets associated with large obvious errors in odds making, New DraftKings
could be subject to covering significant liabilities.
30
DraftKings follows the industry practice of restricting
and managing betting limits at the individual customer level based on individual customer profiles and risk level to the enterprise;
however there is no guarantee that states will allow operators such as DraftKings to limit on the individual customer level.
Similar to a credit card company managing
individual risk on the customer level through credit limits, it is customary for sports betting operators to manage customer betting
limits at the individual level to manage enterprise risk levels. DraftKings believes this practice is beneficial overall, because
if it were not possible, the betting options would be restricted globally and limits available to customers would be much lower
to insulate overall risk due to the existence of a very small segment of highly sophisticated syndicates and algorithmic bettors,
or bettors looking to take advantage of site errors and omissions. We believe virtually all operators balance taking reasonable
action from all customers against the risk of individual customers significantly harming the business viability. We cannot assure
you that all state legislation and regulators will always allow operators to execute limits at the individual customer level, or
at their sole discretion.
Negative events or negative media coverage relating to,
or a declining popularity of, daily fantasy sports, sports betting, the underlying sports or athletes, online sports betting or
iGaming in particular, or other negative coverage may adversely impact our ability to retain or attract users, which could have
an adverse impact on our business.
Public opinion can significantly influence
our business. Unfavorable publicity regarding us, for example, our product changes, product quality, litigation, or regulatory
activity, or regarding the actions of third parties with whom we have relationships or the underlying sports (including declining
popularity of the sports or athletes) could seriously harm our reputation. In addition, a negative shift in the perception of sports
betting and iGaming by the public or by politicians, lobbyists or others could affect future legislation of sports betting and
iGaming, which could cause jurisdictions to abandon proposals to legalize sports betting and iGaming, thereby limiting the number
of jurisdictions in which we can operate. Furthermore, illegal betting activity by athletes could result in negative publicity
for our industry and could harm our brand reputation. Negative public perception could also lead to new restrictions on or to the
prohibition of iGaming or sports betting in jurisdictions in which we currently operate. Such negative publicity could also adversely
affect the size, demographics, engagement, and loyalty of our customer base and result in decreased revenue or slower user growth
rates, which could seriously harm our business.
We may have difficulty accessing the service of banks,
credit card issuers and payment processing services providers, which may make it difficult to sell our products and services.
Although financial institutions and payment
processors are permitted to provide services to us and others in our industry, banks, credit card issuers and payment processing
service providers may be hesitant to offer banking and payment processing services to real money gaming and fantasy sports businesses.
Consequently, those businesses involved in our industry, including DraftKings, may encounter difficulties in establishing and maintaining
banking and payment processing relationships with a full scope of services and generating market rate interest. If we were unable
to maintain DraftKings' bank accounts or our users were unable to use their credit cards, bank accounts or e-wallets to make
deposits and withdrawals from our platforms it would make it difficult for us to operate our business, increase our operating costs,
and pose additional operational, logistical and security challenges which could result in an inability to implement our business
plan.
The requirements of being a public company may strain
our resources and divert management's attention, and the increases in legal, accounting and compliance expenses that will
result from the Business Combination may be greater than we anticipate.
As a result of the Business
Combination New DraftKings will become a public company, and as such (and particularly after we are no longer an
 "emerging growth company"), will incur significant legal, accounting and other expenses that DraftKings and SBT
did not incur as private companies. We will be subject to the reporting requirements of the Exchange Act, and will be
required to comply with the applicable requirements of the Sarbanes-Oxley Act and the Dodd-Frank Wall Street Reform and
Consumer Protection Act, as well as the rules and regulations subsequently implemented by the SEC and the listing standards
of The Nasdaq Stock Market, including changes in corporate governance practices and the establishment and maintenance of
effective disclosure and financial controls. Compliance with these rules and regulations can be burdensome. Our management
and other personnel will need to devote a substantial amount of time to these compliance initiatives. Moreover, these rules
and regulations will increase DraftKings' and SBT's historical legal and financial compliance costs and will make
some activities more time-consuming and costly. For example, we expect that these rules and regulations may make it more
difficult and more expensive for us to obtain director and officer liability insurance than DraftKings and SBT obtained as
private companies, and could also make it more difficult for us to attract and retain qualified members of our Board as
compared to DraftKings and SBT as private companies. In particular, we expect to incur significant expenses and devote
substantial management effort toward ensuring compliance with the requirements of Section 404 of the Sarbanes-Oxley Act,
which will increase when we are no longer an "emerging growth company." We will need to hire additional
accounting and financial staff, and engage outside consultants, all with appropriate public company experience and technical
accounting knowledge and maintain an internal audit function, which will increase our operating expenses. Moreover, we could
incur additional compensation costs in the event that we decide to pay cash compensation closer to that of other public
companies, which would increase our general and administrative expenses and could materially and adversely affect our
profitability. We are evaluating these rules and regulations, and cannot predict or estimate the amount of additional costs
we may incur or the timing of such costs.
31
As private companies, DraftKings and SBT have not been
required to document and test their internal controls over financial reporting nor has their management been required to certify
the effectiveness of their internal controls and their auditors have not been required to opine on the effectiveness of their internal
control over financial reporting. Failure to maintain adequate financial, information technology and management processes and controls
could result in material weaknesses which could lead to errors in our financial reporting, which could adversely affect our business.
DraftKings and SBT have not been required
to document and test their internal controls over financial reporting nor has their management been required to certify the effectiveness
of their internal controls and their auditors have not been required to opine on the effectiveness of their internal control over
financial reporting. Similarly, as an "emerging growth company," DEAC has so far been exempt from the SEC's internal
control reporting requirements. New DraftKings may lose its emerging growth company status and become subject to the SEC's
internal control over financial reporting management and auditor attestation requirements in the year in which it is deemed to
be a large accelerated filer, which would occur once it is subject to Exchange Act reporting requirements for 12 months, has
filed at least one SEC annual report and the market value of its common equity held by non-affiliates exceeds $700 million
as of the end of the prior fiscal year's second fiscal quarter. We expect that New DraftKings will be subject to the SEC's
internal control reporting and attestation requirements with respect to its annual report on Form 10-K for the year ended December
31, 2021. Additionally, we expect New DraftKings' independent registered public accounting firm will be required to formally
attest to the effectiveness of New DraftKings' internal controls over financial reporting commencing with New DraftKings'
second annual report on Form 10-K (i.e. for the year ended December 31, 2021). New DraftKings may not be able to complete
its evaluation, testing and any required remediation in a timely fashion. In addition, New DraftKings' current controls and
any new controls that it develops may become inadequate because of poor design and changes in its business, including increased
complexity resulting from any international expansion. Any failure to implement and maintain effective internal controls over financial
reporting could adversely affect the results of assessments by its independent registered public accounting firm and their attestation
reports.
If New DraftKings is unable to certify the
effectiveness of its internal controls, or if New DraftKings' internal controls have a material weakness, New DraftKings
may not detect errors timely, its consolidated financial statements could be misstated, it could be subject to regulatory scrutiny
and a loss of confidence by stakeholders, which could harm New DraftKings' business and adversely affect the market price
of New DraftKings common stock.
32
Continued growth and success will depend on the performance
of the current and future employees of DraftKings and SBT, including certain key employees. Recruitment and retention of these
individuals is vital to growing our business and meeting our business plans. The loss of any of our key executives or other key
employees could harm our business.
We will depend on a limited number of
key personnel to manage and operate our business, including DraftKings' co-founders, our Chief Financial Officer and
our Chief Legal Officer. The leadership of the current executive officers of DraftKings has been a critical element of
DraftKings' success and the departure, death or disability of any one of our executive officers or other extended or
permanent loss of any of their services, or any negative market or industry perception with respect to any of them or their
loss, could have a material adverse effect on our business. We are the beneficiary of a $2 million key man insurance
policy covering our Chief Executive Officer, but we are not protected by key man or similar life insurance covering other
executive officers or members of senior management.
In addition, certain of DraftKings and SBT's
other employees have made significant contributions to their growth and success. We believe our success and our ability to compete
and grow will depend in large part on the efforts and talents of our employees and on our ability to retain highly skilled personnel.
The competition for these types of personnel is intense and we compete with other potential employers for the services of our employees.
As a result, we may not succeed in retaining the executives and other key employees that we need. Employees, particularly analysts
and engineers, are in high demand, and we devote significant resources to identifying, hiring, training, successfully integrating
and retaining these employees. We cannot provide assurance that we will be able to attract or retain such highly qualified personnel
in the future. In addition, the loss of employees or the inability to hire additional skilled employees as necessary could result
in significant disruptions to our business, and the integration of replacement personnel could be time-consuming and expensive
and cause additional disruptions to our business.
All Named Executive Officers (as defined
below) are employees-at-will and only one Named Executive Officer has an employment agreement with DraftKings. Prior to the completion
of the Business Combination, New DraftKings may enter into employment agreements with certain of its key executive officers, including
the remaining Named Executive Officers. We cannot assure you that any such agreements with New DraftKings will be executed, which
may make it more difficult to retain the services of certain of the executive officers. The unexpected loss of services of one
or more of these key employees could have a material adverse effect on our business, financial condition, results of operations
and prospects.
Additionally, as we grow and develop the
infrastructure of a public company, we may find it difficult to maintain DraftKings' entrepreneurial, innovative and team-based
culture. Our retention and recruiting may require significant increases in compensation expense as we transition to a public company,
which would adversely affect our results of operation. Moreover, there may also be disparities of wealth between those of our employees
who were employees of DraftKings or SBT prior to the Business Combination and those who join us after the Closing, which may harm
our culture and relations among employees.
If we do not succeed in attracting, hiring,
and integrating excellent personnel, or retaining and motivating existing personnel, we may be unable to grow effectively and our
business could be seriously harmed.
In some jurisdictions our key executives, certain employees
or other individuals related to the business will be subject to licensing or compliance requirements. Failure by such individuals
to obtain the necessary licenses or comply with individual regulatory obligations, could cause the business to be non-compliant
with its obligations, or imperil its ability to obtain or maintain licenses necessary for the conduct of the business. In some
cases, the remedy to such situation may require the removal of a key executive or employee and the mandatory redemption or transfer
of such person's New DraftKings equity securities.
As part of obtaining real money gaming
licenses, the responsible gaming authority will generally determine suitability of certain directors, officers and employees
and, in some instances, significant shareholders. The criteria used by gaming authorities to make determinations as to who
requires a finding of suitability or the suitability of an applicant to conduct gaming operations varies among jurisdictions,
but generally requires extensive and detailed application disclosures followed by a thorough investigation. Gaming
authorities typically have broad discretion in determining whether an applicant should be found suitable to conduct
operations within a given jurisdiction. If any gaming authority with jurisdiction over our business were to find an
applicable officer, director, employee or significant shareholder of ours unsuitable for licensing or unsuitable to continue
having a relationship with us, we would be required to sever our relationship with that person. Furthermore, such gaming
authorities may require us to terminate the employment of any person who refuses to file required applications. Either result
could have a material adverse effect on our business, operations and prospects. See "
Business of DraftKings and
SBTech — Government Regulation
."
33
In addition, the Proposed Charter provides
that any common stock or other equity securities of New DraftKings owned or controlled by any stockholder whom the New DraftKings
board of directors determines in good faith (following consultation with reputable outside gaming regulatory counsel), pursuant
to a resolution adopted by the unanimous affirmative vote of all of the disinterested members of the New DraftKings board of directors,
is an unsuitable person, will be subject to mandatory sale and transfer to either New DraftKings or one or more third-party transferees.
Additionally, a gaming regulatory body may
refuse to issue or renew a gaming license or restrict or condition the same, based on the past or present activities of DraftKings,
SBT, or our current or former directors, officers, employees, shareholders or third parties with whom we have relationships, which
could adversely affect our operations or financial condition. If additional gaming regulations are adopted in a jurisdiction in
which we operate, such regulations could impose restrictions or costs that could have a significant adverse effect on us. From
time to time, various proposals are introduced in the legislatures of some of the jurisdictions in which we have existing or planned
operations that, if enacted, could adversely affect our directors, officers, key employees, or other aspects of the company's
operations. To date, we have obtained all governmental licenses, findings of suitability, registrations, permits and approvals
necessary for our operations. However, we can give no assurance that any additional licenses, permits and approvals that may be
required will be given or that existing ones will be renewed or will not be revoked. Renewal is subject to, among other things,
continued satisfaction of suitability requirements of our directors, officers, key employees and shareholders. Any failure to renew
or maintain our licenses or to receive new licenses when necessary would have a material adverse effect on us.
Due to the nature of our business, we are subject to taxation
in a number of jurisdictions and changes in, or new interpretation of, tax laws, tax rulings or their application by tax authorities
could result in additional tax liabilities and could materially affect our financial condition and results of operations. SBT's
historic operating structure afforded it a relatively low effective corporate tax rate, and we expect following the completion
of the Business Combination the combined company will have a higher effective corporate tax rate.
Our tax obligations will be varied and include
U.S. federal, state and international taxes due to the nature of the DraftKings and SBT business. The tax laws that will be applicable
to our business are subject to interpretation, and significant judgment will be required in determining our worldwide provision
for income taxes. In the course of our business, there will be many transactions and calculations where the ultimate tax determination
is uncertain. For example, compliance with the 2017 United States Tax Cuts and Jobs Act ("TCJA") may require the collection
of information not regularly produced within our Company, the use of estimates in our consolidated financial statements, and the
exercise of significant judgment in accounting for its provisions. As regulations and guidance evolve with respect to the TCJA,
and as we gather more information and perform more analysis, our results may differ from previous estimates and may materially
affect our consolidated financial statements.
The gaming industry represents a significant
source of tax revenue to the jurisdictions in which we will operate. Gaming companies and business-to-business providers in the
gaming industry (directly and/or indirectly by way of their commercial relationships with operators) are currently subject to significant
taxes and fees in addition to normal corporate income taxes, and such taxes and fees are subject to increase at any time. From
time to time, various legislators and other government officials have proposed and adopted changes in tax laws, or in the administration
or interpretation of such laws, affecting the gaming industry. In addition, any worsening of economic conditions and the large
number of jurisdictions with significant current or projected budget deficits could intensify the efforts of governments to raise
revenues through increases in gaming taxes and/or other taxes. It is not possible to determine with certainty the likelihood of
changes in tax laws or in the administration or interpretation or enforcement of such laws. Any material increase, or the adoption
of additional taxes or fees, could have a material adverse effect on our business, financial condition, results of operations and
prospects.
34
Additionally, tax authorities may
impose indirect taxes on Internet-related commercial activity based on existing statutes and regulations which, in some
cases, were established prior to the advent of the Internet. Tax authorities may interpret laws originally enacted for mature
industries and apply it to newer industries, such as DraftKings. The application of such laws may be inconsistent from
jurisdiction to jurisdiction. Our in-jurisdiction activities may vary from period to period which could result in differences
in nexus from period to period. As of December 31, 2019 and 2018, DraftKings' estimated contingent liability for
indirect tax liabilities was $35.9 million and $27.2 million, respectively. DraftKings' estimated contingent
liability for indirect taxes represents its best estimate of tax liability for jurisdictions in which it believes taxation is
probable.
We are subject to periodic review and audit
by domestic and foreign tax authorities. Tax authorities may disagree with certain positions DraftKings or SBT has taken or that
we will take, and any adverse outcome of such a review or audit could have a negative effect on our business, financial condition
and results of operations. Although we believe that our tax provisions, positions and estimates are reasonable and appropriate,
tax authorities may disagree with certain positions we have taken. In addition, economic and political pressures to increase tax
revenue in various jurisdictions may make resolving tax disputes favorably more difficult. DraftKings is currently under Internal
Revenue Service audit for prior tax years, with the primary unresolved issues relating to excise taxation of fantasy sports
contests and informational reporting and withholding. The final resolution of that audit, and other audits or litigation, may differ
from the amounts recorded in DraftKings' consolidated financial statements included herein and may materially affect our
consolidated financial statements in the period or periods in which that determination is made.
Although SBT's corporate and tax structure
resulted in relatively low effective corporate tax rate for the business, we cannot guarantee the same tax efficiency upon the
completion of the Business Combination due to the change in corporate structures, as well as developments in the cross-border taxation
of international businesses with particular focus on the digital economy, as contemplated under the Base Erosion and Profit Shifting
project and transfer pricing legislation. Further, in light of such structure, the combined business may be exposed to a substantial
tax liability if the relevant authorities raise claims with regards to SBT's tax status in various jurisdictions, including
in particular the manner in which it allocated or allocates profit amongst relevant jurisdictions for tax purposes.
Failure to protect or enforce our intellectual property
rights or the costs involved in such enforcement could harm our business, financial condition and results of operations.
We will rely on trademark, copyright, patent,
trade secret, and domain-name-protection laws to protect our proprietary rights. In the United States and internationally, DraftKings
and SBT have filed various applications to protect aspects of their intellectual property, and currently hold a number of issued
patents in multiple jurisdictions. In the future we may acquire additional patents or patent portfolios, which could require significant
cash expenditures. However, third parties may knowingly or unknowingly infringe our proprietary rights, third parties may challenge
proprietary rights held by us, and pending and future trademark and patent applications may not be approved. In addition, effective
intellectual property protection may not be available in every country in which we operate or intend to operate our business. In
any of these cases, we may be required to expend significant time and expense to prevent infringement or to enforce our rights.
There can be no assurance that others will not offer products or services that are substantially similar to ours and compete with
our business.
Circumstances outside our control could
pose a threat to our intellectual property rights. For example, effective intellectual property protection may not be available
in the United States or other countries from which our DFS, Sportsbook and iGaming product offerings or platforms are accessible.
Also, the efforts we have taken to protect our proprietary rights may not be sufficient or effective. Any significant impairment
of our intellectual property rights could harm our business or our ability to compete. Also, protecting our intellectual property
rights is costly and time-consuming. Any unauthorized disclosure or use of our intellectual property could make it more expensive
to do business, thereby harming our operating results. Furthermore, if we are unable to protect our proprietary rights or prevent
unauthorized use or appropriation by third parties, the value of our brand and other intangible assets may be diminished, and competitors
may be able to more effectively mimic our offerings and service. Any of these events could seriously harm our business.
35
We will rely on licenses to use the intellectual property
rights of third parties which are incorporated into our products and services. Failure to renew or expand existing licenses may
require us to modify, limit or discontinue certain offerings, which could materially affect our business, financial condition and
results of operations.
We will rely on products, technologies and
intellectual property that we license from third parties, for use in our business-to-business and business-to-consumers offerings.
Substantially all of our offerings and services use intellectual property licensed from third parties. The future success of our
business may depend, in part, on our ability to obtain, retain and/or expand licenses for popular technologies and games in a competitive
market. We cannot assure that these third-party licenses, or support for such licensed products and technologies, will continue
to be available to us on commercially reasonable terms, if at all. In the event that we cannot renew and/or expand existing licenses,
we may be required to discontinue or limit our use of the products that include or incorporate the licensed intellectual property.
Some of our license agreements contain minimum
guaranteed royalty payments to the third party. If we are unable to generate sufficient revenue to offset the minimum guaranteed
royalty payments, it could have a material adverse effect on our results of operations, cash flows and financial condition. Our
license agreements generally allow for assignment in the event of a strategic transaction but contain some limited termination
rights post-assignment. Certain of our license agreements grant the licensor rights to audit our use of their intellectual property.
Disputes with licensors over uses or terms could result in the payment of additional royalties or penalties by us, cancellation
or non-renewal of the underlying license or litigation.
The regulatory review process and licensing
requirements also may preclude us from using technologies owned or developed by third parties if those parties are unwilling to
subject themselves to regulatory review or do not meet regulatory requirements. Some gaming authorities require gaming manufacturers
to obtain approval before engaging in certain transactions, such as acquisitions, mergers, reorganizations, financings, stock offerings
and share repurchases. Obtaining such approvals can be costly and time consuming, and we cannot assure that such approvals will
be granted or that the approval process will not result in delays or disruptions to our strategic objectives.
Our insurance may not provide adequate levels of coverage
against claims.
We intend to maintain insurance that we
believe is customary for businesses of our size and type. However, there are types of losses we may incur that cannot be insured
against or that we believe are not economically reasonable to insure. Moreover, any loss incurred could exceed policy limits and
policy payments made to us may not be made on a timely basis. Such losses could adversely affect our business prospects, results
of operations, cash flows and financial condition.
Risk Factors Relating to the Business Combination and Integration
of DraftKings' and SBTech's Businesses
Each of DEAC, DraftKings and SBT have incurred and will
incur substantial costs in connection with the Business Combination and related transactions, such as legal, accounting, consulting
and financial advisory fees.
As part of the Business Combination, each
of DEAC, DraftKings and SBT are utilizing professional service firms for legal, accounting and financial advisory. Although the
parties have been provided with estimates of the costs for each advisory firm, the total actual costs may exceed those estimates.
In addition, DraftKings is retaining consulting services to assist in the integration of the businesses, including but not limited
to organizational decisions, combined company business process design, cultural integration and go-to-market integration. These
consulting services may extend beyond the current estimated time frame thus resulting in higher than expected costs.
36
While DEAC, DraftKings and SBT work to complete the Business
Combination and integrate the DraftKings and SBT businesses and operations, management's focus and resources may be diverted
from operational matters and other strategic opportunities.
Successful integration of SBT's operations,
sports betting and gaming technology and personnel into those of DraftKings may place a significant burden on management and other
internal resources. The diversion of management's attention and any difficulties encountered in the transition and integration
process could harm New DraftKings' business, financial condition, results of operations and prospects. In addition, uncertainty
about the effect of the Business Combination on DraftKings' and SBT's systems, employees, customers, partners, and
other third parties, including regulators, may have an adverse effect on New DraftKings. These uncertainties may impair New DraftKings'
ability to attract, retain and motivate key personnel for a period of time after the Business Combination.
Furthermore, the overall integration of
the businesses may result in material unanticipated problems, expenses, liabilities, competitive responses, and loss of customers
and other relationships. The difficulties of combining the operations of the companies include, among others, difficulties in integrating
operations and systems; conforming standards, controls, procedures and accounting and other policies, business cultures and compensation
structures; assimilating employees, including possible culture conflicts and different opinions on technical decisions and product
roadmaps; managing the expanded operations of a larger and more complex company, including coordinating a geographically dispersed
organization; and keeping existing customers and obtaining new customers. Many of these factors will be outside our control and
any one of them could result in increased costs, decreases in the amount of expected revenues and diversion of management's
time and energy, which could materially impact New DraftKings' business, financial condition and results of operations.
DraftKings' and SBT's operations were restricted
during the pendency of the Business Combination pursuant to terms of the BCA.
Prior to the consummation of the Business
Combination, SBT was subject to customary interim operating covenants relating to carrying on its business in the ordinary course
of business and is also subject to customary restrictions on actions that may be taken during such period. As a result, SBT may
have been unable, during the pendency of the Business Combination, to make certain acquisitions and capital expenditures, borrow
money and otherwise pursue other actions, even if such actions would prove beneficial.
DraftKings was also subject to certain interim
operating covenants and restrictions relating to fundamental changes to its business and capital structure prior to the consummation
of the Business Combination. DraftKings may have been unable, during the pendency of the Business Combination, to undertake certain
actions in connection with making dividends or reducing share capital and otherwise pursue other actions, even if such actions
would have proven to be beneficial.
Uncertainty about the effect of the Business Combination
may affect our ability to retain key employees and integrate management structures and may materially impact the management, strategy
and results of our operation as a combined company.
Uncertainty about the effect of the Business
Combination on DraftKings' and SBT's business, employees, customers, third parties with whom DraftKings and SBT have
relationships, and other third parties, including regulators, may have an adverse effect on New DraftKings. These uncertainties
may impair New DraftKings' ability to attract, retain and motivate key personnel for a period of time after the Business
Combination. If key employees depart because of issues related to the uncertainty and difficulty of integration or a desire not
to remain with New DraftKings, our business could be harmed.
We may incur successor liabilities due to conduct arising
prior to the completion of the Business Combination.
New DraftKings may be subject to
certain liabilities of DraftKings and SBT. DraftKings and SBT at times may each become subject to litigation claims in the
operation of its business, including, but not limited to, with respect to employee matters and contract matters. From time to
time, DraftKings and SBT may also face intellectual property infringement, misappropriation, or invalidity/non-infringement
claims from third parties, and some of these claims may lead to litigation. DraftKings and SBT may initiate claims to assert
or defend their own intellectual property against third parties. Any litigation may be expensive and time-consuming and could
divert management's attention from its business and negatively affect its operating results or financial condition. The
outcome of any litigation cannot be guaranteed and adverse outcomes can affect New DraftKings, DraftKings and SBT
negatively.
37
DraftKings and SBT may also face inquiry
and investigation by governmental authorities, which could in turn lead to fines, as the regulatory landscape of sport betting
and iGaming changes.
Some of DraftKings' or SBT's existing agreements
contain change in control or early termination rights that may be implicated by the Business Combination.
Parties with which DraftKings or SBT currently
does business or may do business in the future, including customers and suppliers, may experience uncertainty associated with the
Business Combination, including with respect to current or future business relationships with DraftKings, SBT and New DraftKings.
As a result, the business relationships of DraftKings or SBT may be subject to disruptions if customers, suppliers or others attempt
to negotiate changes in existing business relationships or consider entering into business relationships with parties other than
DraftKings, SBT and New DraftKings. For example, certain customers, suppliers and third-party providers may have contractual consent
rights or termination rights that may be triggered by a change of control or assignment of the rights and obligations of contracts
that will be transferred in the Business Combination. These disruptions could harm our relationships with existing third parties
with whom DraftKings and SBT have relationships and preclude us from attracting new third parties, all of which could have a material
adverse effect on our business, financial condition and results of operations, cash flows, and/or share price of New DraftKings.
The effect of such disruptions could be exacerbated by a delay in the consummation of the Business Combination.
Some of DraftKings' or SBT's relationships
with its customers and suppliers may experience disruptions in connection with the Business Combination, which may limit New DraftKings'
business.
Parties with which DraftKings or SBT currently
does business or may do business in the future, including customers and suppliers, may experience uncertainty associated with the
Business Combination, including with respect to future business relationships with the other or with New DraftKings. As a result,
the business relationships of DraftKings, SBT and New DraftKings may be subject to disruptions if customers, suppliers, or others
attempt to renegotiate changes in existing business relationships or consider entering into business relationships with parties
other than DraftKings, SBT or New DraftKings, in respect of DraftKings, SBT or New DraftKings. For example, certain customers and
collaborators of DraftKings or SBT may exercise contractual termination rights as they arise or elect to not renew contracts with
DraftKings or SBT. These disruptions could harm relationships with existing customers, suppliers or others and preclude us from
attracting new users, all of which could have a material adverse effect on our business, financial condition and results of operations
of DraftKings, SBT or New DraftKings. The effect of such disruptions could be exacerbated by a delay in the consummation of the
Business Combination.
SBT's and DraftKings' licenses and applications
for licenses in certain jurisdictions may be subject to a review procedure or an ownership change consent requirement by regulators
as a result of the Business Combination (including following its consummation), which could result in a license or application
being delayed, canceled, withheld, or subjected to additional requirements or conditions.
Both SBT and DraftKings hold certain licenses
and have filed certain applications for licenses to operate iGaming and sports-betting products in various jurisdictions. The regulatory
bodies that oversee and issue these licenses and review such applications regularly review corporate transactions involving ownership
changes to determine whether the ownership changes have any impact on current licenses held by, or applications pending with respect
to, either company. Such regulatory bodies also have broad discretion in determining whether to deny applications, cancel existing
licenses, withhold new licenses or require the businesses to comply with additional conditions as a result of a business combination.
We cannot assure you that we will be able to obtain regulatory review of our applications or licenses in a timely fashion or without
any limitations as a result of the Business Combination.
38
Although DraftKings management and the management of
SBT expect that the Business Combination will produce substantial synergies, the integration of the two companies,
incorporated in different countries, with geographically dispersed operations, and with different business cultures and
compensation structures, presents significant management challenges. There can be no assurance that this integration, and the
synergies expected to result from that integration, will be achieved as rapidly or to the extent currently
anticipated.
The Business Combination involves the integration
of two businesses that currently operate as independent businesses. Each of the companies will be required to devote management
attention and resources to integrating their business practices and operations following the Closing, and prior to the Business
Combination, management attention and resources will be required to plan for such integration. The companies may encounter potential
difficulties in the integration process including the following:
·
the
inability to successfully integrate the two businesses, including operations, technologies, products and services, in a manner
that permits DraftKings, SBT or New DraftKings to achieve the cost savings and operating synergies anticipated to result from
the Business Combination, which could result in the anticipated benefits of the Business Combination not being realized partly
or wholly in the time frame currently anticipated or at all;
·
the loss of customers as a result of certain customers
of either or both of the two businesses deciding not to continue to do business with DraftKings or SBT, or deciding to decrease
their amount of business in order to reduce their reliance on a single company;
·
the
necessity of coordinating geographically separated organizations, systems and facilities;
·
potential unknown liabilities and unforeseen expenses,
delays or regulatory conditions associated with the Business Combination;
·
the integration of personnel with diverse business backgrounds
and business cultures, while maintaining focus on providing consistent, high-quality products and services;
·
the consolidation and rationalization of information
technology platforms and administrative infrastructures as well as accounting systems and related financial reporting activities;
·
the potential weakening of relationships with regulators;
and
·
the challenge of preserving important relationships
of both DraftKings and SBT and resolving potential conflicts that may arise.
Furthermore, it is possible that the integration
process could result in the loss of talented employees or skilled workers of DraftKings and SBT. The loss of talented employees
and skilled workers could adversely affect DraftKings', SBT's or New DraftKings' ability to successfully conduct
their respective businesses because of such employees' experience and knowledge of the respective business. In addition,
DraftKings, SBT, or New DraftKings could be adversely affected by the diversion of management's attention and any delays
or difficulties encountered in connection with the integration of DraftKings and SBT. The process of integrating operations could
cause an interruption of, or loss of momentum in, the activities of the businesses. If DraftKings, SBT or New DraftKings experience
difficulties with the integration process, the anticipated benefits of the Business Combination may not be realized fully or at
all, or may take longer to realize than expected. These integration matters could have an adverse effect on the business, results
of operations, financial condition or prospects of DraftKings, SBT, or New DraftKings during this transition period and for an
undetermined period after completion of the Business Combination.
SBT's business includes a B2B business model, primarily
in international jurisdictions, which business depends on the underlying financial performance of its direct operators and its
resellers. As a material part of SBT's revenue is currently generated through resellers and direct sales to operators, a
decline in such resellers' or direct operators' financial performance or a termination of some or all of the agreements
with such resellers or operators could have a material adverse effect on SBT's or New DraftKings' business.
SBT offers their services directly to operators
in Europe and uses a reseller model in Asia. SBT's financial performance depends on the underlying financial performance
of its direct operators and its resellers. In particular, SBT relies primarily on one reseller for its Asia revenue. This reseller
accounted for approximately 46% of SBT's revenue in the year ended December 31, 2019. An adverse decline in the underlying
financial performance of key SBT operators or resellers, or a termination of some or all of the agreements with such resellers
or operators, could have a material adverse effect on SBT's or New DraftKings' business.
39
Given the increased number of jurisdictions in which we
will operate after the Business Combination, we may experience delays in the licensing application and approval process, depending
on the regulatory requirements in each relevant jurisdiction.
Regulated gaming license applications frequently
involve an in-depth suitability review of the applicant's business and associated individuals including certain officers,
directors, key employees and significant shareholders. These applications take substantial time to prepare and submit, often requiring
the production of multiple years' worth of business and personal financial records and disclosures which take considerable
time to compile, followed by the regulator's investigatory process which may take months or even years to complete.
Due to the increased number of jurisdictions in which we will operate after the Business Combination, as well as additional jurisdictions
which may pass laws authorizing and requiring licensure to operate sports betting, iGaming or daily fantasy sports, we may experience
delays in the licensing application and approval process due to the volume of application materials we must prepare and submit
and the number of jurisdictions for which information is required. Many jurisdictions in which we are already licensed will require
additional applications and disclosures as a result of the Business Combination which may also contribute to delays in the licensing
application and approval process in additional jurisdictions.
SBT has historically relied on a less formal financial
reporting system and only began integrating a group-wide consistent financial reporting system recently, which may affect our ability
to report historical financial performance accurately.
In January 2018, SBT implemented a
global enterprise resource planning system which produces periodic consolidated financial reports. Prior to January 2018,
SBT relied on internally generated financial reporting which consolidated a number of financial booking systems. It is possible
that historical financial information was not fully aligned from the less formal system to the new system, which could affect the
accuracy of historical financial information.
SBT's growth depends on its ability to develop and
sell competitive products and services. As the industry matures, increased competition and price pressures may materialize.
SBT's financial performance and future
growth prospects are partly dependent on its ability to develop competitive products and services for license to operators and
resellers. However, there is no certainty that SBT will be able to develop products and services in a timely manner that its customers
will want to purchase. In addition, the global online gaming industry is becoming increasingly more characterized by competitive
pressures and failure by SBT to develop and sell appropriately competitive and priced products and services could negatively impact
SBT's financial performance.
SBT's business, which includes significant international
operations, is likely to expose New DraftKings to foreign currency transaction and translation risks. As a result, changes in the
valuation of the U.S. dollar in relation to other currencies could have positive or negative effects on New DraftKings' profit
and financial position.
SBT's global operations are likely
to expose New DraftKings to foreign currency transaction and translation risks. Currency transaction risk occurs in conjunction
with purchases and sales of products and services that are made in currencies other than the local currency of the subsidiary involved,
for example if the parent company pays, or transfers U.S. dollars to a subsidiary in order to fund its expenses in local currencies.
Currency translation risks occurs when the income statement and balance sheet of a foreign subsidiary is converted into currencies
other than the local currency of the company involved, for example when the results of these subsidiaries are consolidated in the
results of a parent company with a different reporting currency. As a result, SBT has historically been, and New DraftKings is
expected to be, exposed to adverse movements in foreign currency exchange rates, which may adversely impact New DraftKings'
financial positions and results of operations.
40
Due to SBT's global presence, a
significant majority of its revenues, operating expenses and assets and liabilities are non-U.S. dollar denominated and
therefore subject to foreign currency fluctuation once consolidated in New DraftKings, whose functional currency is expected
to be the U.S. dollar. New DraftKings will face exposure to currency exchange rates as a result of the growth in its non-U.S.
dollar denominated operating expense across Europe. For example, an increase in the value of non-U.S. dollar currencies
against the U.S. dollar could increase costs for delivery of products, services and also increase cost of local operating
expenses and procurement of materials or services that New DraftKings must purchase in foreign currencies by increasing labor
and other costs that are denominated in such local currencies. These risks related to exchange rate fluctuations may increase
in future periods as New DraftKings' operations outside of the United States expand.
New DraftKings' foreign currency exposure
will reflect SBT's historical operations, which have been primarily in Euro (reflecting over 90% of its revenue in all reporting
periods), which is SBT's functional and reporting currency, and the British pound (which accounted for 10.2% and 5.0% of
SBT's revenue in the years ended December 31, 2019 and 2018, respectively). See "
SBT's Management's
Discussion and Analysis of Financial Condition and Results of Operations — Quantitative and Qualitative Disclosures
about Market Risk — Foreign Currency Exchange Rate Risk
." SBT has not historically hedged its foreign
currency transaction or translation exposure, though New DraftKings may consider doing so in the future. Foreign currency exchange
rate volatility, as well as the cost of any hedging arrangements entered into in the future, may negatively affect New DraftKings'
financial position and results of operations, and may adversely impact the comparability of results between periods.
DraftKings depends on the Kambi platform to operate its
Sportsbook and, following the completion of the Business Combination, we intend to transition these operations to the SBT platform
over time. As we plan and implement this transition, we may face a range of issues including the possibility that we may suffer
service disruptions or impediments that make it more difficult for our customers to access our product offerings, all which could
have a material adverse effect on our business, financial condition and results of operations.
DraftKings currently depends on Kambi and
their platform to operate its Sportsbook product offering; however, following the completion of the Business Combination, we intend
to transition the Sportsbook platform to that of SBT's over time. Any transition of the Sportsbook platform currently provided
by Kambi to that of SBT's will be difficult to implement and could cause us to incur significant time and expense. We have
committed to pay Kambi a percentage of contractual net gaming revenue that tiers depending on volume over the next four years
with the ability to terminate early after December 2020. Given this, any significant disruption of, or interference with,
our use of Kambi would negatively impact our operations and our business could be seriously harmed. If our users are not able to
access Sportsbook or encounter difficulties in doing so, we may lose users, and our business, financial condition and results of
operations could be adversely affected.
In addition, Kambi may take actions beyond
our control that could seriously harm our business, including discontinuing or limiting our access to their sports betting platform;
increasing pricing terms; terminating or seeking to terminate our contractual relationship altogether; establishing more favorable
relationships with one or more of our competitors; or modifying or interpreting its terms of service or other policies in a manner
that impacts our ability to run our business and operations.
41
Risk Factors Relating to DEAC and the Business Combination
Directors and officers of DEAC have potential conflicts
of interest in recommending that stockholders vote in favor of approval of the Business Combination.
When considering DEAC's board of directors' recommendation
that its stockholders vote in favor of the approval of the Business Combination, DEAC Stockholders should be aware that directors
and officers of DEAC have interests in the Business Combination that may be different from, or in addition to, the interests of
DEAC Stockholders. These interests include:
•
If
DEAC is unable to complete its initial business combination by May 14, 2021, DEAC will: (i) cease all operations except
for the purpose of winding up, (ii) as promptly as reasonably possible but not more than 10 business days thereafter, redeem the
public shares and (iii) as promptly as reasonably possible following such redemption, subject to the approval of our remaining
stockholders and DEAC's Board, liquidate and dissolve, subject in each case to DEAC's obligations under the DGCL to
provide for claims of creditors and the requirements of other applicable law. There will be no redemption rights or liquidating
distributions with respect to DEAC's warrants, which will expire worthless if DEAC fails to complete its initial business
combination by May 14, 2021. DEAC's initial stockholders purchased the founder shares prior to DEAC's initial
public offering for an aggregate purchase price of $25,000. Upon the Closing, such founder shares will be exchanged for 10,000,000
shares of New DraftKings Class A common stock, 720,000 of which will be forfeited and 5,280,000 of which will be deposited
into escrow and released in accordance with the terms of the BCA. Such securities, if unrestricted and freely tradable would be
valued at approximately $142,500,000, based on the closing price of $14.25 per share of DEAC Class A common stock on The
Nasdaq Capital Market on April 13, 2020.
•
Simultaneously with the closing of DEAC's initial public offering, DEAC consummated the sale of 6,333,334 private
                                                                                                                                                                                                      placement warrants at a price of $1.50 per warrant in a private placement to its initial stockholders, including its
                                                                                                                                                                                                      independent directors. The warrants are each exercisable commencing 30 days following the Closing for one share of New
                                                                                                                                                                                                      DraftKings Class A common stock at $11.50 per share. If DEAC does not consummate a business combination transaction by
                                                                                                                                                                                                      May 14, 2021, then the proceeds from the sale of the private placement warrants will be part of the liquidating
                                                                                                                                                                                                      distribution to the public stockholders and the warrants held by DEAC's initial stockholders will be worthless. The
                                                                                                                                                                                                      warrants held by DEAC's initial stockholders had an aggregate market value of approximately $25,333,336 based upon the
                                                                                                                                                                                                      closing price of $4.00 per warrant on The Nasdaq Capital Market on April 13, 2020.
•
The
Sponsor and DEAC's officers and directors will lose their entire investment in DEAC if DEAC does not complete a business
combination by May 14, 2021. Certain of them may continue to serve as officers and/or directors of New DraftKings after the
Closing. As such, in the future they may receive any cash fees, stock options or stock awards that the New DraftKings board of
directors determines to pay to its directors and/or officers.
•
DEAC's
initial stockholders and its officers and directors have agreed to waive their rights to liquidating distributions from the trust
account with respect to their founder shares if DEAC fails to complete a business combination by May 14, 2021.
•
In
order to protect the amounts held in the trust account, the Sponsor has agreed that it will be liable to DEAC if and to the extent
any claims by a vendor for services rendered or products sold to DEAC, or a prospective target business with which we have entered
into a transaction agreement, reduce the amount of funds in the trust account. This liability will not apply with respect to any
claims by a third party who executed a waiver of any right, title, interest or claim of any kind in or to any monies held in the
trust account or to any claims under DEAC's indemnity of the underwriters of DEAC's initial public offering against
certain liabilities, including liabilities under the Securities Act.
•
Following
the Closing, the Sponsor would be entitled to the repayment of any working capital loan and advances that have been made to DEAC
and remain outstanding. As of the date of this prospectus, the Sponsor has not made any advances to DEAC for working capital expenses.
If DEAC does not complete an initial business combination within the required period, DEAC may use a portion of its working capital
held outside the trust account to repay the working capital loans, but no proceeds held in the trust account would be used to
repay the working capital loans.
•
Following
the consummation of the Business Combination, we will continue to indemnify DEAC's existing directors and officers and will
maintain a directors' and officers' liability insurance policy.
•
Upon
the Closing, subject to the terms and conditions of the BCA, the Sponsor and DEAC's officers and directors and their respective
affiliates may be entitled to reimbursement for any reasonable out-of-pocket expenses related to identifying, investigating and
consummating an initial business combination, and repayment of any other loans, if any, and on such terms as to be determined
by DEAC from time to time, made by the Sponsor or certain of DEAC's officers and directors to finance transaction costs
in connection with an intended initial business combination.
42
These financial interests of the initial
stockholders, officers and directors and entities affiliated with them may have influenced their decision to approve the Business
Combination. You should consider these interests when evaluating the Business Combination.
DEAC's initial stockholders have agreed to vote
in favor of the Business Combination, regardless of how DEAC's public stockholders vote.
DEAC's initial stockholders have agreed
to vote their shares in favor of the Business Combination. The initial stockholders own approximately 20% of our outstanding shares
prior to the Business Combination. Accordingly, it is more likely that the necessary stockholder approval for the Business Combination
will be received than would be the case if our initial stockholders had agreed to vote their shares in accordance with the majority
of the votes cast by DEAC's public stockholders.
DEAC's initial stockholders, directors, officers,
advisors and their affiliates may elect to purchase shares or public warrants from public stockholders, which may influence a vote
on the Business Combination and reduce the public "float" of our common stock.
DEAC's initial stockholders, directors,
officers, advisors or their affiliates may purchase public shares or public warrants in privately negotiated transactions or in
the open market either prior to or following the completion of the Business Combination, although they are under no obligation
to do so. However, other than as expressly stated herein, they have no current commitments, plans or intentions to engage in such
transactions and have not formulated any terms or conditions for any such transactions. None of the funds in the trust account
will be used to purchase shares or public warrants in such transactions.
In the event that DEAC's initial stockholders,
directors, officers, advisors or their affiliates purchase public shares in privately negotiated transactions from public stockholders
who have already elected to exercise their redemption rights, such selling stockholders would be required to revoke their prior
elections to redeem their public shares. The purpose of any such purchases of public shares could be to vote such shares in favor
of the Business Combination and thereby increase the likelihood of obtaining stockholder approval of the Business Combination or
to satisfy a closing condition in the BCA that requires DEAC to have a certain amount of cash at the Closing, where it appears
that such requirement would otherwise not be met. Any such purchases of our securities may result in the completion of the Business
Combination that may not otherwise have been possible.
In addition, if such purchases are made,
the public "float" of DEAC's common stock and the number of beneficial holders of DEAC's securities may
be reduced, possibly making it difficult to maintain or obtain the quotation, listing or trading of DEAC's securities on
a national securities exchange.
Warrants will become exercisable for New DraftKings Class A
common stock, which would increase the number of shares eligible for future resale in the public market and result in dilution
to our stockholders.
Following the Business Combination, there
will be 13,333,333 outstanding public warrants to purchase 13,333,333 shares of New DraftKings Class A common stock at an
exercise price of $11.50 per share, which warrants will become exercisable 30 days following the Closing. In addition, there
will be 6,333,332 private placement warrants outstanding exercisable for 6,333,332 shares of New DraftKings Class A common
stock at an exercise price of  $11.50 per share. To the extent such warrants are exercised, additional shares of New
DraftKings Class A common stock will be issued, which will result in dilution to the holders of New DraftKings Class A
common stock and increase the number of shares eligible for resale in the public market. Sales of substantial numbers of such shares
in the public market could adversely affect the market price of New DraftKings Class A common stock.
43
We may redeem your unexpired warrants prior to their exercise
at a time that is disadvantageous to you, thereby making your warrants worthless.
New DraftKings will have the ability to
redeem outstanding public warrants at any time after they become exercisable and prior to their expiration, at a price of $0.01
per warrant, provided that the closing price of New DraftKings Class A common stock equals or exceeds $18.00 per share for
any 20 trading days within a 30 trading-day period ending on the third trading day prior to proper notice of such redemption provided
that on the date we give notice of redemption. If and when the warrants become redeemable by us, we may exercise our redemption
right even if we are unable to register or qualify the underlying securities for sale under all applicable state securities laws.
Redemption of the outstanding warrants could force holders (i) to exercise the warrants and pay the exercise price therefor
at a time when it may be disadvantageous to do so, (ii) to sell the warrants at the then-current market price when the holder might
otherwise wish to hold onto such warrants or (iii) to accept the nominal redemption price which, at the time the outstanding warrants
are called for redemption, is likely to be substantially less than the market value of the warrants. None of the private placement
warrants will be redeemable by us so long as they are held by their initial purchasers or their permitted transferees.
In addition, we may redeem your warrants
after they become exercisable for a number of shares of New DraftKings Class A common stock determined based on the redemption
date and the fair market value of New DraftKings Class A common stock. Any such redemption may have similar consequences to
a cash redemption described above. In addition, such redemption may occur at a time when the warrants are "out-of-the-money,"
in which case you would lose any potential embedded value from a subsequent increase in the value of our common stock had your
warrants remained outstanding.
Even if we consummate the Business Combination, there
can be no assurance that the warrants will be in the money at the time they become exercisable, and they may expire worthless.
The exercise price for the outstanding warrants
is $11.50 per share of New DraftKings Class A common stock. There can be no assurance that the warrants will be in the money
following the time they become exercisable and prior to their expiration, and as such, the warrants may expire worthless.
Our stockholders will experience immediate dilution as
a consequence of the issuance of New DraftKings Class A common stock as consideration in the Business Combination. Having
a minority share position may reduce the influence that our current stockholders have on the management of New DraftKings.
Assuming that no public stockholders exercise
their redemption rights in connection with the Business Combination, immediately after the consummation of the Business Combination,
DEAC's initial stockholders and public stockholders will hold 43,659,063 shares of New DraftKings Class A common stock,
or 13.9% of the outstanding Class A common stock. Assuming that our public stockholders holding 30,564,789 public shares exercise
their redemption rights in connection with the Business Combination, immediately after the consummation of the Business Combination,
DEAC's initial stockholders and public stockholders will hold 13,094,274 shares of New DraftKings Class A common stock,
or 4.6% of the outstanding Class A common stock.
There are currently outstanding an aggregate
of 19,666,667 warrants to acquire New DraftKings Class A common stock, which comprise 6,333,334 private placement warrants
held by DEAC's initial stockholders at the time of DEAC's initial public offering and 13,333,333 public warrants. Each
of DEAC's outstanding whole warrants is exercisable commencing 30 days following the Closing for one share of New DraftKings
Class A common stock in accordance with its terms. Therefore, as of the date of this prospectus, if we assume that each outstanding
whole warrant is exercised and one share of New DraftKings Class A common stock is issued as a result of such exercise, with
payment to New DraftKings of the exercise price of $11.50 per share, our fully-diluted share capital would increase by a
total of 19,666,667 shares, with approximately $226,166,670 paid to New DraftKings to exercise the warrants.
44
Subsequent to the consummation of the Business Combination,
we may be required to take write-downs or write-offs, restructuring and impairment or other charges that could have a significant
negative effect on our financial condition, results of operations and stock price, which could cause you to lose some or all of
your investment.
Although DEAC has conducted due diligence
on DraftKings and SBT, DEAC cannot assure you that this diligence revealed all material issues that may be present in their respective
businesses, that it would be possible to uncover all material issues through a customary amount of due diligence, or that factors
outside of DEAC's, DraftKings' or SBT's control will not later arise. As a result, New DraftKings may be forced
to later write-down or write-off assets, restructure its operations, or incur impairment or other charges that could result in
losses. Even if the due diligence successfully identifies certain risks, unexpected risks may arise and previously known risks
may materialize in a manner not consistent with our preliminary risk analysis. Even though these charges may be non-cash items
and not have an immediate impact on our liquidity, the fact that New DraftKings reports charges of this nature could contribute
to negative market perceptions about New DraftKings or its securities. In addition, charges of this nature may cause New DraftKings
to violate net worth or other covenants to which it may be subject. Accordingly, any DEAC Stockholder who chooses to remain a stockholder
of New DraftKings following the Business Combination could suffer a reduction in the value of their shares. Such stockholders are
unlikely to have a remedy for such reduction in value unless they are able to successfully claim that the reduction was due to
the breach by DEAC's officers or directors of a duty of care or other fiduciary duty owed to them, or if they are able to
successfully bring a private claim under securities laws that the proxy solicitation relating to the Business Combination contained
an actionable material misstatement or material omission.
If the benefits of the Business Combination do not meet
the expectations of investors or securities analysts, the market price of our securities may decline.
If the benefits of the Business Combination
do not meet the expectations of investors or securities analysts, the market price of DEAC's securities prior to the Closing
may decline. The market values of DEAC's securities at the time of the Business Combination may vary significantly from their
prices on the date the BCA was executed, the date of this prospectus, or the date on which our DEAC Stockholders vote on the Business
Combination. Because the number of shares to be issued pursuant to the BCA is based on the per share value of the amount in the
trust account and will not be adjusted to reflect any changes in the market price of DEAC's Class A common stock, the
market value of New DraftKings Class A common stock issued in the Business Combination may be higher or lower than the values
of these shares on earlier dates.
In addition, following the Business Combination,
fluctuations in the price of New DraftKings' securities could contribute to the loss of all or part of your investment. Prior
to the Business Combination, there has not been a public market for the stock of any of DraftKings, SBT or New DraftKings and trading
in the shares of DEAC's Class A common stock has not been active. Accordingly, the valuation ascribed to New DraftKings
in the Business Combination may not be indicative of the price that will prevail in the trading market following the Business Combination.
If an active market for our securities develops and continues, the trading price of our securities following the Business Combination
could be volatile and subject to wide fluctuations in response to various factors, some of which are beyond our control. Any of
the factors listed below could have a material adverse effect on your investment in our securities and our securities may trade
at prices significantly below the price you paid for them. In such circumstances, the trading price of our securities may not recover
and may experience a further decline.
45
Factors affecting the trading price of New
DraftKings' securities may include:
·
actual or anticipated fluctuations in our quarterly financial results or the quarterly financial results of companies perceived
to be similar to us;
·
changes in the market's expectations about our operating results;
·
success of competitors;
·
lack of adjacent competitors;
·
our operating results failing to meet the expectation of securities analysts or investors in a particular period;
·
changes in financial estimates and recommendations by securities analysts concerning New DraftKings or the industries in which
New DraftKings operates in general;
·
operating and stock price performance of other companies that investors deem comparable to New DraftKings;
·
our ability to market new and enhanced products and services on a timely basis;
·
changes in laws and regulations affecting our business;
·
commencement of, or involvement in, litigation involving New DraftKings;
·
changes in New DraftKings' capital structure, such as future issuances of securities or the incurrence of additional
debt;
·
the volume of shares of New DraftKings Class A common stock available for public sale;
·
any major change in our board or management;
·
sales of substantial amounts of New DraftKings Class A common stock by our directors, executive officers or significant
stockholders or the perception that such sales could occur; and
·
general economic and political conditions such as recessions, interest rates, fuel prices, international currency fluctuations
and acts of war or terrorism.
​
Broad market and industry factors may materially
harm the market price of our securities irrespective of our operating performance. The stock market in general, and The Nasdaq
Stock Market have experienced price and volume fluctuations that have often been unrelated or disproportionate to the operating
performance of the particular companies affected. The trading prices and valuations of these stocks, and of our securities, may
not be predictable. A loss of investor confidence in the market for the stocks of other companies which investors perceive to be
similar to New DraftKings could depress our stock price regardless of our business, prospects, financial conditions or results
of operations. A decline in the market price of our securities also could adversely affect our ability to issue additional securities
and our ability to obtain additional financing in the future.
Our actual financial position and results of operations
may differ materially from the unaudited pro forma financial information included in this prospectus.
The unaudited pro forma condensed combined
financial information included in this prospectus is presented for illustrative purposes only and is not necessarily indicative
of what our actual financial position or results of operations would have been had the Business Combination been completed on the
dates indicated. See "
Unaudited Pro Forma Condensed Combined Financial Information
" for more information.
46
There can be no assurance that we will be able to comply
with the continued listing standards of The Nasdaq Stock Market.
New DraftKings Class A common stock
and warrants is expected to be listed on Nasdaq following the Business Combination. New DraftKings continued eligibility for listing
may depend on the number of our shares that are redeemed. If, after the Business Combination, Nasdaq delists New DraftKings Class A
common stock from trading on its exchange for failure to meet the listing standards, we and our stockholders could face significant
material adverse consequences including:
·
a limited availability of market quotations for our securities;
·
a determination that New DraftKings Class A common stock is a "penny stock" which will require brokers trading
in New DraftKings Class A common stock to adhere to more stringent rules, possibly resulting in a reduced level of trading
activity in the secondary trading market for New DraftKings Class A common stock;
·
a limited amount of analyst coverage; and
·
a decreased ability to issue additional securities or obtain additional financing in the future.
​
Because New DraftKings will be a "controlled company"
under The Nasdaq Stock Market listing standards, our stockholders may not have certain corporate governance protections that are
available to stockholders of companies that are not controlled companies.
So long as more than 50% of the voting
power for the election of directors of New DraftKings is held by an individual, a group or another company, New DraftKings
will qualify as a "controlled company" under The Nasdaq Stock Market listing requirements. Following the
completion of the Business Combination, Mr. Robins will control a majority of the voting power of our outstanding
capital stock. As a result, New DraftKings will be a "controlled company" under The Nasdaq Stock Market listing
standards and will not be subject to the requirements that would otherwise require us to have: (i) a majority of
independent directors; (ii) a nominating committee comprised solely of independent directors; (iii) compensation of our
executive officers determined by a majority of the independent directors or a compensation committee comprised solely of
independent directors; and (iv) director nominees selected, or recommended for the Board's selection, either by a
majority of the independent directors or a nominating committee comprised solely of independent directors.
Mr. Robins may have his interest in
New DraftKings diluted due to future equity issuances or his own actions in selling shares of Class A common stock, in each
case, which could result in a loss of the "controlled company" exemption under The Nasdaq Stock Market listing rules.
New DraftKings would then be required to comply with those provisions of The Nasdaq Stock Market listing requirements.
The dual class structure of New DraftKings common stock
will have the effect of concentrating voting power with New DraftKings' Chief Executive Officer and Co-Founder, which will
limit an investor's ability to influence the outcome of important transactions, including a change in control.
Shares of New DraftKings Class B common
stock will have 10 votes per share, while shares of New DraftKings Class A common stock will have one vote per share. Upon
the consummation of the Business Combination, Mr. Robins, one of the founders of DraftKings, will hold all of the issued and
outstanding shares of New DraftKings Class B common stock. Accordingly, upon the consummation of the Business Combination,
Mr. Robins will hold approximately 90% of the voting power of New DraftKings' capital stock on a fully-diluted basis
and will be able to control matters submitted to our stockholders for approval, including the election of directors, amendments
of our organizational documents and any merger, consolidation, sale of all or substantially all of our assets or other major corporate
transactions. Mr. Robins may have interests that differ from yours and may vote in a way with which you disagree and which
may be adverse to your interests. This concentrated control may have the effect of delaying, preventing or deterring a change in
control of New DraftKings, could deprive our stockholders of an opportunity to receive a premium for their capital stock as part
of a sale of New DraftKings, and might ultimately affect the market price of shares of New DraftKings Class A common stock.
For information about our dual class structure, see the section titled "
Description of Securities.
"
We cannot predict the impact New DraftKings' dual
class structure may have on the stock price of New DraftKings Class A common stock.
We cannot predict whether New DraftKings'
dual class structure will result in a lower or more volatile market price of New DraftKings Class A common stock or in adverse
publicity or other adverse consequences. For example, certain index providers have announced restrictions on including companies
with multiple-class share structures in certain of their indexes. In July 2017, FTSE Russell and S&P Dow Jones announced
that they would cease to allow most newly public companies utilizing dual or multi-class capital structures to be included in their
indices. Affected indices include the Russell 2000 and the S&P 500, S&P MidCap 400 and S&P SmallCap 600, which together
make up the S&P Composite 1500. Beginning in 2017, MSCI, a leading stock index provider, opened public consultations on their
treatment of no-vote and multi-class structures and temporarily barred new multi-class listings from certain of its indices; however,
in October 2018, MSCI announced its decision to include equity securities "with unequal voting structures" in
its indices and to launch a new index that specifically includes voting rights in its eligibility criteria. Under the announced
policies, our dual class capital structure would make us ineligible for inclusion in certain indices, and as a result, mutual funds,
exchange-traded funds and other investment vehicles that attempt to passively track those indices will not be investing in our
stock. These policies are still fairly new and it is as of yet unclear what effect, if any, they will have on the valuations of
publicly traded companies excluded from the indices, but it is possible that they may depress these valuations compared to those
of other similar companies that are included. Because of our dual class structure, we will likely be excluded from certain of these
indexes and we cannot assure you that other stock indexes will not take similar actions. Given the sustained flow of investment
funds into passive strategies that seek to track certain indexes, exclusion from stock indexes would likely preclude investment
by many of these funds and could make shares of New DraftKings Class A common stock less attractive to other investors. As
a result, the market price of shares of New DraftKings Class A common stock could be adversely affected.
47
Nevada law and provisions in New DraftKings' amended
and restated articles of incorporation and bylaws could make a takeover proposal more difficult.
If the Business Combination and reincorporation are consummated,
New DraftKings' organizational documents will be governed by Nevada law. Certain provisions of Nevada law and of New DraftKings'
amended and restated articles of incorporation and bylaws could discourage, delay, defer or prevent a merger, tender offer, proxy
contest or other change of control transaction that a stockholder might consider in its best interest, including those attempts
that might result in a premium over the market price for the shares of Class A common stock held by New DraftKings'
stockholders. These provisions provide for, among other things:
·
the ability of New DraftKings' board of directors
to issue one or more series of preferred stock;
·
stockholder action by written consent only until the
first time when Mr. Robins ceases to beneficially own a majority of the voting power of the capital stock of New DraftKings;
·
certain limitations on convening special stockholder
meetings;
·
advance notice for nominations of directors by stockholders
and for stockholders to include matters to be considered at our annual meetings;
·
amendment of certain provisions of the organizational
documents only by the affirmative vote of (i) a majority of the voting power of the capital stock of New DraftKings so long
as Mr. Robins beneficially owns shares representing a majority of the voting power of the capital stock of New DraftKings
and (ii) at least two-thirds of the voting power of the capital stock from and after the time that Mr. Robins ceases to beneficially
own shares representing a majority of the voting power of the voting stock of New DraftKings; and
·
a dual class common stock structure, which provides,
upon consummation of the Business Combination, Mr. Robins with the ability to control the outcome of matters requiring stockholder
approval, even though Mr. Robins owns less than a majority of the outstanding shares of New DraftKings' capital stock.
These anti-takeover provisions as well as
certain provisions of Nevada law could make it more difficult for a third party to acquire New DraftKings, even if the third party's
offer may be considered beneficial by many of New DraftKings' stockholders. As a result, New DraftKings' stockholders
may be limited in their ability to obtain a premium for their shares. If prospective takeovers are not consummated for any reason,
New DraftKings may experience negative reactions from the financial markets, including negative impacts on the price of New DraftKings
common stock. These provisions could also discourage proxy contests and make it more difficult for New DraftKings' stockholders
to elect directors of their choosing and to cause New DraftKings to take other corporate actions. See "
Description of
Securities
."
New DraftKings' amended and restated articles of
incorporation designate the Eighth Judicial District Court of Clark County, Nevada as the exclusive forum for certain types of
actions and proceedings that may be initiated by New DraftKings' stockholders, which could limit stockholders' ability
to obtain a favorable judicial forum for disputes with New DraftKings or its directors, officers, employees or agents.
New DraftKings' amended and restated
articles of incorporation will require that, to the fullest extent permitted by law, and unless New DraftKings otherwise consents
in writing to the selection of an alternative forum, the Eighth Judicial District Court of Clark County, Nevada (or if the Eighth
Judicial District Court of Clark County, Nevada does not have jurisdiction, any other state district court located in the State
of Nevada, and if no state district court in the State of Nevaada has jurisdiction, any federal court located in the State of Nevada),
will be the exclusive forum for each of the following:
·
any action or proceeding brought in the name or right of New DraftKings or on its behalf;
·
any action asserting a claim for breach of any fiduciary duty owed by any director, officer, employee or agent of New DraftKings
to New DraftKings or its stockholders;
·
any action asserting a claim arising pursuant to any provision of NRS Chapters 78 or 92A, New DraftKings' amended
and restated articles of incorporation or the New DraftKings bylaws;
·
any action to interpret, apply, enforce or determine the validity of the New DraftKings amended and restated articles of incorporation
or the New DraftKings bylaws; or
·
any action asserting a claim governed by the internal affairs doctrine.
​
The exclusive forum provision will provide
federal courts located in the State of Nevada as the forum for suits brought to enforce any duty or liability for which Section
27 of the Exchange Act establishes exclusive jurisdiction with the federal courts, or any other claim for which the federal courts
have exclusive jurisdiction. In addition, Section 22 of the Securities Act provides that federal and state courts have concurrent
jurisdiction over lawsuits brought the Securities Act or the rules and regulations thereunder. To the extent the exclusive forum
provision restricts the courts in which claims arising under the Securities Act may be brought, there is uncertainty as to whether
a court would enforce such a provision. We note that investors cannot waive compliance with the federal securities laws and the
rules and regulations thereunder. Although we believe this provision will benefit New DraftKings by providing increased consistency
in the application of Nevada law in the types of lawsuits to which it applies, the provision may have the effect of discouraging
lawsuits against New DraftKings' directors and officers.
48
USE OF PROCEEDS
All of the shares of Class A common
stock and the PIPE warrants (including shares of Class A common stock underlying such warrants) offered by the Selling
Securityholders pursuant to this prospectus will be sold by the Selling Securityholders for their respective amounts. We will
not receive any of the proceeds from these sales.
We will receive up to an aggregate of approximately
$34,500,000 from the exercise of the PIPE warrants, assuming the exercise in full of all the warrants for cash. We expect to use
the net proceeds from the exercise of the warrants for general corporate purposes, which may include acquisitions and other business
opportunities and the repayment of indebtedness. Our management will have broad discretion over the use of proceeds from the exercise
of the warrants.
There is no assurance that the holders of
the warrants will elect to exercise any or all of the warrants. To the extent that the warrants are exercised on a "cashless
basis," the amount of cash we would receive from the exercise of the warrants will decrease.
49
UNAUDITED
PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION
Defined terms included below have the
same meaning as terms defined and included elsewhere in this prospectus.
Introduction
The unaudited pro forma condensed combined
financial information is prepared in accordance with Article 11 of Regulation S-X. The unaudited pro forma condensed
combined financial information presents the pro forma effects of the following transactions (collectively the "Business Combination"):
·
The Reverse Recapitalization between Merger Sub and DraftKings;
·
The SBTech Acquisition;
·
The Private Placement; and
·
The issuance of Convertible Notes, which will convert into shares of DEAC Class A common stock immediately prior to the consummation
of the Business Combination.
DEAC was incorporated as a Delaware corporation
on March 27, 2019, and completed its initial public offering on May 14, 2019. DEAC is a blank check company whose purpose is to
acquire, through a merger, share exchange, asset acquisition, stock purchase, reorganization or other similar business combination
with one or more businesses. Upon the closing of the IPO, $400.0 million from the net proceeds thereof was placed in a trust account
and invested in U.S. "government securities" within the meaning of Section 2(a)(16) of the Investment Company Act having
a maturity of 185 days or in money market funds meeting certain conditions under Rule 2a-7 promulgated under the Investment
Company Act which invest only in direct U.S. government treasury obligations. As of December 31, 2019, DEAC had approximately
$404.0 million held in the trust account.
The following describes the two operating
entities:
·
DraftKings was organized on December 29, 2011, as a Delaware corporation. DraftKings was founded with the initial mission of
leveraging unique technology, analytics and marketing capabilities to deliver a daily fantasy sports offering. Within a few years,
DraftKings became one of the largest and most recognized DFS platforms in the United States.
·
SBTech was incorporated on July 24, 2007, under the laws of Gibraltar. It was originally named Jamtech Limited, subsequently
renamed Networkpot Limited and thereafter renamed SBTech (Global) Limited on August 16, 2010.
The following unaudited pro forma condensed
combined balance sheet as of December 31, 2019 assumes that the Business Combination occurred on December 31, 2019. The unaudited
pro forma condensed combined statement of operations for the year ended December 31, 2019 present the pro forma effect of the Business
Combination as if it had been completed on January 1, 2019.
The pro forma combined financial statements
do not necessarily reflect what New DraftKings' financial condition or results of operations would have been had the Business
Combination occurred on the dates indicated. The pro forma combined financial information also may not be useful in predicting
the future financial condition and results of operations of the post-combination company. The actual financial position and results
of operations may differ significantly from the pro forma amounts reflected herein due to a variety of factors.
50
The historical financial information of
DEAC was derived from the audited consolidated financial statements of Diamond Eagle Acquisition Corp. as of December 31, 2019
and for the period between March 27, 2019 and December 31, 2019, included elsewhere in this prospectus. The historical financial
information of DraftKings was derived from DraftKings' audited consolidated financial statements for the year ended December
31, 2019, included elsewhere in this prospectus. The historical financial information of SBTech was derived from SBTech's
audited consolidated financial statements for the year ended December 31, 2019, included elsewhere in this prospectus.
This information should be read together
with DEAC's, DraftKings', and SBTech's audited financial statements and related notes, the sections titled
"DEAC's
Management's Discussion and Analysis of Financial Condition and Results of Operations," "DraftKings' Management's
Discussion and Analysis of Financial Condition and Results of Operations" and "SBT's Management's Discussion
and Analysis of Financial Condition and Results of Operations,"
and other financial information included elsewhere
in this prospectus.
The Reverse Recapitalization will be accounted
for as a reverse merger for which DraftKings has been determined to be the accounting acquirer in both the no redemption and maximum
redemption scenarios based on the following predominate factors:
·
DraftKings will have the largest voting interest in New DraftKings;
·
The board of directors of New DraftKings will have 13 members, and DraftKings will have the ability to nominate ten members
of the Board;
·
DraftKings' former management will make up the vast majority of the management of New DraftKings;
·
DraftKings is the largest entity by revenue and net income/loss;
·
New DraftKings Class B common stock issued to one DraftKings stockholder will allow for incremental voting rights;
·
The post-combination company will assume DraftKings' name.
Other factors were considered but they would
not change the preponderance of factors indicating that DraftKings was the accounting acquirer.
The merger between DraftKings and Merger
Sub will be accounted for as a reverse recapitalization, with no goodwill or other intangible assets recorded, in accordance with
U.S. GAAP. Under this method of accounting, DEAC will be treated as the "acquired" company for financial reporting
purposes. Accordingly, for accounting purposes, the Reverse Recapitalization will be treated as the equivalent of DraftKings issuing
stock for the net assets of DEAC, accompanied by a recapitalization. The net assets of DEAC will be stated at historical cost,
with no goodwill or other intangible assets recorded. Operations prior to the Reverse Recapitalization will be those of DraftKings.
The SBTech Acquisition will be treated as a business combination under Financial Accounting Standards Board's ASC 805,
and will be accounted for using the acquisition method of accounting. DraftKings will record the fair value of assets acquired
and liabilities assumed from SBTech.
The unaudited pro forma condensed combined
financial information has been prepared using the assumptions below with respect to the potential redemption into cash of DEAC's
Class A common stock:
·
Assuming No Redemptions
: This presentation assumes that none of the holders of shares of DEAC's Class A common
stock exercise redemption rights with respect to their public shares for a pro rata share of the funds in the trust account.
·
Assuming Maximum Redemptions
: This presentation
assumes that stockholders holding 30,564,789 DEAC public shares will exercise their redemption rights for their pro rata
share (approximately $10.10 per share) of the funds in DEAC's trust account. This scenario gives effect to DEAC's
public share redemptions of 30,564,789 shares for aggregate redemption payments of $308.7 million. The Business Combination
Agreement includes as a condition to closing the Business Combination that, at the Closing, DEAC will have a minimum of
$400.0 million in cash comprising (i) the cash held in the trust account after giving effect to DEAC share redemptions and
(ii) proceeds from the Private Placement, provided that DraftKings and SBTech will be entitled to waive that condition. After
giving effect to the proceeds from the Private Placement, approximately $95.3 million would be needed from the trust account
in order to meet the Minimum Proceeds Condition of $400.0 million.
51
Description of the Business Combination
Pursuant to the Business Combination Agreement,
DEAC intends to acquire all of the issued and outstanding equity interests of DraftKings and SBTech in exchange for cash and equity.
The initial purchase price will be based on a combined pre-money enterprise value of DraftKings and SBTech, which will consist
of $196.1 million of cash being transferred to SBTech shareholders (subject to adjustments as defined in the Business Combination
Agreement), and the remaining value will be in the form of shares of New DraftKings' Class A common stock, options, restricted
stock units and warrants of New DraftKings and, in the case of Mr. Robins, shares of Class B common stock of New DraftKings.
The following summarizes the consideration
issuable in the Reverse Recapitalization and SBTech Acquisition assuming a $12.25 share price (as of April 3, 2020) in both the
no redemption and maximum redemption scenarios:
Total Consideration (in 000s)
Amounts
Shares
Share consideration - DraftKings
(2)
$
2,537,278
207,125
Cash consideration - SBTech
(1)
196,126
-
Share consideration - SBTech
(2)
540,486
44,121
Total Merger Consideration
$
3,273,890
251,246
(1)
Amount is subject to adjustment for the estimated Net Debt Amount and Working Capital Amount, estimated to be $13.4 million,
as specified in the Business Combination Agreement. Per the Business Combination Agreement, the cash consideration amount is EUR
180.0 million. Amount was converted using the EUR to USD rate as of April 3, 2020. A 10% fluctuation in the EUR to USD foreign
currency exchange rate would change the cash consideration by approximately $19.6 million.
(2)
Represents the estimated fair value of New DraftKings common stock to be issued to DraftKings/SBTech stockholders pursuant
to the Business Combination Agreement. The estimate is based on shares that are expected to be outstanding and options and warrants
that are expected to vest by the Closing (assumed as April 2020). Amount is subject to adjustment based on an earnout clause included
in the BCA. Per the terms of the BCA, a total of six million shares will be held in escrow, three million of which will be for
the benefit of DraftKings/SBTech stockholders. The Earnout shares will be paid out in thirds upon the share price of the post-combination
company reaching $12.50, $14.00 and $16.00.
The equity share capitalization of New DraftKings
under the no redemption and maximum redemption scenarios will be as follows (including shares issuable pursuant to vested options
and warrants that will be rolled over at Closing):
Total Capitalization (in 000s)
No
Redemptions
%
Maximum
Redemptions
%
DraftKings rollover equity - New DraftKings Class A
207,125
61.5
207,125
67.7
SBTech rollover equity
44,121
13.1
44,121
14.4
DEAC public shareholders
40,000
11.9
9,435
3.1
DEAC Founders Shares
3,659
1.1
3,659
1.2
DEAC shares issued upon conversion of Convertible Notes
11,255
3.3
11,255
3.7
DEAC shares issued in PIPE Offering
30,471
9.1
30,471
9.9
Total Class A Shares
336,631
100.0
306,066
100.0
New DraftKings Class B Shares*
393,955
366,446
*
New DraftKings' Class B shares will be issued to Jason Robins; which will carry 10 votes per share, and will allow Jason
Robins to have approximately 90% of the voting power of the capital stock of New DraftKings on a fully-diluted basis. As these
shares have no economic or participating rights, they have been excluded from the calculation of earnings per share.
The following unaudited pro forma condensed
combined balance sheet as of December 31, 2019 and the unaudited pro forma condensed combined statements of operations for the
year ended December 31, 2019 are based on the historical financial statements of DEAC, DraftKings, and SBTech. The unaudited pro
forma adjustments are based on information currently available, and assumptions and estimates underlying the unaudited pro forma
adjustments are described in the accompanying notes. Actual results may differ materially from the assumptions used to present
the accompanying unaudited pro forma condensed combined financial information.
52
Diamond Eagle Acquisition Corp.
Unaudited Pro Forma Condensed Combined Balance Sheet
as of December 31, 2019
(Amounts in thousands)
​
As
    of December 31, 2019
​
​
​
​
December
    31, 2019
​
December
    31, 2019
​
DraftKings
(Historical)
DEAC
(Historical)
SBTech
(As
Adjusted)
(Note 3)
​
Accounting
Policies and
Reclassification
Adjustments
(Note 2)
Pro
    Forma
Adjustments
(Assuming No
Redemptions)
(Note 4 - PF)
Purchase
Accounting
Adjustments
(Note 4 - PPA)
Pro
    Forma
Combined
(Assuming No
Redemptions)
Additional
Pro Forma
Adjustments
(Assuming
Maximum
Redemptions)
(Note 4 - PF)
Pro
    Forma
Combined
(Assuming
Maximum
Redemptions)
ASSETS
​
​
​
​
​
​
​
​
​
​
​
​
​
Current assets:
​
​
​
​
​
​
​
​
​
​
​
​
​
Cash and cash equivalents
$
76,533
$
491
$
9,143
$
-
$
403,961
A
$
(212,847
)
A
$
593,443
$
(308,675
)
K
$
294,768​
​
​
​
​
​
(14,000
)
B
​
​
​
10,000
L
​
​
​
​
​
​
​
(41,596
)
C
​
​
​
​
​
​
​
​
​
​
​
​
40,042
D
​
​
​
​
​
​
​
​
​
​
​
​
304,714
E
​
​
​
​
​
​
​
​
​
​
​
​
(10,000
)
L
​
​
​
​
​
​
​
​
​
​
​
​
(6,006
)
M
​
​
​
​
​
​
​
​
​
​
​
​
(1,492
)
N
​
​
​
​
​
​
​
​
​
​
​
​
44,500
O
​
​
​
​
​
​
Cash reserved for customers
144,000
-
-
​
-
-
​
-
​
144,000
-
​
144,000​​
Receivables reserved for customers
19,828
-
-
​
-
-
​
-
​
19,828
-
​
19,828​​
Trade receivables, net
-
-
27,781
​
-
-
​
-
​
27,781
-
​
27,781​​
Prepaid expenses
-
319
-
​
(319
)
-
​
-
​
-
-
​
-​​
Prepaid expenses and other current assets
20,787
-
-
​
4,045
-
​
-
​
24,832
-
​
24,832​​
Other current assets
-
-
3,726
​
(3,726
)
-
​
-
​
-
-
​
-​​
Total current assets
261,148
810
40,650
​
-
720,123
​
(212,847
)
​
809,884
(298,675
)
​
511,209​​
Cash and investments held in Trust Account
-
403,961
-
​
-
(403,961
)
A
-
​
-
-
​
-​​
Property and equipment, net
25,945
-
11,148
​
209
-
​
-
​
37,302
-
​
37,302​​
Intangible assets, net
33,939
-
29,296
​
(209
)
-
​
240,152
B
303,178
-
​
303,178​​
Goodwill
4,738
-
-
​
-
-
​
461,100
A
465,838
-
​
465,838​​
Equity method investment
2,521
-
-
​
-
-
​
-
​
2,521
-
​
2,521​​
Deposits
2,434
-
-
​
-
-
​
-
​
2,434
-
​
2,434​​
Deferred tax assets
-
-
520
​
(520
)
-
​
-
​
-
-
​
-​​
Other non-current assets
-
-
344
​
520
-
​
-
​
864
-
​
864​​
Total
    Assets
330,725
404,771
81,958
​
-
316,162
​
488,405
​
1,622,021
(298,675
)
​
1,323,346​​
53
​
As
    of December 31, 2019
​
​
​
​
December
    31, 2019
​
December
    31, 2019
​
DraftKings
(Historical)
DEAC
(Historical)
SBTech
(As Adjusted)
(Note 3)
Accounting
Policies and
Reclassification
Adjustments
(Note 2)
Pro
    Forma
Adjustments
(Assuming No
Redemptions)
(Note 4 - PF)
​
Purchase
Accounting
Adjustments
(Note 4 - PPA)
Pro
    Forma
Combined
(Assuming No
Redemptions)
Additional
Pro Forma
Adjustments
(Assuming
Maximum
Redemptions)
(Note 4 - PF)
Pro
    Forma
Combined
(Assuming
Maximum
Redemptions)
LIABILITIES
    AND STOCKHOLDERS' EQUITY
​
​
​
​
​
​
​
​
​
​
Current
    liabilities:
​
​
​
​
​
​
​
​
​
Accounts
    payable
-
1,492​
-​
(1,492​
)
-​
​
-​
-
-​
​-
Accounts
    payable and accrued expenses
85,295
-​
-​
​22,364
(6,449​
)
C​
​-
99,718
-​
99,718​
​
​
​
​
​
(1,492
)
​N
​
​
Liabilities
    to customers
163,035
-​
-​
​799
-​
​
​-
163,834
-​
​163,834
Term
    note, current portion
6,750
-​
-​
​-
44,500​
​O
​-
51,250
-​
​51,250
Settlement
    liability, current portion
-
-​
​-
​-
​-
​
​-
-
-​
​-
Trade
    payables
-
-​
9,124​
​(9,124
)
​-
​
​-
-
-
​-
Other
    accounts payable
-
-​
12,547
​(12,547
)
​-
​
​-
-
-​
​-
Total
    current liabilities
255,080
1,492​
21,671​
​-
36,559​
​
​-
314,802
-​
​314,802
Deferred
    underwriting commissions
-
14,000​
-​
​-
(14,000​
)
B​
​-
-
​-
​-
Other
    long-term liabilities
56,862
-​
-​
​458
(11,000​
)
​P
​2,648
C
48,968
​-
48,968
Convertible
    promissory notes
68,363
-​
-​
​-
(68,363​
)
​D
​-
-
​-
​-
Accrued
    severance pay, net
-
-​
458​
​(458
)
-​
​
​-
-
​-
​-
Total
    liabilities
380,305
15,492​
​22,129
​-
(56,804
)
​
​2,648
363,770
-
​363,770
Class
    A common stock subject to possible
redemption
-
384,279​
-​
​-
(384,279
)
​F
​-
-
​-
​-
Series
    E-1 Redeemable Convertible Preferred Stock
119,752
-​
-​
​-
(119,752​
)
​H
​-
-
​-
​-
Series
    F Redeemable Convertible Preferred Stock
138,619
-​
-​
​-
(138,619​
)
​H
​-
-
​-
​-
Stockholders'
    Equity:
​
​
​
​
​
​
Class
    A common stock
-
-​
-​
​-
1​
​D
​4
A
34
​(3
)
K
​31
​
​
​
​
​
3​
​E
​
​
​
​
​
​
​
4​
​F
​
​
​
​
​
​
​
1​
​G
​
​
​
​
​
​
​
-​
M
​
​
​
​
​
​
​
21​
​H
​
​
​
​
​
​
​
-​
​P
​
​
Class
    B common stock
-
1​
-​
​-
(1​
)
​G
-​
39
​(2
)
Q
​37
​
​
​
​
​
-​
​H
​
​
​
​
​
​
​
​39
​Q
​
​
Common
    stock
390
-​
-​
​-
​(390
)
​H
​-
-
​-
-​
Share
    capital
-
-​
3​
​-
​-
​
​(3
)
D
-
​-
-​
Actuarial
    reserve
-
-​
​(156
)
-​
​-
​
156​
D
-
​-
-​
54
​
As of December 31, 2019
​
​
​
December 31, 2019
​
December 31, 2019
​
DraftKings
(Historical)
DEAC
(Historical)
SBTech
(As Adjusted)
(Note 3)
Accounting
Policies and
Reclassification
Adjustments
(Note 2)
Pro Forma
Adjustments
(Assuming No
Redemptions)
(Note 4 - PF)
Purchase
Accounting
Adjustments
(Note 4 - PPA)
Pro Forma
Combined
(Assuming No
Redemptions)
Additional
Pro Forma
Adjustments
(Assuming
Maximum
Redemptions)
(Note 4 - PF)
Pro Forma
Combined
(Assuming
Maximum
Redemptions)
Additional paid-in capital
690,443
2,689
-
-
(6,000
)
C
545,582
A
2,311,241
(308,672
)
K
2,002,016​​
​
​
​
​
​
112,544
D
​
​
​
(553
)
Q
​
​
​
​
​
​
304,711
E
​
​
​
​
​
​
​
​
​
​
​
384,275
F
​
​
​
​
​
​
​
​
​
​
​
2,310
I
​
​
​
​
​
​
​
​
​
​
​
258,740
H
​
​
​
​
​
​
​
​
​
​
​
3,042
J
​
​
​
​
​
​
​
​
​
​
​
(6,006
)
M
​
​
​
​
​
​
​
​
​
​
​
11,000
P
​
​
​
​
​
​
​
​
​
​
​
7,911
Q
​
​
​
​
​
​
Retained earnings
-
2,310
58,795
(61,105
)
-
​
-
​
-
-
​
-​​
Accumulated deficit
(998,784
)
-
-
61,105
(29,147
)
C
(58,795
)
D
(1,053,063
)
10,000
L
(1,042,508)​​
​
​
​
​
​
(4,140
)
D
​
​
​
555
Q
​
​
​
​
​
​
(2,310
)
I
​
​
​
​
​
​
​
​
​
​
​
(3,042
)
J
​
​
​
​
​
​
​
​
​
​
​
(10,000
)
L
​
​
​
​
​
​​​
​
​
​
​
​
(7,950
)
Q
​
​
​
​
​
​​​
Total parent stockholders' equity
(307,951
)
5,000
58,642
-
1,015,616
​
486,944
​
1,258,251
(298,675
)
​
959,576​​
Non-controlling interest
-
-
1,187
-
-
​
(1,187
)
D
-
-
​
-​​
Total stockholders' equity
(307,951
)
5,000
59,829
-
1,015,616
​
485,757
​
1,258,251
(298,675
)
​
959,576​​
Total Liabilities and Stockholders' Equity
330,725
404,771
81,958
-
316,162
​
488,405
​
1,622,021
(298,675
)
​
1,323,346​​
55
Diamond Eagle Acquisition Corp.
Unaudited Pro Forma Condensed Combined Statement of Operations
for the year ended December 31, 2019
(Amounts in thousands, except per share data)
​
For the Year ended
December 31, 2019
March 27, 2019
(inception) to
December 31, 2019
For the Year ended
December 31, 2019
​
​
​
​
​
For the Year ended
December 31, 2019
​
DraftKings
(Historical)
DEAC
(Historical)
SBTech
(As Adjusted)
(Note 3)
Accounting Policies
and Reclassification
Adjustments
(Note 2)
Pro Forma
Adjustments
(Assuming No and
Maximum
Redemptions)
(Note 4 - PF)
​
Purchase
Accounting
Adjustments
(Note 4 - PPA)
​
Pro Forma
Combined
(Assuming No and
Maximum
Redemptions)
Revenue
$
323,410
$
-
$
108,424
$
-
$
-
​
$
-
​
$
431,834
Cost of revenue
103,889
-
60,649
-
-
​
14,692
AA
179,230
Gross Profit
219,521
-
47,775
-
-
​
(14,692
)
​
252,604
Operating Expenses:
​
​
​
​
​
​
​
​
​
Sales and marketing
185,269
-
7,592
-
48
DD
-
​
192,909
General and administrative
124,868
1,857
13,230
-
(10,548
)
AA
104
BB
131,024
​
​
​
​
​
1,513
DD
​
​
​
Product and technology
55,929
-
-
20,408
82
DD
-
​
76,419
Research and development expenses
​
​
20,408
(20,408
)
​
​
​
​
​
Total Operating Expenses
366,066
1,857
41,230
-
(8,905
)
​
104
​
400,352
(Loss) / Income from Operations
(146,545
)
(1,857
)
6,545
-
8,905
​
(14,796
)
​
(147,748
)
Interest income (expense)
1,348
-
-
(164
)
-
​
-
​
1,184
Other income - interest on Trust Account
-
5,111
-
-
(5,111
)
BB
-
​
-
Gain on initial equity method investment
3,000
-
-
-
-
​
-
​
3,000
Financial Income
-
-
26
(26
)
-
​
-
​
-
Financial Expenses
-
-
(190
)
190
-
​
-
​
-
(Loss)/Income before Income Tax Expense
(142,197
)
3,254
6,381
-
3,794
​
(14,796
)
​
(143,564
)
Income Tax Expense/(Benefit)
58
944
796
-
(1,864
)
CC
(4,084
)
CC
(4,150
)
Loss from equity method investment
479
-
-
-
-
​
-
​
479
Net (Loss)/Income
(142,734
)
2,310
5,585
-
5,658
​
(10,712
)
​
(139,893
)
No Redemption Scenario
​
​
​
​
​
​
​
​
​
Weighted average Class A shares outstanding
​
​
​
​
​
​
​
​
336,631,006
Loss per share (Basic and Diluted) attributable to Class A common stockholders
​
​
​
​
​
​
​
​
$
(0.42
)
Maximum Redemption Scenario
​
​
​
​
​
​
​
​
​
Weighted average Class A shares outstanding
​
​
​
​
​
​
​
​
306,066,216
Loss per share (Basic and Diluted) attributable to Class A common stockholders
​
​
​
​
​
​
​
​
$
(0.46
)
56
NOTES TO
THE UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS
Basis of Presentation
The merger between Merger Sub and DraftKings
will be accounted for as a reverse recapitalization in accordance with U.S. GAAP. Under this method of accounting, DEAC will be
treated as the "acquired" company for financial reporting purposes. Accordingly, for accounting purposes, the Reverse
Recapitalization will be treated as the equivalent of DraftKings issuing stock for the net assets of DEAC, accompanied by a recapitalization.
The net assets of DEAC will be stated at historical cost, with no goodwill or other intangible assets recorded. Operations prior
to the Reverse Recapitalization will be those of DraftKings.
As DraftKings is determined to be the accounting
acquirer in the SBTech Acquisition, the acquisition will be considered a business combination under ASC 805, and will be accounted
for using the acquisition method of accounting. DraftKings will record the fair value of assets acquired and liabilities assumed
from SBTech.
The unaudited pro forma condensed combined
balance sheet as of December 31, 2019 assumes that the Business Combination occurred on December 31, 2019. The unaudited pro forma
condensed combined statements of operations for the year ended December 31, 2019 present pro forma effect to the Business Combination
as if it had been completed on January 1, 2019. These periods are presented on the basis of DraftKings being the accounting acquirer.
The unaudited pro forma condensed combined
balance sheet as of December 31, 2019 has been prepared using, and should be read in conjunction with, the following:
·
DEAC's audited consolidated balance sheet as of December 31, 2019 and the related notes for the period ended December
31, 2019, included elsewhere in this prospectus;
·
DraftKings' audited consolidated balance sheet as of December 31, 2019 and the related notes for the period ended December
31, 2019, included elsewhere in this prospectus; and
·
SBTech's audited consolidated balance sheet as of December 31, 2019 and the related notes for the period ended December
31, 2019, included elsewhere in this prospectus.*
The unaudited pro forma condensed combined
statement of operations for the year ended December 31, 2019 has been prepared using, and should be read in conjunction with, the
following:
·
DraftKings' audited statement of operations for the twelve months ended December 31, 2019 and the related notes, included
elsewhere in this prospectus; and
·
SBTech's audited statement of operations for the twelve months ended December 31, 2019 and the related notes, included
elsewhere in this prospectus.*
Management has made significant estimates
and assumptions in its determination of the pro forma adjustments. As the unaudited pro forma condensed combined financial information
has been prepared based on these preliminary estimates, the final amounts recorded may differ materially from the information presented.
The unaudited pro forma condensed combined
financial information does not give effect to any anticipated synergies, operating efficiencies, tax savings or cost savings that
may be associated with the Business Combination.
The pro forma adjustments reflecting the
completion of the Business Combination are based on certain currently available information and certain assumptions and methodologies
that DEAC believes are reasonable under the circumstances. The unaudited condensed pro forma adjustments, which are described in
the accompanying notes, may be revised as additional information becomes available and is evaluated.
*
The historical financial information for SBTech was prepared under IFRS as issued by the IASB. Refer to Footnote 3 for additional
details regarding impact of conversion to U.S. GAAP for unaudited pro forma financial information.
57
Therefore, it is likely that the actual adjustments
will differ from the pro forma adjustments and it is possible the difference may be material. DEAC believes that its assumptions
and methodologies provide a reasonable basis for presenting all of the significant effects of the Business Combination based on
information available to management at this time and that the pro forma adjustments give appropriate effect to those assumptions
and are properly applied in the unaudited pro forma condensed combined financial information.
The unaudited pro forma condensed combined
financial information is not necessarily indicative of what the actual results of operations and financial position would have
been had the Business Combination taken place on the dates indicated, nor are they indicative of the future consolidated results
of operations or financial position of the post-combination company. They should be read in conjunction with the historical financial
statements and notes thereto of DEAC, DraftKings, and SBTech.
2.       Accounting
Policies and Reclassifications
As part of the preparation of these unaudited
pro forma condensed combined financial statements, certain reclassifications were made to align DEAC's, DraftKings'
and SBTech's financial statement presentation. Upon completion of the Business Combination, management will perform a comprehensive
review of DEAC's, DraftKings', and SBTech's accounting policies. As a result of the review, management may identify
differences between the accounting policies of the three entities which, when conformed, could have a material impact on the financial
statements of the post-combination company. Based on its initial analysis, DEAC has identified differences that would have an impact
on the unaudited pro forma condensed combined financial information and recorded the necessary adjustments.
3.       Adjustments
to Historical SBTech Financial Information
The historical financial information of
SBTech was prepared in accordance with IFRS and presented in Euros. The historical financial information was translated from Euros
to U.S. dollars using the following historical exchange rates:
$ / €
Period end exchange rate as of December 31, 2019
1.12
Average exchange rate for twelve months ended December 31, 2019
1.12
In addition, adjustments were made to convert
SBTech's financial information from IFRS to U.S. GAAP, to align SBTech's accounting policies to those applied by DraftKings.
Refer to tables below for impacted line items and adjustment amounts in the pro forma condensed combined balance sheet and statements
of operations.
58
Impact on pro forma balance sheet as of
December 31, 2019:
​
As of
December 31,
2019
​
​
As of
December 31,
2019
As of
December 31,
2019
​
IFRS
SBTech
(in EUR)
Total
Adjustments
(in EUR)
​
US GAAP
SBTech
(in EUR)
US GAAP
SBTech
(in USD)
ASSETS
​
​
​
​
​
CURRENT ASSETS:
​
​
​
​
​
Cash and cash equivalents
€
8,144
€
-
​
€
8,144
$
9,143
Trade receivables, net
24,745
-
​
24,745
27,781
Other current assets
3,258
61
A
3,319
3,726
Total current assets
36,147
61
​
36,208
40,650
NON-CURRENT ASSETS:
​
​
​
​
​
Intangible assets, net
26,094
-
​
26,094
29,296
Right-of-use assets
25,779
(25,779
)
B
-
-
Property, plant and equipment, net
9,930
-
​
9,930
11,148
Deferred tax assets
597
(134
)
A
463
520
Other non-current assets
306
-
B
306
344
Total assets
98,853
(25,852
)
​
73,001
81,958
LIABILITIES AND EQUITY
​
​
​
​
​
CURRENT LIABILITIES:
​
​
​
​
​
Trade payables
8,127
-
​
8,127
9,124
Lease liabilities
3,516
(3,516
)
B
-
-
Other accounts payable
11,176
-
​
11,176
12,547
Total current liabilities
22,819
(3,516
)
​
19,303
21,671
NON-CURRENT LIABILITIES
​
​
​
​
​
Lease liabilities
22,749
(22,749
)
B
-
-
Accrued severance pay, net
408
-
​
408
458
Total non-current liabilities
23,157
(22,749
)
​
408
458
SHAREHOLDERS' EQUITY
​
​
​
​
​
Share capital
3
-
​
3
3
Actuarial reserve
(139
)
-
​
(139
)
(156
)
Retained earnings
51,956
413
B
52,369
58,795
Equity attributable to owners of the parent
51,820
413
​
52,233
58,642
Non-controlling interest
1,057
-
​
1,057
1,187
Total equity
52,877
413
​
53,290
59,829
TOTAL LIABILITIES AND EQUITY
98,853
(25,852
)
​
73,001
81,958
59
Impact on pro forma income statement for
the year ended December 31, 2019:
​
For the
Year ended
December 31,
2019
​
​
For the
Year ended
December 31,
2019
For the
Year ended
December 31,
2019
​
IFRS
SBTech
(in EUR)
Total
Adjustments
(in EUR)
​
US GAAP
SBTech
(in EUR)
US GAAP
SBTech
(in USD)
Revenue
€
96,857
€
-
​
€
96,857
$
108,424
Cost of revenue
54,173
6
​
54,179
60,649
Gross Profit
42,684
(6
)
​
42,678
47,775
Operating Expenses:
​
​
​
​
​
Selling and marketing expenses
6,772
10
​
6,782
7,592
General and administrative expenses
11,772
47
B
11,819
13,230
Research and development expenses
18,103
128
​
18,231
20,408
Total operating costs and expenses
36,647
185
​
36,832
41,230
Operating income
6,037
(191
)
​
5,846
6,545
Financial Income
23
-
​
23
26
Financial Expenses
846
(676
)
B
170
190
Profit before tax
5,214
485
​
5,699
6,381
Tax expenses
638
73
​
711
796
Net Profit
4,576
412
​
4,988
5,585
A.
Reflects the reclassification of deferred taxes associated with current assets or liabilities to other current assets related
to IFRS to U.S. GAAP differences on the classification of deferred taxes. In the historical SBTech consolidated balance sheet,
all deferred tax assets were classified as non-current.
B.
Reflects the reversal of the impact of the adoption and ongoing effects of the accounting treatment of IFRS 16, Leases, recognized
by SBTech in their financial statements as of and for the nine months ended December 31, 2019, as DraftKings, the accounting acquirer,
has not yet adopted the similar U.S. GAAP standard under ASC 842, Leases, and operates under ASC 840, Leases, as of and
for the year ended December 31, 2019.
4.       Adjustments
to Unaudited Pro Forma Condensed Combined Financial Information
The historical consolidated financial statements
have been adjusted in the unaudited pro forma condensed combined financial information to give effect to pro forma events that
are (1) directly attributable to the Business Combination, (2) factually supportable and (3) with respect to the statement of operations,
expected to have a continuing impact on the results of New DraftKings.
There were no intercompany balances or transactions
between DEAC, DraftKings and SBTech as of the dates and for the periods of these unaudited pro forma combined financial statements.
The pro forma combined consolidated provision
for income taxes does not necessarily reflect the amounts that would have resulted had the Companies filed consolidated income
tax returns during the periods presented.
The pro forma basic and diluted earnings
per share amounts presented in the unaudited pro forma condensed combined consolidated statements of operations are based upon
the number of DEAC's shares outstanding, assuming the Business Combination occurred on January 1, 2019.
Adjustments to Unaudited Pro Forma Condensed
Combined Balance Sheet
The pro forma adjustments included in the
unaudited pro forma condensed combined balance sheet as of December 31, 2019 are as follows:
60
Pro Forma Adjustments (PF)
A.
Reflects the reclassification of $403.9 million of cash and cash equivalents held in the DEAC trust account that become available
for transaction consideration, transaction expenses, redemption of public shares and the operating activities of DEAC following
the Business Combination.
B.
Reflects the settlement of $14.0 million of deferred
underwriters' fees.
C.
Represents estimated transaction costs in consummating the Business Combination (excluding approximately $3.3 million in transaction-related
costs, including a tail liability insurance for SBTech's current directors and officers, incurred by SBTech and to be borne
by DraftKings under the Business Combination Agreement, which was allocated to purchase price).Of the total amount shown, approximately
$6.4 million was previously incurred and accrued for on the balance sheet as of December 31, 2019.
D.
Represents proceeds of $109.2 million received from the issuance of the Convertible Notes, of which $69.1 million was already
received and reflected in DraftKings' historical consolidated balance sheet as of December 31, 2019. Upon the Closing, the
mandatory conversion feature upon a business combination would be triggered, causing a conversion of the outstanding principal
amount of these Notes and any unpaid accrued interest in equity securities at a specified price. The Convertible Notes are expected
to be outstanding from December 2019 through April 2020. For purposes of this pro forma presentation, interest of $3.4 million
for the period the Convertible Note is expected to be outstanding was accrued and converted in addition to the principal balance.
The remaining adjustment reflects the net income statement impact captured in retained earnings that is associated with the conversion
of the notes.
E.
Represents proceeds of $304.7 million from the issuance of 30.5 million shares in the Private Placement based on commitments
received.
F.
Reflects the reclassification of approximately $384.3 million of DEAC Class A common stock subject to possible redemption to
permanent equity.
G.
Reflects the conversion of DEAC Class B common stock to DEAC Class A common stock. In connection with the Closing, all shares
of DEAC Class B common stock will convert into shares of DEAC Class A common stock.
H.
Represents recapitalization of DraftKings equity and issuance of 207.1 million of New DraftKings Class A common stock to DraftKings
Equityholders as consideration for the Reverse Recapitalization.
I.
Reflects the reclassification of DEAC's historical retained earnings.
J.
Reflects the amount of compensation cost related to the acceleration of the vesting for certain existing stock options granted.
K.
Reflects the maximum redemption of 30,564,789 shares for aggregate redemption payments of $308.7 million allocated to Class
A common stock and additional paid-in capital using par value $0.0001 per share and at a redemption price of $10.10 per share.
L.
Reflects the payment of $10.0 million in bonuses to management of DraftKings upon closing of the transaction provided that
redemptions are less than 10% of DEAC public shares. If redemptions exceed 30%, no bonuses will be paid. As the redemption percentage
is greater than 30% in the maximum redemption scenario, no bonus payment is reflected.
M.
Reflects the cash amount paid to DraftKings Stockholders that were deemed to be non-accredited by the Company, in lieu of common
stock.
N.
Reflects the settlement of $1.5 million of DEAC's historical liabilities at transaction close.
O.
Reflects additional cash of $44.5 million obtained by DraftKings from drawing on its revolving credit facility subsequent to
the balance sheet date. The draw is expected to be short-term in nature and as such has only been reflected on the pro forma balance
sheet.
P.
Reflects the cancellation of $11 million of promissory notes in exchange for Series F preferred shares in lieu of cash which
occurred subsequent to the balance sheet date. The Series F shares will be converted to Class A shares upon close of the business
combination and have been reflected herein as such.
Q.
Reflects the issuance of 394.0 million of New DraftKings Class B common stock to Jason Robins valued at $8.0 million in the
no redemption scenario, and 366.4 million shares valued at $7.4 in the maximum redemption scenario. In connection with issuance
of the Class B shares, the Company will indemnify Mr. Robins for any personal tax liabilities that may arise, which would result
in the Company incurring an additional liability and an incremental compensation charge. The Class B shares were valued using a
market trading comparables approach.
61
Purchase Price Allocation Adjustments (PPA)
A.
The estimated consideration is as follows:
Estimated Consideration
Cash consideration
(1)
$
209,516
Share consideration
(2)
545,586
Other consideration
(3)
3,331
Total estimated consideration
758,433
(1)
Includes the cash consideration, as adjusted for estimated excess Net Debt Amount and Working Capital Amount as specified in
the Business Combination Agreement.
(2)
Includes the share consideration and the estimated contingent consideration of the earnout clause as specified in the Business
Combination Agreement. The additional consideration related to the earnout clause was estimated assuming a 50% probability of reaching
the specified share price targets of $12.50, $14.00, and $16.00. The possible range for the value of the contingent consideration
related to the earnout clause is $0 to $10.2 million.
(3)
Includes transaction costs incurred by SBTech to be borne by DraftKings and the six year liability insurance for SBTech's
current directors and officers, as specified in the Business Combination Agreement.
Under the acquisition method of
accounting, the identifiable assets acquired and liabilities assumed of SBTech are recorded at the acquisition date fair values.
The pro forma adjustments are preliminary and based on estimates of the fair value and useful lives of the assets acquired and
liabilities assumed and have been prepared to illustrate the estimated effect of the SBTech Acquisition.
For all assets acquired and liabilities
assumed other than identified intangible assets and goodwill, the carrying value was assumed to equal fair value. The final determination
of the fair value of certain assets and liabilities will be completed within the one-year measurement period as required by ASC
805. The size and breadth of the SBTech Acquisition may necessitate the use of this measurement period to adequately analyze and
assess a number of the factors used in establishing the asset and liability fair values as of the acquisition date, including the
significant contractual and operational factors underlying the developed technology and user relationship intangible assets and
the assumptions underpinning the related tax impacts of any changes made. Any potential adjustments made could be material in relation
to the preliminary values presented.
Accordingly, the pro forma purchase
price allocation is subject to further adjustment as additional information becomes available and as additional analyses and final
valuations are completed. There can be no assurances that these additional analyses and final valuations will not result in significant
changes to the estimates of fair value set forth below.
The following table sets forth a
preliminary allocation of the estimated consideration for the SBTech Acquisition to the identifiable tangible and intangible assets
acquired and liabilities assumed based on SBTech's December 31, 2019 balance sheet, with the excess recorded as goodwill:
Estimated Goodwill
Cash and cash equivalents
$
9,143
Trade receivables, net
27,781
Other current assets
3,726
Property and equipment, net
11,357
Intangible assets, net
269,239
Deferred tax assets
520
Other non-current assets
344
Total Assets
322,110
Trade payables
9,124
Other accounts payable
12,547
Other long-term liabilities
2,648
Accrued severance pay, net
458
Total liabilities
24,777
Net assets acquired (a)
297,333
Estimated purchase consideration (b)
758,433
Estimated goodwill (b)  - (a)
461,100
62
In accordance with ASC Topic 350, Goodwill
and Other Intangible Assets, goodwill will not be amortized, but instead will be tested for impairment at least annually or more
frequently if certain indicators are present. In the event management determines that the value of goodwill has become impaired,
an accounting charge for the amount of impairment during the quarter in which the determination is made may be recognized. Goodwill
recognized is not expected to be deductible for tax purposes.
Total consideration was calculated based
on a $12.25 share price. In the event that the share price increases or decreases by 10%, the impact on total consideration and
goodwill would be as follows:
Change in stock price
Stock Price
Estimated
Consideration
Goodwill
Decrease of 10%
$
11.03
$
704,384
$
407,051
Increase of 10%
$
13.48
$
812,482
$
515,149
B.
The table
below indicates the estimated fair value of each of the identifiable intangible assets:
​
Preliminary
Estimated
Asset Fair Value
Weighted Average
Useful Life (Years)
​
(in thousands, except for useful life)
Developed technology
134,515
10
Customer Relationships
103,850
15
Trademarks and Trade Names
30,874
15
Total
269,239
​
Less: Net intangible assets reported on SBTech's historical financial statements
(29,087
)
​
Pro forma adjustment
240,152
​
The fair values of the developed technology
intangible assets were determined by using an "income approach," specifically the relief-from-royalty approach, which
is a commonly accepted valuation approach. This approach is based on the assumption that in lieu of ownership, a firm would be
willing to pay a royalty in order to exploit the related benefits of this asset. Therefore, a portion of SBTech's earnings,
equal to the after-tax royalty that would have been paid for the use of the asset, can be attributed to the firm's ownership.
The fair values of the trademark and tradename intangible assets were also determined by the relief-from-royalty approach. The
fair values of the user relationship intangible assets were determined by using an "income approach," specifically
a multi-period excess earnings approach, which is a commonly accepted valuation approach. Under this approach, the net earnings
attributable to the asset or liability being measured are isolated using the discounted projected net cash flows. These projected
cash flows are isolated from the projected cash flows of the combined asset group over the remaining economic life of the intangible
asset or liability being measured. Both the amount and the duration of the cash flows are considered from a market participant
perspective. Where appropriate, the net cash flows were adjusted to reflect the potential attrition of existing customers in the
future, as existing customers are a "wasting" asset and are expected to decline over time.
63
C.
Represents the deferred tax impact associated with the incremental differences in book and tax basis created from the preliminary
purchase price allocation resulting from the step up in fair value of intangible assets. Deferred taxes were established based
on SBTech's blended statutory tax rate of 2.55%, based on jurisdictions where income has historically been generated. This
estimate of deferred income tax liabilities is preliminary and is subject to change based upon SBTech's final determination
of the fair value of assets acquired and liabilities assumed by jurisdiction.
D.
Represents the elimination of SBTech's historical equity.
Adjustments to Unaudited Pro Forma Condensed
Combined Statement of Operations
The pro forma adjustments included in the
unaudited pro forma condensed statement of operations for the year ended December 31, 2019 are as follows:
Pro Forma Adjustments (PF)
AA.
Reflects elimination of transaction-related costs incurred and recorded by DEAC and DraftKings.
BB.
Reflects the elimination of interest income on the trust account.
CC.
Reflects adjustments to income tax expense as a result of the tax impact on the pro forma adjustments at the estimated statutory
tax rate of 27.6%.
DD.
Reflects the incremental stock-based compensation expense related certain equity awards expected to continue subsequent to
the closing.
Purchase Price Allocation Adjustments (PPA)
AA.
Reflects the incremental amortization expense recorded as a result of the fair value adjustment for intangible assets acquired
in the SBTech Acquisition.
BB.
Reflects the adjustment to stock-based compensation expense for the post-combination portion of the SBT rolled-over options.
The new stock-based compensation expense is amortized on a straight-line basis over the remaining vesting periods.
CC.
Reflects adjustments to income tax expense as a result of the tax impact on the purchase accounting adjustments at the estimated
statutory tax rate of 27.6%.
64
5.       Loss per Share
Represents the net earnings per share calculated
using the historical weighted average shares outstanding and the issuance of additional shares in connection with the Business
Combination, assuming the shares were outstanding since January 1, 2019. As the Business Combination is being reflected as if it
had occurred at the beginning of the periods presented, the calculation of weighted average shares outstanding for basic and diluted
net income per share assumes that the shares issuable relating to the Business Combination have been outstanding for the entire
periods presented. If the maximum number of shares are redeemed, this calculation is retroactively adjusted to eliminate such shares
for the entire periods.
The unaudited pro forma condensed combined
financial information has been prepared assuming two alternative levels of redemption into cash of DEAC's Class A common
stock for the year ended December 31, 2019:
​
For the Year ended December 31, 2019
​
Assuming No
Redemptions
Assuming Maximum
Redemptions
​
(in thousands except share and per share data)
Pro forma net loss
(139,893
)
(139,893
)
Weighted average shares outstanding of Class A common stock
336,631,006
306,066,216
Net loss per share (Basic and
    Diluted) attributable to Class A common stockholders(1)
$
(0.42
)
$
(0.46
)
(1)
For the purposes of applying the if converted method for calculating diluted earnings per share, it was assumed that all outstanding
warrants sold in the IPO and the private placement are exchanged for Class A common stock. However, since this results in anti-dilution,
the effect of such exchange was not included in calculation of diluted loss per share. Additionally, New DraftKings' Class
B shares will be issued to Jason Robins; which will carry 10 votes per share, and will allow Jason Robins to have approximately
90% of the voting power of the capital stock of New DraftKings on a fully-diluted basis. As these shares have no economic or participating
rights, they have been excluded from the calculation of earnings per share.
65
DEAC's
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis
should be read in conjunction with the financial statements and related notes of DEAC, included elsewhere in this prospectus. This
discussion contains forward-looking statements reflecting our current expectations, estimates and assumptions concerning events
and financial trends that may affect our future operating results or financial position. Actual results and the timing of events
may differ materially from those contained in these forward-looking statements due to a number of factors, including those discussed
in the sections entitled "Risk Factors" and "Cautionary Statement Regarding Forward-Looking Statements"
appearing elsewhere in this prospectus.
Overview
We are a blank check company incorporated
as a Delaware corporation on March 27, 2019 and formed for the purpose of effecting a merger, capital stock exchange, asset acquisition,
stock purchase, reorganization or similar business combination with one or more businesses. Simultaneously with the consummation
of the Public Offering, we consummated the private sale of an aggregate of 6,333,334 warrants, each exercisable to purchase one
share of Class A common stock, par value $0.0001 per share at $11.50 per share, to Eagle Equity Partners, LLC and Harry E. Sloan
at a price of $1.50 per warrant, generating gross proceeds, before expenses, of approximately $9,500,000 (the "Private Placement").
We intend to consummate an initial business combination using cash from the proceeds of our initial public offering (the "Public
Offering") that closed on May 14, 2019 and the Private Placement, and from additional issuances of, if any, our equity and
our debt, or a combination of cash, equity and debt.
At December 31, 2019, we held cash of $491,225,
current liabilities of $1,493,133 and deferred underwriting compensation of $14,000,000. Further, we expect to continue to incur
significant costs in the pursuit of our acquisition plans. We cannot assure you that our plans to complete an initial business
combination will be successful.
Agreement for Business Combination
On December 22, 2019, we entered into a
business combination agreement with DraftKings Inc., a Delaware corporation, SBTech (Global) Limited, a company limited by shares,
incorporated in Gibraltar and continued as a company under the Isle of Man Companies Act 2006, with registration number 014119V,
the shareholders of SBT, Shalom Meckenzie, in his capacity as the SBT Sellers' Representative, DEAC NV Merger Corp., a Nevada
corporation and a wholly-owned subsidiary of DEAC and DEAC Merger Sub Inc., a Delaware corporation and a wholly-owned subsidiary
of DEAC, pursuant to which (i) DEAC will change its jurisdiction of incorporation to Nevada by merging with and into DEAC Nevada,
with DEAC Nevada surviving the merger, (ii) Merger Sub will merge with and into DraftKings with DraftKings surviving the merger,
and (iii) immediately following the DK Merger, New DraftKings will acquire all of the issued and outstanding share capital of SBT.
Upon consummation of the transactions contemplated by the Business Combination Agreement, DraftKings and SBT will become wholly
owned subsidiaries of DEAC Nevada, which will be renamed "DraftKings Inc."
DraftKings is a digital sports entertainment
and gaming company. DraftKings provides users with daily fantasy sports, sports betting and iGaming opportunities. SBT's
principal business activities involve the design and development of sports betting and casino gaming platform software for online
and retail sportsbook and casino gaming products.
The aggregate value of the consideration
to be paid to DraftKings and SBT shareholders in the Business Combination is approximately $2.7 billion, of which (A) approximately
$2.055 billion will be paid to (i) the current equityholders of DraftKings in the form of shares of Class A common stock of New
DraftKings, valued at the redemption price for DEAC's public shares in the Business Combination, plus in the case of Jason
Robins, such additional number of shares of Class B common stock of New DraftKings such that as of immediately following the completion
of the Business Combination, Mr. Robins shall have approximately ninety percent (90%) of the voting power of the capital stock
of New DraftKings on a fully-diluted basis, and (ii) holders of vested in-the-money options and warrants exercisable for DraftKings
equity in the form of newly issued options and warrants of New DraftKings exercisable for New
DraftKings Class A common stock, and (B)
approximately €590 million will be paid to the SBT Sellers and holders of vested options exercisable for equity of SBT, consisting
of  (i) €180 million in cash, subject to customary net debt and working capital adjustments as well as certain other
specified items payable in respect of the ordinary shares of SBT and 30% of the in-the-money vested options of SBT and (ii) approximately
 €410 million in shares of New DraftKings Class A common stock, valued at the redemption price for DEAC's public shares
in the Business Combination, and in the form of newly issued in-the-money vested options of New DraftKings exercisable for New
DraftKings Class A common stock.
66
Outstanding options exercisable for DraftKings or SBT equity
(other than cashed-out options of SBT, for which the holders will receive a portion of the Cash Consideration for such options)
will be converted into options exercisable for shares of New DraftKings Class A common stock. After the execution of the BCA, DraftKings
granted restricted stock units to certain of its employees, which will be converted into restricted stock units denominated in
New DraftKings Class A common stock. The Cash Consideration will come from the following sources: (1) proceeds available from DEAC's
trust account that it established in connection with the Public Offering, after giving effect to any and all redemptions; and (2)
proceeds from private placements of shares of DEAC's Class A common stock to certain institutional investors to occur immediately
prior to the closing of the Business Combination, of which DEAC currently has commitments for $304.7 million of proceeds.
The Business Combination also calls for
additional agreements, including, among others, the Subscription Agreements and the Stockholders Agreement, as described elsewhere
in this ​prospectus.
Results of Operations
For the period from March 27, 2019 (date
of inception) through December 31, 2019, we incurred a loss from operations of $1,857,305, including income tax of $944,494, which
was offset by interest income from the trust account of $5,111,208. Through December 31, 2019, our efforts have been limited to
organizational activities, activities relating to the Public Offering, activities relating to identifying and evaluating prospective
acquisition candidates and activities relating to general corporate matters. We have not generated any revenues, other than interest
income earned on the proceeds held in the trust account. As of December 31, 2019, $403,961,209 was held in the trust account (including
$14,000,000 of deferred underwriting discounts and commissions and approximately $9,500,000 from the Private Placement) and we
had cash outside of trust of $491,225 and $1,493,133 in accounts payable and accrued expenses.
Except for the withdrawal of interest to
fund DEAC's working capital requirements (subject to an annual limit of $250,000) and/or to pay taxes, if any, our amended
and restated certificate of incorporation (the "Charter") provides that none of the funds held in trust will be released
from the trust account until (i) the completion of an initial business combination; (ii) the redemption of any of the shares of
Class A common stock included in the units sold in the Public Offering (the "Units") properly submitted in connection
with a stockholder vote to amend the Charter to modify the substance or timing of DEAC's obligation to redeem 100% of the
common stock included in the Units being sold in the Public Offering if DEAC does not complete an initial business combination
by May 14, 2021 or with respect to any other material provisions relating to stockholders' rights or pre-initial business
combination activity or (iii) the redemption of 100% of the shares of Class A common stock included in the Units sold in the Public
Offering if DEAC is unable to complete a Business Combination by May 14, 2021. Through December 31, 2019, we have withdrawn $1,149,999
of funds from interest earned on the trust proceeds. Other than the deferred underwriting discounts and commissions, no amounts
are payable to the underwriters of the Public Offering in the event of a business combination.
We have also agreed to reimburse an affiliate
of the Sponsor for office space, secretarial and administrative services provided to members of our management team, in an amount
not to exceed $15,000 per month in the event that such space and/or services are utilized and we do not pay a third party directly
for such services. Upon completion of our initial business combination or our liquidation, we will cease paying these monthly fees.
For the period from March 27, 2019 (date of inception) through December 31, 2019, DEAC paid $90,000 under this agreement.
Going Concern Considerations and Capital Resources
For the period from March 27, 2019 (date
of inception) through December 31, 2019, we incurred an aggregate of $1,237,757, for merger expenses, legal, accounting, and filing
fees relating to our SEC reporting obligations and general corporate matters, and miscellaneous operating expenses.
We believe that we do not have sufficient
liquidity to meet our current obligations and allow us to operate through May 14, 2021, assuming that an initial business combination
is not consummated during that time. Over this time period, we currently anticipate incurring expenses for the following purposes:
·
due diligence and investigation of prospective target businesses;
·
legal and accounting fees relating to our SEC reporting obligations and general corporate matters;
·
structuring and negotiating an initial business combination, including the making of a down payment or the payment of exclusivity
or similar fees and expenses; and
·
other miscellaneous expenses.
67
In connection with DEAC's assessment
of going concern considerations in accordance with ASU 2014-15, "Disclosures of Uncertainties about an Entity's Ability
to Continue as a Going Concern" as of December 31, 2019, DEAC does not have sufficient liquidity to meet its current obligations.
However, management has determined that DEAC has access to funds from the Sponsor entity, in the form of Working Capital Loans,
that are sufficient to fund the working capital needs of DEAC until the earlier of the consummation of an initial business combination
or a minimum one year from the date of issuance of the consolidated financial statements.
As indicated in the accompanying consolidated
financial statements, at December 31, 2019, we had outside of trust cash in the amount of $491,225 and $1,493,133 in accounts payable
and accrued expenses.
Off-Balance Sheet Financing Arrangements
We have no obligations, assets or liabilities
which would be considered off-balance sheet arrangements. We do not participate in transactions that create relationships with
unconsolidated entities or financial partnerships, often referred to as variable interest entities, which would have been established
for the purpose of facilitating off-balance sheet arrangements.
We have not entered into any off-balance
sheet financing arrangements, established any special purpose entities, guaranteed any debt or commitments of other entities, or
entered into any non-financial agreements involving assets.
Contractual Obligations
We do not have any long-term debt, capital
lease obligations, operating lease obligations or long-term liabilities other than an administrative agreement to reimburse the
Sponsor for office space, secretarial and administrative services provided to members of our management team by the Sponsor, members
of the Sponsor, and our management team or their affiliates in an amount not to exceed $15,000 per month in the event such space
and/or services are utilized and we do not pay a third party directly for such services, from the date of closing of the Public
Offering. Upon completion of a business combination or our liquidation, we will cease paying these monthly fees.
Critical Accounting Policies and Estimates
The preparation of financial statements
and related disclosures in conformity with accounting principles generally accepted in the United States requires our management
to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and
liabilities at the date of the condensed financial statements, and income and expenses during the periods reported. Actual results
could materially differ from those estimates. We have identified the following as our critical accounting policies:
Offering Costs
We comply with the requirements of Accounting
Standards Codification ("ASC") 340-10-S99-1 and SEC Staff Accounting Bulletin Topic 5 A, "Expenses of Offering."
We incurred offering costs in connection with our Public Offering of approximately $22,555,870, consisting principally of underwriter
discounts of $22,000,000 (including approximately $14,000,000 of which payment is deferred) and approximately $555,869 of professional,
printing, filing, regulatory and other costs were charged to stockholders' equity upon completion of the Public Offering.
Approximately $224,395 of such offering expenses were accrued but unpaid at December 31, 2019.
Redeemable Shares of
Class A Common Stock
All of the 40,000,000 shares of Class A
common stock included in the Units sold as part of the Public Offering contain a redemption feature as described in the prospectus
for the Public Offering. In accordance with FASB ASC 480, "Distinguishing Liabilities from Equity", redemption provisions
not solely within the control of DEAC require the security to be classified outside of permanent equity. The Charter provides a
minimum net tangible asset threshold of $5,000,001. DEAC recognizes changes in redemption value immediately as they occur and will
adjust the carrying value of the security at the end of each reporting period. Increases or decreases in the carrying amount of
redeemable shares will be affected by charges against additional paid-in capital.
68
Net Income (Loss) per
Share
Net income (loss) per common share is computed
by dividing net income (loss) by the weighted average number of common shares outstanding for the period. We have not considered
the effect of the warrants sold in the Public Offering (including the over-allotment) and private placement warrants to purchase
approximately 13,333,333 and 6,333,334 shares of our Class A common stock, respectively, in the calculation of diluted income per
share, since their inclusion would be anti-dilutive.
Our statement of operations includes a presentation
of net income per share for common shares subject to redemption in a manner similar to the two-class method of net income (loss)
per share. Net income (loss) per common share for basic and diluted Class A common stock is calculated by dividing the interest
income earned on the trust account, net of applicable franchise taxes of $153,971, working capital up to $250,000 annually, and
income taxes, by the weighted average number of Class A common stock since issuance. Net loss per common share for basic and diluted
for Class B common stock is calculated by dividing the net loss of $1,453,333, which excludes income attributable to Class A common
stock, by the weighted average number of Class B common stock outstanding for the period.
Recent Accounting Pronouncements
Management does not believe that any recently
issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material effect on our financial statements.
69
BUSINESS
OF DRAFTKINGS AND SBTECH
The following discussion reflects the
business of New DraftKings, as currently embodied by each of DraftKings and SBTech. "We," "us" and "our"
generally refer to DraftKings Inc. (together with its subsidiaries, "DraftKings") in the present tense or New DraftKings
on a go-forward basis, unless the context otherwise refers to SBTech (Global) Limited (together with its subsidiaries, "SBTech").
Overview
At DraftKings, our mission is to make life
more exciting by responsibly creating the world's favorite real-money games and betting experiences. We accomplish this by
creating an environment where our users can find enjoyment and fulfillment through daily fantasy sports contests, sports betting
and iGaming.
We seek to innovate and to constantly improve
our games and product offerings. Our focus is on creating unique and exciting experiences for our users. We are also highly focused
on our responsibility as stewards of this new era in real-money gaming. Our ethics guide every decision we make, both in our respect
for the tradition of sports and in our investment in regulatory compliance and consumer protection that have guided our company.
These values anchor our business. Our desire
to innovate, improve and do the right thing drives our people and defines DraftKings, as we pursue our vision to transform the
way people experience sports entertainment and gaming.
Our Story
We aspire to deliver a product that is developed
with our users in mind and to be as trustworthy as we are innovative in everything we bring to market. This comes in the form of
what we believe to be leading-edge, proprietary technology that powers real-money games and betting experiences designed for the
 "skin-in-the-game" sports fan — the fan who seeks a deeper connection to the sporting events that
he or she already loves. Our vision for DraftKings has been shaped by this user, both in who he or she is today and who we anticipate
he or she will become as the entertainment and gaming industries evolve. At our core, we are a digital sports entertainment and
gaming company with roots in technology and analytics that fosters dynamic and personalized experiences for the sports fan.
This vision underpins our position as a
leader in today's fast-growing global entertainment and gaming industries. DraftKings has hosted over 4.3 million unique
paid users. That number encompasses a user base that continues to steadily grow:
·
During the year ended December 31, 2019, we had 684,103 average monthly unique payers ("MUPs") and revenue of $323
million, resulting in an average revenue per MUP ("ARPMUP") of $39. By comparison, during the same time period in 2018,
we had 600,886 average MUPs and revenue of $226 million, resulting in an ARPMUP of $31. See "DraftKings' Management's
Discussion and Analysis of Financial Condition and Results of Operations."
Our growth is driven both by acquiring new
users, engaging our existing users and re-engaging our past users. Research tells us that our typical user craves a more immersive
and curated fan experience. This was the user we sought with the launch of daily fantasy sports ("DFS"), our first
product offering following our founding in 2011, which has served as the foundation for our growth. Unlike traditional, season-long
fantasy sports offerings, DFS challenges users to create a lineup of players within a predefined fantasy "budget" and
to make decisions tied to a single day's sporting events, requiring an elevated level of skill and providing a heightened
degree of real-time gratification. This format has fundamentally changed the landscape of sports consumption, driving millions
of users to download the DraftKings app and visit our website to make DFS a staple of how they engage with teams, athletes and
sports statistics on an everyday basis.
As the popularity of our offerings grew,
so did our brand equity, which has been critical to our success over the past eight years. DraftKings became a recognized name
among gaming and sports enthusiasts because it represented an entirely new way of interacting with sports. We have remained a recognized
name due to the strong and lasting relationships we have formed with our users over time. We have placed our users at the center
of our operating model. Built at the intersection of agile technology, data-driven decision-making and dynamic product development,
our product offerings and platform are grounded in an absolute focus on our users — who they are and what experiences
they want. By leveraging research and analytics to inform our roadmaps, we have built a mobile-first ecosystem that offers experiences
tailored to the interests and behaviors of our users, resulting in a truly distinctive and personalized experience for the "skin-in-the-game"
sports fan.
70
Powering our product offerings is a highly
scalable platform that allows us to prioritize speed to market without sacrificing the integrity of our products' performance.
Over the past 18 months, we have leveraged the DraftKings' platform to expand our operations from DFS into two new product
offerings: Sportsbook and iGaming. In August 2018, less than three months after the U.S. Supreme Court struck down the Professional
and Amateur Sports Protection Act of 1992, we launched our online Sportsbook offering in New Jersey. The relative speed with which
we moved into this nascent space was no accident: it reflected nearly a decade's work in agile software development and regulatory
know-how that allowed us to navigate this environment. Our implementation of critical responsible-gaming staples like user protection
and data security would have been virtually impossible to deliver quickly into an online Sportsbook offering without the strength
of our existing infrastructure. Since launching in 2018, we have deepened our understanding of who our sports betting users are
and what they value. As of February 2020, our Sportsbook app and website are available in Indiana, Iowa, New Hampshire, New Jersey,
Pennsylvania and West Virginia. As a result of the highly personalized and engaging user experience we offer, we have quickly emerged
as one of the most recognized brands in unaided brand association among current online sports bettors and the top website used
among sports bettors in the United States, according to a June 2019 survey issued by Ipsos and the Fantasy Sports & Gaming
Association.
That model defines our brand in the eyes
of both our users and our employees: move rapidly and deliver the experiences that our users love. Our entry into the iGaming space
has been no different. Shortly after the launch of our online Sportsbook offering in New Jersey, we turned to iGaming as a clear
strategic adjacency for a growing, mobile-centric user base seeking entertainment in real time. We entered an industry with a significant
number of incumbent land-based licensed operators with mobile offerings and, in less than a year, surged to one of the top operators
in the iGaming space in New Jersey based on revenue, according to Eilers & Krejcik Gaming, LLC's ("Eilers")
U.S. Online Casino Tracker for December 2019. We offer hundreds of games on our iGaming platform across traditional offerings like
blackjack, roulette and slot machines, many of which have been designed by our in-house games studio (and which are our most popular
in-app offerings). The continued evolution of this platform will serve as a distinct differentiator in our ability to achieve rapid
growth in the iGaming space over time.
The intersection between the continued evolution
of the distinct experiences we offer and our user-centric DNA is what sets DraftKings apart.
Following the consummation of the Business
Combination with SBTech, we also plan to expand our offerings to begin serving other operators within our industry. We will begin
by migrating DraftKings' own consumer offering onto SBTech's proprietary sports betting platform over time, allowing
us to become a fully vertically integrated sports betting operator. We will also leverage the combined entity's shared infrastructure
to service adjacent branded operators in both the United States and internationally at greater scale. This could include online
sportsbooks, retail sportsbooks, iGaming operators, as well as governments or lotteries seeking to manage their own sportsbook
or iGaming offerings. SBTech offers one of the industry's most robust platform solutions to satisfy its customers'
sports betting technology needs, ranging from trading and risk management to platform services to support reporting, customer management
and regulatory reporting requirements. SBTech competes with a variety of other sports betting technology providers and differentiates
itself through this full suite platform offering. In addition, SBTech offers a leading iGaming solution via its proprietary platform
with integrations to third-party iGaming suppliers.
These capabilities provide the foundation
for what we believe to be a best-in-class enterprise offering whose reach will continue to expand upon the consummation of the
Business Combination. Ultimately, we believe we will be uniquely positioned to continue delivering optimal experiences for sports
fans who engage deeply with our offerings and to service other companies who seek to offer those experiences themselves.
Our Timeline
DraftKings was organized on December 29,
2011, as a Delaware corporation. DraftKings was founded by Matt Kalish, Paul Liberman and Jason Robins with the initial mission
of leveraging unique technology, analytics and marketing capabilities to deliver a daily fantasy sports offering. Within a few
years, DraftKings became one of the largest and most recognized DFS platforms in the United States.
SBTech was incorporated on July 24, 2007,
under the laws of Gibraltar. It was originally named Jamtech Limited, subsequently renamed Networkpot Limited and thereafter renamed
SBTech (Global) Limited on August 16, 2010.
71
The following is a timeline of key operational
and business milestones for our businesses:
DraftKings
SBTech
2007
·
SBTech was founded and officially
began its operations.
2012
·
DraftKings began its operations and offered its
first DFS contest to the public for the Major League Baseball ("MLB") season.
·
SBTech's operator base had grown to six.
2013
·
MLB became the first major sports organization to
invest in, and   establish a relationship, with DraftKings.
·
SBTech's operator base had grown to eight
and just over 200 employees.
·
We launched the first mobile app in the DFS industry.
2014
·
We acquired DraftStreet, a DFS operator, increasing
our user base by more than 50%, and acquired Starstreet, another DFS operator.
·
SBTech's operator base had grown to 11 and
just over 400 employees.
·
We signed a two-year deal to become the official
DFS provider of the National Hockey League.
2015
·
We were named the official DFS game of NASCAR, Ultimate
Fighting Championship and Major League Soccer, and announced partnership deals with major sports teams including the New England
Patriots, New York Knicks and Chicago Cubs.
·
SBTech obtained a license from the United Kingdom
Gambling Commission to provide facilities for real event betting and to manufacture gambling software.
·
21st Century Fox America, Inc. ("FOX")
became the first major media company to invest in us.
·
We obtained a license from the United Kingdom Gambling
Commission to provide facilities to offer daily fantasy sports contests and other forms of pool betting, and to manufacture gambling
software.
2016
·
We acquired a leading provider of DFS Mixed Martial
Arts
contests, Kountermove, to bolster
our user base in the burgeoning
space of combat sports.
·
SBTech
re-domiciled SBTech in the Isle of Man, and acquired a Maltese B2B license from the Malta Gaming Authority for hosting
and management of remote gaming operators.
·
We explored a possible combination with a DFS competitor,
but did
not receive Federal Trade Commission approval.
·
SBTech
acquired two Romanian licenses from the National
Gambling Office of Romania for the production of
gambling
software and the hosting of a gambling platform.
·
SBTech
launched our Sportsbook into the newly regulated
Romanian and Portuguese jurisdictions, opened an
office in
London and accepted our first retail sports bet
in Mexico.
72
DraftKings
SBTech
2017
·
We
were granted a skill gaming license in Malta, allowing for further expansion in the European Union.
·
SBTech
launched a sportsbook for the Czech Republic National Lottery, marking SBTech's first major lottery partner.
·
SBTech's
sportsbook launched in the Spanish regulated market.
2018
·
PASPA
was struck down by the U.S. Supreme Court, opening the potential for state-by-state authorization of sports betting.
·
SBTech
entered the Danish sports betting and iGaming industry by partnering with the Danish National Lottery, Danske Spil, under the
brand YOUBET
·
We
launched the first online sportsbook in New Jersey.
·
SBTech
was awarded a B2B remote gambling license in Gibraltar, where we opened an office.
·
We
opened our first retail sportsbooks in Atlantic City, New Jersey (Resorts Casino and Hotel) and D'Iberville, Mississippi
(Scarlet Pearl Casino Resort).
·
SBTech
became one of the first sportsbook providers to be licensed in the state of Mississippi as a manufacturer and distributor by the
Mississippi Gaming Commission, and we debuted our retail sportsbook at the Golden Nugget's Biloxi
Casino
                                   as well as two Churchill Downs properties.
·
SBTech
was awarded a Casino Service Industry Enterprise transactional waiver by the New Jersey Gaming Board and debuted a retail sportsbook
at the Golden Nugget Atlantic City.
2019
·
We
officially launched iGaming in New Jersey with blackjack, roulette, video poker and slots.
·
SBTech
launched our online sportsbook and iGaming offerings with Churchill Downs, and our online sportsbook with the Golden Nugget in
New Jersey.
·
We
announced a landmark partnership with the National Football League ("NFL") which made us the Official Daily Fantasy
Partner of the NFL.
·
SBTech
obtained conditional manufacturer and operator licenses from the Pennsylvania Gaming Commission, a manufacturer and Distributer
license from the Arkansas Racing Commission and a temporary supplier's license from the Indiana Gaming Commission, allowing
us to launch our retail sportsbook in Pennsylvania, Indiana and Arkansas with Churchill Downs properties.
·
We
were named the Official Daily Fantasy Game of the PGA Tour.
·
Our
online sportsbook launched in Indiana, New Hampshire, Pennsylvania and West Virginia.
·
We
launched retail sportsbooks in Iowa (Wild Rose) and New York (del Lago).
·
SBT
Malta Limited signed a five-year agreement with the Oregon State Lottery to provide online and retail sportsbook offering, and
successfully launched the first online sportsbook offering in the State of Oregon in October 2019. The retail sportsbook offering
is expected to be rolled out mid-2020.
·
We
were selected by the state of New Hampshire as its exclusive sportsbook partner.
·
DraftKings
mobile/online Sportsbook launches in New Hampshire.
·
SBTech
launched an online sportsbook for the State Lottery and Monopoly of Azerbaijan, and signed agreements to provide its online and
retail sportsbook solution with the Finnish state lottery, Veikkaus, and the Swedish state lottery, Svenska Spel, in 2020.
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DraftKings
SBTech
2020
·
DraftKings
and the XFL announced a new partnership that makes DraftKings an Official Daily Fantasy Sports Partner and an Authorized Gaming
Operator of the league.
·
DraftKings
launched mobile/online Sportsbook in Iowa.
Our People
From the outset, our founders have embodied
and instilled in DraftKings a set of values and entrepreneurial spirit that has set the tone for the company and its employees.
We believe that our people are the reason
for our success and that we should be structured to maximize their productivity and performance. We actively work to maintain an
exceptional bar for talent to enable our mission, vision and business strategy. We identify, promote and reward talent that is
inspired by our purpose and shares our core values: analytical, authentic, bias for action, collaboration, commitment and user
focus.
As a technology company at our core, we
believe that the best innovation comes from diverse perspectives, thoughts, beliefs, ideas and experiences. We challenge the conventional
to ensure our culture and product offerings reflect the expectations of our employees and the users we serve. We work to foster
a culture of inclusion, equity and belonging that makes our employees feel safe, empowered, engaged, championed and inspired to
be their very best.
Like DraftKings, SBTech was built by founders
with an exceptional entrepreneurial spirit, with a focus on driving results, attracting and nurturing great people and teamwork.
As a technology supplier, SBTech understands its greatest resource is its human capital and is relentless in creating and fostering
a culture where employees feel empowered and inspired to continuously develop and deliver.
As of December 31, 2019, DraftKings had
869 employees and SBTech had 1,266 employees. None of DraftKings' or SBTech's employees are represented by a labor
organization or are a party to any collective bargaining arrangement.
Our Core Operating Principles
DraftKings has been built on the foundation
of four core principles:
Put our users first
. Every
decision we make stems from our fundamental desire to keep our users engaged and excited to interact with our product offerings.
We have spent eight years refining our understanding of how our users engage and play and what they want most in terms of digital
sports entertainment and gaming offerings. The satisfaction of our users remains the single-most critical lens through which we
measure our own success moving forward.
Make data-driven decisions
.
At our core, DraftKings takes a data-driven approach to decision-making; no doubt a product of the shared analytical background
that our three founders possess. This holds true across everything we do — from minute tweaks to our marketing
programs to our product evaluation processes and our business development strategy — we ask our teams to justify
their decisions using the kind of thoughtful analysis that grounds our approach in objectivity. Analytics are deeply embedded in
our day-to-day operations.
Be an employer of
choice
. We can only achieve our goals by acquiring, retaining and developing the best talent available. We have
invested heavily in building a team of specialized employees to ensure that our team is uniquely skilled to take on the
diverse challenges that our industry presents. Those employees are supported by an organizational structure designed to
maximize efficiency without trading off velocity. DraftKings currently operates 12 departments with 52 divisions across five
locations, ranging across core disciplines including front- and back-end technology, acquisition and retention marketing,
product management and operations, user experience and design, and a range of functions spanning analytics, data science and
data engineering. We will continue to make strategic, thoughtful decisions around how to hire the best people for the roles.
We achieve the employer of choice status not simply by attracting top talent, but also by fostering a culture that recognizes
the contribution and commitment of that talent to our operations, creating continuous opportunities for the growth and
development of our team.
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Act responsibly
. We are committed
to industry-leading responsible gaming practices and seek to provide our users with the resources and services they need to play
responsibly. We have invested in processes that identify and protect vulnerable users. Specifically, we created an internal, independent
 "Game Integrity and Ethics Team" that actively monitors for any indication of activities that may violate current regulations
governing us, our own terms of use or our "Community Guidelines." This team oversees a framework for our user community
to follow in determining when a user may need assistance. With our focus on fair and responsible gaming along with user protection
and data security, users have come to know and trust our gaming platform.
What Makes Us Different
In order to build the best real-money games
and product offerings, we have invested in core disciplines across technology, analytics and marketing, which have become our operational
bedrock and have allowed us to rapidly bring innovative new experiences to market while gaining a unique understanding of our users.
The result was clear market leadership in the DFS industry, fueled by a brand reputation and a depth of user trust that has set
us apart from our competitors.
Our DFS investments positioned us to successfully
compete in online sports betting and iGaming, in addition to DFS. The core strengths that were born out of our DFS experience have
been critically important in the first 18 months of our entry into Sportsbook and iGaming, from the resonance of our brand to the
scalability of our technology. Similarly important were the regulatory experience and technical infrastructure we built in adapting
to the responsible gaming requirements of DFS, which have served as the foundation of our speed to market in online sports betting
and iGaming.
These are the strengths that not only set
us apart as a DFS operator, but also will continue to differentiate us as a digital sports entertainment and gaming company:
Mobile-First Product Innovation
.
From DraftKings' inception, we have prided ourselves on our ability to deliver new and exciting product offerings to our
users. We were the first company to launch a mobile daily fantasy sports app in 2013, anticipating the impending behavioral shift
of a user base that had historically relied on a desktop-only experience. The rapid adoption of this product pushed us to extend
native mobile experiences across all of our offerings on both iOS and Android, the result of which has been industry-leading app
reviews within the sports and games categories. We have extended this investment to build in-house capabilities in order to deliver
proprietary mobile games, ranging from DFS offerings across every major professional sport to the native development of our own
casino games. These offerings are unified by a consistent experience that reinforces retention within our apps. Additionally, as
a result of user-driven feedback around our in-app experience and our product innovation, we have created programs with DraftKings-built
social features, including our private DFS leagues for friends, as well as loyalty programs like our daily virtual rewards program.
We continue to reinforce this investment in product innovation by recruiting top-tier engineers, with a particular emphasis on
experience in consumer-facing mobile app development.
Scalable Platform and Infrastructure
.
The consumer experiences described above sit on a shared technology platform that has allowed for maximum flexibility in our product
development strategy. We have established a "one-platform" model by launching features like single sign-on, an integrated
wallet and universal user profile, while simultaneously leveraging our technological investments in DFS around responsible gaming,
compliance and data security to establish similar infrastructure within Sportsbook and iGaming. The net result is an integrated
experience that allows a user to move seamlessly between a DFS contest, a sports bet and a hand of blackjack, all while earning
money into one wallet and earning rewards into one profile.
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It is with these layers of shared
technological infrastructure that we bring to market a personalized, interconnected suite of experiences whose back-end meets
the standards of a highly regulated environment. As a result, we are now capable of quickly bringing to market new offerings
like our Sportsbook app without having to create an entirely new back-end infrastructure. This holds true across multiple
enterprise-level disciplines that we are now able to leverage in the world of mobile gaming:
·
Configurable back-end software and services that are flexible to new jurisdictional requirements.
·
Analytics framework that cuts across all of our user-facing offerings.
·
Technical infrastructure across data security, user privacy and compliance that can be leveraged to support various custom
responsible gaming requirements.
·
A single, integrated sign-in and wallet platform across all of our product offerings.
·
A shared marketing technology stack with which we can create hyper-targeted cross-product offers and promotions for every type
of user.
·
A data science engine driven by eight years' worth of user data that allows us to personalize many aspects of our products.
Consistent with our competitive advantage
in our infrastructure, SBTech believes that its recent growth and success has largely been driven by investing significantly in
its core products and infrastructure. This investment, together with product features, ensures that SBTech continues to grow its
client base and increase its existing clients' ability to compete more effectively.
Highly Dependable Source of Users
.
In addition to building innovative, scalable product offerings, we also have the ability to effectively acquire users to engage
with those offerings. The trusted base of DFS users that we have built over time has provided us recognition among a highly dependable
source of users that are willing to engage with our new product offerings. This allows us to establish a foothold for Sportsbook
in new jurisdictions from the moment sports betting is legalized in such jurisdiction. Our foothold begins with the strength of
our brand, which is honed to create a voice and a message that resonates positively with the American sports fan. We have invested
in optimizing the new user experience, both from the perspective of product innovation — such as our seamless
registration flow and a first-time user experience that educates our users without intimidating them — and in
proprietary growth marketing technology that optimizes user acquisition at scale. We layer marketing on top of this foundation
in various forms, from targeted campaigns to our "Refer-a-Friend" program that rewards friend-to-friend invitations.
We have invested deeply in marketing technology to create promotional capabilities that match users dynamically to programs and
offers we know they will enjoy. We have spent years honing our model with this type of marketing across TV, digital and offline
channels, relying entirely on in-house analytics to reduce our cost of acquisition by algorithmically matching the right user to
the right offer on the right channel.
User Retention and Monetization
.
Tied to the strengths we have built in amassing an existing user base are the capabilities we have harnessed with our existing
users. We function from the perspective that no user is more important than our existing ones — these are the
users around whom our business has been built, and for whom we continue to operate. To that end, we have made major investments
in building a research-and-feedback loop that connects our users directly to our product and marketing teams, ensuring that we
are constantly listening and making decisions based on their needs. This informs the way in which we think about retention. For
example, we have implemented various creative reinvestment programs tied to mechanisms like giveaways, missions, achievements and
rewards, all of which were designed based entirely on input from our users. These programs sit on top of a data-driven customer
relationship management operation that leverages user insights and a suite of models to optimize our retention channels, which
we have supplemented with technology that creates automated triggers connecting users to customized offers. All of this technology
is underpinned by a data science framework which allows us to build user personae that cut across all of our consumer product offerings,
enabling us to intelligently cross sell across all of our product offerings.
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Market Access and Compliance Platform
.
We have developed technology, product offerings and partnerships to create a sustainable advantage in the gaming and DFS industries.
Strategic multi-year arrangements with lotteries, governments and casinos enable us to offer our products to end users. We have
entered into the following arrangements where legislation or regulations require us to enter the market through a relationship
with a land-based casino:
·
In 2018, we entered into multi-year arrangements with Resorts Casino and Hotel ("Resorts", providing us access
to the New Jersey market), with del Lago Resort and Casino ("del Lago", providing us access to the New York market)
and with Scarlet Pearl Casino Resort ("Scarlet Pearl", providing us access to the Mississippi market).
·
In 2019, we entered into multi-year arrangements with Penn National Gaming Inc. ("Penn National", providing us
access to the Florida, Indiana, Missouri, Ohio, Pennsylvania, Texas and West Virginia markets) and with Wild Rose Casino and Resort
("Wild Rose", providing us with access to the Iowa market).
Our Resorts, del Lago, Wild Rose and Scarlet
Pearl market access agreements are multi-year (5-10 years) business partnerships established with land-based licensed casinos in
each of their respective states. Under applicable state gaming law, DraftKings is required to partner with a land-based casino
in order to offer sports betting services, both statewide mobile and in-person retail wagering, in that state, should they be authorized
by law. In exchange for a fee based on a percentage of net gaming revenue generated by gaming activities in that state, the casino
licenses DraftKings the right to offer either online or retail sports betting (or both) pending DraftKings also receiving the necessary
licensures and approvals. Under the terms of these agreements, DraftKings has agreed to operate exclusively through the casino
in such state for either retail or online or both.
Our Penn National agreement is a 10-year
 "national" market access agreement that provides us with market access (using a similar payment and services model
as the previously noted casinos) in several states where Penn National has properties. For the majority of states covered by this
agreement, DraftKings is eligible to use the first mobile license to operate that Penn National receives or has received through
its property(ies) in that state. For other states, DraftKings is eligible to use the second or third mobile license to operate
that Penn National receives or has received through its property(ies) in that state. As a result, when states covered by this agreement
that have not yet passed mobile sports betting bills do so in the future, and if the state's sports betting law requires
that mobile operators partner with an in-state property of the type that Penn National owns in that state in order to have access
to the statewide mobile sports betting market, we will have that access (depending on the number of mobile licenses available and
the licensing order to which we are entitled under this agreement). Under the terms of the agreement, DraftKings has agreed to
operate exclusively through Penn National in such states.
In addition to our casino arrangements,
DraftKings and SBTech have entered into the following arrangements with lotteries;
·
In 2016, SBTech entered into an agreement with the Czech Republic National Lottery — its first major lottery
partner. The SBTech — Sazka agreement is a multi-year (3 years which was extended to an additional 3 years term) license
agreement entered with Sazka for their use of SBTech's seamless sports betting solution. The license is granted in exchange
for a percentage of net gaming revenues generated by Sazka through the use of the sports betting solution as well as an additional
charge for the use of sports data feeds. Under the terms of the agreement, Sazka has agreed to exclusively use SBTech's sports
betting solution.
·
In 2018, SBTech entered the Danish sports betting and iGaming industry by contracting with the Danish National Lottery, Danske
Spil, under the brand YOUBET. The SBTech — Danske Spil ("DS") agreement is a multi-year (3 years) license agreement
entered with DS for the use of SBTech's platform solution (which includes, player management and integration with third-party
casino providers). The license is granted in exchange for a percentage of net gaming revenues (sports betting and third party casino
content) generated by DS through the use of the platform solution as well as an additional charge for the use of sports data feeds.
Under the terms of the agreement, DS has agreed to exclusively use SBTech's sports betting solution.
·
In 2019, SBTech entered into an exclusive five-year arrangement with the Oregon Lottery to be the sole provider of sports betting
in the state of Oregon. The SBTech — Oregon State Lottery ("OSL") agreement is a multi-year (5 years) license
agreement entered with OSL for the use of SBTech's platform solution and managed services. The license in respect of the
platform solution is in exchange for a percentage of net gaming revenues generated by OSL through the use of the platform solution
as well as an additional charge for the use of sports data feeds. The managed services are provided by SBTech in exchange of a
percentage of net gaming revenues generated by OSL.
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·
Additionally in 2019, SBTech signed agreements to provide its online and retail sportsbook solution with the Finnish state
lottery, Veikkaus, and the Swedish state lottery, Svenska Spel. The SBTech — Veikkaus agreement is a multi-year
(4 years) license agreement entered into with Veikkaus for the use of SBTech's platform solution. The license in respect
of the platform solution is in exchange for a percentage of net gaming revenues generated by Veikkaus through the use of the platform
solution. Veikkaus are expected to launch with SBTech's solution during 2020. The SBTech — Svenska
Spel agreement is a multi-year (4 years) license agreement entered into with Svenska Spel for the use of SBTech's platform
solution. The license in respect of the platform solution is in exchange for a percentage of net gaming revenues generated by Svenska
Spel through the use of the platform solution. Svenska Spel are expected to launch with SBTech's solution during 2020.
·
In November 2019, DraftKings entered into an exclusive multi-year arrangement with the NH Lottery to be the sole operator for
online and retail sports betting in the state of New Hampshire. DraftKings' relationship with the New Hampshire Lottery is
as an agent/contractor for the state of New Hampshire. DraftKings applied for, and received, the exclusive right to offer online
and retail sports betting services on behalf of the NH Lottery. As part of the arrangement, DraftKings receives a portion of every
wager that it processes on behalf of the state of New Hampshire.
Lastly, we have obtained licenses in nine
states, where it is required, in the United States, and internationally in the United Kingdom, Australia and Malta, to operate
our DFS platform. We are also a registered DFS operator in four additional U.S. states where registration versus licensing is required
to operate.
SBTech has obtained licenses (and approval,
as applicable) in six states in the United States and in the United Kingdom, Gibraltar, Malta and Romania. Additionally, SBTech
has certified its software in Denmark, Italy, Nigeria, Portugal and Spain, and its platform and sportsbook are available in Azerbaijan,
Belgium, Cyprus, Czech Republic, Greece, Mexico, Poland and Sweden under local licenses held by operators using SBTech's
platform in these jurisdictions.
Underpinning our regulatory access is our
DraftKings platform that allows us to efficiently and safely scale our product offerings into multiple jurisdictions. We have developed
our DraftKings platform from the ground up to meet the needs of the unique regulatory environment that the United States offers,
while maintaining ease of use for our users. We provide a single experience for login, verification and wallet.
SBTech's platform has been built from
the ground up to meet the needs of differing regulatory regimes, including configurable regulatory and responsible gaming controls
such as responsible gaming tests, operator alerts on user behavior, deposit limits, betting limits, loss limits, timeout facilities,
session limits, reality checks, balance thresholds and intended gaming amounts. These features allow the operators' customers
full control of their gaming to allow them to play responsibly.
Our Priorities
As we continue to invest in our core competitive
advantages, we believe we will remain positioned to build a leadership position within the burgeoning global entertainment and
gaming industries. We have established several major areas of strategic focus that will guide the way we think about our future
growth:
Continue to invest in our products
and platform
. We have established a set of competencies that position us at the forefront of the evolving digital sports
entertainment and gaming industries. In the immediate term, our focus will be on reinforcing our competitive strengths and our
core competencies, in order to continue iterating on our core user experiences while we reinforce the analytical, marketing and
technological infrastructure that allows us to scale our offerings. We plan to continue to invest in our users and in our product
offerings as we remain dually driven to keep our existing users engaged while we expand the capabilities of the platform that will
enable us to rapidly reach new geographies and attract new audiences.
Launch our product offerings in new
geographies
. With our experience in regulated gaming jurisdictions in the United States, we are prepared to enter new states
as regulations on sports betting and iGaming open up these jurisdictions to us. Whether the appropriate route for a geography is
to operate as a mobile consumer operator, a mobile consumer operator with a retail presence, a technology solution provider to
a government entity, or any permutation of the foregoing, our goal is to be ready to enter jurisdictions that provide for daily
fantasy sports, sports betting and iGaming. SBTech is also well prepared to continue growing its customer base outside of the United
States given the flexible and robust nature of the SBTech platform.
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Effectively integrate with
SBTech to form a vertically integrated operation
. Through the Business Combination, we expect to realize synergies
with SBTech by transitioning to its risk and trading sports betting platform over time instead of relying on a third-party
platform in order to offer Sportsbook. This will provide us with the opportunity to reduce costs and differentiate our
offering in North America from other gaming operators in order to establish ourselves as an end-to-end operation across all
of our offerings. We expect the transition to SBTech's risk and trading platform will deliver efficiencies over time as
we consolidate redundant capabilities. Additionally, following the Business Combination, we expect that we will be able to
serve other branded consumer operators in the United States and internationally — such as online
sportsbooks, retail sportsbooks and iGaming operators — with our proprietary sports betting and
player-management technology. Following the completion of the Business Combination, SBTech will allow us to access
jurisdictions and opportunities within the footprint of SBTech that would otherwise not be available to us.
Create replicable and predictable
state-level unit economics in sports betting and iGaming
. We believe that creating the best state-level unit economics
in our industry will be necessary for achieving and maintaining long-term significant market share in the U.S. Using as a baseline
the economic framework we have refined over our first 18 months operating in New Jersey, we believe we can create a replicable
model that balances the right levels of investment and efficiency within each new jurisdiction that we enter. This will be aided
by our integration of the SBTech platform in order to reduce our platform fees and ultimately remove our reliance on third-party
platforms to operate our Sportsbook offering. The Business Combination will also allow us to leverage our national scale to improve
our user acquisition costs, reduce our variable operational costs by investing in technology and data science to increase automation,
and leverage our combined product, technology and existing user database to create strong strategic partnerships with casinos,
lotteries and governments.
Expand our consumer offerings
.
In addition to rapidly expanding into new jurisdictions, the strength of our platform is that it allows us to seamlessly integrate
new product offerings into the DraftKings ecosystem. This comes in the form of extensions of our existing offerings such as the
addition of daily fantasy sports for sporting events like the Olympics, or a deeper investment in our proprietary live-betting
mobile experience, as well as in potential expansion into adjacent industries. We are capable of quickly bringing offerings like
these to market via our existing technology platform, and to immediately cross-market them to users according to our data analytics.
Our Products and Economic Model
Our Revenue-Generating Product Offerings
As a combined company, our revenues
will be predominantly generated through our business-to- consumer ("B2C") offerings and business-to-business
("B2B") offerings. Currently, we have three main B2C product offerings — Daily Fantasy Sports,
Sportsbook and iGaming. We consider these three offerings to be of a similar class of product, and together they accounted
for 95%, 97% and 99% of DraftKings' revenues for the fiscal years ended December 31, 2019, 2018 and 2017, respectively.
DFS, which was our sole product offering until late 2018, historically drove our revenue results and accounts for a majority
of our users; however, since we launched Sportsbook and iGaming in 2018, states with Sportsbook and iGaming together have
accounted for a rapidly growing proportion of our users, which drives our revenue.
Our business experiences seasonality based
on the relative popularity of certain sports. Although exciting sporting events occur throughout the year, our users are most active
in the fourth quarter due to the overlapping calendars of the NFL and NBA seasons, which are our most popular sports.
Below is a breakdown of how each of DraftKings'
and SBTech's offerings function, and their respective economic model:
Daily Fantasy Sports
Daily Fantasy Sports is a peer-to-peer platform
in which our users compete against one another for prizes. Users pay an entry fee (ranging from $0 to $10,000 per user) to join
a contest and compete against each other in short-duration contests for cash prizes, where the prize money is distributed to the
highest performing competitors in the contest as defined by the prize table.
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Every paid daily fantasy sports
contest consists of an entry fee and prizes paid out to certain contestants based on the finishing position of the
contestants. Certain finishing positions in each contest will be paid out in accordance with a prize payout table established
at the beginning of the contest. To enter a contest, a user pays an entry fee and builds a fantasy sports team to compete
against other users. The users are then ranked based on the number of fantasy points accrued by each user's fantasy
sports team. If a user finishes in a position that is within the prize payout table, the user wins the corresponding prize.
Our DFS revenue is generated from contest entry fees from our paid users, net of amounts paid out as prizes and customer
incentives. This amount is typically in the range of 8-15% of all entry fees depending on the contest. We offer two basic
payout structures for our fantasy sports contests: contests that pay out the entire prize payout table regardless of how many
entrants join the contest ("guaranteed contests") and contests that will only pay out prizes if a minimum number
of entrants have joined the contest ("non-guaranteed contests"). Non-guaranteed contests that do not meet the
minimum number of entrants are canceled, any entry fees paid by users are returned, and no prizes are awarded.
Illustrative DFS guaranteed contest
Given the nature of the peer-to-peer platform,
and the popularity of large guaranteed prize contests, liquidity (the total volume of users and the total amount of money held
with an operator) is critical to the success of the game. The more users and money held on the platform, the larger the amount
of prizes an operator can offer. This in turn, creates a compelling offering (such as our $1 Million Top Prize contests), which
ultimately drives more users.
In contrast to other types of house-banked
gaming, such as slots, blackjack or sports betting, where individuals play against the operator, DFS operators are generally not
exposed to the risks of game play or the outcome of the game — only to whether or not the operator will fill
the guaranteed prize contests. Non-guaranteed contests, such as certain head-to-head contests (one user against another user),
only run if filled completely and therefore always result in the targeted revenue expected for each game when run.
Sportsbook
Sports betting involves a user placing a
bet by wagering money on an event at some fixed odds ("proposition") determined by DraftKings. In the event the user
wins, DraftKings pays out the bet. Unlike DFS, DraftKings takes some risk on the bet. Our revenue is generated by setting odds
such that there is a built-in theoretical margin in each proposition offered to our users. While different outcomes of the events
may cause volatility in our revenue, we believe we can deliver a stable betting win margin over the long term.
Illustrative sports bet
Revenue is realized by taking the settled
handle for betting markets that have been resolved, and subtracting the payouts for these betting markets such that the difference
is the gross revenue, or "hold." In addition to our online Sportsbook, we also maintain a limited retail distribution
in four states, in which our retail revenue is subject to individual agreements with a land-based casino partner (a "skin")
that provide for a revenue share. Retail distribution leverages the foot traffic for existing casino properties to convert their
customers to bet in our Sportsbook while on premise.
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iGaming
iGaming, or online casino, offerings typically
include the full suite of games available in land-based casinos, such as blackjack, roulette and slot machines. For these offerings,
we function similarly to land-based casinos, generating revenue through hold, or gross winnings, as users play against the house.
In iGaming, we believe there is typically lower volatility versus land-based casinos, as there is generally a larger number of
bets placed at smaller denominations and since the average return to player for specific games is easier to predict in advance
based on game rules and statistics.
Our iGaming offering consists of a combination
of games that we have built natively in-house and licensed content from suppliers such as International Gaming Technology, iForium,
Scientific Games, Spin and Evolution for Live Dealer services. The latter are subject to standard revenue-sharing agreements specific
to each supplier, whereby the supplier receives a percentage of the net gaming revenue generated from the casino games played on
our platform dependent on DraftKings' overall gross gaming revenue for iGaming. In exchange, DraftKings receives a limited
license to offer the games on its platform to users in jurisdictions where use is approved by the regulatory authorities. Revenue
generated through our self-developed major casino games such as blackjack results in decreased revenue share payments as a percent
of revenue.
B2B Revenue for Sportsbook and iGaming
As a result of the Business Combination
with SBTech, we will supply B2B sports betting and iGaming services globally for various DFS and gaming operators and government-run
lotteries. Currently the SBTech business generates revenue from operators by providing sports betting and iGaming content directly
to operators in exchange for a share of operators' revenues, as well as through fixed fee contracts with resellers. Contracts
with business customers are typically awarded through a sales process or request for proposal.
In addition to providing for a share of
gaming revenue, SBTech's direct customer contracts are typically non-exclusive and run for a term of 3-5 years (with automatic
renewal terms). SBTech's agreements with resellers typically provide for a base fee plus a fixed monthly fee determined by
the number of operators with which the reseller contracts to access SBTech's software and typically run for a term of 3 years
(with automatic renewal terms).
Advertising and Sponsorship
We offer advertising and sponsorship packages
to targeted advertisers across our DFS product offering, free games and content. In the future, we expect to offer advertising
and sponsorships within our Sportsbook and iGaming product offerings.
Our advertising packages range from
standard ad placements and background ad placements to more high-touch integrations, such as sponsored DFS contest series or
custom site takeovers. These are typically served and tracked by a range of advertising products that have been built
directly into our DFS platform — featuring partnerships with brand categories ranging from entertainment to
food to automotive — and that only show for contests with no-paying or low-paying users.
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Each advertising package is bespoke, and
we offer each client a custom "menu" of advertising options, which include online media (such as display, video and
audio advertisements and page and "skin" sponsorship takeovers), custom content, including branded video content, live
events such as sponsored watch parties and sponsored free or paid games, including Daily Fantasy, Pick'em and Bracket Games.
Each advertising package has a different
pricing model, with a variety of factors affecting the pricing of a particular package including, but not limited to, (i) the sport
to which the package relates and (ii) the demand for, and supply of, the individual package components.
Sponsorships and custom-built games and
content typically have fixed fee pricing. Other packages, such as custom-branded video content or online advertisements, are sold
with a guaranteed number of impressions, which are priced per a certain number of guaranteed impressions. Each time a consumer
sees an advertisement while playing, watching, reading or listening to a piece of content or playing a game, an impression is counted.
Promotional Expense for DraftKings
Daily Fantasy Sports, Sportsbook and iGaming
Offsetting our revenues is the portion of
gross revenue that we allocate to new and existing user incentives and promotions, which are awarded as a result of game play or
at our discretion, through loyalty programs, free plays, deposit bonuses, discounts, rebates or other rewards and incentives. Offsets
are generally used to acquire new users, reactivate prior users and increase monetization from active users. We leverage our return
on investment models that are based on lifetime value and expected reactivation rates to determine appropriate promotional levels.
Cost of Revenue
We have four main elements of cost of revenue:
payment processing fees and chargebacks, product taxes, platform costs and revenue share/market access arrangements. We incur payment
processing costs on user deposits and occasionally chargebacks as a result of user complaints (chargebacks have not been material
to date). Our primary product taxes are state taxes, which are determined on a state-by-state basis, and range from 6.8% to 20%
of gross revenue minus applicable deductions, which excludes Pennsylvania at 36%. Importantly, each state defines "gross
revenue" differently based on the deductibility of promotion expenses. In addition to state taxes, we pay a federal excise
tax of 0.25% of handle. Our platform fees are primarily driven by hosting, third-party vendors that provide certain elements of
our platform technology (such as geolocation, risk management and data). We also amortize certain capitalized development costs
into our platform expenses. Finally, our revenue share fees are primarily driven by arrangements with land-based casinos in states
where online operators are required to have a relationship with a land-based casino. These revenue share fees are driven mainly
by levels of paid user activity via our platform, particularly engagement with our Sportsbook and iGaming offerings, in a given
period.
Case Study: New Jersey Sportsbook
To better appreciate the mechanics of how
DraftKings' business scales with the opening of new jurisdictions, it is helpful to track our expansion into New Jersey over
the past 18 months. Our results in New Jersey are subject to a number of variables, including the accessibility of the state and
our competitive position, and as such, we cannot assure you that our results in New Jersey will continue on the same trajectory
as our historical results, nor can we assure you that our results in New Jersey will be indicative of our performance in other
states.
See "Risk Factors — Risk Factors Relating to the Business and Industry of New DraftKings — Our
projections will be subject to significant risks, assumptions, estimates and uncertainties, including assumptions regarding future
legislation and changes in regulations, both inside and outside of the United States. As a result, our projected revenues, market
share, expenses and profitability may differ materially from our expectations."
After the U.S. Supreme Court struck down
PASPA in 2018, New Jersey was the first state to legalize sports betting, and provide an accessible jurisdiction, in August 2018.
Eilers estimates New Jersey's sports betting market at maturity to be greater than $500 million in gross gaming revenue ("GGR")
per year of which more than 75% is expected to be online. DraftKings also launched iGaming in December 2018 and estimates the market
size at maturity to be $564 million in GGR per year, as described under "DraftKings' Industry — Our
Industry and Opportunity — North American Gaming Market." In the year ended December 31, 2019, we generated
approximately $86 million in U.S. GAAP revenue from all of our B2C product offerings in New Jersey.
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Despite our recent entry into the competitive
sports betting and iGaming industries, we have succeeded in beating out dozens of established brick-and-mortar land-based casino
operators and European-based companies. We maintain greater than 30% in online sport betting market share as of November 30, 2019,
and have emerged as one of the top operators in iGaming despite recent entrance in a five-year-old market, according to Eilers'
U.S. Online Casino Tracker for December 2019.
We believe our success in New Jersey can
be attributed primarily to our strong brand presence generated by our DFS offering, along with our existing DFS user base. We have
relied on cross-selling to DFS users as a core element of strategic differentiation in New Jersey, with approximately 30% of our
DFS user base crossing into our Sportsbook offering as of December 31, 2019. Our results for iGaming are similar; approximately
50% of Sportsbook users cross into our iGaming offering. We have also been increasingly successful at optimizing the highly dependable
source of DFS users, and we continue to acquire a growing number of New Jersey users.
Sportsbook and iGaming in New Jersey had
a pronounced impact on our business:
·
For the period from August 2018 through July 2019 (our first twelve months of Sportsbook and first seven months of iGaming
operations), our revenues from New Jersey grew 8.5x year-over-year and made up approximately 30% of our total revenue. This was
almost equally driven by an increase in MUP and ARPMUP year-over-year.
·
By the end of 2019, we have recouped approximately 90% of our first 12 month marketing spend.
Following fast on the heels of our entry
into New Jersey, we launched online Sportsbook in Indiana, New Hampshire, Pennsylvania and West Virginia during the second half
of 2019 and in Iowa in the first quarter of 2020.
Marketing
User Acquisition and Retention
Our ability to effectively market is paramount
to our operational success. With a blend of analytics and data science as our foundation, we leverage our marketing to acquire,
retain and reactivate users while building a trusted consumer-facing brand. We use a variety of free and paid marketing channels,
in combination with compelling offers and exciting games, to achieve our objectives. Furthermore, we optimize our marketing spend
using data collected since the beginning of our operations, as well as additional data that we collect from vendors, partners and
data providers. Our marketing spend is based on a return-on-investment model that considers a variety of factors, including the
performance of different marketing channels, predicted lifetime value and behavior of users across various product offerings, the
location of our users and our estimate of when enabling legislation and regulations for sports betting and iGaming may come to
fruition.
Where paid marketing is concerned, we leverage
a broad array of advertising channels, including television, radio, social media platforms such as Facebook, Instagram, Twitter
and Snap, affiliates and paid and organic search, and other digital channels such as mobile display. These efforts are concentrated
within the specific jurisdictions that have passed enabling legislation and regulations, and in which we operate or intend to operate
(which vary on a per-offering basis). Our marketing expenditures tend to be highly seasonal, with most spend correlating with the
start of a sports season and during its playoffs and championships.
In addition to traditional paid advertising
channels, we cross-promote our product offerings to our existing user base through internal channels such as mobile push notifications,
email and text messages, and external channels such as Facebook, Twitter, Instagram and Snapchat. Through those channels, we use
a combination of content, contests and promotions to engage existing users. Additionally, we incentivize our users to refer new
users through our "Refer-a-Friend" program, offering incentives such as free entries into tournaments or free bets
if the referred user ultimately subscribes to our product offerings.
Strategic Relationships
We engage in strategic relationships
with sports leagues to improve our brand and awareness, acquire users, improve user retention and create differentiated
experiences for our users. In September 2019, we entered into a multi-year relationship with the NFL in which our companies
agreed to collaborate on a variety of content and product offerings on the DraftKings DFS app, as well as integrations across
NFL media properties. The NFL relationship does not include any promotional rights for sports betting. In July 2019, we
entered into a multi-year relationship with the PGA Tour. As part of the new relationship, DraftKings' daily fantasy
golf users will have the ability to receive real-time video highlights for players in their respective lineups. Other
elements of this relationship will create expanded DFS-specific content offerings and brand integration into both the PGA
Tour and DraftKings' platforms. Lastly, the PGA Tour and DraftKings will collaborate on a variety of real-time product
enhancements via the PGA Tour's proprietary data feed.
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We engage in similar multi-year relationships
with professional sports teams, which serve to bolster our brand affiliation and create unique collaborative integrations for our
users.
We also engage in strategic relationship
deals with media companies to create content and integrated marketing experiences. In July 2015, we entered into a multi-year relationship
with FOX, which provided DraftKings with committed media and integrations across FOX's national, local and digital properties.
With this relationship, FOX also made a strategic investment in the preferred stock of DraftKings. See
"Certain Relationship
and Related Party Transactions."
More recently, we have established major partnerships with media entities like Vox and
Bleacher Report as we seek to grow our audience of U.S. sports fans.
B2B Business Marketing
SBTech's core B2B marketing strategy
is centered around attending and exhibiting at major trade shows around the world, which accounted for 75% of all of SBTech's
2018 marketing costs. SBTech's trade show marketing is supplemented with digital and offline marketing campaigns in leading
industry publications, websites, regular media pieces and participation on industry panels. Similar to the DraftKings business,
SBTech's reputation and customer testimonials also assist in its marketing and business efforts.
Distribution
We distribute our product offerings through
various channels, including traditional websites, direct app downloads and global direct-to-consumer digital platforms such as
the Apple App Store and the Google Play store. The latter two digital platforms are the main distribution channels for our product
offerings. Our DFS product offering is delivered as a free application through both the Apple App Store and Google Play Store and
is also accessible via mobile and traditional websites. Our Sportsbook and iGaming product offerings are primarily distributed
through the Apple App Store and a traditional website. We allow our Android Sportsbook and iGaming users to install our Sportsbook
and iGaming product offerings through our website. We derive nearly all of our revenue through products distributed via the Apple
App Store, Google Play Store and via traditional websites. For all of our offerings, neither Apple nor Google take any revenue
share for distributing our product.
On the SBTech side, the sportsbook and iGaming
products and services are distributed online via the Apple App Store, Google Play Store and traditional websites by operators that
have licensed such products and services directly from SBTech, while the retail products and services are distributed primarily
via self-service betting terminals and standalone computer terminals. Similarly, Apple and Google do not take any revenue share
for distributing those products and services. SBTech also licenses its products and services to resellers (through a fixed-fee
model) who sublicense to operators, and in those situations, the reseller is responsible for the maintenance of the products and
services.
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Our Technology and Product Development
At a high level, our technology consists
of three product offerings: DFS, Sportsbook and iGaming. The individual product offerings are comprised of varying levels of proprietary
and third-party software. These product offerings are bound together with a common account management and regulatory compliance
platform. Each of the product offerings can be accessed with the same account and wallet. Across our product offerings we have
made an effort to own the technology in-house for any critical component, and to utilize a combination of new technologies, including
data science and machine learning, to optimize conversion and efficiency.
With respect to our DFS offering, we have
developed an in-house proprietary platform, which uses open source and third-party sources. The DFS platform has been designed
to run DFS contests at a national scale, and features offerings from 15 different sports/leagues. It has supported contests with
more than 1.4 million entries and has processed in excess of 20,000 entries in a minute. To orchestrate the contests, we integrate
with a wide range of data providers to retrieve up-to-the-minute information about the status of sporting events. The platform
supports the layering of redundant data providers to minimize the risk of disruption.
Our Sportsbook offering relies on a mix
of proprietary and third-party software. The proprietary DraftKings' technology includes our user experience, unique promotional
and merchandising capabilities and cross-product account management and compliance. We have invested in developing fully native
mobile apps, which are custom iOS and Android applications that offer a consistent user experience and increase our ability to
conform to application store guidelines where applicable. Integrated into our Sportsbook platform is a third-party risk and trading
platform from Kambi. This platform provides betting markets, odds and risk management. Following the consummation of the Business
Combination and as the integration of our operations with SBTech progresses, we intend to utilize the risk and trading capabilities
of SBTech over time. This will provide us with the opportunity to deliver efficiencies, reduce costs and enable further innovation
within our Sportsbook offering.
In addition to traditional fixed-odds betting,
we have invested in other proprietary sports betting products. For example, we were the first operator in New Jersey to offer paid-entry
pari-mutuel sports pools and brackets.
Similar to our Sportsbook offering, our
iGaming offering relies on a mix of proprietary and third-party technology. The proprietary technology includes a growing library
of casino and card games, an in-house loyalty program and merchandising capabilities. Additionally, we supplement our own gaming
catalog with those of third parties, although over the past year we have built and deployed proprietary blackjack and roulette
offerings, which are among the most popular games on our iGaming Platform, and continue to invest in casino games and architecture.
The DraftKings-owned gaming products now account for the majority of our iGaming handle on a run rate basis, substantially reducing
our third-party content fees. For the two week period ended December 31, 2019, iGaming handle for our proprietary games accounted
for approximately 54% of total iGaming handle, and this trend has continued through January 2020 with such proprietary games accounting
for more than 50% of iGaming handle.
DraftKings' core product
offerings are built on top of an integrated, proprietary account management platform, which we generally refer to as, our
 "platform." The platform provides our users with access to their account history across all product offerings and
a uniform identity verification system, which is critical in enabling seamless navigation from our national DFS audience to
Sportsbook and iGaming products, as existing DFS users need not manage a separate set of account credentials and payment
methods for each product offering. Platform users also enjoy a highly functional wallet which, in many cases, permits user
funds to flow freely from product to product. The platform is certified to safely store user payment information, which
reduces our dependency on any particular payment processor, provides redundancy and gives us the flexibility to route our
payment volume to a processor of our choosing. In addition, our platform is built to be customizable to the specific
regulations of individual jurisdictions. SBTech also maintains an account management platform that is used by its operators,
so we expect to realize synergies from the Business Combination.
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Across our product offerings, we actively
use data science and machine learning to help optimize conversion and monetization. Within the DFS offering, data science algorithms
are used to customize a user's contest home screen based upon his or her past play history. We build recommendations by identifying
the type of contests that a user is most likely to play, along with the entry fee and prize structure that he or she will find
most appealing. In addition, contest-pacing algorithms identify contests that might present a financial exposure and increase the
contests' visibility within the product appropriately. Similarly, within the Sportsbook offering, recommendation engines
are used to present betting markets to users based upon their past play history and location. These services are also critical
to our back-end infrastructure, as they drive key elements of our fraud and compliance program. Machine-learning models are used
to detect proxy play, money laundering, collusion and problematic gaming activity.
The health of our full suite of offerings
is dependent on our ability to scale with increased demand on our infrastructure, which naturally grows in real time with live
sporting events. We have invested in a hybrid cloud infrastructure comprised of physical data centers and cloud computing that
can scale to meet the demand generated by marquee sporting events. We have built substantial technology to facilitate the management
of server infrastructure in an automated and efficient way. By taking advantage of a hybrid elastic computing model, we reduce
our costs during low demand. In addition to automated scaling and deploying, operational monitoring and responsiveness is critical
in our time-sensitive industry. DraftKings has honed its operational support strategy over the course of eight years of operating
our DFS platform. Our software is highly instrumented, allowing us to detect and respond to the most common type of irregularities
quickly. Our on-call team both actively monitors key site health metrics and responds to automated alerts in real time. In the
past 18 months, we have had 99.98% uptime for all of our offerings combined. Following the Business Combination, our combined product
and engineering workforce will consist of approximately 1,100 people.
Through a combination of cash expenses and
capitalized expenditures, DraftKings invested $61.0 million in products and technology, and SBTech invested €31.1 million
in research and development, for the year ended December 31, 2019.
Intellectual Property
Our business and that of SBTech relies substantially
on the creation, acquisition, use and protection of intellectual property. Some of this intellectual property is in the form of
software code, patented technology and trade secrets that we use to develop and properly run our DFS, Sportsbook and iGaming offerings
and related services. Other intellectual property we create includes proprietary daily fantasy sports, sports betting and iGaming-related
technology and content as well as proprietary data acquired from the use of our daily fantasy sports, sports betting and iGaming
product offerings.
While most of the intellectual property
we use is created by us, we (and SBTech) have obtained rights to use intellectual property of third parties through licenses and
service agreements with those third parties. Although we (and SBTech) believe these licenses are sufficient for the operation of
the company, these licenses typically limit our use of the third parties' intellectual property to specific uses and for
specific time periods.
We (and SBTech) protect our intellectual
property rights by relying on federal, state and common law rights, as well as contractual restrictions. We (and SBTech) control
access to our proprietary technology by entering into confidentiality and invention assignment agreements with our employees and
contractors, and confidentiality agreements with third parties. We (and SBTech) also engage in monitoring the activities of third
parties with respect to potential infringing uses of our intellectual property by third parties.
We (and SBTech) actively seek patent protection
covering inventions originating from us and, from time to time, review opportunities to acquire patents to the extent we believe
such patents may be useful or relevant to our business.
In addition to these contractual
arrangements, we (and SBTech) also rely on a combination of trade secret, copyright, trademark, trade dress, domain name and
patents to protect our daily fantasy sports, sports betting and iGaming product offerings and other intellectual property. We
typically own the copyright to the software code to our content, as well as trademarks under which our daily fantasy sports,
sports betting and iGaming product offerings and related services are marketed. We pursue the registration of our domain
names, trademarks, and service marks in the United States and in locations outside the United States. Our registered
trademarks in the United States include "DraftKings," and the names of our services and applications, among
others.
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Companies in the fantasy sports, sports
betting, gaming, casino, technology and other industries may own large numbers of patents, copyrights and trademarks and may frequently
request license agreements, threaten litigation or file suit against us based on allegations of infringement or other violations
of intellectual property rights. From time to time, we have faced, and we expect to face in the future, allegations by third parties,
including our competitors and non-practicing entities, that we have infringed their trademarks, copyrights, patents and other intellectual
property rights. As our business grows, we will likely face more claims of infringement.
Property
Our corporate headquarters are located in
Boston, Massachusetts, where we occupy facilities totaling approximately 105,000 rentable square feet under a lease that expires
in 2029, subject to our option to extend the term for two successive terms of five years each, or our early termination right.
We use these facilities primarily for our management, technology, product design, sales and marketing, finance, legal, human resources,
general administrative and information technology teams. Our lease and our rights under the lease are subordinated under a lien
of mortgage.
We also lease office space in several cities
in the United States and in Dublin, Ireland, as of December 31, 2019. We intend to procure additional space as we add employees
and expand geographically. We believe that our facilities are adequate to meet our needs for the immediate future and that suitable
additional space will be available to accommodate any expansion of our operations as needed.
SBTech has its corporate headquarters located
on the Isle of Man, while its major technology, product design and trading teams are based in Bulgaria and Ukraine. General administration
is located in Israel and commercial support is located in London. SBTech also has offices in Gibraltar, Malta and the United States.
Legal Proceedings
We are involved in a number of legal proceedings
(including those described below) concerning matters arising in connection with the conduct of our business activities. These proceedings
are at varying stages, and many of these proceedings seek an indeterminate amount of damages. We regularly evaluate the status
of the legal proceedings in which we are involved to assess whether a loss is probable or there is a reasonable possibility that
a loss or an additional loss may have been incurred and to determine if accruals are appropriate. If accruals are not appropriate,
we further evaluate each legal proceeding to assess whether an estimate of the possible loss or range of possible loss can be made.
For certain cases described on the following
pages, management is unable to provide a meaningful estimate of the possible loss or range of possible loss because, among other
reasons, (i) the proceedings are in various stages; (ii) damages have not been sought; (iii) damages are unsupported and/or exaggerated;
(iv) there is uncertainty as to the outcome of pending appeals or motions; (v) there are significant factual issues to be resolved;
and/or (vi) there are novel legal issues or unsettled legal theories to be presented or a large number of parties. For these cases,
however, management does not believe, based on currently available information, that the outcomes of these proceedings will have
a material adverse effect on our financial condition, though the outcomes could be material to our operating results for any particular
period, depending, in part, upon the operating results for such period.
In Re: Daily Fantasy Sports Litigation
(Multi-District Litigation)
Between late 2015 and early 2016, certain
individuals who allegedly registered and competed in daily sports fantasy contests on our and FanDuel's websites, and their
family members, filed numerous actions against us, FanDuel, and other related parties (the "DFS defendants") in courts
across the country. In February 2016, these actions were consolidated in a multidistrict litigation in the U.S. District Court
for the District of Massachusetts. On September 2, 2016, the consolidated group of plaintiffs filed their First Amended Master
Class Action Complaint, superseding their individual complaints.
The plaintiffs assert 27 claims
arising under both state and federal law against the DFS defendants. The plaintiffs' claims against us generally fall
into four categories: (1) our online daily fantasy sports contests constitute illegal gambling; (2) we promulgated false or
misleading advertisements that emphasized the ease of play and likelihood of winning; (3) we induced consumers to lose money
through a deceptive bonus program and (4) we allowed our employees to participate in competitors' fantasy sports
contests using non-public information, which gave such employees an unfair advantage over other contestants. The plaintiffs
seek money damages, equitable relief, and disgorgement of gains against us.
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On November 27, 2019, the Court granted
in part and denied in part the DFS defendants' motions to compel arbitration. The Court granted the DFS defendants'
motions to compel arbitration with respect to the (named) player plaintiffs and the (named) cross-over plaintiffs. The Court denied
the DFS defendants' motions to compel arbitration with respect to a small set of plaintiffs who are family members of individuals
who hold DraftKings or FanDuel accounts and who assert claims under various state laws regarding gambling. On March 9, 2019, the
DFS defendants moved to dismiss those remaining plaintiffs' claims.
We intend to vigorously defend this case.
If the plaintiffs were to obtain a judgment in their favor in this lawsuit, we could be subject to substantial damages and we may
have to withdraw our DFS operations in certain states. We cannot predict with any degree of certainty the outcome of this lawsuit.
We are unable to estimate the possible loss
or a range of possible losses in connection with the
In Re: Daily Fantasy Sports Litigation (Multi-District Litigation)
matter because, among other reasons, (i) the proceeding is in a preliminary stage, (ii) there are significant factual issues to
be resolved and (iii) there are novel legal issues to be resolved. Despite the potential for "significant damages",
we do not believe, based on currently available information, that the outcome of this proceeding will have a material adverse effect
on the combined company's financial condition, although the outcome could be material to the combined company's operating
results for any particular period, depending, in part, upon the operating results for such period.
1,000 Mass Arbitration Demands Filed
by One Law Firm
On October 21, 2019, a law firm filed 1,000
 "mass arbitrations" against us on behalf of purported DraftKings users that assert claims similar to the multidistrict
litigation described above. The 1,000 arbitration demands are virtually identical. The law firm that filed the arbitrations has
expressed an intention to file a total of more than 20,000 such "mass arbitrations" against us. If these "mass
arbitrations" were to proceed, they could result in significant costs to us, which could include a minimum range of $3,200
to $4,700 in fees per arbitration, the legal costs incurred by us in connection with defending such arbitrations and any adverse
judgments issued in any arbitration, could be a significant cost to us.
We dispute the law firm's ability
to file "mass arbitrations" against us, among other reasons, because they violate our terms of use that require claims
be brought on an individual basis and not be consolidated or joined in any other arbitration or proceeding involving a claim of
any other party.
After the law firm filed the 1,000 "mass
arbitrations," the AAA informed us in writing that it would close their files on, and decline to administer, the 1,000 "mass
arbitrations" unless we waived two provisions in our terms of use and that the parties would then be free to bring their
claims in court. We elected not to waive the subject terms of use provisions.
If necessary, we intend to vigorously defend
all claims. If the claimants were to obtain a judgment in their favor in these arbitrations, we could be subject to substantial
damages and we could be restricted from offering DFS contests in certain states. We cannot predict with any degree of certainty
the outcome of these arbitrations.
Attorney General of Texas
On January 19, 2016, the Texas Attorney
General issued an opinion letter that "odds are favorable that a court would conclude that participation in paid daily fantasy
sports leagues constitutes illegal gambling" under Texas law. In response to the opinion letter, we sued the Texas Attorney
General on March 4, 2016 in Dallas County, Texas.
The lawsuit makes five claims: (1) a claim
for a declaratory judgment that daily fantasy sports contests do not violate Texas law; (2) a claim of denial of due process under
the Fifth and Fourteenth Amendments to the U.S. Constitution; (3) a claim of denial of due course of law under Article I of the
Texas Constitution; (4) a claim of denial of equal protection under the Fourteenth Amendment to the U.S. Constitution; and (5)
a claim of denial of equal rights under Article I of the Texas Constitution. We are also seeking reimbursement of costs and attorneys'
fees.
On May 2, 2016, the Texas Attorney
General filed a motion to transfer venue to Travis County, Texas. On April 16, 2018, the parties filed a notice of agreed
non-suit without prejudice, and we re-filed our lawsuit against the Texas Attorney General in Travis County. On April 17,
2018, the Dallas County court granted the parties' agreed non-suit without prejudice, thereby dismissing the Dallas
County lawsuit without prejudice.
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On May 24, 2018, the Texas Attorney General
answered the complaint filed in Travis County, Texas.
FanDuel filed a petition in intervention
on August 24, 2018, seeking essentially the same relief as DraftKings seeks. On October 2, 2018, the Court entered a scheduling
order setting the case for a non-jury trial on November 2, 2020.
We intend to vigorously pursue our claims.
In the event a court ultimately determines that daily fantasy sports contests violate Texas law, that determination could cause
financial harm to us and loss of business in Texas.
CG Technology Development, LLC; Interactive
Games Limited; and Interactive Games LLC
On April 7, 2016, CG Technology Development,
LLC, Interactive Games Limited, and Interactive Games LLC (collectively, "CG"), filed suit against us in the U.S. District
Court for the District of Nevada. After filing an Amended Complaint, CG alleges that our Daily Fantasy Sports product offering
infringes 10 patents: (1) U.S. Patent No. 6,884,166 (the "166 patent"), which is entitled "System and method
for establishing a wager for a gaming application"; (2) U.S. Patent No. 6,899,628 (the "628 patent"), which is
entitled "System and method for providing game event management to a user of a gaming application"; (3) U.S. Patent
No. 7,029,394 (the "394 patent"), which is entitled "System and method for generating statistics for a user of
a gaming application"; (4) U.S. Patent No. 7,534,169 (the "169 patent"), which is entitled "System and
method for wireless gaming system with user profiles"; (5) U.S. Patent No. 8,342,924 (the "924 patent"), which
is entitled "System and method for providing enhanced services to a user of a gaming application"; (6) U.S. Patent
No. 8,641,511 (the "511 patent"), which is entitled "Real-time interactive wagering on event outcomes";
(7) U.S. Patent No. 9,111,417 (the "417 patent"), which is entitled "System and method for providing enhanced
services to a user of a gaming application"; (8) U.S. Patent No. 9,306,952 (the "952 Patent"), which is entitled
 "System and method for wireless gaming with location determination"; (9) U.S. Patent No. 9,355,518 (the "518
patent"), which is entitled "Gaming system with location determination"; and (10) U.S. Patent No. RE39,818 (the
 "818 patent"), which is entitled "Personalized wireless video game system."
We filed a Motion to Dismiss the Amended
Complaint and, on December 12, 2016, Judge Robert Jones dismissed the allegations for seven (the 924, 628, 394, 417, 169, 511 and
166 Patents) out of the 10 patents under 35 U.S.C. section 101 because those seven patents are directed to non-patentable subject
matter.
Between March and June of 2017, we filed
petitions with the Patent Trial and Appeal Board ("PTAB") of the U.S. Patent and Trademark Office challenging the validity
of select claims of each of the three remaining asserted patents — the 818, 952 and 518 patents. All challenged
claims of these three patents were found to be unpatentable by the PTAB. CG appealed the PTAB decisions to the U.S. Court of Appeals
for the Federal Circuit with respect to all three patents. On May 14, 2019, CG voluntarily dismissed its appeal of the PTAB's
unpatentability decision for the 952 Patent. The remaining appeals were fully briefed. On December 17, 2019, the Federal Circuit
upheld the unpatentability of the 818 Patent and on February 18, 2020, CG filed a petition for
en banc
rehearing of that
decision. On February 6, 2020, the Federal Circuit upheld the unpatentability of the 518 patent.
On July 27, 2017, Judge Jones in the U.S.
District Court for the District of Nevada issued an order transferring the case against us to the U.S. District Court for the District
of Delaware. The case is now before Judge Richard Andrews. On December 20, 2017, the parties entered into a stipulated stay pending
the resolution of the petitions filed with the PTAB.
We intend to vigorously defend this case.
In the event that a court ultimately determines that we infringe the asserted patents, we may be subject to substantial damages,
which may include treble damages and/or an injunction that could require us to modify certain features that we currently offer
to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability
or damages.
Interactive Games LLC
On June 14, 2019, Interactive Games
LLC ("IG") filed suit against us in the U.S. District Court for the District of Delaware. In the Complaint, IG
alleges that our Daily Fantasy Sports product offering infringes two patents: U.S. Patent No. 8,956,231 (the "231
patent"), which is entitled "Multi-process communication regarding gaming information" and U.S. Patent No.
8,974,302 (the "302 patent"), which is entitled "Multi-process communication regarding gaming
information." That same Complaint alleges that our Sportsbook product offering infringes two additional patents: U.S.
Patent No. 8,616,967 (the "967 patent"), which is entitled "System and method for convenience gaming"
and U.S. Patent No. 9,430,901 (the "901 patent"), which is entitled "System and method for wireless gaming
with location determination."
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In response to the Complaint, we filed a
Motion to Dismiss the Complaint under 35 U.S.C. section 101 because the asserted patents are directed to non-patentable subject
matter. The Court has not yet ruled on this Motion.
We intend to continue to vigorously defend
this case. In the event that a court ultimately determines that we infringe the asserted patents, we may be subject to substantial
damages, which may include treble damages and/or an injunction that could require us to modify certain features that we currently
offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential
liability or damages.
Other
In addition to the above actions, we are
subject to various other legal proceedings and claims that arise in the ordinary course of business. In our opinion, the amount
of ultimate liability with respect to any of these actions is unlikely to materially affect our financial condition, results of
operations or liquidity, though the outcomes could be material to our operating results for any particular period, depending, in
part, upon the operating results for such period.
Government Regulation
DraftKings is subject to various U.S. and
foreign laws and regulations that affect our ability to operate in the DFS, sports betting and iGaming industries. These industries
are generally subject to extensive and evolving regulations that could change based on political and social norms and that could
be interpreted in ways that could negatively impact our business.
The gaming industry (inclusive of our iGaming
and sports betting product offerings) is highly regulated and we must maintain licenses and pay gaming taxes or a percentage of
revenue in each jurisdiction from which we operate in order to continue our operations. Our business is subject to extensive regulation
under the laws, rules and regulations of the jurisdictions from which we operate. These laws, rules and regulations generally concern
the responsibility, financial stability, integrity and character of the owners, managers and persons with material financial interests
in the gaming operations along with the integrity and security of the iGaming and sports betting product offering. Violations of
laws or regulations in one jurisdiction could result in disciplinary action in that and other jurisdictions.
Gaming laws are generally based upon declarations
of public policy designed to protect gaming consumers and the viability and integrity of the gaming industry. Gaming laws also
may be designed to protect and maximize state and local tax revenues, as well as to enhance economic development and tourism. To
accomplish these public policy goals, gaming laws establish stringent procedures to ensure that participants in the gaming industry
meet certain standards of character and responsibility. Among other things, gaming laws require gaming industry participants to:
·
ensure that unsuitable individuals and organizations have no role in gaming operations;
·
establish procedures designed to prevent cheating and fraudulent practices;
·
establish and maintain anti-money laundering practices and procedures;
·
establish and maintain responsible accounting practices and procedures;
·
maintain effective controls over their financial practices, including establishing minimum procedures for internal fiscal affairs
and the safeguarding of assets and revenues;
·
maintain systems for reliable record keeping;
·
file periodic reports with gaming regulators;
·
establish programs to promote responsible gaming; and
·
enforce minimum age requirements.
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Typically, a state regulatory environment
is established by statute and underlying regulations and is administered by one or more regulatory agencies (typically a gaming
commission or state lottery) who regulate the affairs of owners, managers and persons with financial interests in gaming operations.
Among other things, gaming authorities in the various jurisdictions in which we conduct our business:
·
adopt rules and regulations under the implementing statutes;
·
interpret and enforce gaming laws and regulations;
·
impose fines and penalties for violations;
·
review the character and fitness of participants in gaming operations and make determinations regarding their suitability or
qualification for licensure;
·
grant licenses for participation in gaming operations;
·
collect and review reports and information submitted by participants in gaming operations;
·
review and approve certain transactions, which may include acquisitions or change-of-control transactions of gaming industry
participants and securities offerings and debt transactions engaged in by such participants; and
·
establish and collect fees and taxes in jurisdictions where applicable.
While we believe that we are in compliance
in all material respects with all applicable DFS, sports betting and iGaming laws, licenses and regulatory requirements, we cannot
assure that our activities or the activities of our users will not become the subject of any regulatory or law enforcement, investigation,
proceeding or other governmental action or that any such proceeding or action, as the case may be, would not have a material adverse
impact on us or our business, financial condition or results of operations.
Licensing and Suitability Determinations
In order to operate in certain jurisdictions,
we must obtain either a temporary or permanent license or determination of suitability from the responsible authorities. We seek
to ensure that we obtain all necessary licenses to develop and put forth our offerings in the jurisdictions in which we operate
and where our users are located.
Gaming laws require us, and each of our
subsidiaries engaged in gaming operations, certain of our directors, officers and employees, and in some cases, certain of our
shareholders, to obtain licenses from gaming authorities. Licenses typically require a determination that the applicant qualifies
or is suitable to hold the license. Where not mandated by statute, rule or regulation, gaming authorities typically have broad
discretion in determining who must apply for a license or finding of suitability and whether an applicant qualifies for licensing
or should be deemed suitable to conduct operations within a given jurisdiction. When determining to grant a license to an applicant,
gaming authorities generally consider: (i) the financial stability, integrity and responsibility of the applicant (including verification
of the applicant's sources of funding); (ii) the quality and security of the applicant's online real-money gaming platform,
hardware and related software, including the platform's ability to operate in compliance with local regulation, as applicable;
(iii) the applicant's history; (iv) the applicant's ability to operate its gaming business in a socially responsible
manner; and (v) in certain circumstances, the effect on competition.
Gaming authorities may, subject to certain
administrative procedural requirements, (i) deny an application, or limit, condition, revoke or suspend any license issued by them;
(ii) impose fines, either on a mandatory basis or as a consensual settlement of regulatory action; (iii) demand that named individuals
or shareholders be disassociated from a gaming business; and (iv) in serious cases, liaise with local prosecutors to pursue legal
action, which may result in civil or criminal penalties.
Events that may trigger revocation of
a gaming license or another form of sanction vary by jurisdiction. However, typical events include, among others: (i)
conviction in any jurisdiction of certain persons with an interest in, or key personnel of, the licensee of an offense that
is punishable by imprisonment or may otherwise cast doubt on such person's integrity; (ii) failure without reasonable
cause to comply with any material term or condition of the gaming license; (iii) declaration of, or otherwise engaging in,
certain bankruptcy, insolvency, winding-up or discontinuance activities, or an order or application with respect to the same;
(iv) obtaining the gaming license by a materially false or misleading representation or in some other improper way; (v)
violation of applicable anti-money laundering or terrorist financing laws or regulations; (vi) failure to meet commitments to
users, including social responsibility commitments; (vii) failure to pay in a timely manner all gaming or betting taxes or
fees due; or (viii) determination by the gaming authority that there is another material and sufficient reason to revoke or
impose another form of sanction upon the licensee.
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As noted above, in addition to us and our
direct and indirect subsidiaries engaged in gaming operations, gaming authorities generally also have the right to investigate
individuals or entities having a material relationship to, or material involvement with, us or any of our subsidiaries, to determine
whether such individual or entity is suitable as a business associate. Specifically, as part of our obtaining Sportsbook and iGaming
licenses, certain of our officers, directors, and employees and in some cases, certain of our shareholders (typically, beneficial
owners of more than 5% of a company's outstanding equity, with most jurisdictions providing that "institutional investors"
(as defined by a particular jurisdiction) can seek a waiver of these requirements) must file applications with the gaming authorities
and may be required to be licensed or to qualify or be found suitable in many jurisdictions. Qualification and suitability determinations
generally require the submission of extensive and detailed personal and financial disclosures followed by a thorough investigation.
The applicant must pay all the costs of the investigation. Changes with respect to the individuals who occupy licensed positions
must be reported to gaming authorities and in addition to the authority to deny an application for licensure, qualification, or
a finding of suitability, gaming authorities have jurisdiction to disapprove a change in a corporate position. If any director,
officer, employee or significant shareholder is found unsuitable (including due to the failure to submit required documentation)
by a gaming authority, we may deem it necessary, or be required, to sever our relationship with such person. Furthermore, New DraftKings'
Proposed Charter provides that any capital stock of New DraftKings owned or controlled by an unsuitable person or its affiliates
will be transferred to either New DraftKings or one or more third-party transferees, in such number and class(es)/series as determined
by the New DraftKings board of directors in good faith, following consultation with reputable outside gaming regulatory counsel,
pursuant to a resolution adopted by the unanimous affirmative vote of all of the disinterested members of the New DraftKings board
of directors.
Generally, any person who fails or refuses
to apply for a finding of suitability or a license within the prescribed period after being advised that it is required by gaming
authorities may be denied a license or found unsuitable, as applicable. Furthermore, we may be subject to disciplinary action or
our licenses may be in peril if, after we receive notice that a person is unsuitable to be a stockholder or to have any other relationship
with us or any of our subsidiaries, we: (i) pay that person any dividend or interest upon our voting securities; (ii) allow that
person to exercise, directly or indirectly, any voting right conferred through securities held by that person; (iii) pay remuneration
in any form to that person for services rendered or otherwise; or (iv) fail to pursue all lawful efforts to require such unsuitable
person to relinquish his voting securities.
Product-Specific Licensing
Daily Fantasy Sports
DraftKings' DFS is available in 43
U.S. states, the District of Columbia, and eight international jurisdictions. In the United States, 21 states and Puerto Rico have
adopted legislation permitting online fantasy sports. In those states that currently require a license or registration, DraftKings
has either obtained from the relevant regulatory authority, the appropriate license or registration, has obtained a provisional
license, or is operating pursuant to a grandfathering clause that allows operation pending the availability of licensing applications
and subsequent grant of a license. DraftKings also has three foreign licenses and operates under those licenses in eight countries.
Various state laws and regulations govern our licenses, but generally such state laws and regulations define paid fantasy sports,
establish the rules concerning the application and licensure procedures for gaming operators in the fantasy sports business and
regulate practices for paid fantasy sports deemed to be detrimental to the public interest. As part of the licensing process, we
must submit, in some jurisdictions, extensive materials on our operations, including our technology and data security, age verification
of users, segregation of account funds and responsible gaming initiatives.
In the United States, our licenses are generally
granted for a predetermined period of time (typically ranging from one to four years) or require documents to be supplied on a
regular basis in order to maintain our licenses.
We also maintain licenses in Great Britain,
Malta and Australia.
In Great Britain, online gaming and
sports betting is subject to the Gambling Act 2005 (the "GA2005"), as amended by the Gambling (Licensing and
Advertising) Act 2014, and the regulations promulgated thereunder. Under the GA2005, entities wishing to offer online sports
betting (which for purposes of GA2005 is defined to include DFS) and/or online casino services to persons located in Great
Britain must first obtain a remote gambling operating license from the Gambling Commission. We hold a remote-pool-betting
operating license authorizing us to offer our DFS product to residents of Great Britain. That license may be varied to add
further product categories permitting, for example, fixed-odds-sports betting and online casinos. We also hold a gambling
software operating license issued by the Gambling Commission, which authorizes us to develop the DFS software we use. Our
British licenses are not limited by a term, but are subject to the payment of annual fees.
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In Malta, online gaming and sports betting
is subject to the Gaming Act 2018 and the regulations promulgated thereunder. Fantasy sports (including DFS) are considered a controlled
skill game for the purposes of the Gaming Authorizations Regulations. Our subsidiary, Crown DFS Malta Limited, holds a gaming services
license, issued by the Malta Gaming Authority, which authorizes the holder to conduct controlled skill games. Our Malta license
was originally issued in 2017. Under the Gaming Act 2018, it has a duration of 10 years.
Malta is a Member State of the European
Union, and that has made it an increasingly popular hub for online betting and gaming businesses. We rely upon our Malta license
to conduct DFS operations not only in Malta, but also in certain other EU Member States, including Germany, Austria, the Republic
of Ireland and the Netherlands.
In Australia, online gaming and sports betting
is regulated at both the federal and state/territory levels. A sports betting operator that holds a license in one state or territory
may offer services across all other states (subject to certain specific statutory restrictions that may apply). Our subsidiary,
DraftKings Australia Pty Ltd, is the holder of a sports bookmaking license issued by the Northern Territory Racing Commission,
which enables DraftKings Australia Pty Ltd to conduct DFS contests. The Northern Territory license was issued in November 2017
for a duration of five years, subject to the payment of annual fees and compliance with license conditions.
Sportsbook
We currently operate our online sports betting
product via the DraftKings Sportsbook app in Indiana, Iowa, New Hampshire, New Jersey, Pennsylvania and West Virginia pursuant
to our temporary licenses or executed vendor agreements granted by the gaming or lottery commission of such states, specifically,
the Indiana Gaming Commission, the Iowa Racing and Gaming Commission, the New Hampshire Lottery Commission, the New Jersey Division
of Gaming Enforcement, the Pennsylvania Gaming Control Board and the West Virginia Lottery. We also operate retail sportsbooks
in Iowa, Mississippi, New Jersey and New York pursuant to state licensing regimes.
On May 14, 2018, the U.S. Supreme Court
issued an opinion determining that PASPA was unconstitutional. PASPA prohibited a state from "authorizing by law" any
form of sports betting. In striking down PASPA, the Supreme Court opened the potential for state-by-state authorization of sports
betting. Several states and territories, including Arkansas, Colorado, Delaware, Illinois, Indiana, Iowa, Michigan, Mississippi,
Montana, Nevada, New Hampshire, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Puerto Rico, Rhode Island, Tennessee,
Washington, D.C. and West Virginia already have laws authorizing and regulating some form of sports betting online or in brick-and-mortar
establishments. Sports betting in the United States is subject to additional laws, rules and regulations at the state level. See
"Risk Factors — Risk Factors Relating to the Business and Industry of New DraftKings — Our
business will be subject to a variety of U.S. and foreign laws, many of which are unsettled and still developing and which could
subject us to claims or otherwise harm our business. Any change in existing regulations or their interpretation, or the regulatory
climate applicable to our products and services, or changes in tax rules and regulations or interpretation thereof related to our
products and services, could adversely impact our ability to operate our business as currently conducted or as we seek to operate
in the future, which could have a material adverse effect on our financial condition and results of operations."
iGaming
We currently operate our iGaming platform
in New Jersey, pursuant to a transactional waiver granted by the New Jersey Division of Gaming Enforcement, and are pursuing licenses
in Pennsylvania and Wes t Virginia.
Generally, online gambling in the
United States is only lawful when specifically permitted under applicable state law. At the federal level, several laws
provide federal law enforcement with the authority to enforce and prosecute gambling operations conducted in violation of
underlying state gambling laws. These enforcement laws include the Unlawful Internet Gambling Enforcement Act (the
 "UIGEA"), the Illegal Gambling Business Act and the Travel Act. No violation of the UIGEA, the Illegal Gambling
Business Act or the Travel Act can be found absent a violation of an underlying state law or other federal law. In addition,
the Wire Act of 1961 (the "Wire Act") provides that anyone engaged in the business of betting or wagering
knowingly uses a wire communication facility for the transmission in interstate or foreign commerce of bets or wagers or
information assisting in the placing of bets or wagers on any sporting event or contest, or for the transmission of a wire
communication which entitles the recipient to receive money or credit as a result of bets or wagers, or for information
assisting in the placing of bets or wagers, will be fined or imprisoned, or both. However, the Wire Act notes that it shall
not be construed to prevent the transmission in interstate or foreign commerce of information for use in news reporting of
sporting events or contests, or for the transmission of information assisting in the placing of bets or wagers on a sporting
event or contest from a State or foreign country where betting on that sporting event or contest is legal into a State or
foreign country in which such betting is legal. There is ongoing legal action as to whether the Wire Act applies beyond
sports betting. A federal court of first instance has ruled that it does not.
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SBTech
SBTech has obtained licenses (and approvals,
as applicable) in six states in the United States and in the United Kingdom, Gibraltar, Malta and Romania. Additionally, SBTech
has certified its software in Denmark, Italy, Nigeria, Portugal and Spain, and its platform and sportsbook are available in Azerbaijan,
Belgium, Cyprus, Czech Republic, Greece, Mexico, Poland and Sweden under local licenses held by operators using SBTech's
platform in these jurisdictions.
SBTech currently supplies its platform,
sportsbook and iGaming services online in New Jersey and its platform and sportsbook online in Oregon. It also supplies its retail
sportsbook services in Arkansas, Indiana, Mississippi, New Jersey and Pennsylvania pursuant to state licensing regimes. In addition,
SBTech supplies its platform, sportsbook and iGaming services to customers in additional jurisdictions.
In addition to our licensing regime for
our offerings, we also take significant measures to protect users' privacy and data. Our programs consist of the following:
Data Protection and Privacy
Because we handle, collect, store, receive,
transmit and otherwise process certain personal information of our users and employees, we are also subject to federal, state and
foreign laws related to the privacy and protection of such data. Regulations such as the General Data Protection Regulation of
the European Union and the California Consumer Privacy Act, expected to take effect in California on January 1, 2020, are new,
untested laws that could affect our business, and the potential impact is unknown.
Compliance
We have developed and implemented a rigorous
internal compliance program to help ensure that we comply with legal and regulatory requirements imposed on us in connection with
our DFS, Sportsbook and iGaming activities. Our compliance and risk program focuses, among other things, on reducing and managing
problematic gaming and providing tools to assist users in making educated choices related to gaming activities.
Additionally, we employ various methods
and tools across our operations such as geolocation blocking, which restricts access based upon the user's geographical location
determined through a series of data points such as mobile devices and Wi-Fi networks; age verification to ensure our users are
old enough to participate; routine monitoring of user activity; and risk-based user due diligence to ensure the funds used by our
users are legitimately derived. We have a zero-tolerance approach to money laundering, terrorist financing, fraud and collusion.
While we are firmly committed to full compliance with all applicable laws and have developed appropriate policies and procedures
in order to comply with the requirements of the evolving regulatory regimes, we cannot assure that our compliance program will
prevent the violation of one or more laws or regulations, or that a violation by us or an employee will not result in the imposition
of a monetary fine or suspension or revocation of one or more of our licenses.
SBTech's platform has been built from
the ground up to meet the needs of differing regulatory regimes, including configurable regulatory and responsible gaming controls
such as responsible gaming tests, operator alerts on player behavior, deposit limits, betting limits, loss limits, timeout facilities,
session limits, reality checks, balance thresholds and intended gaming amounts. These features allow the operators' customers
full control of their gaming to allow them to play responsibly.
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Responsible and Safer Gaming
We view the safety and welfare of our users
as critical to our business and have made appropriate investments in our processes and systems. We are committed to industry-leading
responsible gaming practices and seek to provide our users with the resources and services they need to play responsibly. These
practices, resources and services include deposit limits, voluntary restrictions on access and use of certain offerings, temporary
self-exclusion and cooling-off periods, voluntary permanent exclusion from our offerings and applications and data science technology,
which is able to flag any suspicious or abnormal betting activity. We also participate in national self-exclusion registers where
they are in operation. We prominently promote our responsible gaming tools, resources and initiatives on our website and mobile
applications. We also maintain a self-excluded user list, which prohibits self-identified users from participating in DFS contests
or placing bets or participating in real-money gaming and have embedded the software to limit or restrict the amount individual
users spend. We also train our frontline personnel to identify signs of problematic gaming, ensuring that we are not only utilizing
data and technology but also our human resources.
In December 2019, we joined the National
Council on Problem Gambling ("NCPG") as a Platinum Member. The NCPG is the leading national organization for people
and their families who are affected by problem gambling and gambling addiction. Our NCPG membership supports wide-ranging problem
gambling prevention, treatment, education, and research programs, as well as innovative responsible gambling policies, provided
by the NCPG. Our membership helps build upon NCPG efforts, including the Safer Sports Betting Initiative and Internet Responsible
Gambling Standards, which assist gambling operators by providing best practice responsible gambling policies and procedures for
all online gambling activities, including sports betting.
We are also members of the Sports Wagering
Integrity Monitoring Association and the American Gaming Association.
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DRAFTKINGS'
INDUSTRY
Overview
We are a leader in digital sports entertainment
and gaming in the United States, with over 4.3 million cumulative unique paid users. Our total revenue has grown from $192 million
in 2017 to $323.4 million for the year ended December 31, 2019. Our growth has been driven substantially by the legalization of
sports betting and iGaming in several U.S. jurisdictions, including New Jersey, where we launched our DraftKings Sportsbook in
the third quarter of 2018 and iGaming in the fourth quarter of 2018.
Our Industry and Opportunity
We operate within the global entertainment
and gaming industries, which are comprised of diverse products and offerings that compete for consumers' time and disposable
income, such as movies, television, music, sporting events, video games, gambling and more. Industry revenue, according to the
International Trade Administration and H2 Gambling Capital ("H2"), is estimated to be greater than $2.5 trillion, of
which approximately one-third is derived from the United States.
We have focused our business to benefit
from the growth opportunities at the intersection of digital sports entertainment and gaming. We believe sports entertainment and
sports betting should fuel each other's growth for the foreseeable future. According to Deloitte's TMT Predictions
2019, 43% of North American men aged 25-34 who watch sports also regularly bet on sports, with regularly being defined as betting
at least once per week. Deloitte estimates that this figure could grow to be as large as 60% going forward. As more jurisdictions
legalize online gaming, we expect it to see outsized gains versus retail alternatives. For example, in New Jersey, the N.J. Division
of Gaming Enforcement notes that over 80% of sports betting gross gaming revenue came from online betting in 2019.
As momentum for regulated sports betting
and iGaming continues, we believe we are uniquely positioned to be a leader in both B2C and B2B capacities.
Global Gaming Industry
The global gaming industry includes a wide
array of products, from lotteries to bingo, slot machines, casino games and sports betting, across land-based and online platforms.
In 2019, the global gaming industry was estimated to generate approximately $456 billion in gross gaming revenue according to H2.
The industry has various operators and stakeholders across the private and public sectors, including traditional brick-and-mortar
casinos, state-run lottery operators, Native American Tribes, legacy online gaming operators, racetracks/racinos and gaming technology
companies.
Recently, online gaming has seen outsized
growth and increased penetration. Per H2, online gaming grew at an annual rate of 10% from 2014 to 2018, relative to global gaming's
growth of 2% per annum during that same period. H2 expects this trend to continue over the next five years. Online gaming's
share of total global gaming revenue is projected to nearly double from 2014 to 2024E (from 8% to 15% of the total global gaming
industry). The following trends are potential drivers of growth in this space:
·
We believe various jurisdictions globally, including the United States, are embracing regulated sports betting and iGaming
in an effort to create a safer gaming environment for consumers and to generate additional tax revenue (which is otherwise lost
to illegal bookmakers and operators).
·
We believe that in jurisdictions with regulated sports betting and iGaming, consumers have shown a strong preference for online
products as opposed to retail products when the option of online versus retail is available to them.
In the past decade, there has been significant
regulatory momentum with respect to online gaming across the globe. This momentum has been particularly relevant in developed nations
whose citizens have disposable income to spend on entertainment and gaming. For example, Denmark, France, Ireland, Italy, Poland,
Spain, Sweden, Switzerland and various states in the United States have legalized and regulated online sports betting or iGaming.
All of the aforementioned countries are classified in the "High Income" income group according to the World Bank. We
expect this trend to continue moving forward, most notably in the United States. For further details on the U.S. regulatory landscape,
see
"— Our Industry and Opportunity — North American Gaming Industry — U.S.
Sports Betting" and "— Our Industry and Opportunity — North American Gaming Industry — U.S.
iGaming"
below.
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North American Gaming Industry
Our short- to medium- term focus is on the
North American online gaming industry, particularly the opportunity in online sports betting and iGaming. According to H2, the
total North American gaming industry was estimated to generate approximately $134 billion in annual gross gaming revenue in 2019,
only 5% of which was derived from online gaming. We believe this low percentage of mobile gaming penetration in North America relative
to the rest of the world is predominantly due to the slower pace of adoption in the United States where online gaming is regulated
on a state-by-state basis. As U.S. jurisdictions become regulated and mature, online gaming penetration may approach that of other
developed nations. For example, H2 estimates that more than 45% of the U.K.'s gross gaming revenue comes from online betting
compared to approximately 3% in the United States.
The online gaming industry can be broadly
segmented into two sub-sectors: (1) sports betting and (2) iGaming. Our primary geographic focus is in the United States.
U.S. Sports Betting
On May 14, 2018, the U.S. Supreme Court
struck down PASPA. This ruling effectively allows for each state to legislate and regulate sports betting as it sees fit. After
PASPA was struck down, 21 states and the District of Columbia, as of the date of this prospectus, representing approximately 36%
of the U.S. population per the Census Bureau, have legalized sports betting in some form. The following table summarizes the current
status of legalized sports betting in the United States.
U.S. Regulatory Overview
Source:
"U.S. sports
betting tracker" from Gambling Compliance; "Where is sports betting legal in the U.S.?" from Legal Sports Report,
U.S. Census Data as of July 2018.
(1)
Indicates states that have legalized sports betting in some form.
(2)
Indicates states with online sportsbooks.
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(3)
Green check indicates states with operational online sports betting, while yellow check indicates states that are still pending
launch.
(4)
In New Mexico sports betting is limited to provision by Native American tribes.
(5)
Tennessee is the only state without retail sportsbooks.
According to Legal Sports Report, the regulated
sports betting industry in the United States generated greater than $900 million in gross gaming revenue in 2019, with approximately
$625 million (nearly 70%) coming from Nevada and New Jersey — states with more established gaming industries.
While the overall industry is still nascent, growth has been strong. For example, fourth quarter sportsbook gross gaming revenue
in New Jersey, the first state to regulate sports betting after PASPA was struck down, grew 102% year-over-year to $108.7 million
this past quarter.
We believe the sports betting industry is
going to grow significantly over the next five years as more states legalize sports betting and currently operational states progress
toward maturity.
In addition to regulatory momentum, we believe
that industry growth will be spurred by multiple parties having economic interests in the industry's development (such as
media providers, professional sports leagues, sportsbook operators and governments, among others). For example, legalized sports
betting should contribute to more engaged television viewers, generating revenue for both professional sports leagues and media
providers. According to Deloitte's TMT Predictions 2019, 68% percent of North American male sports watchers aged 25-34 are
more likely to watch a game on TV if they have bet on the game.
U.S. Online Sports Betting: Estimating
the Total Addressable Industry Size
There are several different ways to triangulate
potential industry size in the United States, some of which we have detailed below. For example, one can extrapolate from other
industries globally. These include the United Kingdom and Australia, both of which have mature and regulated sports betting industries.
As such, each country presents a data point to help gauge the potential of the U.S. sports betting market. Another way is to extrapolate
based on the results in New Jersey, even though New Jersey will only represent a relatively small portion of the mature U.S. industry
and the result in New Jersey may not be indicative of results in other jurisdictions.
Estimated U.S. Online
Sports Betting GGR at Maturity
Source:
New Jersey Division
of Gaming Enforcement; H2 Gambling Capital Global All Product Summary Report, June 2019; U.S. Census Bureau; U.K. Office for National
Statistics.
(1)
Implies industry size based on New Jersey's percentage of the U.S. population. 2023E NJ GGR assumes H1'19 annualized
GGR of $180 million grows at five-year historical iGaming CAGR of 28% per year until 2023 at which point the industry reaches a
mature state.
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(2)
Implies industry size based on 2023E U.K. GGR per adult of $88 and a U.S. adult population of 254 million people. 2023E U.K.
GGR applies five-year historical OSB CAGR of 13% in the U.K. to 2018 GGR of $2.4 billion.
(3)
Implies industry size based on 2023E Australia GGR per adult of $92 and a U.S. adult population of 254 million people. 2023E
Australia GGR per H2 Gambling Capital Global.
As presented in the chart above, the implied
U.S. sports betting industry could range from approximately $18 billion (based on the New Jersey extrapolation) to $23 billion
(based on the Australia extrapolation). We believe this industry presents an opportunity for New DraftKings' B2C and B2B
businesses.
U.S. iGaming
Of the nine states with live online sports
betting, four states (Nevada, New Jersey, Pennsylvania and West Virginia) have also legalized iGaming in some form. Specifically,
iGaming is legal in New Jersey, Pennsylvania and West Virginia, while only online poker is legal in Nevada. Additionally, Delaware
has legalized iGaming, although the state has not yet legalized online sports betting.
At the moment, iGaming has less regulatory
momentum than sports betting; however, New Jersey presents a data point for iGaming's industry potential in the United States.
As illustrated below, based on an extrapolation of New Jersey results, the implied total U.S. industry size could be greater than
$20 billion if every state legalizes iGaming.
For further details on the New Jersey iGaming
industry, refer to the New Jersey case study in
"Business of DraftKings and SBTech — Our Products and
Economic Model — Case Study: New Jersey Sportsbook."
Estimated U.S. iGaming
GGR Implied by New Jersey
(1)
GGR for nine months ended September 30, 2019 is annualized then grown one year forward at the historical CAGR of 25% ('14-'18A).
Daily Fantasy Sports
While predominately a U.S. business at present,
DFS is beginning to emerge in Europe and Australia. The U.S. DFS industry is currently occupied by DraftKings, our primary competitor,
FanDuel, and other smaller players (such as Yahoo Sports). According to Eilers, DraftKings and FanDuel account for approximately
95% market share, with DraftKings controlling approximately 60% of that share.
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Competition
Given that DraftKings operates in the global
entertainment and gaming industry, we consider any type of discretionary leisure and entertainment provider to be a competitor
with respect to our consumers' time and disposable income. In the sports betting space, our competitors are established European
players, such as Bet365, Flutter Entertainment / The Stars Group (through their FanDuel and FoxBet brands), William Hill and Roar
Digital (through its BetMGM brand and partnership with GVC). Additionally, we expect competition from new entrants, such as Pointsbet,
and U.S. casinos. We expect to have similar competitors in the iGaming space; however, our competitors may operate under different
brand names for the purposes of iGaming. With regard to DFS, our primary competitor is FanDuel, which is majority owned by Flutter
Entertainment.
We principally compete on a number of factors
across our B2C offerings. These include, but are not limited to, our front-end online product, our back-end infrastructure, our
ability to retain and monetize existing users, re-engage prior users and acquire new users and our regulatory access and compliance
experience.
In the B2B space, our competitors for sports
betting and iGaming will include Bet.Works, Gaming Innovation Group (GiG), GVC Holdings, International Gaming Technology (IGT),
Kambi, Playtech and Scientific Games. SBTech principally competes, and we will compete, on the quality and breadth of our technology
solutions and support services.
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DRAFTKINGS'
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis
of the financial condition and results of operations of DraftKings Inc. ("DraftKings," "we," "us"
and "our") should be read together with our audited consolidated financial statements as of December 31, 2019 and 2018
and for the years ended December 31, 2019, 2018 and 2017, in each case together with related notes thereto, included elsewhere
in this prospectus. The discussion and analysis should also be read together with the section entitled "Business of DraftKings
and SBTech" and our pro forma financial information as of and for the year ended December 31, 2019. See "Unaudited
Pro Forma Condensed Combined Financial Information." The following discussion contains forward-looking statements. Our actual
results may differ significantly from those projected in the forward-looking statements. Factors that might cause future results
to differ materially from those projected in the forward-looking statements include, but are not limited to, those discussed in
the sections entitled "Risk Factors" and "Cautionary Statement Regarding Forward-Looking Statements." Certain
amounts may not foot due to rounding.
Our Business
Our vision is to transform the way in which
people experience sports. Our mission is to make life more exciting by responsibly creating the world's favorite real-money
games and betting experiences.
In 2012, we launched our peer-to-peer daily
fantasy sports product offering for short-duration contests for cash prizes and continue to pioneer innovations aligned with our
mission. Today, we believe DraftKings is the largest daily fantasy sports operator in the United States. Starting in 2018, we expanded
into Sportsbook and iGaming and established ourselves as a top operator.
Our goal is to revolutionize digital sports
entertainment at the intersection of technology and entertainment. We have established a following among "skin-in-the-game"
sports fans brought together by our robust daily fantasy sports technology platform that powers millions of contest entries in
peer-to-peer competitions every week. We leverage our technology platform, the scale and density of our user base and insights
from over four million cumulative unique paid users to continuously improve our analytics, marketing and technology to (a) continue
to invest in our products and platform, (b) launch our product offerings in new geographies, (c) effectively integrate SBTech to
form a vertically integrated operation, (d) create replicable and predictable state-level unit economics in sports betting and
iGaming and (e) expand our consumer offerings. For example, in 2013 we launched the first mobile app in daily fantasy sports, anticipating
the behavioral shift of a user base that had historically relied on a desktop-only experience. And five years later, in August
2018, we launched the first mobile sportsbook in New Jersey.
Over the past eight years, we have achieved
sustained paid user growth and several key milestones, as indicated in the chart below (see "
Business of DraftKings and
SBTech
").
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Today, our offerings include expanded means
to experience sports and gaming, including our recently added iGaming offering that provides users with a robust suite of gaming
options. We anticipate the demand for our offerings will continue to grow as additional states legalize and regulate sports betting
and iGaming, and more people discover the convenience of our platform and excitement of the "skin-in-the-game" experience.
The following table sets forth a summary
of our financial results for the periods indicated:
Year ended December 31,
2019
2018
2017
(in thousands)
Revenue
$
323,410
$
226,227
$
191,844
Net Loss
(142,734
)
(76,220
)
(75,556
)
Adjusted EBITDA (1)
$
(98,640
)
$
(58,850
)
$
(48,884
)
(1)
Adjusted EBITDA is a non-GAAP financial measure. See
"— Non-GAAP Information"
below for our definition
of, and additional information about, Adjusted EBITDA, and for a reconciliation to net loss, the most directly comparable U.S.
GAAP financial measure.
The accelerated revenue growth in 2019 over
2018 was due to a full year of New Jersey Sportsbook and iGaming operations following launches in August and December of 2018,
respectively. The higher net loss year-over-year is due primarily to continued platform development and launches in three new states.
Our business is also seasonal in nature, and our revenue and user volume between quarters, as well as between year-over-year comparative
reporting periods, are impacted by the relative popularity of certain sports and the scheduling of professional sports seasons
and sporting events. See
"— Quarterly Performance Trend and Seasonality."
We make deliberate and substantial
investments in support of our mission and long-term growth. For example, we have invested in our products and technology in
order to continually launch new product innovations on our platform, improve marketing, merchandising, and operational
efficiency through data science, and deliver a great user experience. We also make significant investments in sales and
marketing and incentives to grow and retain our paid user base, including personalized cross-product offers and promotions,
and promote brand awareness to attract the "skin-in-the-game" sports fan. Together, these investments have
enabled us to create a leading product offering built on a scalable platform, while attracting a user base that resulted in
the rapid growth of our business. DraftKings is the leader in daily fantasy sports, with approximately 60% revenue market
share in the United States in the fourth quarter of 2019, according to Eilers' Daily Fantasy Sports Tracker from Q4
2019. We are also among the leading Sportsbook and iGaming operators in New Jersey, with market shares of greater than 30%
according to the NJ Division of Gaming Enforcement's Sports Wagering Revenue Reports from January 2020 and greater than
10% according to Eilers' U.S. Online Casino Tracker from December 2019. We have since launched our online Sportsbook in
Indiana, Iowa, New Hampshire, Pennsylvania and West Virginia.
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We are continuing to invest in our future
through product innovation and scaling our operations to prepare for the launch of our product offerings in new jurisdictions.
When we launch Sportsbook and iGaming offerings in a new jurisdiction, we invest in user acquisition, retention and cross-selling,
until the new jurisdiction provides a critical mass of users engaged across our product offerings. We expect each new jurisdiction
to achieve a positive contribution profit (which we define as revenue, minus cost of revenue and direct advertising costs) in approximately
12 to 36 months following launch, depending on the characteristics of the new market.
Our path to profitability is based on the
acceleration of positive contribution profit growth driven by marketing efficiencies as we transition from local to regional to
national advertising, and scale benefits on the platform development component of our cost of revenue. On a consolidated Adjusted
EBITDA basis, we expect to achieve profitability when total contribution profit exceeds the fixed costs of our business, which
depends, in part, on the percentage of the U.S. adult population that has access to our product offerings and the other factors
summarized in "
Cautionary Statement Regarding Forward-Looking Statements
".
Our current technology is highly scalable
with relatively minimal incremental spend required to launch our product offerings into new states. We will continue to manage
our fixed-cost base in conjunction with our market entry plans and focus our variable spend on marketing, user experience and support
and regulatory compliance to become the platform of choice for users and the partner of choice for regulators. We expect the Business
Combination to further improve our profitability (excluding the impact of amortization of acquired intangibles) through cost synergies
and new opportunities driven by vertical integration of SBTech's technology and know-how.
Impact of COVID-19
The novel coronavirus is having a significant
impact on most businesses, including DraftKings and SBTech. The direct impact on the business of DraftKings and SBTech beyond disruptions
in normal business operations in several of our offices is primarily through the suspension, postponement and cancellation of major
sports seasons and sporting events. Typically during the March and April time periods, we would have significant user interest
and activity in our DFS and Sportsbook product offerings for sporting events such as the NCAA college basketball tournament, the
Masters golf tournament, as well as late season games and early playoff series of the National Basketball Association and the National
Hockey League. While a number of sporting events have been cancelled or postponed, including the NCAA college basketball tournament
which was canceled, the ultimate status of other sporting events is unknown, including whether the NBA season will be completed
either in part or in its entirety on a delayed schedule.
The ultimate impact of COVID-19 on our financial
and operating results is unknown and will depend on the length of time that these disruptions exist and whether the sports seasons
and sporting events will ultimately be suspended, postponed, or cancelled; however, COVID-19 has had a significant impact and may
continue to have a significant impact, the full extent of which is unknown, but which could be material. In particular, these changes
have reduced customers' use of, and spending on, our product offerings, and have caused us to issue refunds for canceled
events, and retail casinos where we have a branded Sportsbook have closed. Our revenues vary based on major sports seasons and
sporting events, which will not generate as much revenue as they would have without the cancellation or postponements in the wake
of COVID-19. However, with respect to product offerings that do not rely on major sports seasons and sporting events, such as iGaming,
we expect to continue to generate revenue. DraftKings is also innovating to generate more content that does not rely on major sports
seasons and sporting events, for example products that allow people to wager on events such as political events and eSports such
as simulated eNASCAR and League of Legends. During this period, DraftKings and SBTech are managing the variable portion of their
cost structures to better align with revenue, including cost of goods sold, which depend on gross revenue generation, as well as
external marketing spend, which will be significantly reduced during this period of disruption. Because of the highly variable
cost structures of the businesses, DraftKings and SBTech's liquidity outlooks have not materially changed. Furthermore, as
detailed below in "
Liquidity and Capital Resources
," in March 2020, DraftKings drew down substantially all of
its revolving credit facility in order to provide financial flexibility at a moment when there were many uncertainties from the
impact of COVID-19, including potential limits on its access to financial and capital markets. While the COVID-19 crisis continues,
DraftKings does not have an immediate need for this capital and as such, does not have any material concerns with its ability to
service its debt.
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Assuming sports return this year (even without
audiences), neither DraftKings nor SBTech expect a long-term financial impact on their financial condition and results of operation.
However, as noted in "
Risk Factors — Risk Factors Relating to the Business and Industry of New DraftKings —
Reductions in discretionary consumer spending could have an adverse effect on our business, financial condition, results of operations
and prospects
," any significant or prolonged decrease in consumer spending on entertainment or leisure activities could
adversely affect the demand for our offerings, reducing our cash flows and revenues, and thereby materially harming our business,
financial condition and results of operations.
Finally, DraftKings and SBTech have business
continuity programs in place to ensure that employees are safe and that the businesses continue to function while employees are
working remotely. The businesses have been closely monitoring the impact of the population working from home and the potential
strain on internet connectivity but have not seen any adverse impact on the ability of the businesses to continue to function and
we have not seen any network connectivity issues that would have an adverse impact on our users ability to access our product offerings.
Our Business Model
Across all of our offerings, we provide
users with a single integrated platform that provides one account, one wallet, a centralized payment system and responsible gaming
controls, compliant with regulations across all jurisdictions in which we operate (we refer to this as our "platform").
This platform enables us to develop a seamless and personalized experience across our product offerings. Our product offerings,
consisting of daily fantasy sports, Sportsbook and iGaming, available through both web and mobile applications, generate substantially
all of our revenue. Our business model relies on our ability to leverage this multijurisdictional platform and create innovative
product offerings that will both attract new users and retain our growing base of users.
Our business model is based on the following
key factors and strategies:
Monetizing our Platform
We monetize our platform through the following
principal offerings:
·
Daily Fantasy Sports (DFS)
. Since launching our platform, we have monetized our DFS offering by facilitating peer-to-peer
play, whereby users compete against each other for prize money. We provide users with a technology platform that establishes daily
fantasy sports contests, scores the contest, distributes the prize money and performs other administrative activities to enable
the "skin-in-the-game" sports fan experience. Our revenue is the difference between the entry fees collected and the
amounts paid out to users as prizes and customer incentives in a period.
·
Sportsbook
. To further enhance the "skin-in-the-game" sports fan experience, shortly after the U.S. Supreme
Court struck down PASPA, we enabled our platform to offer online sports betting. In Sportsbook, we generate revenue from "hold"
as users play against the house (us).
·
iGaming
. iGaming includes the full suite of games available in land-based casinos, such as blackjack, roulette and slot
machines, all integrated with our other offerings through our platform. For these offerings, we function similarly to land-based
casinos, generating revenue through "hold" as users play against the house (us).
Across all of our principal offerings, as
more users place more bets or enter more contests, we earn more revenue. We also generate revenue from offering advertising and
sponsorship packages to targeted advertisers across our entertainment and gaming offerings.
Growing our User Base
Monthly Unique Payers ("MUPs")
.
The number of unique paid users ("payers") that use our product offerings on a monthly basis is a key metric of our
user growth. The chart below presents our MUPs for the years ended December 31, 2017, 2018 and 2019, respectively:
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MUPs is a key indicator of the scale of
our user base and awareness of our brand. We believe that the growth of our MUPs base is also indicative of our long-term revenue
growth potential. We expect the number of MUPs to grow as we attract, retain and re-engage users in new and existing jurisdictions
and expand our offerings to appeal to a wider audience.
We define MUPs as the number of unique paid
users ("payers") per month who had a paid engagement (i.e., participated in a real-money DFS contest, sports bet or
casino game) across one or more of our product offerings via our platform. For reported periods longer than one month, we average
the MUPs for the months in the reported period.
A "unique paid user" or "unique
payer" is any person who had one or more paid engagements via our platform during the period (i.e., a user that participates
in a paid engagement across each of our product offerings counts as a single unique payer for the period). This measure does not
include users who have not played with funds deposited in their wallet on our platform. We exclude users who have made a deposit
but have not yet had a paid engagement. Unique payers or unique paid users include users who have participated in a paid engagement
with promotional incentives, which are fungible with other funds deposited in their wallets on our platform, the number of these
users included in MUPs has not been material to date and a substantial majority of such users are repeat users who have had paid
engagements both prior to and after receiving incentives.
105
Average Revenue per MUP ("ARPMUP")
.
The average revenue per MUP represents our ability to drive usage and monetization of our product offerings. The chart below presents
our ARPMUP for the years ended December 31, 2017, 2018 and 2019, respectively:
We use ARPMUP to analyze comparative revenue
growth and measure customer monetization and engagement trends.
We define and calculate ARPMUP as the average
monthly revenue for a reporting period, divided by MUPs (i.e., the average number of unique payers) for the same period.
The Business Combination
Under the terms of the BCA, Merger Sub will
merge with and into DraftKings (the "DK Merger"), and DraftKings will survive the DK Merger as a wholly-owned subsidiary
of New DraftKings. Concurrently with the DK Merger, New DraftKings will acquire all of the issued and outstanding share capital
of SBTech (the "SBTech Acquisition"). Immediately prior to the DK Merger and the SBTech Acquisition, DEAC will merge
with and into DEAC NV Merger Corp., a Nevada corporation, and will change its name to DraftKings Inc. In consideration for the
DK Merger and the SBTech Acquisition, our stockholders will receive shares of common stock of New DraftKings, and SBTech's
shareholders will receive a combination of cash and shares of common stock of New DraftKings, as described more fully in the section
entitled "The Business Combination Agreement." We refer to these transactions as the "Business Combination."
We expect to be the accounting acquirer
of SBTech and have preliminarily allocated the estimated purchase price of approximately $758 million (reflecting certain estimated
purchase price adjustments and seller costs to be borne by New DraftKings pursuant to the BCA) to SBTech's assets and liabilities
in the pro forma balance sheet included elsewhere in this prospectus. This would result in, among other adjustments, pro forma
increases of approximately $11 million in property, plant and equipment, $269 million in amortizable intangible assets and $461
million in goodwill, compared to DraftKings' balance sheet as of December 31, 2019. The fair value measurement period for
the SBTech Acquisition will remain open upon the consummation of the Business Combination while we await further information and
analyses to determine the acquisition date fair values of certain acquired assets and assumed liabilities. Additionally, following
the Business Combination, we expect to incur certain one-time integration costs. We also plan to integrate SBTech's platform,
services, assets and know-how with our operations over time, which we expect to result in substantial synergies and provide us
with important competitive advantages. Expected synergies include implementation of SBTech's proprietary sportsbook technology
(transitioning from an external provider), integration of corporate management and shared service functions and processes and the
ability to attract skilled IT engineering professionals in lower-cost regions. Consequently, the future results we report for the
combined business may not be comparable to DraftKings' or SBTech's historical financial statements or the pro forma
financial information included elsewhere in this prospectus.
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Upon consummation of the Business Combination,
DraftKings expects to be deemed the predecessor of the combined business, and New DraftKings, as the parent company of the combined
business, will continue as the SEC registrant, meaning that DraftKings' financial statements for previous periods will be
disclosed in the registrant's future periodic reports filed with the SEC. The DK Merger will be accounted for as a reverse
recapitalization, with no goodwill or other intangible assets recorded, in accordance with U.S. GAAP. SBTech will be treated as
an acquired company for financial statement reporting purposes. The Business Combination is expected to have several significant
impacts on our future reported financial position and results, as a consequence of reverse capitalization treatment (with respect
to DEAC) and acquisition accounting (with respect to SBTech). These include an estimated increase in cash (as compared to our balance
sheet at December 31, 2019) of between approximately $218 million, assuming maximum shareholder redemptions, and $517 million,
assuming no shareholder redemptions. These pro forma cash amounts are net of  (x) approximately $213 million in cash consideration
payable to SBTech shareholders (including estimated purchase price adjustments pursuant to the BCA and certain seller transaction
costs to be paid by New DraftKings), (y) total non-recurring transaction costs estimated at approximately $55.6 million, in addition
to $3.8 million paid in the fourth quarter of 2019 (including acquisition-related advisory fees in connection with the Business
Combination and deferred underwriting commissions in connection with DEAC's initial public offering, but excluding certain
seller costs to be paid by New DraftKings) and (z) other transaction-related costs (including bonuses contingent on DEAC shareholder
redemptions not exceeding a specified threshold, redemptions of certain shares and the payment of certain transaction-related and
other payables of DEAC). A portion of the transaction costs will be treated as a reduction of equity (i.e., the deferred underwriting
commissions and costs pertaining to the reverse recapitalization) and a portion will be expensed in the period in which the Business
Combination closes (i.e., merger-related costs). The pro forma cash amounts include cash from (i) DEAC's trust account, the
amount of which will depend on the level of shareholder redemptions, (ii) $40.0 million in gross proceeds from our issuance of
Convertible Notes (as defined in "— Liquidity and Capital Resources") in early 2020, (iii) the proceeds from
the Private Placement of approximately $304.7 million that we expect to receive upon the consummation of the Business Combination
and (iv) $44.5 million in proceeds from the borrowing on our revolving credit facility incurred in March 2020. See
"Unaudited
Pro Forma Condensed Combined Financial Information."
As a consequence of the Business Combination,
DraftKings expects to become the successor to an SEC-registered and Nasdaq-listed company, which will require us to hire additional
staff and implement procedures and processes to address public company regulatory requirements and customary practices. We expect
to incur additional annual expenses for, among other things, directors' and officers' liability insurance, director
fees and additional internal and external accounting, legal and administrative resources and fees. DraftKings estimates that these
incremental costs will range between approximately $20 million and $30 million per year.
Non-GAAP Information
This prospectus includes Adjusted EBITDA,
which is a non-GAAP performance measure that we use to supplement our results presented in accordance with U.S. GAAP. We believe
Adjusted EBITDA is useful in evaluating our operating performance, as it is similar to measures reported by our public competitors
and is regularly used by security analysts, institutional investors and other interested parties in analyzing operating performance
and prospects. Adjusted EBITDA is not intended to be a substitute for any U.S. GAAP financial measure and, as calculated, may not
be comparable to other similarly titled measures of performance of other companies in other industries or within the same industry.
We define and calculate Adjusted EBITDA
as net loss before the impact of interest income or expense, income tax expense and depreciation and amortization, and further
adjusted for the following items: stock-based compensation, transaction-related costs, litigation, settlement and related costs
and certain other non-recurring, non-cash and non-core items, as described in the reconciliation below.
We include this non-GAAP financial measure
because it is used by management to evaluate DraftKings' core operating performance and trends and to make strategic decisions
regarding the allocation of capital and new investments. Adjusted EBITDA excludes certain expenses that are required in accordance
with U.S. GAAP because they are non-recurring (for example, in the case of transaction-related costs), non-cash (for example, in
the case of depreciation and amortization, stock-based compensation) or are not related to our underlying business performance
(for example, in the case of interest income and expense and legal settlement costs).
107
The table below presents our Adjusted EBITDA
reconciled to our net loss, the closest U.S. GAAP measure, for the periods indicated:
Year ended December 31,
2019
2018
2017
(in thousands)
Net loss
$
(142,734
)
$
(76,220
)
$
(75,556
)
Adjusted for:
Depreciation and amortization
13,636
7,499
6,301
Interest (income) expense, net
(1,348
)
(666
)
1,541
Income tax expense
58
105
210
Stock-based compensation
17,613
7,210
4,500
Transaction-related costs (1)
10,472
—
10,697
Litigation, settlement and related costs (2)
3,695
3,222
1,754
Other non-recurring and special project costs (3)
2,489
—
1,062
Non-operating costs (4)
(2,521
)
—
607
Adjusted EBITDA
$
(98,640
)
$
(58,850
)
$
(48,884
)
(1)
Mainly includes advisory, consulting, accounting and legal expenses in connection with mergers and acquisitions activities, including
related evaluation, negotiation and integration costs, and capital-raising activities. This includes costs related to the Business
Combination in 2019. The 2017 amount relates mainly to an attempted significant transaction.
(2)
Includes primarily litigation settlement costs, and related external legal costs, mainly in connection with regulatory investigations
and settlements.
(3)
Includes primarily consulting, advisory and other costs relating to non-recurring items and special projects, including, in
2019, the costs of our move to our new Boston headquarters, implementation of internal controls over financial reporting, executive
search costs and a signing bonus for a newly hired senior executive and, in 2017, lease exit costs related to the office space
in New York.
(4)
Includes, in 2019, a gain recorded upon a contribution of assets to an equity method investee, net of our equity method share
of the investee's losses and, in 2017, adjustments to the fair value of contingent consideration and other non-cash effects
included in the "other non-operating costs" line-item of our income statements.
Key Factors Affecting Our Results
Our financial position and results of operations
depend to a significant extent on the following factors:
Industry Opportunity and Competitive
Landscape
We operate within the global entertainment
and gaming industry, which is comprised of diverse products and offerings that compete for consumers' time and disposable
income. Our short-to-medium term focus is on the North American regulated gaming industry, particularly the opportunity in online
sports betting and iGaming. See
"DraftKings' Industry."
We believe our industry-leading product offerings,
strong technology platform, eight years of U.S. online and mobile gaming experience, established brand and, following our acquisition
of SBTech, our vertically integrated solutions make us a partner of choice for state regulators, professional sports leagues and
teams, gaming companies, retail and online sportsbooks and other sports entertainment and related businesses.
As we prepare to enter new
jurisdictions, we expect to face fierce competition from other established industry players, some of which may have more
experience in sports betting and iGaming and have access to more resources. We believe our analytics, the technology that
powers our platform, and the lessons learned from our DFS operations and New Jersey experience will enable us to capture
significant market share in newly available jurisdictions. For example, we achieved and maintain as of January 2020 a digital
sportsbook New Jersey market share of over 30% and we are among the top iGaming operators in the state, despite extensive
competition. We recently launched our online Sportsbook in Indiana, Iowa, New Hampshire, Pennsylvania and West Virginia, and
believe we are the market leader in Indiana and West Virginia as of January 2020.
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Legalization, Regulation and Taxation
We are the national leader in daily fantasy
sports and a top mobile-gaming operator in New Jersey according to Eilers' U.S. Sports Betting Market Monitor Report from
December 2019. Our financial prospects depend on legalization of online sports betting and iGaming across more of the United States,
a trend that we believe is in its infancy after the U.S. Supreme Court struck down PASPA in May 2018. Our strategy is to expand
our Sportsbook and iGaming offerings in new jurisdictions as they are legalized and become accessible. As of the date of this prospectus,
21 U.S. states and the District of Columbia, which collectively represent 36.1% of the U.S population, have legalized sports betting
in some form. Of these 21 legal jurisdictions, 14 have legalized online sports betting, and make up 23.9% of the U.S. population.
Nine of these 14 jurisdictions are live and five are pending launch. DraftKings operates in six of these nine jurisdictions, and
SBTech operates in one other. Mobile sports wagering bills are currently being considered in 18 states.
The process of securing the necessary licenses
or partnerships to operate in a given jurisdiction may take longer than we anticipate. In addition, legislative or regulatory restrictions
and product taxes may make it less attractive or more difficult for us to do business in a particular jurisdiction. For example,
certain jurisdictions require us to have a relationship with a land-based licensed casino for online sportsbook access, which tends
to increase our costs of revenue. States that have established state-run monopolies may limit opportunities for private sector
participants like us. We nonetheless believe our acquisition of SBTech will allow us to become a partner of choice to power state-run
sportsbooks, as exemplified by SBTech's recent agreement with the Oregon State Lottery.
States impose tax rates on regulated offerings,
which may vary substantially between states and product offerings. Sales taxes may also apply in certain jurisdictions. We are
also subject to a federal excise tax of 25 basis points on the amount of each sportsbook bet. See
"Risk Factors — Risk
Factors Relating to the Business and Industry of New DraftKings — Our growth prospects may suffer if we are unable
to develop successful offerings or if we fail to pursue additional offerings. In addition, if we fail to make the right investment
decisions in our offerings and technology platform, we may not attract and retain key users and our revenue and results of operations
may decline."
Ability to Acquire, Retain and Monetize
Users
We grow our business by attracting new paid
users to our platform and increasing their level of engagement with our product offerings over time. To effectively attract and
retain paid users and to re-engage former paid users, we invest in a variety of marketing channels in combination with personalized
customer promotions, most of which can be used across all of our product offerings (such as free contest entries or bets or matching
deposits). These investments and personalized promotions are intended to increase consumer awareness and drive engagement. While
we are continuing to assess the efficiency of our marketing and promotion activities, our limited operating history and the relative
novelty of the U.S. online sports betting and iGaming industries makes it difficult for us to predict when we will achieve our
longer-term profitability objectives.
Managing Betting Risk
Sports betting and iGaming are characterized
by an element of chance. Our revenue is impacted by variations in the hold percentage (the ratio of net win to total amount wagered)
on bets placed on, or the actual outcome of, games or events on which users bet. Although our product offerings generally perform
within a defined statistical range of outcomes, actual outcomes may vary for any given period, and a single large bet can have
a sizeable impact on our short-term financial performance. Our hold is also affected by the spread of limits and factors that are
beyond our control, such as a user's skill, experience and behavior, the mix of games played, the financial resources of
users and the volume of bets placed. As a result of the variability in these factors, the actual hold rates on our products may
differ from the theoretical win rates we have estimated and could result in the winnings of our gaming users exceeding those anticipated.
We seek to mitigate these risks through data science and analytics and rules built into our platform, as well as active management
of our amounts at risk at a point in time, but may not always be able to do so successfully, particularly over short periods, which
can result in financial losses as well as revenue volatility.
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Key Components of Revenue and Expenses
Revenue
We generate revenue primarily through
our three main product offerings. DFS, which was our sole product offering until late 2018, historically drove our revenue
results and accounts for a majority of our users; however, since we launched Sportsbook and iGaming in 2018, states with
Sportsbook and iGaming together have accounted for a rapidly growing proportion of our users, which drives our revenue. We
expect this user growth trend to continue and to further accelerate as our Sportsbook and iGaming offerings are permitted in
more U.S. states. Over time, we expect Sportsbook and iGaming users will surpass DFS users, and thus revenue.
We record substantially all our revenue
from our consumer product offerings on our platform. DFS revenue is generated to the extent that contest entry fees from customers
(i.e., our paid users), in the aggregate, exceed the aggregate prizes awarded and paid user incentives in a period. Sportsbook
and iGaming revenue is generated from bets received from paid users (referred to as "handle"), less winnings paid to
such users and paid user incentives. While we seek to set the odds of winning to provide us with a revenue margin on the amounts
at risk, our liability for the winning bets may result in net reductions to revenue if the amount of user bets won exceeds our
hold. We also generate revenue from the sale of advertising across our product offerings, and expect this to grow in dollar terms
(though not as a proportion of revenue) as we expand our platform across more of the United States.
We offer a variety of incentives to attract
users to our product offerings, including free or matching bets, enhanced odds and betting insurance. In addition, our paid users
are eligible for a loyalty program and can earn points for engaging with our offerings and redeem them for various rewards, including
contest tickets, apparel, events, sports merchandise and other prizes. We record the cost of these incentives as reductions to
revenue, i.e., we report revenue net of these costs. We expect the amount of these incentives, and the mix between incentives and
advertising and marketing costs, to be volatile for the foreseeable future. These incentives are also seasonal in nature and will
be affected by the timing of sporting events and our entry into new jurisdictions. While we plan to stabilize our incentive rates
as a percentage of gross revenue over time, we may incur higher or lower incentive costs in a given period, depending on a number
of factors, including the tax treatment of incentives and trend changes in legalization and our advertising spend.
Our revenue is currently concentrated in
the United States. See Note 17 to DraftKings' audited consolidated financial statements, included elsewhere in this prospectus.
Costs and Expenses
Cost of revenue
. Our cost of revenue
consists primarily of variable costs. These include mainly (i) payment processing fees and chargebacks, (ii) product taxes, (iii)
platform costs and (iv) revenue share / market access arrangements.
We incur payment processing costs on user
deposits and occasionally chargebacks as a result of user complaints (chargebacks have not been material to date).
Product taxes are imposed by different jurisdictions,
typically as a percentage of our gross gaming revenue, and also include, to a lesser extent, federal excise and local sales taxes
on certain product offerings. Product taxation of online sports betting and iGaming can vary substantially across jurisdictions,
and we expect this to become an increasingly significant driver of our cost of revenue as we enter new jurisdictions. Product taxes
may also reflect state promotional tax credits, which are recorded as an offset to the cost of revenue.
Platform costs relate mainly to third-party
integrated platform services, such as Kambi's sportsbook platform, data fees for information feeds and geolocation services,
web hosting, amortization of capitalized software development costs and developer salaries. These platform costs can vary substantially
depending on the mix of product offerings. For example, our iGaming offerings consist of a combination of games we have built ourselves,
with no license fees payable to content suppliers, and licensed content from third-party suppliers subject to various arrangements
based on revenue sharing or levels of activity. The games in our iGaming offering that we developed in-house, such as blackjack,
result in higher margins than games subject to licenses.
Revenue share arrangements are mainly agreements
with land-based casinos in states that require these agreements in order to provide real-money online sports betting and iGaming
offerings ("market access"). These market access fees are driven mainly by the levels of paid user activity via our
platform, particularly engagement with our Sportsbook and iGaming offerings, in a given period.
110
Sales and Marketing
. Sales and marketing
expenses consist primarily of direct advertising costs, expenses associated with strategic league and team relationships, brand
and creative services and related personnel costs. Sales and marketing also includes, to a lesser extent, costs related to promotional
contests funded entirely by us and allocations of rent, maintenance and utilities costs according to headcount.
We consider our sales and marketing spend
and promotional offers (which is contra revenue and is described under
"— Key Components of Revenue and Expenses — Revenue"
above) to be similar in character. Our total spend and allocation of spend between sales and marketing versus promotional spend
offers on product launches varies based on local market conditions, regional synergies and competition, among other factors. For
example, in New Jersey, we increased our sales and marketing spend upon launching our Sportsbook offering in the second half of
2018, in order to attract a critical mass of new paid users before returning to a normalized level in that market, while also providing
promotional offers to our existing DFS users in that state to encourage use of our Sportsbook and iGaming offerings. We expect
our advertising spend, like our promotional offers, to be a key component of our geographic expansion. Over the longer term, assuming
the trend of mobile sports betting and iGaming legalization continues, we expect our sales and marketing spend to decline as a
percentage of revenue, both as a result of higher return on each acquired paid user in multi-offering states (relative to states
where only DFS is available) and improved purchasing scale.
Product and Technology
. Product and
technology expenses consist of software development costs, comprised mainly of product and platform development, support personnel
costs, including stock compensation expense and related professional services. Product and technology also includes, to a lesser
extent, allocation of rent, maintenance and utilities costs according to headcount.
Our product and technology costs reflect
the ongoing maintenance of existing products, fulfilling user and government commitments including local market regulatory customizations,
continuously improving user-facing features and functionality, and innovating. We expect these costs to increase in the near term,
and to stabilize once we achieve sufficient organizational scale to support our product offerings on a national scale. We believe
these costs are highly scalable.
General and Administrative
. General
and administrative expenses ("G&A") consist primarily of administrative personnel costs, including executive salaries,
related stock compensation expense and benefits, professional services (including legal, regulatory, audit and licensing-related),
legal settlements and contingencies, insurance and allocation of rent, maintenance and utilities costs according to headcount.
Excluding the impact of SBTech integration costs and public company costs (discussed under "— The Business Combination"
above), we expect our G&A spend to further stabilize in the near term.
Income Tax Expense
. We account for
income taxes using the asset and liability method whereby deferred income taxes are recognized for the tax consequences of temporary
differences between the financial statement carrying amounts and the tax basis of the assets and liabilities. The provision for
income taxes reflects income earned and taxed mainly in the various U.S. federal and state jurisdictions. Jurisdictional tax law
changes, increases or decreases in permanent differences between book and tax items, accruals or adjustments of accruals for tax
contingencies or valuation allowances, and the change in the mix of earnings from these taxing jurisdictions all affect our overall
effective tax rate. Our tax expense has been immaterial throughout the periods presented in this prospectus, reflecting our losses.
Our historical losses have given rise to a substantial tax asset mainly comprised of net operating loss carryforwards, which we
may be able to apply to future tax liabilities. See Note 11 to DraftKings' audited consolidated financial statements included
elsewhere in this prospectus and
"— Critical Accounting Policies — Income Taxes."
Results of Operations
Comparison of the Years Ended December
31, 2019, 2018 and 2017
The following table sets forth a summary
of our consolidated results of operations for the years indicated, and the changes between periods.
Year ended December 31,
2018 to 2019 %
2017 to 2018 %
2019
2018
2017
Change
Change
(in thousands)
Revenue
$
323,410
$
226,277
$
191,844
42.9
%
17.9
%
Cost of revenue
103,889
48,689
31,750
113.4
%
53.4
%
Sales and marketing
185,269
145,580
156,632
27.3
%
-7.1
%
Product and technology
55,929
32,885
20,212
70.1
%
62.7
%
General and administrative
124,868
75,904
56,448
64.5%​
34.5
%
Loss from operations
(146,545
)
(76,781
)
(73,198
)
90.9
%
4.9
%
Interest income (expense), net
1,348
666
(1,541
)
102.4
%
n.m.
Gain on initial equity method investment
3,000
—
—
n.m.
n.m.
Other income (expense), net
—
—
(607
)
n.m.
n.m.
Loss before income taxes expense
(142,197
)
(76,115
)
(75,346
)
86.8
%
1.0
%
Income tax expense
58
105
210
-44.8
%
-50.0
%
Loss from equity method investment
479
—
—
n.m.
n.m.
Net loss
$
(142,734
)
$
(76,220
)
$
(75,556
)
87.3
%
0.9
%
n.m. = not meaningful.
111
2019 Compared to 2018
Revenue
. Revenue increased by $97.1
million, or 42.9%, to $323.4 million in 2019 from $226.3 million in 2018. The increase was attributable primarily to a full year
of revenue from our new product offerings in New Jersey. The revenue trend reflected the growth in MUPs, which increased 13.8%
period-on-period, and ARPMUP, which increased 25.6% period-on-period.
Cost of Revenue
. Cost of revenue
increased by $55.2 million, or 113.4%, to $103.9 million in 2019 from $48.7 million in 2018, reflecting our product expansion described
above. Product taxes, platform costs and payment processing fees and chargebacks contributed $20.6 million, $16.8 million and $9.3
million, respectively, to the increase, and revenue share arrangements, reflecting the higher market access costs relating to our
Sportsbook and iGaming product offerings, accounted for the remainder. Cost of revenue as a percentage of revenue increased by
10.6 percentage points to 32.1% in 2019 from 21.5% in 2018, reflecting the changed revenue mix of product offering revenue and
related costs. In general, we expect our Sportsbook and iGaming product offerings to produce substantially higher revenue dollars
but at a higher cost per revenue dollar relative to our DFS offering.
Sales and Marketing
. Sales and marketing
expense increased by $39.7 million, or 27.3%, to $185.3 million in 2019 from $145.6 million in 2018. The increase was due mainly
to increased advertising and marketing spend to increase awareness and user acquisition for our Sportsbook and iGaming offerings,
particularly in newly launched states. Sales and marketing expense accounted for 57.3% of our revenue in 2019 compared to 64.3%
in 2018, a decrease of 7.0 percentage points.
Product and Technology
. Product and
technology expense increased by $23.0 million, or 70.1%, to $55.9 million in 2019 from $32.9 million in 2018. The increase was
driven mainly by product operations and engineering headcount, which increased steadily to 390 as of December 31, 2019 from 295
as of December 31, 2018, and increased technology consulting costs. Product and technology expense accounted for 17.3% of our revenue
in 2019 compared to 14.5% in 2018, an increase of 2.8 percentage points.
General and Administrative
. General
and administrative expense increased by $49.0 million, or 64.5%, to $124.9 million in 2019 from $75.9 million in 2018. The increase
was due primarily to higher personnel costs, reflecting headcount growth and a $10.4 million increase in stock-based compensation,
and $10.5 million in costs related to the Business Combination recorded in the fourth quarter of 2019, as well as additions to
our indirect tax loss contingency reserves and higher rent and facilities costs following our headquarters move. General and administrative
expenses accounted for 38.6% of our revenue in 2019 compared to 33.5% in 2018, an increase of 5.1 percentage points.
Net Loss
. Net loss increased by $66.5
million to $142.7 million in 2019 from $76.2 million in 2018, for the reasons discussed above.
2018 Compared to 2017
Revenue
. Revenue increased by
$34.4 million, or 17.9%, to $226.3 million in 2018 from $191.8 million in 2017. The increase was attributable primarily to
the New Jersey launch of our Sportsbook and iGaming product offerings in the third and fourth quarters of 2018, respectively,
and continued growth of our DFS product offering. The increase in revenue was driven by increases in unique payers and
revenue per unique payer, reflected in the 4.7% increase in MUPs and 12.6% increase in ARPMUP, reflecting the impact of our
Sportsbook product launch. We directed a growing portion of paid user incentives and promotions at our users, to help
establish the new product.
112
Cost of Revenue
. Cost of revenue
increased by $16.9 million, or 53.4%, to $48.7 million in 2018 from $31.8 million in 2017, reflecting the costs of the aforementioned
Sportsbook launch, and particularly the related increase in product taxes. Product taxes and platform costs accounted for $7.0
million and $5.6 million, respectively, of the increase, and processing fees and chargebacks and revenue share arrangements accounted
for the remainder. Cost of revenue as a percentage of revenue increased by 4.9 percentage points to 21.5% in 2018 from 16.6% in
2017, reflecting the launch of our Sportsbook and iGaming product offerings in the second half of 2018, particularly proportionally
higher product taxes and revenue-sharing costs related to our Sportsbook product offering compared to DFS.
Sales and Marketing
. Sales and marketing
expense decreased by $11.1 million, or 7.1%, to $145.6 million in 2018 from $156.6 million in 2017, mainly due to a reduction in
team sponsorships. Team sponsorships continue to be an important marketing channel, but we have become more targeted in our approach,
and shifted spend towards our digital and offline channels. Sales and marketing expense accounted for 64.3% of our revenue in 2018
compared to 81.6% in 2017, a decrease of 17.3 percentage points.
Product and Technology
. Product and
technology expense increased by $12.7 million, or 62.7%, to $32.9 million in 2018 from $20.2 million in 2017. The increase was
driven mainly by product operations and engineering headcount, which increased steadily to 295 as of December 31, 2018 from 172
as of December 31, 2017, and increased technology consulting costs. Product and technology expense accounted for 14.5% of our revenue
in 2018 compared to 10.5% in 2017, an increase of 4.0 percentage points.
General and Administrative
. General
and administrative expense increased by $19.5 million, or 34.5%, to $75.9 million in 2018 from $56.4 million in 2017. The increase
was due primarily to higher personnel costs, reflecting headcount growth and a $2.7 million increase in stock-based compensation,
as well as additions to our indirect tax loss contingency reserves and third-party professional fees and increased rent and facilities
costs. General and administrative expenses accounted for 33.5% of our revenue in 2018 compared to 29.4% in 2017, an increase of
4.1 percentage points, reflecting the increases in headcount, stock-based compensation, consulting and other costs.
Net Loss
. Net loss increased by $0.7
million to $76.2 million in 2018 from $75.6 million in 2017, for the reasons discussed above.
Quarterly Performance Trend and Seasonality
Our user engagement and financial performance
is seasonal in nature, as indicated in the following chart, which presents our MUPs and ARPMUP for the last eight fiscal quarters,
and the explanations that follow.
113
Our business experiences seasonality based
on the relative popularity of certain sports. Although our platform supports contests and betting on sporting events throughout
the year, the fourth quarter is when our users tend to be most engaged, given the overlapping time frame of the NFL and NBA seasons.
As a result, we have historically generated higher revenues in our fourth fiscal quarter compared to our other fiscal quarters.
We anticipate that this trend will continue, though our mix of revenues in a given quarter will also be impacted by the timing
of new jurisdiction launches, the introduction of new product offerings and our integration of SBTech.
In addition, our revenue and key performance
indicators for a given quarter or fiscal year may differ substantially due to professional sports season scheduling, including
the frequency of play. For example, during the NFL season, our user engagement and revenue is generally highest on Sundays. The
number of Sundays in a fiscal reporting period may differ from quarter to quarter and year to year, resulting in revenue volatility
between comparative periods. For example, our fiscal years 2017, 2018 and 2019 included revenue related to 18, 17 and 17 Sundays
of regular season NFL play, respectively. In contrast, the MLB season, which falls in our second and part of our third fiscal quarters,
is characterized by numerous, daily games throughout the season, which tends to result in higher DFS user engagement and more Sportsbook
bets per paid user relative to the NFL season. MLB play also tends to attract a more dedicated but smaller fan base to our product
offerings. The timing of the MLB season in combination with these factors has tended to result in lower MUPs in our second fiscal
quarter, but a higher ARPMUP.
The suspension, postponement and cancellation
of major sports seasons and sporting events may materially impact our results of operations for the current quarter and, potentially,
future quarters. See "
—Impact of COVID-19.
"
Liquidity and Capital Resources
We measure liquidity in terms of our ability
to fund the cash requirements of our business operations, including working capital and capital expenditure needs, contractual
obligations and other commitments, with cash flows from operations and other sources of funding. Our current working capital needs
relate mainly to launching our iGaming and Sportsbook product offerings in new geographies, as well as compensation and benefits
of our employees. Our ability to expand and grow our business will depend on many factors, including our working capital needs
and the evolution of our operating cash flows.
We had $76.5 million in cash and cash equivalents
as of December 31, 2019 (excluding player cash, which we segregate from our operating cash balances on behalf of our paid users).
On a pro forma basis, assuming the Business Combination closed on that date, our cash and cash equivalents would have amounted
to between approximately $295 million and $593 million at December 31, 2019, depending on the extent of redemptions by DEAC shareholders.
We believe our operating cash flows, together with our cash on hand (including the proceeds of the Convertible Notes, as defined
below) and the cash we expect to obtain as a result of the Business Combination (including the proceeds of the Private Placement),
will be sufficient to meet our working capital and capital expenditure requirements for a period of at least twelve months from
the date of this prospectus. We may, however, need additional cash resources due to changed business conditions or other developments,
including unanticipated regulatory developments, significant acquisitions and competitive pressures. We expect our capital expenditures
and working capital requirements to continue to increase in the immediate future, as we seek to expand our product offerings across
more of the United States. To the extent that our current resources are insufficient to satisfy our cash requirements, we may need
to seek additional equity or debt financing. If the needed financing is not available, or if the terms of financing are less desirable
than we expect, we may be forced to decrease our level of investment in new product launches and related marketing initiatives
or to scale back our existing operations, which could have an adverse impact on our business and financial prospects. See Note
2 to DraftKings' audited consolidated financial statements included elsewhere in this prospectus.
114
Debt
We had $87.1 million in debt outstanding
as of December 31, 2019, comprised of convertible and Arrowmark promissory notes (excluding capitalized issuance costs and discounts)
and amounts drawn under our revolving credit facility. We have since incurred additional convertible note debt and drawn down substantially
the full amount available under our revolving credit facility, as discussed below.
Credit Facility
. We have a revolving
credit facility with Pacific Western Bank with a current limit of $50.0 million, which we are seeking to extend. The facility requires
us to hold a minimum cash balance of $5.0 million at all times (the "minimum cash balance guarantee"). The facility
is scheduled to mature on September 15, 2020. Borrowings under the facility bear interest at a variable annual rate equal to the
greater of (i) 1.00% above the prime rate then in effect and (ii) 6.50%, payable monthly. In addition, we are required to
pay quarterly in arrears a fee equal to 0.25% per annum of the unused portion of the revolving line of credit. As of December 31,
2019, we had $6.8 million outstanding under the facility and another $4.5 million was applied to the issuance of letters of credit
in connection with our office leases. We paid down the outstanding amount under our facility in February 2020.
Our obligations under the related loan and
security agreement are secured by substantially all of our assets. Pursuant to the agreement, we are required to maintain substantially
all depository, operating and investment accounts, excluding any proceeds from our gaming business, with Pacific Western Bank.
We are also subject to certain affirmative and negative covenants until maturity, including limitations on our ability to incur
additional debt or make capital expenditures and to pay dividends. As of December 31, 2019, we did not meet all covenant obligations
under the credit facility, but have subsequently obtained waivers from Pacific Western Bank and in March 2020 we drew down $44.5
million under the revolving credit facility, which was substantially fully drawn as of the date of this prospectus. We drew down
substantially all of our revolving credit facility in order to provide financial flexibility at a moment when there were many uncertainties
from the impact of COVID-19, including potential limits on our access to financial and capital markets. While the COVID-19 crisis
continues, we do not have an immediate need for this capital and as such, do not have any material concerns with our ability to
service our debt.
In connection with entering into the loan
and security agreement, we issued a warrant to Pacific Western Bank to purchase 173,913 shares of our common stock at an exercise
price of $0.23 per share. The warrant remains outstanding and is exercisable at any time until it expires in October 2020.
ArrowMark Notes
. On September 26,
2019, we entered into share redemption agreements with certain funds managed by ArrowMark Partners (the "ArrowMark Funds"),
pursuant to which we repurchased and redeemed shares of our preferred stock and common stock held by the ArrowMark Funds (the "ArrowMark
Redemption"). A portion of the consideration paid by us in connection with the ArrowMark Redemption, equaling approximately
$11.0 million, was paid by the issuance of promissory notes to certain of the ArrowMark Funds (the "ArrowMark Notes").
The ArrowMark Notes were canceled and exchanged into shares of our preferred stock, which in turn will convert into new shares
of New DraftKings Class A common stock upon the consummation of the Business Combination
Convertible Promissory Notes
. On
and after December 16, 2019, we issued subordinated convertible promissory notes to certain investors. The aggregate principal
amount outstanding under the Convertible Notes was $109.2 million as of the date of this prospectus, of which $69.1 million was
issued prior to December 31, 2019, and the remainder was issued in early 2020. Interest accrues on the outstanding amount of the
Convertible Notes at a rate of 10% per annum on a capitalized,
115
The Convertible Notes automatically convert
into equity upon (i) a business combination transaction that results in common shares of DraftKings, its successor or a new parent
company being listed on a national securities exchange (a "Qualified Business Combination"), (ii) the issuance of equity
securities of DraftKings that results in DraftKings receiving a minimum of $100 million in proceeds (a "Qualified Financing")
or (iii) an initial public offering of the equity securities of DraftKings pursuant to a registration statement under the Securities
Act of 1933, as amended (an "IPO"). In the case of a Qualified Business Combination, the outstanding principal (including
capitalized interest) on the Convertible Notes will convert into listed common shares of DraftKings, its successor or the new parent
entity, as applicable, at a price per share equal to (i) in the case of the closing of the Private Placement prior to the closing
of the Qualified Business Combination, the price per share paid by the PIPE Investors in the Private Placement and (ii) in all
other cases, the volume-weighted average trading price of such shares for the five consecutive trading days ending on the trading
day immediately preceding the closing of the Qualified Business Combination. In the case of a Qualified Financing, the outstanding
principal and interest on the Convertible Notes will convert into the equity securities sold to the cash investors in such Qualified
Financing, at a price per share equal to the price paid by the cash investors in such Qualified Financing. In the case of an IPO,
the outstanding principal and interest on the Convertible Notes will convert into the equity securities sold in such IPO, at a
price per share equal to the initial public offering price.
At the election of the Majority Holders,
the Convertible Notes are convertible into equity upon the issuance of equity securities of DraftKings that results in us receiving
less than $100 million in proceeds (a "Non-Qualified Financing"). In the case of a Non-Qualified Financing, the outstanding
principal and capitalized interest on the Convertible Notes may convert into the equity securities sold to the cash investors in
such Non-Qualified Financing, at a price per share equal to the price paid by the cash investors in such Non-Qualified Financing.
In the event of a combination, consolidation
or merger, other than a Qualified Business Combination, or a transfer of more than 50% of the voting power of DraftKings'
stock to stockholders that were not stockholders on the date of issuance of the Convertible Notes, we will be obligated to repay
the Convertible Notes in an amount equal to the outstanding principal and capitalized interest, plus a prepayment premium equal
to 15% of the original principal amount of the Convertible Notes.
In addition to the foregoing, in the event
that the Convertible Notes remain outstanding on December 16, 2022 (the "CN Maturity Date"), the Convertible Notes
will convert as of the CN Maturity Date into shares of a newly created series of DraftKings' preferred stock having substantially
the same rights, privileges and preferences as DraftKings' existing Series F Preferred Stock at a conversion price equal
to $3.312335 (as adjusted for any stock split, stock dividend, combination, recapitalization or similar transaction).
Cash Flows
The following table summarizes our cash
flows for the periods indicated:
​
Year ended December 31,
​
2019
2018
2017
​
(in thousands)
Net cash used by operating activities
$
(78,880
)
$
(45,579
)
$
(88,437
)
Net cash used in investing activities
(42,271
)
(26,672
)
(7,715
)
Net cash provided by financing activities
79,776
140,892
118,531
Net increase (decrease) in cash
(41,375
)
68,641
22,379
Cash at beginning of period
117,908
49,267
26,888
Cash at end of period
$
76,533
$
117,908
$
49,267
Operating Activities
. Our cash
used in operating activities includes the impact of changes in cash reserved for users, user cash receivables and liabilities
to users. Cash reserved for users is comprised of deposits by our users. We treat this cash as the property of our users and
segregate it from our operating cash balances. When we receive a user deposit, we record it as cash reserved for users on our
balance sheet. In certain cases, a payment processor may delay the remittance of deposits to us for risk management or other
reasons, in which case we grant our user access to those funds and record the deposits as a receivable reserved for users.
The sum of the changes in cash reserved for users, and changes in receivables reserved for users approximately agree to the
change in liabilities owed to users for any given period. While on deposit with us, cash reserved for users earns interest,
which is recorded as interest income on our income statement and is included in our operating cash flows. This interest
income has not been material to date.
116
Net cash used in operating activities in
2019 increased by $33.3 million, or 73.1%, to $78.9 million from $45.6 million in 2018, reflecting our higher net loss, for the
reasons discussed above, net of non-cash cost items (which increased by $15.6 million between periods), partially offset by an
improvement in operating working capital. The operating working capital improvement was driven mainly by an increase in accounts
payable and accrued expenses of $22.2 million between periods primarily related to increased advertising and marketing spend, as
discussed above.
Net cash used in operating activities in
2018 decreased by $42.9 million, or 48.5%, to $45.6 million, from $88.4 million in 2017, mostly relating to the change in our accounts
payable and accrued expenses between December 31, 2016 and December 31, 2017 compared to the change in our accounts payable and
accrued expenses between December 31, 2017 and December 31, 2018. During these periods, our accounts payable and accrued expense
balances fluctuated significantly due to the timing of our financing. At December 31, 2016, these balances totaled $80 million.
By December 31, 2017 these balances decreased by $29.8 million to $50.4 million. This decrease was funded, in part, by the 2017
equity issuances discussed below. By December 31, 2018, these balances had increased by $5.7 million to $56.1 million, and this
increase is generally aligned with growth in our cost base that year and generally not related to the timing of financing. The
difference between the $29.8 million use of cash to pay down balances in 2017 and the $5.7 million source of cash in 2018 when
we permitted these balances to rise is $35.5 million. Of the remaining $7.1 million decrease in cash used in operating activities
in 2018, $3.9 million resulted from the annual increase in depreciation, amortization and stock-based expenses.
Investing Activities
. Net cash used
in investing activities in 2019 increased by $15.6 million, or 58.5%, to $42.3 million from $26.7 million in 2018. The increase
reflected mainly higher state licensing fees, an increase in purchases of property and equipment (mainly attributable to leasehold
improvements related to our new Boston headquarters, computer equipment and software purchases and office furniture) and higher
capitalization of internal-use software costs.
Net cash used in investing activities in
2018 increased by $19.0 million to $26.7 million in 2018 from $7.7 million in 2017, reflecting increases in purchases of property
and equipment and higher capitalization of internal-use software costs.
Financing Activities
. Net cash provided
by financing activities in 2019 decreased by $61.1 million, or 43.4%, to $79.8 million from $140.9 million in 2018. The 2019 amount
mainly included net proceeds of $68.1 million from the issuance of Convertible Notes, as discussed above.
Net cash provided by financing activities
in 2018 increased by $22.4 million, or 18.9%, to $140.9 million, from $118.5 million in 2017. We obtained net equity proceeds of
$141.6 million from the issuance of series F redeemable convertible preferred stock in 2018, compared to $118.6 million received
from the issuance of series E-1 redeemable convertible preferred stock in 2017.
Contractual Obligations, Commitments and Contingencies
The following table and the information
that follows summarizes our contractual obligations as of December 31, 2019.
​
Total
Less than
1 year
1 - 3 Years
3 - 5 Years
More than
5 Years
​
(in thousands)
Operating lease obligations
(1)
$
66,028
$
10,067
$
16,674
$
15,602
$
23,685
Vendors and licenses
(2)
185,739
74,390
88,610
18,639
4,100
Debt obligations
(3)
86,873
6,750
80,123
-
-
Total
$
338,640
$
91,207
$
185,407
$
34,241
$
27,785
(1)
Includes operating leases of corporate office facilities, including our headquarters in Boston, Massachusetts, the lease for
which expires in 2029.
(2)
Includes obligations under non-cancelable contracts with vendors, licensors and others requiring us to make future cash payments,
including a commitment for advertising purchases with an affiliate of one of our shareholders, which
117
we expect to fulfil in the year ending December 31,
2020. See "
Certain Relationships and Related Party Transactions
." In connection with and upon the closing of
the Business Combination, we will be required to pay a total of approximately $13.9 million in success fees to certain vendors.
These success fees were classified as current obligations as the Business Combination is expected to close in 2020.
(3)
Includes the ArrowMark Notes, Convertible Notes and amounts outstanding under our revolving credit facility. See "
—
Liquidity and Capital Resources — Debt
" above for applicable interest rates and other relevant terms.
We may repay the debt under our revolving credit facility at any time without penalty. Upon the closing of the Business Combination,
the Convertible Notes will be converted into shares of DEAC Class A common stock (and then into Class A common stock of New DraftKings).
As discussed above, we drew $44.5 million under our revolving credit facility in March 2020, additional convertible promissory
notes of $40.0 million were issued in early 2020 and the ArrowMark Notes were canceled and exchanged into shares of our preferred
stock in March 2020, and these transactions are not included in the table.
As of December 31, 2019, we had contingencies
for various indirect operating taxes amounting to $35.9 million. See Note 6 to DraftKings' audited consolidated financial
statements included elsewhere in this prospectus. We do not have any material obligations for the payment of cash under contractual
arrangements, other than as described above under "
— Liquidity and Capital Resources — Debt
" or
in DraftKings' audited consolidated financial statements, included elsewhere in this prospectus.
Off-Balance Sheet Commitments and Arrangements
We are responsible for reimbursement obligations
on letters of credit in the aggregate face amount of $4.5 million as of December 31, 2019 issued under our revolving credit facility
to support our office leases. As of December 31, 2019, we hold a variable interest in a nonconsolidated entity accounted for under
the equity method of accounting. We are not the primary beneficiary of the entity and therefore are not required to consolidate
the entity. We do not guarantee any of the entity's obligations and have no further funding commitments. We do not have any
off-balance sheet commitments of the type required to be disclosed pursuant to SEC rules.
Critical Accounting Policies
Our consolidated financial statements have
been prepared in accordance with U.S. generally accepted accounting principles, or U.S. GAAP Preparation of the financial statements
requires our management to make judgments, estimates and assumptions that impact the reported amount of revenue and expenses, assets
and liabilities and the disclosure of contingent assets and liabilities. We consider an accounting judgment, estimate or assumption
to be critical when (1) the estimate or assumption is complex in nature or requires a high degree of judgment and (2) the use of
different judgments, estimates and assumptions could have a material impact on our consolidated financial statements. Our significant
accounting policies are described in Note 2 to DraftKings' audited consolidated financial statements included elsewhere in
this prospectus. Our critical accounting policies are described below.
Revenue Recognition
Revenue across all three product offerings
on our platform is generated in a similar manner. We offer a variety of incentives to attract users to our platform and product
offerings, including free or matching bets, enhanced odds, betting insurance and a loyalty program. These customer incentives,
most of which can be used across all of our product offerings, are recorded as reductions to revenue. For DFS, revenue is generated
to the extent that contest entry fees from paid users exceed prizes awarded and customer incentives in a period. Sportsbook and
iGaming revenue is generated from bets received from paid users (referred to as "handle"), less winnings paid and customer
incentives. See "
— Key Components of Revenue and Expenses
" above. .
Internally Developed Software Costs
We account for the cost of software
that is developed or obtained for internal use pursuant to Accounting Standards Codification ("ASC") Topic
350-40, Intangibles, Goodwill and Other  —  Internal-Use Software. Qualifying costs incurred to
develop internal-use software are capitalized when (i) the preliminary project stage is completed, (ii) management has
authorized further funding for the completion of the project and (iii) it is probable that the project will be completed and
performed as intended. These capitalized costs include salaries for employees who devote time directly to developing
internal-use software and external direct costs of services consumed in developing the software. Capitalization of these
costs ceases once the project is substantially complete and the software is ready for its intended purpose. We amortize
capitalized internally developed software costs over an estimated useful life of three years using the straight-line method.
These amortization expenses are classified as costs of revenue in the statements of operations. We capitalized $14.8 million
and $12.7 million in internally developed software costs for the years ended December 31, 2019 and 2018, respectively.
118
Loss Contingencies
Our loss contingencies, which are included
within the "other long-term liabilities" caption on our consolidated balance sheets, are uncertain by nature and their
estimation requires significant management judgment as to the probability of loss and estimation of the amount of loss. These contingencies
include, but may not be limited to, litigation, regulatory investigations and proceedings and management's evaluation of
complex laws and regulations, including those relating to indirect taxes, and the extent to which they may apply to our business
and industry. See Note 6 to DraftKings' audited consolidated financial statements for more information.
We regularly review our contingencies to
determine whether the likelihood of loss is probable and to assess whether a reasonable estimate of the loss can be made. Determination
of whether a loss estimate can be made is a complex undertaking that considers the judgement of management, third-party research,
the prospect of negotiation and interpretations by regulators and courts, among other information. When losses can be reasonably
estimated, an estimated contingent liability is recorded. We continually reevaluate our indirect tax and other positions for appropriateness.
Business Combinations
We account for business acquisitions in
accordance with ASC Topic 805, Business Combinations. We measure the cost of an acquisition as the aggregate of the acquisition
date fair values of the assets transferred and liabilities assumed and equity instruments issued. Transaction costs directly attributable
to the acquisition are expensed as incurred. We record goodwill for the excess of  (i) the total costs of acquisition, fair
value of any non-controlling interests and acquisition date fair value of any previously held equity interest in the acquired business
over (ii) the fair value of the identifiable net assets of the acquired business.
The acquisition method of accounting requires
us to exercise judgment and make estimates and assumptions based on available information regarding the fair values of the elements
of a business combination as of the date of acquisition, including the fair values of identifiable intangible assets, deferred
tax asset valuation allowances, liabilities related to uncertain tax positions and contingencies. We must also refine these estimates
over a one-year measurement period, to reflect any new information obtained about facts and circumstances that existed as of the
acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. If we are required
to retroactively adjust provisional amounts that we have recorded for the fair value of assets and liabilities in connection with
an acquisition, these adjustments could materially impact our results of operations and financial position. While we have not made
any material acquisitions to date, estimates and assumptions that we must make in estimating the fair value of future acquired
technology, user lists and other identifiable intangible assets include future cash flows that we expect to generate from the acquired
assets. If the subsequent actual results and updated projections of the underlying business activity change compared with the assumptions
and projections used to develop these values, we could record impairment charges. In addition, we have estimated the economic lives
of certain acquired assets and these lives are used to calculate depreciation and amortization expense. If our estimates of the
economic lives change, depreciation or amortization expenses could be accelerated or slowed, which could materially impact our
results of operations.
Income Taxes
We account for income taxes using the asset
and liability method whereby deferred income taxes are recognized for the tax consequences of temporary differences between the
financial statement carrying amounts and the tax basis of the assets and liabilities. We are subject to income tax in the United
States, including at the federal level and in various U.S. states and in other countries. As of December 31, 2019, we have a net
deferred tax liability of $217 thousand. Our federal net operating loss ("NOL") carryforward totaled $810.4 million
(net of $34.5 million that will expire unutilized), of which $676.0 million will expire at various dates through 2039 and $134.4
million that has an indefinite carryforward (they are, however, subject to an 80% taxable income limitation in the year of utilization).
$658.2 million of our total NOL carryforwards are subject to annual limitations through 2037 under IRC Section 382. Additionally,
we have state and foreign NOL carryforwards of $759.0 million and $271 thousand, respectively. The NOL carryforwards may be available
to offset future income tax liabilities.
119
We record a deferred tax asset for NOL carryforwards
by applying a weighted effective statutory tax rate to our total net operating loss carryforwards. As of December 31, 2019, we
have net deferred tax assets related to NOL carryforwards of $217.8 million. Based on management's assessment that the realization
of any future benefit from our deferred tax assets cannot be sufficiently assured, we recorded a full valuation allowance against
these NOL deferred tax assets. Management's estimates of future profitability and future changes in ownership may materially
impact our valuation allowance and our net deferred tax position.
Stock-based Compensation
Our historical and outstanding stock-based
compensation awards, including the issuances of options under our equity compensation plans, are described in Note 10 to DraftKings'
audited consolidated financial statements, included elsewhere in this prospectus. Stock-based compensation expense is measured
based on the grant-date fair value of the stock-based awards, and is recognized over the requisite service period of the awards,
which is generally the vesting period. For awards with only service-based vesting conditions, we recognize compensation cost using
the straight-line method.
We use the Black-Scholes option pricing
model to estimate the grant-date fair value of option grants, while the grant-date fair value of the underlying common stock is
measured using a number of objective and subjective factors. The Black-Scholes model requires management to make a number of key
assumptions, including the fair value of common stock, expected volatility, expected term, risk-free interest rate and expected
dividends. As our shares have not previously been publicly traded, and have not regularly traded privately, expected volatility
is estimated based on the average historical volatility of similar entities with publicly traded shares over the relevant vesting
or estimated liquidity period. The expected term represents the period of time that the options are expected to be outstanding
and is estimated using the midpoint between the requisite service period and the contractual term of the option. The risk-free
interest rate is estimated using the rate of return on U.S. treasury notes with a life that approximates the expected term.
Our management and Board considered various
objective and subjective factors to determine the fair value of DraftKings' common stock as of each grant date, including
the value determined by a third-party valuation firm. The factors considered by the third-party valuation firm and our Board included
the following:
·
our financial performance, capital structure and stage of development;
·
our management team and business strategy;
·
external market conditions affecting our industry, including competition and regulatory landscape;
·
our financial position and forecasted operating results;
·
the lack of an active public or private market for our common stock;
·
the likelihood of achieving a liquidity event, such as a sale of DraftKings or an initial public offering of our common stock;
and
·
market performance analyses, including with respect to stock price valuation, of similar companies in our industry.
The assumptions underlying these valuations
represent management's best estimates, which involve inherent uncertainties and the application of management judgment. As
a result, if factors or expected outcomes change and our management uses significantly different assumptions or estimates, our
stock-based compensation expense could be materially different. Upon the consummation of the Business Combination, the fair value
of our common stock will be determined based on the quoted market price on the Nasdaq.
Recently Adopted and Issued Accounting Pronouncements
Recently issued and adopted accounting pronouncements
are described in Note 2 to DraftKings' audited consolidated financial statements included elsewhere in this prospectus.
On January 1, 2019, we adopted
Accounting Standards Codification (ASC) Topic 606 (Revenue from Contracts with Customers) using the modified retrospective
method, and due to the immaterial difference, there was no adjustment to the opening balance of accumulated deficit at
January 1, 2019. The adoption of the New Revenue Standard did not have a material impact on our consolidated financial
position, results of operations, or cash flows. We expect the impact of the adoption of the New Revenue Standard will be
immaterial to net loss on an ongoing basis.
120
Emerging Growth Company Accounting Election
Section 102(b)(1) of the Jumpstart Our Business
Startups Act of 2012 ("JOBS Act") exempts emerging growth companies from being required to comply with new or revised
financial accounting standards until private companies are required to comply with the new or revised financial accounting standards.
The JOBS Act provides that a company can choose not to take advantage of the extended transition period and comply with the requirements
that apply to non-emerging growth companies, and any such election to not take advantage of the extended transition period is irrevocable.
DEAC is an "emerging growth company" as defined in Section 2(a) of the Securities Act of 1933, as amended, and has
elected to take advantage of the benefits of this extended transition period. Following the consummation of the Business Combination,
New DraftKings is expected to remain an emerging growth company at least through the end of the 2020 fiscal year and is expected
to continue to take advantage of the benefits of the extended transition period. This may make it difficult or impossible to compare
New DraftKings' financial results with the financial results of another public company that is either not an emerging growth
company or is an emerging growth company that has chosen not to take advantage of the extended transition period exemptions for
emerging growth companies because of the potential differences in accounting standards used.
Quantitative and Qualitative Disclosures About Market Risk
We have in the past and may in the future
be exposed to certain market risks, including interest rate, foreign currency exchange and financial instrument risks, in the ordinary
course of our business. Currently, these risks are not material to our financial condition or results of operations, but they may
be in the future. In particular, upon the consummation of the Business Combination, we expect our exposure to foreign currency
translation and transaction risk to increase. See the section of this prospectus entitled "
SBT's Management's
Discussion and Analysis of Financial Condition and Results of Operations — Quantitative and Qualitative Disclosures About
Market Risk
."
121
SBT'S
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis
of the financial condition and results of operations of SBTech (Global) Limited ("SBTech") should be read together
with SBTech's audited consolidated financial statements as of December 31, 2019 and 2018 and for the years ended December
31, 2019, 2018 and 2017, together with the related notes thereto, included elsewhere in this prospectus. The discussion and analysis
should also be read together with the section entitled "Business of DraftKings and SBTech", the pro forma financial
information as of and for the year ended December 31, 2019 (see "Unaudited Pro Forma Condensed Combined Financial Information")
and the section entitled "DraftKings' Management's Discussion and Analysis of Financial Condition and Results
of Operations." The following discussion contains forward-looking statements. SBTech's actual results may differ significantly
from those projected in the forward-looking statements. Factors that might cause future results to differ materially from those
projected in the forward-looking statements include, but are not limited to, those discussed in the sections entitled "Risk
Factors" and "Cautionary Note Regarding Forward Looking Statements." Certain amounts in tables and narrative
may not foot due to rounding.
Overview
SBTech's principal business activities
involve the design and development of sports betting and casino gaming platform software. SBTech's platform software is delivered
using a SaaS model, along with complementary managed services. SBTech is a turnkey supplier of an end-to-end suite of services,
such as a fully- and semi-managed Internet-based (e.g., mobile) sportsbook with industry-leading risk management tools and an in-house
multi-channel technology platform configured with all major payment gateways and adaptable to regulatory requirements, casino providers
and customer relationship management tools. In addition, SBTech offers a leading mobile casino gaming solution via its proprietary
platform with integrations to all leading third-party mobile gaming suppliers. SBTech's proprietary platform allows leading
mobile sportsbook and casino gaming operators to deliver products under their own brands, powered by SBTech's leading industry
platform engine.
The Business Combination presents New DraftKings,
including the businesses of DraftKings and SBTech, with an opportunity to provide a vertically integrated Sportsbook offering.
SBTech management believes this will enable New DraftKings to leverage SBTech's proprietary technology to serve other branded
online and retail sports betting operators in the U.S. and internationally, including U.S. state monopoly providers for whom New
DraftKings' vertical integration could provide a significant advantage. See "
DraftKings' Management's
Discussion and Analysis of Financial Condition and Results of Operations - The Business Combination
."
The following table sets forth a summary
of SBTech's financial results for the periods indicated:
​
Year ended December 31,
​
2019
2018
2017
​
(€ in thousands)
Revenue
€
96,857
€
94,147
€
66,087
Gross profit
42,684
49,060
34,243
Net profit after tax
€
4,576
€
26,779
€
16,290
The comparability of SBTech's revenue
and gross profit was impacted between periods by SBTech's strategic decision to end a relationship with a certain customer
as of September 1, 2018, as discussed below. Excluding the impact of dot.com (as defined below), which contributed €24.5 million
and €27.7 million in revenue in 2018 and 2017, respectively, SBTech's footprint and revenue have expanded substantially
since January 1, 2017, driven mainly by growth in the number of customers using SBTech's platform, a trend management expects
will accelerate following SBTech's entry into the United States.
Impact of COVID-19
The novel coronavirus is having a significant impact on most
businesses, including DraftKings and SBTech. The direct impact on the business of DraftKings and SBTech beyond disruptions in normal
business operations in several of our offices is primarily through the suspension, postponement and cancellation of major sports
seasons and sporting events. Typically during the March and April time periods, we would have significant user interest and activity
in our Sportsbook product offerings for sporting events across the major European Soccer competitions, NBA, NCAA college basketball
tournament, the Masters golf tournament and the Grand National Horse Race in the UK. The status of most of these sporting events
is that they are postponed or unknown as to when they will restart, including whether the NBA season will be completed either in
part or in its entirety on a delayed schedule.
122
The ultimate impact of COVID-19 on our financial
and operating results is unknown and will depend on the length of time that these disruptions exist and whether the sports seasons
and sporting events will ultimately be suspended, postponed, or cancelled; however, COVID-19 has had a significant impact and may
continue to have a significant impact, the full extent of which is unknown, but which could be material.
SBTech revenues vary based on major sports
seasons and sporting events, which will not generate as much revenue as they would have without the cancellation or postponements
in the wake of COVID-19. To date, the impact of COVID-19 on SBTech's revenues from its Asia reseller business has been limited
due to the primarily fixed fee arrangements with its Asian resellers.
During this period, DraftKings and SBTech
are managing the variable portion of their cost structures to better align with revenue, including cost of goods sold, which depend
on gross revenue generation, as well as external marketing spend, which will be reduced during this period of disruption.
Assuming sports return this year (even without
audiences), neither DraftKings nor SBTech expect a long-term financial impact on their financial condition and results of operation.
Finally, DraftKings and SBTech have business
continuity programs in place to ensure that employees are safe and that the businesses continue to function while employees are
working remotely. SBTech has been closely monitoring the new working environment for their employees and have not experienced any
adverse impact on its ability to continue to operate its business. SBTech has established training and is continually monitoring
its remote working practices to increase productivity.
Presentation of Financial Information
In 2018, SBTech decided to end a relationship
with a certain customer, "dot.com". The decision was effective on September 1, 2018, and SBTech continued to support
the customer's operations with transitional support for a limited period. SBTech no longer operates, supports or derives
any revenue from dot.com.
SBTech's financial statements included
elsewhere in this prospectus were prepared in accordance with International Financial Reporting Standards ("IFRS")
as issued by the International Accounting Standards Board ("IASB"). SBTech's historical financial statements
were prepared using the historical cost convention method. To facilitate comparability, the pro forma financial information included
elsewhere in this prospectus has been prepared by, among other things, converting SBTech's historical financial information
into U.S. GAAP, eliminating the impact of dot.com, conforming to DraftKings' accounting policies and applying preliminary
purchase accounting adjustments based on DraftKings' management's preliminary allocation of the purchase price to SBTech's
assets and liabilities. See "
Unaudited Pro Forma Condensed Combined Financial Information
." Consequently, SBTech's
results of operations and consolidated statements of financial positions discussed herein are not comparable to the pro forma financial
information and will not be comparable to New DraftKings' financial reporting for future periods, which will be calculated
in accordance with U.S. GAAP and will reflect the accounting acquirer's accounting policies and a new basis of accounting
for SBTech's assets and liabilities.
SBTech adopted IFRS 16 (Leases), which established
a new standard for the recognition, measurement, presentation and disclosure of leases, as of January 1, 2019. As a result, at
that date SBTech recognized a lease liability and corresponding right-of-use asset of  €20.8 million, and has accrued,
in 2019, related interest expense on the lease liability of  €0.7 million and depreciation expense on the right-of-use
asset of  €3.3 million. As a result, SBTech's audited consolidated financial statements as of and for the years
ended December 31, 2018 and 2017 are not directly comparable to its audited consolidated financial statements as of and for the
year ended December 31, 2019. See Note 2 to SBTech's audited consolidated financial statements included elsewhere in this
prospectus.
123
SBTech's functional currency is
the Euro, and its results of operations reported herein are presented in Euro. SBTech has historically been exposed to
foreign currency exchange risk. See "
- Quantitative and Qualitative Disclosures About Market
Risk - Foreign Currency Exchange Rate Risk
." Going forward, SBTech's results will be reported as
part of New DraftKings, and the combined company's results of operations and financial condition will be reported in
U.S. dollars, will be subject to foreign currency transaction and translation risk and will be impacted by various factors,
including those discussed in the sections of this prospectus entitled "
Risk Factors
" and
 "
DraftKings' Management's Discussion and Analysis of Financial Condition and Results of
Operations - Key Factors Affecting Our Results.
"
Key Components of Revenue and Expenses
Revenue
SBTech generates revenue by offering its
services and software to customers throughout Europe, Asia and the United States. SBTech's services are delivered through
its proprietary platform for sports betting and casino gaming, as well as for certain customers trading and risk management and
complementary services to support reporting, customer management and regulatory reporting requirements. SBTech's direct customer
contracts entitle it to earn a percentage of a customer's monthly net gaming revenue as defined under customer contracts,
generated on SBTech's platform. In contrast, SBTech's reseller arrangements typically provide for a base fixed fee
plus a fixed monthly fee determined based on the number of operators with which the reseller contracts to access SBTech's
software.
SBTech records revenue net of value added
tax and discounts. SBTech's key revenue drivers include the number of customers that it serves, amount of revenue generated
by direct customers and geographic expansion (particularly into U.S. jurisdictions). In 2019, SBTech generated approximately 46%
of its revenue under contracts with direct customers. In 2019, approximately 37% and 63% of SBTech's revenue was derived
from customers in Europe and other regions (primarily Asia). In comparison, the revenue split for the respective regions was approximately
34% and 66% in fiscal year 2018 and 48% and 52% in fiscal year 2017. Following the dot.com exit decision and entry into the United
States, SBTech's management expects U.S.- and European-source revenue to continue growing relative to other regions.
Costs and Expenses
Cost of revenue.
SBTech's cost
of revenue is largely variable and consists mainly of salaries, benefits and incidental costs for personnel dedicated primarily
to revenue-generating activities, licenses to non-proprietary online casino games marketed through SBTech's platform and
feed providers of live sporting and racing results, information technology infrastructure and hosting costs, amortization of capitalized
software costs, depreciation of related assets and allocation of related overhead costs.
Research and Development.
Research
and development expenses include mainly salaries, benefits and incidental costs for personnel dedicated primarily to research and
development activities and related third-party consulting costs, depreciation of related assets and allocation of related overhead
costs. Research and development costs that lead to new or substantially improved internally generated software are capitalized.
The determination of whether to capitalize or expense these costs is based on analyses of time and materials dedicated to each
project and evaluation of how far the project has progressed. Capitalized costs are amortized through cost of revenue once the
asset is determined to be marketable.
Selling and Marketing.
Selling and
marketing expenses consist of costs incurred to acquire new customers, mainly salaries and benefits of sales and marketing personnel,
advertising and marketing costs and promotional trade conferences and events. In order to reach a larger audience of B2B customers,
SBTech typically ramps up its sales and marketing activities upon entering a new market or expansion in an existing market.
General and Administrative.
General
and administrative expenses consist primarily of administrative personnel costs, including executive salaries and bonuses, professional
costs related to legal, regulatory, audit and consulting services, transaction costs, allocation of overhead costs, insurance,
travel and depreciation of related assets.
Income Taxes.
SBTech accounts
for income taxes using the asset and liability method whereby deferred income taxes are recognized for the tax consequences
of temporary differences between the financial statement carrying amounts and the tax basis of the assets and liabilities.
The provision for income taxes reflects income earned and taxed in the various, to date mostly non-U.S., jurisdictions.
SBTech is headquartered in the Isle of Man, where it has historically reported a significant majority of its profits.
SBTech's applicable subsidiaries are subject to income tax in their respective jurisdictions. See Note 13 to
SBTech's audited consolidated financial statements included elsewhere in this prospectus. Jurisdictional tax law
changes, increases or decreases in permanent differences between book and tax items, accruals or adjustments of accruals for
tax contingencies or valuation allowances, and the change in the mix of earnings from these taxing jurisdictions all affect
the overall effective tax rate. SBTech's effective tax rates were approximately 6%, 3% and 2% in the years ended
December 31, 2019, 2018 and 2017, respectively. The differences between periods were attributable mainly to the change in mix
of taxing jurisdictions.
124
Results of Operations
Comparison of the Years Ended December
31, 2019, 2018 and 2017
The following table sets forth a summary
of SBTech's consolidated results of operations for the years indicated, and the changes between periods.
Year
    ended December 31,
2018 - 2019
2017 - 2018
2019
2018
2017
%
    Change
%
    Change
(€
    in thousands)
Revenue
€
96,857
€
94,147
€
66,087
2.9
%
42.5
%
Cost
    of revenue
54,173
45,087
31,844
20.2
%
41.6
%
Gross
    profit
42,684
49,060
34,243
-13.0
%
43.3
%
Operating
    expenses:
​
​
​
​
​
Research
    and development expenses
18,103
10,115
8,693
79.0
%
16.4
%
Selling
    and marketing expenses
6,772
3,722
2,964
81.9
%
25.6
%
General
    and administrative expenses
11,772
7,636
5,892
54.2
%
29.6
%
Profit
    from operations
6,037
27,587
16,694
-78.1
%
65.3
%
Financial
    income
23
97
37
-76.3
%
162.2
%
Financial
    expense
846
340
177
148.8
%
92.1
%
Profit
    before tax
5,214
27,344
16,554
-80.9
%
65.2
%
Tax
    expenses
638
565
264
12.9
%
114.0
%
Net
    profit
€
4,576
€
26,779
€
16,290
-82.9
%
64.4
%
2019 Compared to 2018
Revenue.
Revenue increased by €2.7
million, or 2.9%, to €96.9 million in the year ended December 31, 2019 from €94.1 million in the year ended December
31, 2018, driven by SBTech's growth in Europe and Asia and entry into U.S. jurisdictions after PASPA was struck down, offset
by dot.com, which contributed €24.5 million in revenue in 2018. Excluding the impact of dot.com, 2018 revenue would have been
 €69.6 million, implying an organic revenue growth of  €27.3 million, or 39.2%, in 2019. Organic revenue growth
reflected mainly additions of new customers in Asia, as well as growth in Europe and the United States.
Cost of Revenue and Gross Profit.
Cost of revenue increased by €9.1 million, or 20.2%, to €54.2 million in the year ended December 31, 2019 from €45.1
million in the year ended December 31, 2018, reflecting the expansion in gaming activity on SBTech's platform, requiring
additional information technology infrastructure and personnel to support adequate product delivery and facilitate processing of
bets. The increase also reflected an increase in depreciation and amortization costs associated with additions of internally developed
software costs and recognition of right-of-use assets from the adoption of IFRS 16. dot.com, which historically generated higher
margins, accounted for €3.2 million in cost of revenue (mostly fees paid to feed and third-party casino game providers) in
2018, reflecting an organic cost of revenue growth rate of 29.3% between periods.
Gross profit decreased by €6.4
million, or 13.0%, to €42.7 million in the year ended December 31, 2019 compared to €49.1 million in the year ended
December 31, 2018. Gross margin (gross profit as a percentage of revenue) decreased by 8.0 percentage points to 44.1% in 2019
from 52.1% in 2018, reflecting mainly the lower margins of SBTech's operations excluding the impact of dot.com.
Excluding the impact of dot.com, gross profit in 2018 would have been €27.8 million, implying an organic gross profit
growth rate of 53.6% between periods.
125
Research and Development.
Research
and development expenses increased by €8.0 million, or 79.0%, to €18.1 million in the year ended December 31, 2019 from
 €10.1 million in the year ended December 31, 2018. The increase was due primarily to headcount additions, driven by platform
adaptation to compliance standards and customer requirements in various jurisdictions, including the United States. Research and
development expenses accounted for 18.7% of SBTech's revenue in 2019 compared to 10.7% in 2018, an increase of 8.0 percentage
points.
Selling and Marketing.
Selling and
marketing expenses increased by €3.1 million, or 81.9%, to €6.8 million in the year ended December 31, 2019 from €3.7
million in the year ended December 31, 2018. The increase was driven by additional headcount related to sales and marketing and
an expanding footprint at trade conferences.
General and Administrative.
General
and administrative expenses increased by €4.1 million, or 54.20%, to €11.8 million in the year ended December 31, 2019
from €7.6 million in the year ended December 31, 2018. The increase was driven by transaction costs and higher third-party
professional fees, related mainly to U.S. licensing and compliance, as well as additional headcount in the United States and other
jurisdictions to provide management support for the platform's growing footprint.
Net Profit.
Net profit decreased
by €22.2 million, or 82.9%, to €4.6 million in the year ended December 31, 2019 from €26.8 million in the year ended
December 31, 2018, due to dot.com, as well as the other reasons discussed above.
2018 Compared to 2017
Revenue.
Revenue increased by €28.0
million, or 42.5%, to €94.1 million in the year ended December 31, 2018 from €66.1 million in the year ended December
31, 2017, driven by organic customer growth in Europe as well as the addition of new customers in Asia. dot.com contributed €24.5
million in revenue in 2018 and €27.7 million in 2017.
Cost of Revenue and Gross Profit.
Cost of revenue increased by €13.2 million, or 41.6%, to €45.1 million in the year ended December 31, 2018 from €31.9
million in the year ended December 31, 2017, reflecting mainly SBTech's growth in Europe and in Asia, as well as costs in
connection with SBTech's entry into the United States, partially offset by the impact of dot.com.
Gross profit increased by €14.8 million,
or 43.3%, to €49.0 million in the year ended December 31, 2018 compared to €34.2 million in the year ended December 31,
2017. Gross margin percentage (gross profit as a percentage of revenue) increased by 0.3 percentage points to 52.1% in the year
ended December 31, 2018 from 51.8% in the year ended December 31, 2017.
Research and development.
Research
and development expenses increased by €1.4 million, or 16.4%, to €10.1 million in the year ended December 31, 2018 from
 €8.7 million in the year ended December 31, 2017. The increase was due primarily to an increase in headcount relating to our
investment in platform improvements and addition of new features and modules, as well as salary increases. However, research and
development expenses accounted for 10.7% of SBTech's revenue in 2018 compared to 13.2% in 2017, a decrease of 2.5 percentage
points.
Selling and Marketing.
Selling and
marketing expenses increased by €0.7 million, or 25.6%, to €3.7 million in the year ended December 31, 2018 from €3.0
million in the year ended December 31, 2017. The increase was due mainly to an increase in spend on trade conference participation.
Sales and marketing expenses accounted for 4.0% of SBTech's revenue in 2018 compared to 4.5% in 2017, a decrease of 0.5 percentage
points.
General and Administrative.
General
and administrative expenses increased by €1.7 million, or 29.6%, to €7.6 million in the year ended December 31, 2018
from €5.9 million in the year ended December 31, 2017. The increase was due mainly to higher spend on third-party professional
services, mainly related to SBTech's entry into the United States.
Net Profit.
Net profit increased
by €10.5 million, or 64.4%, to €26.8 million in the year ended December 31, 2018 compared to €16.3 million in the
year ended December 31, 2017, for the reasons discussed above.
126
Liquidity and Capital Resources
SBTech measures liquidity in terms of its
ability to fund the cash requirements of its business operations, including working capital needs, capital expenditures, contractual
obligations and other commitments with cash flows from operations and other sources of funding. SBTech's current liquidity
needs relate mainly to working capital, platform development and market expansion of its offerings. SBTech has historically generated
sufficient cash flows from operations to meet these cash requirements, including investments in platform development throughout
SBTech's current growth phase. SBTech had €8.1 million in cash and cash equivalents as of December 31, 2019, no debt
for borrowed money and €26.3 million in lease liabilities. Following the Business Combination, the liquidity needs of the
combined company will be determined based on the needs and strategy of the combined business, as discussed in the sections of this
prospectus entitled "
Business of DraftKings and SBTech
" and "
DraftKings' Management's Discussion
and Analysis of Financial Condition and Results of Operations
."
Cash Flows
The following table summarizes SBTech's
cash flows for the periods indicated:
​
Year ended December 31,
​
2019
2018
2017
​
(€ in thousands)
Net cash provided by operating activities
€
19,525
€
30,949
€
18,260
Net cash used in investing activities
(18,399
)
(17,384
)
(14,307
)
Net cash provided by (used in) financing activities
(13,537
)
(1,184
)
190
Effects of exchange rate changes
(176
)
(104
)
(6
)
Net increase (decrease) in cash and cash equivalents
(12,587
)
12,277
4,137
Cash, cash equivalents at beginning of period
20,731
8,454
4,317
Cash, cash equivalents at end of period
€
8,144
€
20,731
€
8,454
Operating Activities.
Net cash provided
by operating activities in 2019 decreased by €11.4 million, or 36.9%, to €19.5 million from €30.9 million in 2018,
reflecting SBTech's €21.6 million decrease in operating profit, driven primarily by the impact of dot.com and costs
related to expansion, as discussed above, partially offset by higher non-cash costs, particularly depreciation and amortization
as well as an increase in other accounts payable and accrued expenses.
Net cash provided by operating activities
in 2018 increased by €12.6 million, or 69.4%, to €30.9 million from €18.3 million in 2017, due to SBTech's
higher operating profit, driven by organic customer growth in Europe as well as the addition of new customers in Asia, as discussed
above, net of non-cash costs.
Investing Activities.
Investing activities
in all periods included mainly capitalization of internally developed intangibles and purchases of property and equipment, mainly
computers and leasehold improvements. Net cash used in investing activities in 2019 increased by €1.0 million, or 5.7%, to
 €18.4 million from €17.4 million in 2018. The increase was attributable mainly to higher capitalized development costs.
In addition, the repayment of a related party loan in 2018 contributed $1.2 million in cash from investing activities in 2018.
Net cash used in investing activities in
2018 increased by €3.1 million, or 21.5%, to €17.4 million from €14.3 million in 2017, primarily due to a €2.6
million increase in purchases of property and equipment, as well as a modest increase in capitalization of internally developed
intangibles.
Financing Activities.
Net cash used
in financing activities increased by €12.3 million in 2019, to €13.5 million, from €1.2 million in 2018. The increase
in financing cash flows was due primarily to the distribution of a €10.0 million dividend to shareholders and the €3.5
million payment of the principal on lease liabilities.
127
Net cash used in financing activities in
2018 was €1.2 million, compared to net cash flow provided by financing activities of  €0.2 million in 2017. The
change was due primarily to a €0.7 million dividend payment and €0.5 million loan repayment.
As a result of SBTech's adoption of
IFRS 16 as of January 1, 2019, payments of rent expense are reflected on SBTech's cash flow statements in depreciation of
the right-of-use assets and implied interest on lease liabilities, both within cash flows provided by operating activities, and
payment of principal on lease liabilities within cash flows used in financing activities. Prior to SBTech's adoption of IFRS
16, rent was an operating expense reflected fully within operating cash flows. As a result of SBTech's adoption of IFRS 16,
the cash flow statement captions are not comparable between periods because cash flow provided by operating activities reflects
a €4.0 million positive impact, reflecting the depreciation of the right-of-use assets and implied interest on the lease liabilities,
and cash flow used in financing reflects €3.5 million negative impact, reflecting the payment of principal on lease liabilities.
Contractual Obligations
The following table and the information that follows summarizes
SBTech's contractual obligations as of December 31, 2019:
​
Total
Less than
1 year
1 - 3 Years
3 - 5 Years
More than
5 Years
​
(€ in thousands)
Lease obligations
(1)
€
26,265
€
3,516
€
7,103
€
5,813
€
9,833
(1)
This includes the total amount of lease liabilities recorded under IFRS 16.
In connection with the anticipated Business
Combination, SBTech entered into an agreement with a financial advisor to pay success fees equal to (i) $2.5 million (€2.2
million), in the event the sale includes participation by a special purpose acquisition company ("SPAC"), or (ii) $2
million (€1.8 million), in the event that the sale does not include participation by a SPAC. In the event that a sale is not
consummated by SBTech and SBTech receives a termination or break-up fee, SBTech will pay the financial advisor a cash fee equal
to 15% of the termination or break-up fee received by SBTech. In addition, the Group entered into an agreement with a legal advisor
by which the Group agreed to pay for fees based on time involved in the engagement and internal time charges. However, to the extent
that the deal is abandoned, the fees will be capped at $0.5 million (€0.4 million).
In the ordinary course of its business,
SBTech enters into short-term software licenses and cloud managed services with certain vendors, which are not included in the
table above. SBTech does not have any material obligations for the payment of cash under contractual arrangements other than disclosed
above.
Off-Balance Sheet Commitments and Arrangements
SBTech does not have any relationships with
unconsolidated entities or financial partnerships, such as structured finance or special purpose entities that were established
for the purpose of facilitating off-balance sheet arrangements or contingent commitments of the type required to be reported under
SEC rules.
Critical Accounting Policies
SBTech's consolidated financial statements
have been prepared in accordance with IFRS. Preparation of the financial statements requires SBTech's management to make
judgments, estimates and assumptions that impact the reported amount of revenue and expenses, assets and liabilities and the disclosure
of contingent assets and liabilities. SBTech considers an accounting judgment, estimate or assumption to be critical when (l) the
estimate or assumption is complex in nature or requires a high degree of judgment and (2) the use of different judgments, estimates
and assumptions could have a material impact on SBTech's consolidated financial statements. SBTech's significant accounting
policies are described in Note 2 to SBTech's annual consolidated financial statements included elsewhere in this prospectus.
SBTech's critical accounting policies are described below.
128
Capitalization and Amortization of Development
Costs
Expenditures incurred for software development
activities are capitalized only where the expenditures will lead to new or substantially improved products, the products are technically
and commercially feasible and SBTech has sufficient resources to complete the development and reach the stage in which the product
is ready for use, which requires significant management judgment. Development costs that lead to new or substantially improved
internally generated intangibles are capitalized based on management's analysis of time and materials dedicated to each project
and evaluation of how far the project has progressed. Capitalized development costs are amortized on a straight-line basis over
their estimated useful lives once the development is completed and the assets are in use. The carrying value of capitalized development
costs are reviewed for impairment whenever there is an indicator that the assets may be impaired.
Useful lives are based on management's
estimates of the period during which the assets will generate revenue, which are periodically reviewed for continued appropriateness.
Changes to estimates can result in significant variations in the amounts recorded on SBTech's consolidated statement of financial
position and statement of comprehensive income for a given period. In 2019, SBTech capitalized €13.0 million of development
costs as intangible assets and expensed €18.1 million in research and development costs.
Quantitative and Qualitative Disclosures About Market Risk
SBTech has in the past, and New DraftKings
may in the future, be exposed to certain market risks, including interest rate, foreign currency exchange and financial instrument
risks, in the ordinary course of business. SBTech's exposure to interest rate and financial instruments risk is not material
as of December 31, 2019. In addition, SBTech may also face customer collection risk in the ordinary course of business. See Note
2 to SBTech's audited consolidated financial statements included elsewhere in this ​prospectus.
Foreign Currency Exchange Rate Risk
SBTech has been exposed to foreign currency
exchange risk related to its transactions in currencies other than the Euro, which is SBTech's reporting currency. SBTech
does not currently hedge its foreign exchange exposure. SBTech's foreign currency exposure is primarily with respect to the
British pound (which accounted for 10.2% and 5.0% of SBTech's revenue in 2019 and 2018, respectively) and the U.S. dollar
(which accounted for 4.2% and 1.4% of SBTech's revenue in 2019 and 2018, respectively). A 10% increase or decrease in the
value of these currencies to the Euro would have caused SBTech's reported revenue to increase or decrease by approximately
 €1.3 million in 2019.
129
MANAGEMENT
Board of Directors and Management After the Business Combination
Board of Directors
The business and affairs of New DraftKings
will be managed by or under the direction of the New DraftKings Board. The Stockholders Agreement provides for the New DraftKings
director designation rights of DEAC, DraftKings and SBT. See the section entitled "—
Stockholders Agreement
"
for more information.
The table below lists the persons expected
to be nominated and elected to the New DraftKings board of directors following the completion of the Business Combination, along
with the party to the Stockholders Agreement expected to nominate each person, each nominee's age as of the date of the Special
Meeting, and any other position that such nominee will hold with New DraftKings.
Name
Position with New
DraftKings
Age as of Special
Meeting
Nominated
By
Jason D. Robins
Chief Executive Officer and
Chairman of the Board
39
DraftKings
Harry Evans Sloan
Vice Chairman of the Board
70
DEAC
Michael Gavin Isaacs
Director
55
SBTech
Matthew Kalish
President, DraftKings
North America, Director
38
DraftKings
Woodrow H. Levin
Director
41
DraftKings
Paul Liberman
President, Global Technology
and Product, Director
37
DraftKings
Shalom Meckenzie
Director
43
SBTech
Ryan R. Moore
Director
46
DraftKings
Steven J. Murray
Director
51
DraftKings
Hany M. Nada
Director
51
DraftKings
Richard Rosenblatt
Director
51
DraftKings
John S. Salter
Director
42
DraftKings
Marni M. Walden
Director
53
DraftKings
The following is a brief biography of each
non-executive director nominee of the New DraftKings board of directors that is known as of the date of this prospectus.
Michael Gavin (Gavin) Isaacs
currently serves as the non-executive Chairman of the board of directors of SBTech (Global) Limited (since January 2019) and as
a member of the board of directors of Galaxy Gaming, Inc. ("Galaxy Gaming"; OTCMKTS: GLXZ) (since June 2019), a public
company which develops and distributes casino table games and enhanced systems. During his tenure at SBT, he has assisted in the
company's successful entry into the U.S. gaming market to become the exclusive statewide provider for the Oregon State Lottery.
Since December 2018, Mr. Isaacs has worked as an independent consultant, advising companies, including Galaxy Gaming, on strategy,
market development and execution-oriented deliverables. Previously, Mr. Isaacs served as Vice Chairman of the board of directors
of Scientific Games Corporation ("Scientific Games") between August 2016 and December 2018, and prior to that was President
and Chief Executive Officer of Scientific Games from June 2014 until August 2016. Prior to 2014, Mr. Isaacs served as Chief Executive
Officer of SHFL Entertainment, Inc. and served as Executive Vice President and Chief Operating Officer of Bally from 2006 through
2011. Mr. Isaacs is currently Counsellor of the International Association of Gaming Advisors, having previously served as the President
of the association. In addition, he previously served as Vice Chairman of the board of directors of the American Gaming Association.
Mr. Isaacs received his LL.M. from the University of Sydney and his LL.B. and BCommerce in Accounting and Financial Systems from
the University of New South Wales.
130
We believe Mr. Isaacs is qualified to serve
on the board of directors of New DraftKings due, among other things, to his more than 20 years' experience in the gaming
and technology industries, including in executive and leadership positions. Mr. Isaacs also brings public company board experience.
Woodrow H. Levin
is the founder
and has served as Chief Executive Officer of Extend, Inc. ("Extend"), which offers an API-first solution for merchants
to offer extended warranties and protection plans, and 3.0 Capital GP, LLC, which is a multi-strategy crypto asset hedge fund.
Prior to founding Extend in November 2018 and 3.0 Capital GP, LLC in December 2017, Mr. Levin served as Vice President of growth
at DocuSign, Inc., which allows organizations to digitally prepare, sign, act on, and manage agreements. In addition, Mr. Levin
served as the founder and Chief Executive Officer of Estate Assist, Inc., from February 2014 to September 2015 (at which time it
was acquired), which offers digital estate planning assistance and BringIt, Inc., from June 2009 to September 2012 (at which time
it was acquired), which provides a virtual currency casino and arcade. Mr. Levin served as Director Emerging Business - Office
of the CTO at International Game Technology, Inc., which manufactured and distributed slot machines and other gaming technology.
Mr. Levin currently serves as a member of the board of directors of DraftKings (since December 2013) and of Extend (since November
2018). He received his J.D. from Chicago-Kent College of Law, Illinois Institute of Technology, and his B.A. from the University
of Wisconsin.
We believe Mr. Levin is qualified to serve
on the board of directors of New DraftKings due, among other things, to his extensive experience and knowledge as an executive
for technology companies, and his service as a member of the DraftKings' board.
Shalom Meckenzie
is an entrepreneur
who founded SBTech in July 2007 and served as a director until May 2014. He currently serves as a member of the board of directors
of A.L. Skyshield Ltd (since May 2014) which is a holding company for real estate property. Mr. Meckenzie also served as a member
of the board of directors of Gaming Tech Ltd., from June 2003 until January 2018, which is a subsidiary of SBTech that provides
general and administration, marketing support and research and development services.
We believe Mr. Meckenzie is qualified to
serve on the board of directors of New DraftKings due, among other things, to his experience and background in managing large-scale
international corporations, including over a decade of experience in the online sports betting and online gaming industries, as
well as his service as a member of the board of directors of numerous companies.
Ryan R. Moore
is a co-founder
of Accomplice Management, LLC, a venture capital firm he co-founded in January 2015, and a founding investor in several technology
companies. He has served as a member of the board of directors for DraftKings since February of 2012. He currently sits on the
board of several privately held companies. Mr. Moore began his career at SoftBank Capital Partners LP, a venture capital firm.
Later, he was investment team member of GrandBanks Capital, which invested primarily in early stage technology companies. He joined
Atlas Advisors, Inc., the predecessor to Accomplice, which focuses its investments on early-stage companies, where he was a Partner
from August 2011 to December of 2014. Mr. Moore received his A.B. in Economics from Princeton University.
We believe Mr. Moore is qualified to serve
on the board of directors of New DraftKings due, among other things, to his extensive investment experience and background, including
experience in the eSports industry, as well as his service as a member of the board of directors of DraftKings and numerous other
companies.
Steven J. Murray
is the
Operating Manager of the ultimate general partner of Revolution Growth III, LP (together with its affiliates,
 "Revolution"), a venture capital firm, where he has worked since January 2016. Prior to joining Revolution, Mr.
Murray worked for SoftBank Capital Partners LP ("Softbank"), a venture capital firm, from April 1996 to January
2016, where he most recently served as a Partner. Prior to joining Softbank, he worked for Deloitte & Touche LLP, where
he specialized in high-growth technology based businesses. Mr. Murray currently serves as a member of the board of directors
of Fitbit, Inc. (NYSE: FIT) (since June 2013), which offers wireless-enabled wearable technology devices and activity
trackers, and of a number of private Revolution portfolio companies, including: BigCommerce, Inc. (since June 2018), which is
the world's leading open SaaS ecommerce platform for fast-growing and established brands; Convene Holding Company LLC
(since June 2018), which offers full-service, technology-enabled meeting, event and flexible workspaces; Glowforge Inc.
(since August 2019), which manufactures 3D laser printers; Interactions Corporation (since June 2013), which uses artificial
intelligence to create virtual assistant customer service products for companies; and InVenture Capital Corporation d/b/a
Tala (since March 2018), which provides financial products and services to underbanked individuals in developing nations; and
DraftKings (since August 2016). Mr. Murray received his B.S. in Accounting from Boston College in 1990.
131
We believe Mr. Murray is qualified to serve
on the board of directors of New DraftKings due, among other things, to his experience as a member of the board of directors of
both public and private companies, including DraftKings, and expertise in fundraising, management of high-growth companies and
all levels of corporate governance.
Hany M. Nada
co-founded ACME
Capital, a venture capital firm, in January 2019 and serves as one of the firm's partners. Prior to co-founding ACME Capital,
Mr. Nada co-founded GGV Capital LLC (formerly Granite Global Ventures, "GGV"), a venture capital firm, in 2000, and
served as a Managing Director at the firm from 2000 until October 2016 and as a Venture Partner from November 2016 until October
2018. Prior to co-founding GGV, Mr. Nada served as Managing Director and Senior Research Analyst at Piper Sandler & Co. f/k/a
Piper Jaffray & Co, an investment banking firm, specializing in Internet software and e-infrastructure. Mr. Nada currently
serves as a member of the board of directors of several companies, including Glu Mobile (Nasdaq: GLUU) (since April 2005), in which
he sits on the audit committee, compensation committee and strategy committee; ArchByte (since December 2019); and DraftKings (since
December 2013), and was previously on the board of directors of Vocera Communications, Inc. and Tudou, both publicly traded companies.
In addition, Mr. Nada is an observer on the board of directors of Houzz, Inc, IonQ and Uhnder. Mr. Nada received his B.S. in Economics
and his B.A. in Political Science from the University of Minnesota.
We believe Mr. Nada is qualified to serve
on the board of directors of New DraftKings due, among other things, to his experience in the venture capital industry, with a
focus on software, wireless applications, and multimedia, his expertise and insights in technology companies that he gained during
his tenure as Managing Director and Senior Research Analyst at Piper Jaffray & Co., his experience as a director of technology
companies and his service as a member of the DraftKings' board.
Richard Rosenblatt
is a serial
entrepreneur who has built, operated and sold several high-profile Internet media companies, including Demand Media Inc. ("Demand
Media"), iCrossing, Inc., Intermix Media, Inc. ("Intermix"), Myspace LLC and iMall. He co-founded Whip Media
Group ("Whip Media") in 2014 and currently serves as its Chairman and CEO. Whip's companies, including Mediamorph,
TV Time and TheTVDB, which offer a data-driven integrated cloud solution that empowers the world's leading entertainment
companies to efficiently acquire, distribute and monetize their content. Prior to co-founding Whip Media, Mr. Rosenblatt co-founded
Demand Media, and served as Chairman and Chief Executive Officer. During his tenure, Demand Media went public in January 2011,
with a valuation greater than $2 billion. Prior Demand Media, Mr. Rosenblatt served as the Chief Executive Officer of Intermix
and Chairman of Myspace. In addition, he serves as a senior advisor to The Raine Group LLC (since November 2013), an integrated
merchant bank focused on technology, media and telecommunications, and as a member of the board of directors of DraftKings (since
January 2018) and Imagine Films Entertainment LLC (since April 2016), a film and television production company. Mr. Rosenblatt
received his J.D. from the University of Southern California Gould School of Law and his B.A., Phi Beta Kappa, from the University
of California, Los Angeles.
We believe Mr. Rosenblatt is qualified to
serve on the board of directors of New DraftKings due, among other things, to his extensive experience as an executive in the media
and entertainment industries and experience guiding companies through transformational events, as well as his service as a member
of the DraftKings' board.
John S. Salter
is a co-founder
and partner of The Raine Group LLC ("Raine"), an integrated merchant bank advising and investing in high growth sectors
of technology, media and telecommunications, where he is responsible for Raine's digital media and gaming practice. Prior
to co-founding Raine in May 2009, he was the Global Head of Digital Media at UBS Investment Bank in the Technology, Media and Telecommunications
Group. Prior to joining UBS Investment Bank, Mr. Salter worked for Volpe, Brown, Whelan & Co., a boutique investment bank focused
on technology and health care companies. In addition, he serves as a member of the board of directors of the following portfolio
companies of Raine's investment management arm: Zumba Fitness (since February 2012), which is a global leader in dance fitness;
Huuuge Games (since September 2017), which develops casual video games played on mobile devices and PCs; Beachbody (since December
2018), a creator of premium at-home fitness programs and nutritional products; and Play Games 24x7 (since October 2019), one of
India's largest gaming companies. He also serves as a member of the board of directors of DraftKings (since August 2014).
Mr. Salter received his B.A. from Stanford University.
132
We believe Mr. Salter is qualified to
serve on the board of directors of New DraftKings due, among other things, to his extensive background and experience in
leading transactions in the media and technology industries and his service as a member of the board of directors of numerous
companies, including DraftKings and others in the gaming industry.
Harry Evans Sloan
is a media
investor, entrepreneur and studio executive. Mr. Sloan co-founded Flying Eagle (Nasdaq: FEAC), a special purpose acquisition vehicle,
in 2020, and serves as its Chief Executive Officer and Chairman. Additionally, Mr. Sloan co-founded Global Eagle Acquisition Corp.,
a special purpose acquisition vehicle, in 2011, serving as its Chairman and Chief Executive Officer through its business combination
with Row 44, Inc. and Advanced Inflight Alliance AG in January 2013, and remains a director of the combined company, Global Eagle
Entertainment Inc. (Nasdaq: ENT). He was also a founding investor in a number of other special purpose acquisition vehicles, including
Silver Eagle Acquisition Corporation, in which he served as Chairman and Chief Executive Officer from April 2013 through its business
combination with Videocon d2h Limited (Nasdaq: VDTH) in March 2015, Double Eagle Acquisition Corporation, Platinum Eagle Acquisition
Corporation and DEAC. Mr. Sloan served on the board of directors of Videocon from May 2016 to April 2018. From October 2005 to
August 2009, Mr. Sloan served as Chairman and Chief Executive Officer of Metro-Goldwyn-Mayer, Inc., a motion picture, television,
home entertainment, and theatrical production and distribution company, and thereafter continued as non-executive chairman until
December 2010. Throughout his entrepreneurial career, Mr. Sloan was responsible for the creation or sponsorship of three successful
public companies in the media and entertainment industries: Lions Gate Entertainment Corp., an independent motion picture and television
production company, New World Entertainment Ltd., an independent motion picture and television production company, and SBS Broadcasting,
S.A., a European broadcasting group, operating commercial television, premium pay channels, radio stations and related print businesses
in Western and Central and Eastern Europe, which he founded in 1990. Mr. Sloan began his career as an entertainment lawyer with
Sloan, Kuppin and Ament, a law firm he founded. He currently serves on the University of California, Los Angeles Anderson School
of Management Board of Visitors, the Executive Board of UCLA Theatre, Film and Television and the Harry and Florence Sloan Family
Foundation. Mr. Sloan received his J.D. from Loyola Law School and his B.A. from the University of California, Los Angeles.
We believe Mr. Sloan is qualified to serve
on the board of directors of New DraftKings due, among other things, to his extensive experience as an international media investor,
entrepreneur and studio executive and his ability to identify key investment opportunities with significant returns for his partners.
Marni M. Walden
retired from
Verizon Communications Inc. ("Verizon"), which provides wireless phone services, Internet access and digital television
services, in February 2018, where she most recently served as a Strategic Advisor from January 2018 to February 2018, and prior
to that, served as President and Executive Vice President of Global Media and Telematics from March 2016 to January 2018, in which
she built new revenue streams for Verizon and guided strategy for Verizon Media and the Connected Vehicle business, and as President
and Executive Vice President of Product Innovation from May 2014 to March 2016, in which she led global strategy, venture and technology
teams across all lines of business for Verizon. During her tenure at Verizon, as the company's top-ranking female executive,
Ms. Walden teamed up with the Chief Executive Officer of AOL to create Oath Inc., which encompasses all of Verizon's media
and advertising businesses. Additionally, Ms. Walden played a key role in Verizon's acquisition of Yahoo and Verizon's
merger with AOL. Ms. Walden's prior experiences include working for other wireless service providers including AT&T Inc.,
McCaw Communications, LLC and General Cellular Corporation. In addition, she served as Chief Operating Officer, from January 2011
to May 2014, and separately as Chief Marketing Officer, from October 2010 to January 2011, of Verizon Wireless, Inc. (f/k/a Cellco
Partnership), a wireless telecommunications carrier. Ms. Walden currently serves as a member of the board of directors of DraftKings
(since October 2018); Globetouch Inc. d/b/a Airlinq Inc. (since February 2017), which develops & deploys large scale connected
applications around smart mobility and ecosystem monetization; Persado Inc. (since June 2018), which uses artificial intelligence
to generate language for digital marketing; 4C Insights, Inc. (since April 2018),which provides a self-service intelligence platform
for marketers; and Loon LLC (since January 2019), which partners with mobile network operators globally to expand the reach of
their LTE service. She also serves as an advisor to various private companies, including Opensignal Limited, Spkr. Inc, and Life
Impact Solutions, Inc. d/b/a Mobilize Solutions. Ms. Walden attended California State University, Chico, where she majored in English
and minored in Communications.
We believe Ms. Walden is qualified to serve
on the board of directors of New DraftKings due, among other things, to her over 20 years' experience in telecommunications,
technology and media, including her leadership roles at Verizon, where she gained extensive experience managing multi-billion dollar
lines of business and leading transformative M&A activities and digital transformations, as well as her service as a member
of the board of directors of DraftKings and numerous other public and private companies.
133
Management
The following persons are anticipated to
be the executive officers of New DraftKings following the consummation of the Business Combination:
Name
Position with New
DraftKings
Age as of
Special
Meeting
Jason D. Robins
Chief Executive Officer and Chairman of the Board
39
Matthew Kalish
President, DraftKings North America, Director
38
Paul Liberman
President, Global Technology and Product, Director
36
R. Stanton Dodge
Chief Legal Officer and Secretary
52
Jason K. Park
Chief Financial Officer
43
The following is a brief biography of each
of the executive officers of New DraftKings.
Jason D. Robins
is our Chief
Executive Officer. Mr. Robins co-founded DraftKings in December 2011 and has been DraftKings' Chief Executive Officer since
inception. Mr. Robins oversees the company's strategy and operations, while also driving funding and partnerships. He has
built a reputation for expanding DraftKings' reach across numerous platforms through wide-ranging, forward-thinking partnerships.
Under his leadership, DraftKings became the first DFS company to partner with Major League Baseball in 2013. Mr. Robins has led
efforts at DraftKings to work with policy makers and regulators to pass fantasy sports, sports betting and iGaming legislation.
Mr. Robins attended Duke University, where he received his B.S. in Economics and Computer Science.
We believe Mr. Robins is qualified to serve
on the board of directors of New DraftKings due, among other things, to the perspective and experience he brings as our Chief Executive
Officer and as a co-founder and current Chairman of the board of directors of DraftKings.
Matthew Kalish
is our President,
DraftKings North America. Mr. Kalish co-founded DraftKings and served as its Chief Revenue Officer from 2014 until December 2019.
In December 2019, Mr. Kalish was appointed President, DraftKings North America. As Chief Revenue Officer, Mr. Kalish's purview
has grown consistently to now oversee the performance of DraftKings' DFS, Sportsbook and iGaming offerings, and he leads
DraftKings' operations, marketing, analytics and customer experience departments. Mr. Kalish focuses on developing and managing
high-performing offerings and promotions that users love, and bringing those offerings to market in order to drive user base growth
and loyalty. The innovation under Mr. Kalish's guidance has helped DraftKings grow its customer base significantly. Under
Mr. Kalish's oversight, DraftKings has grown to offer a broad variety of sports and game variants in DFS as well as highly
competitive Sportsbook and iGaming offerings, which have resulted in DraftKings achieving a market leadership position in the rapidly
expanding U.S. real-money gaming landscape. Mr. Kalish's passion for sports, analytics and game design has been instrumental
in growing DraftKings from a small Boston start-up to a digital sports entertainment enterprise. Mr. Kalish received his MBA from
Boston College and his B.A. in Computer Science and Economics from Columbia University.
We believe Mr. Kalish is qualified to serve
on the board of directors of New DraftKings due, among other things, to the perspective and experience he brings as our President,
DraftKings North America and as a co-founder and current member of the board of directors of DraftKings.
Paul Liberman
is our President,
Global Technology and Product. Mr. Liberman co-founded DraftKings in December 2011 and served as its Chief Operations Officer
("COO") from 2015 to December 2019. In December 2019, Mr. Liberman was appointed President, Global Technology and
Product. He oversees our product development while leading efforts in maintaining the company's current product set. He
acted as DraftKings' Chief Technology Officer from 2011 to 2013 and subsequently acted as its Chief Marketing Officer before
moving into his current position as COO. Mr. Liberman's data-driven mindset has been instrumental in growing DraftKings
from a small Boston start-up to a digital sports entertainment enterprise. Under his leadership, Mr. Liberman's team has
developed award-winning, stand-alone apps and product offerings including DraftKings' DK Live and Leagues, DraftKings Daily
Fantasy Sports app and, most recently, the DraftKings Sportsbook platform. Mr. Liberman attended Worcester Polytechnic Institute
where he received a B.S. in Electrical Engineering and minor in Computer Science.
134
We believe Mr. Liberman is qualified to
serve on the board of directors of New DraftKings due, among other things, to the perspective and experience he brings as our President,
Global Technology and Product and as a co-founder and current member of the board of directors of DraftKings.
R. Stanton Dodge
is our Chief
Legal Officer and Secretary. Mr. Dodge joined DraftKings in that capacity in November 2017, and is responsible for all legal and
government affairs and oversees Corporate Communications for DraftKings. Prior to joining DraftKings, Mr. Dodge served as Executive
Vice President, General Counsel and Secretary of DISH Network Corporation (Nasdaq: DISH) from June 2007 to October 2017, where
he was responsible for all legal and government affairs and oversaw corporate communications. Mr. Dodge serves on the board of
directors of EchoStar Corporation (Nasdaq: SATS). In addition, Mr. Dodge was appointed to the State of Colorado, Supreme Court
Nominating Commission on January 1, 2018 to serve a six-year term on the commission tasked with recommending nominees to fill vacancies
on the Colorado Supreme Court and the Corlorado Court of Appeals. Mr. Dodge received his J.D., magna cum laude, from Suffolk University
Law School and his B.S. in Accounting from the University of Vermont.
Jason K. Park
is our Chief
Financial Officer. Mr. Park joined DraftKings in that capacity in June 2019, and is responsible for the accounting, tax, treasury,
financial planning and analysis and investor relations departments. Prior to joining DraftKings, from January 2009 to June 2019,
Mr. Park worked at Bain Capital Private Equity where he was an Operating Partner and focused on technology investments. For more
than 10 years, Mr. Park worked collaboratively with chief executive officers, chief financial officers and management teams to
develop and achieve value creation plans. Before Bain Capital, Mr. Park was an Associate Partner at McKinsey & Company. Mr.
Park has previously served as a director of Central Square Technologies. Mr. Park received his MBA from the Wharton School at the
University of Pennsylvania and a MAcc (Master of Accountancy) and a B.B.A. from the University of Michigan.
Stockholders Agreement
In connection with the Business Combination, New DraftKings,
the DEAC Stockholder Group, the DK Stockholder Group and the SBT Stockholder Group will enter into the Stockholders Agreement (the
 "Stockholders Agreement"), which is filed as Exhibit 2.2 hereto, and which provides, among other things, that, immediately
following the Closing, the New DraftKings board of directors will initially be as set forth below:
·
DraftKings Directors
. Ten directors nominated by the DK Stockholder Group, which are expected to be the current DraftKings
directors, including the Chief Executive Officer of New DraftKings and at least five directors who qualify as "independent"
directors under The Nasdaq Stock Market listing rules.
·
SBT Directors
. Two directors nominated by Mr. Meckenzie, including at least one director who qualifies as an "independent"
director under The Nasdaq Stock Market listing rules.
·
DEAC Director
. One director nominated by the DEAC Stockholder Group, who will qualify as "independent" under
The Nasdaq Stock Market listing rules subject to approval by DraftKings (such approval not to be unreasonably withheld). Messrs.
Sloan, Sagansky and Baker are deemed approved by DraftKings as prospective nominees if they qualify as "independent"
under The Nasdaq Stock Market listing rules.
·
From the first annual meeting of stockholders following the Closing Date, Mr. Meckenzie will have the right to nominate one
director (and any replacement of such director) to serve on the New DraftKings board of directors (subject to the Board's
approval not to be unreasonably withheld) so long as Mr. Meckenzie continues to hold at least 9% of the issued and outstanding
shares of New DraftKings Class A common stock.
·
Subject to applicable law, Mr. Robins agrees to vote in favor of Mr. Meckenzie's nominee at each annual meeting of stockholders
so long as Mr. Meckenzie has such nomination right described above.
​
Board Composition
Committees of the New DraftKings Board
of Directors
The New DraftKings board of directors is
expected to form the following board committees:
·
audit committee;
·
compensation committee;
·
nominating and corporate governance committee; and
·
compliance committee.
135
Audit Committee
New DraftKings' audit committee will
oversee New DraftKings' corporate accounting and financial reporting process. Among other matters, the audit committee will:
·
appoint our independent registered public accounting firm;
·
evaluate the independent registered public accounting firm's qualifications, independence and performance;
·
determine the engagement of the independent registered public accounting firm;
·
review and approve the scope of the annual audit and the audit fee;
·
discuss with management and the independent registered public accounting firm the results of the annual audit and the review
of New DraftKings' quarterly financial statements;
·
approve the retention of the independent registered public accounting firm to perform any proposed permissible non-audit services;
·
monitor the rotation of partners of the independent registered public accounting firm on New DraftKings' engagement team
in accordance with requirements established by the SEC;
·
be responsible for reviewing New DraftKings' financial statements and New DraftKings' management's discussion
and analysis of financial condition and results of operations to be included in New DraftKings' annual and quarterly reports
to be filed with the SEC;
·
review New DraftKings' critical accounting policies and estimates; and
·
review the audit committee charter and the committee's performance at least annually.
The initial members of the audit committee
will be Messrs. Moore, Murray and Nada, with Mr. Murray serving as the chair of the committee. Under the rules of the SEC, members
of the audit committee must also meet heightened independence standards. Our board of directors has determined that all of the
members of the audit committee will be independent directors as defined under the applicable rules and regulations of the SEC and
The Nasdaq Stock Market with respect to audit committee membership. We also believe that Mr. Murray qualifies as our "audit
committee financial expert," as such term is defined in Item 407(d)(5) of Regulation S-K. Our board of directors will adopt
a written charter for the audit committee, which will be available on our corporate website at www.draftkings.com upon the completion
of the Business Combination. The information on our website is not part of this prospectus.
Compensation Committee
Our compensation committee will review and
recommend policies relating to compensation and benefits of our officers and employees. Among other matters, the compensation committee
will:
·
review and recommend corporate goals and objectives relevant to compensation of our chief executive officer and other executive
officers;
·
recommend to our board of directors the issuance of stock options and other awards under our stock plans; and
·
review and evaluate, at least annually, the performance of the compensation committee and its members, including compliance
by the compensation committee with its charter.
136
The initial members of New DraftKings'
compensation committee will be Messrs. Levin, Moore, Nada and Rosenblatt, with Mr. Nada serving as the chair of the committee.
Pursuant to The Nasdaq Stock Market listing standards, as a controlled company New DraftKings will not be required to have a compensation
committee composed entirely of independent directors. While New DraftKings will remain able to rely upon such exemption from The
Nasdaq Stock Market listing standards, each of the members of our compensation committee will be independent as defined in The
Nasdaq Stock Market listing standards, and each will be "non-employee directors" as defined in Rule 16b-3 promulgated
under the Exchange Act and "outside directors" as that term is defined in Section 162(m) of the Code ("Section
162(m)"). Our board of directors will adopt a written charter for the compensation committee, which will be available on
our corporate website at www.draftkings.com upon the completion of the Business Combination. The information on our website is
not part of this prospectus.
Nominating and Corporate Governance
Committee
The nominating and corporate governance
committee will be responsible for making recommendations to New DraftKings' board of directors regarding candidates for directorships
and the size and composition of New DraftKings' board of directors. In addition, the nominating and corporate governance
committee will be responsible for overseeing New DraftKings' corporate governance policies and reporting and making recommendations
to New DraftKings' board of directors concerning governance matters.
The initial members of New DraftKings'
nominating and corporate governance committee will be Messrs. Levin, Murray, Salter and Sloan and Ms. Walden, with Mr. Sloan serving
as the chair of the committee. Pursuant to The Nasdaq Stock Market listing standards, as a controlled company New DraftKings will
not be required to have a nominating and corporate governance committee composed entirely of independent directors. While New DraftKings
will remain able to rely upon such exemption from The Nasdaq Stock Market listing standards, each of the members of New DraftKings'
nominating and corporate governance committee will be an independent director as defined in the listings standards. Our board of
directors plans to adopt a written charter for the nominating and corporate governance committee, which will be available on our
corporate website at www.draftkings.com upon the completion of the Business Combination. The information on our website is not
part of this prospectus.
Compliance Committee
New DraftKings' compliance committee
will oversee New DraftKings' non-financial compliance matters. Among other matters, the compliance committee will:
·
identify, review and analyze laws and regulations applicable to New DraftKings;
·
recommend to the Board, and monitor the implementation of, compliance programs, policies and procedures that comply with local,
state and federal laws, regulations and guidelines;
·
review significant compliance risk areas identified by management;
·
discuss periodically with management the adequacy and effectiveness of policies and procedures to assess, monitor, and manage
non-financial compliance business risk and compliance programs;
·
monitor compliance with, authorize waivers of, investigate alleged breaches of and enforce New DraftKings' non-financial
compliance programs; and
·
review New DraftKings' procedures for the receipt, retention and treatment of complaints received regarding non-financial
compliance matters.
The initial members of New
DraftKings' compliance committee will be Messrs. Isaacs, Liberman and Salter and Ms. Walden, with Mr. Salter serving as
the chair of the committee. Our board of directors will adopt a written charter for the compliance committee, which will be
available on our corporate website at www.draftkings.com upon the completion of the Business Combination. The information on
our website is not part of this prospectus.
137
Director Independence; Controlled Company Exemption
Upon the completion of the Business Combination,
Mr. Robins will be the beneficial owner of all the outstanding shares of New DraftKings Class B common stock and will control the
voting power of our outstanding capital stock, as a result of which Mr. Robins will have the power to elect a majority of New DraftKings'
directors. Pursuant to The Nasdaq Stock Market listing standards, a company of which more than 50% of the voting power for the
election of directors is held by an individual, a group or another company qualifies as a "controlled company." Therefore,
we will not be subject to The Nasdaq Stock Market listing standards that would otherwise require us to have: (i) a board of directors
comprised of a majority of independent directors; (ii) compensation of our executive officers determined by a majority of the independent
directors or a compensation committee comprised solely of independent directors; (iii) a compensation committee charter which,
among other things, provides the compensation committee with the authority and funding to retain compensation consultants and other
advisors; and (iv) director nominees selected, or recommended for the Board's selection, either by a majority of the independent
directors or a nominating committee comprised solely of independent directors.
Upon the Closing, we anticipate that the
size of the New DraftKings' board of directors will be 13 directors. Pursuant to The Nasdaq Stock Market listing standards,
as a controlled company New DraftKings will not be required to have a board of directors composed of a majority of independent
directors. An "independent director" is defined generally as a person other than an officer or employee of the company
or its subsidiaries or any other individual having a relationship which in the opinion of the board of directors, would interfere
with the director's exercise of independent judgment in carrying out the responsibilities of a director.
We anticipate that Messrs. Isaacs, Levin,
Moore, Murray, Nada, Rosenblatt, Salter and Sloan and Ms. Walden will be "independent directors," as defined in The
Nasdaq Stock Market listing standards and applicable SEC rules.
Compensation Committee Interlocks and Insider Participation
Following the consummation of the Business
Combination, New DraftKings' compensation committee will consist of Messrs. Levin, Moore, Nada and Rosenblatt. None of the
expected members of New DraftKings' compensation committee has at any time been an officer or employee of DEAC, DraftKings
or SBT, other than as disclosed in this prospectus. None of New DraftKings' executive officers currently serves, or in the
past fiscal year has served, as a member of the board of directors or compensation committee (or other board committee performing
equivalent functions or, in the absence of any such committee, the entire board of directors) of any entity that has one or more
executive officers on DEAC's, DraftKings' or SBT's compensation committee or board of directors.
Code of Business Conduct and Ethics
Effective upon the consummation of the Business
Combination, New DraftKings will adopt a code of business conduct and ethics that will apply to all of its employees, officers
and directors, including those officers responsible for financial reporting. The code of business conduct and ethics will be available
after the Closing on New DraftKings' website at www.draftkings.com. New DraftKings expects that, to the extent required by
law, any amendments to the code, or any waivers of its requirements, will be disclosed on its website.
Limitation on Liability and Indemnification Matters
New DraftKings' amended and restated
articles of incorporation that will become effective immediately following the consummation of the Business Combination contain
provisions that limit the liability of New DraftKings' directors for damages to the fullest extent permitted by Nevada law.
Consequently, New DraftKings' directors will not be personally liable to New DraftKings or its stockholders for damages as
a result of an act or failure to act in his or her capacity as a director, unless:
·
the presumption that directors are acting in good faith, on an informed basis, and with a view to the interests of the corporation
has been rebutted; and
·
it is proven that the director's act or failure to act constituted a breach of his or her fiduciary duties as a
                                                                                                              director and such breach involved intentional misconduct,
fraud or a knowing violation of law.
138
EXECUTIVE
COMPENSATION
Introduction
This section provides an overview of DraftKings'
executive compensation programs, including a narrative description of the material factors necessary to understand the information
disclosed in the summary compensation table below.
For the year ended December 31, 2019, DraftKings'
named executive officers ("Named Executive Officers" or "NEOs") were:
·
Jason Robins, Chief Executive Officer & Co-Founder
·
Jason Park, Chief Financial Officer
·
Paul Liberman, President, Global Technology and Product & Co-Founder
The objective of DraftKings' compensation
program is to provide a total compensation package to each Named Executive Officer that will enable DraftKings to attract, motivate
and retain outstanding individuals, align the interests of our executive team with those of our equity holders, encourage individual
and collective contributions to the successful execution of our short- and long-term business strategies and reward Named Executive
Officers for performance. The board of directors of DraftKings has historically determined the compensation for DraftKings'
Named Executive Officers.
In June 2019, DraftKings appointed Mr. Park
its Chief Financial Officer. Mr. Park's compensation was determined by the board of directors of DraftKings in connection
with his appointment to create a compelling offer commensurate with Mr. Park's expectations, experience, competitive compensation
levels for the same role at similar companies, and in consideration of internal equity.
For 2019, the compensation program for DraftKings'
NEOs consisted of base salary and incentive compensation delivered in the form of an annual cash bonus and time- and performance-based
stock option awards, and a sign-on cash bonus (in the case of Mr. Park), each as described below:
Base Salary
- Base
salary is paid to attract and retain qualified talent and is set at a level that is commensurate with the executive's duties
and authorities, contributions, prior experience and sustained performance. For each of Messrs. Robins and Liberman, base salary
for 2019 remained unchanged compared to the prior year.
Annual Cash Bonus
- Annual cash
bonus is paid to incentivize the Named Executive Officers to achieve annual financial and operating performance metrics (for 2019,
gross revenue and EBITDA (defined as earnings before interest, taxes, depreciation and amortization) targets) and is paid at the
discretion of the board of directors. For 2019, Messrs. Robins and Liberman's target annual bonuses remained unchanged compared
to the prior year.
Sign-on Cash Bonus
- As a recruitment
incentive, and to offset compensation that Mr. Park may have otherwise earned had he not joined DraftKings, Mr. Park was paid a
sign-on cash bonus of $250,000 following his start of employment at the Company. If Mr. Park's employment is terminated for
cause or without good reason (as those terms are defined in the employment agreement between Mr. Park and DraftKings) before June
24, 2020, then Mr. Park is required to repay the sign-on bonus.
Stock Option Awards
- Stock options
are granted to our Named Executive Officers under three programs within our 2017 Equity Incentive Plan:
139
·
Short-Term Performance Share Plan (PSP)
- The PSP is a program designed to deliver stock option awards
that incentivize our Named Executive Officers to achieve key short-term financial metrics. In June 2019, DraftKings' board
of directors granted stock options to Messrs. Robins and Liberman under the PSP ("PSP Options") that were subject to
performance-based vesting conditions tied to achievement of gross gaming revenue and EBITDA targets, as well as a service-based
vesting component which conditioned vesting on the Named Executive Officer's continued employment with DraftKings through
the date on which the board of directors certified applicable performance results. The level of achievement, and corresponding
vesting, under the 2019 PSP awards have not been determined as of the date of this prospectus.
·
Time-Vested Stock Options
- Time-vested stock options ("Time-vested Options") were a component
of 2019 incentive compensation and granted to further align the interests of our Named Executive Officers with those of our shareholders,
incentivize long-term value creation, and retain executives over the long term. Time-vested Options were granted to our Named Executive
Officers in June 2019 and vest in equal quarterly installments over four years following grant, subject to the Named Executive
Officer's continued employment with DraftKings through each such date. Mr. Park received a supplemental grant of Time-vested
Options in August 2019 to make him whole for stock price fluctuation between the date on which Mr. Park accepted his offer of employment
and the grant of his initial award.
·
Long-Term Performance Incentive Plan (LTIP)
- The LTIP is a program designed to incentivize the Named Executive
Officers to maximize the long-term growth and value of the business. In June 2019, DraftKings' board of directors granted
stock options under the LTIP ("LTIP Performance Options") that become eligible to vest upon achievement of any one
of five specified performance targets tied to DraftKings' annual consolidated gross gaming revenue with respect to any fiscal
year, DraftKings' annual EBITDA with respect to any fiscal year and the fair market value of a share of DraftKings common
stock upon the occurrence of a "liquidity event," subject, in the case of the gross gaming revenue and/or EBITDA performance
targets, to a threshold vesting condition relating to DraftKings' actual achievement of at least 80% of both the gross gaming
revenue and EBITDA metrics specified in the operating plan for such fiscal year. For purposes of the LTIP Performance Options,
a liquidity event includes (i) a change in control of DraftKings (generally, a merger, consolidation or similar transaction following
which the stockholders of DraftKings immediately prior to such transaction represent less than 50% of the combined voting power
of the surviving entity in such transaction), (ii) a sale of shares of DraftKings common stock to the public in an underwritten
public offering and (iii) a "majority transaction" resulting in any person or affiliated persons having beneficial
ownership of shares of DraftKings stock representing more than 50% of the outstanding voting power of the company (or surviving
or resulting entity in such transaction). If the employment of a Named Executive Officer terminates for any reason, he will not
be eligible to vest with respect to any then remaining unvested LTIP Performance Options, provided that upon a termination by the
company without cause (and not due to death or disability, as each such term is defined in the 2017 Equity Incentive Plan), then
such NEO will remain eligible to vest in any LTIP Performance Options that become vested pursuant to their terms within 12 months
following the date of such termination. In addition, Mr. Park received a supplemental grant of LTIP Options in August 2019 to make
him whole for stock price fluctuation between the date on which he accepted his offer and the grant of his initial award.
Summary Compensation Table
Name
    and Position ​
Fiscal
Year
Salary
($)
Bonus
($) (1)
Option
Awards
($) (2)
Non-Equity
Incentive Plan
Compensation
($) (3)
All
    Other
Compensation
($) (4)
Total
($)
Jason
    Robins
Chief Executive Officer
​
2019
$
400,000
$
-
$
3,239,689
$
800,000
$
-
$
4,439,689
​
2018
$
400,000
$
-
$
12,847,259
$
500,000
$
9,250
$
13,756,509
Jason
    Park
Chief Financial Officer
​
2019
$
201,923
$
250,000
$
2,326,845
$
325,260
$
14,279
$
3,118,307
Paul
    Liberman
President, Global​
2019
$
300,000
$
-
$
1,350,348
$
480,000
$
9,600
$
2,139,948
Technology & Product
2018
$
300,000
$
-
$
2,817,791
$
300,000
$
10,588
$
3,428,379
140
(1)
The amount in this column represent the sign-on cash bonus paid to Mr. Park in connection with the commencement of his employment
with DraftKings. The terms of the sign-on cash bonus are described under "Sign-on Cash Bonus" above.
(2)
The amounts in this column represent the aggregate grant-date fair value of option awards granted to each Named Executive Officer,
computed in accordance with FASB ASC Topic 718. See Note 10 to DraftKings' audited consolidated financial statements included
elsewhere in this ​prospectus for a discussion of all assumptions made by us in determining the grant-date fair value of
our equity awards. For each of the NEOs, the amounts disclosed in this column include the following grant-date fair value of Time-Vested
Options, PSP Options and LTIP Performance Options granted in 2019:
Name
Time-Vested
Options
($)
PSP
Options
($)
LTIP
Performance
Options
($)
Jason Robins
$
2,242,186
$
997,503
$
-
Jason Park
$
1,163,753
$
-
$
1,163,092
Paul Liberman
$
601,848
$
535,500
$
213,000
(3)
Reflects payments to the Named Executive Officers in accordance with our annual bonus plan.
(4)
For Mr. Park, represents the payment of legal fees incurred by Mr. Park in connection with the negotiation of his employment
agreement of $7,500 and 401(k) plan employer contributions in the amount of $6,779. For Mr. Liberman for 2019, represents
healthcare spending accounting employer contributions of $1,200 and 401(k) plan employer contributions in the amount of $8,400.
Benefits and Perquisites
DraftKings' Named Executive Officers
participate in employee benefits programs available to its employees generally, including the DraftKings 401(k) Plan, a tax-qualified
401(k) plan. Under this plan, DraftKings matches 50% of each dollar contributed by a participant, up to the first 6% of eligible
compensation, subject to tax limits. DraftKings did not maintain any executive-specific benefit or perquisite programs.
Outstanding Equity Awards at 2019 Year End
The following table presents information
regarding outstanding equity awards held by DraftKings' Named Executive Officers as of December 31, 2019.
Name
Grant
                                         Date
Number
                                         of
Securities
Underlying
Unexercised
Options
Exercisable
(#)
Number
                                         of
Securities
Underlying
Unexercised
Options
Unexercisable
(#)
Equity
                                         Incentive
Plan Awards:
Number of
Securities
Underlying
Unexercised
Unearned
Options
(#)
Option
Exercise
Price
($)
Option
Expiration
Date
Jason Robins
7/12/2013
(1
)
2,000,000
―
―
$
0.09
7/12/2023
9/22/2014
(1
)
400,000
―
―
$
0.22
9/22/2024
2/18/2015
(1
)
1,671,032
―
―
$
0.22
2/18/2025
8/27/2015
(1
)
835,358
―
―
$
0.22
8/27/2025
3/24/2016
(1
)
4,446,707
296,448
―
$
0.22
3/24/2026
5/3/2017
(1
)
1,734,554
788,435
―
$
1.35
5/3/2027
4/18/2018
(2
)
963,713
1,606,189
―
$
1.16
4/18/2028
4/18/2018
(3
)
1,307,645
―
―
$
1.16
4/18/2028
5/3/2018
(4
)
―
―
21,376,180
$
1.16
5/3/2028
6/4/2019
(2
)
395,834
2,770,841
―
$
1.66
6/4/2029
6/4/2019
(3
)
―
―
1,583,338
$
1.66
6/4/2029
Jason Park
6/4/2019
(1
)
―
1,500,000
―
$
1.66
6/4/2029
6/4/2019
(4
)
―
―
1,500,000
$
1.66
6/4/2029
8/15/2019
(1
)
―
138,158
―
$
1.67
8/15/2029
8/15/2019
(4
)
―
―
138,518
$
1.67
8/15/2029
Paul Liberman
7/12/2013
(1
)
2,415,000
―
―
$
0.09
7/12/2023
9/22/2014
(1
)
302,160
―
―
$
0.22
9/22/2024
2/18/2015
(1
)
835,516
―
―
$
0.22
2/18/2025
8/27/2015
(1
)
578,077
―
―
$
0.22
8/27/2025
3/24/2016
(1
)
2,223,353
148,224
―
$
0.22
3/24/2026
5/3/2017
(1
)
722,730
328,515
―
$
1.35
5/3/2027
4/18/2018
(2
)
392,294
653,822
―
$
1.16
4/18/2028
4/18/2018
(3
)
256,298
―
―
$
1.16
4/18/2028
5/3/2018
(4
)
―
―
4,275,236
$
1.16
5/3/2028
6/4/2019
(4
)
―
―
300,000
$
1.66
6/4/2029
6/4/2019
(3
)
―
―
850,000
$
1.66
6/4/2029
6/4/2019
(2
)
106,250
743,750
―
$
1.66
6/4/2029
(1)
These options vest as to 25% on the first anniversary of grant and in equal quarterly increments thereafter over the following
three years, subject to the Named Executive Officer's continued employment with DraftKings through each such date.
(2)
Represent Time-Vested Options as described in the narrative disclosure above.
(3)
Represent PSP Options as described in the narrative disclosure above.
(4)
Represent LTIP Performance Options as described in the narrative disclosure above.
Potential Payments Upon Termination or Change of Control
Prior to September 2017, all stock options
granted by DraftKings (including to the NEOs) were granted under the 2012 Stock Option & Restricted Stock Incentive Plan (the
 "2012 Equity Incentive Plan"). The 2012 Equity Incentive Plan provides that upon an "acquisition" of DraftKings,
50% of the unvested portion of any stock options outstanding thereunder would immediately vest and become exercisable. As defined
in the 2012 Equity Incentive Plan, an "acquisition" means (i) any merger, business combination or similar consolidation
after which the voting securities of DraftKings outstanding immediately prior thereto represent less than 50% of the combined voting
power of the voting securities of DraftKings (or the surviving or acquiring entity outstanding immediately after such event), (ii)
any sale of all or substantially all of the capital stock or assets of DraftKings or (iii) any other form of business combination
or acquisition in which DraftKings is the target, as determined by the board of directors.
In September 2017, DraftKings adopted the
2017 Equity Incentive Plan and subsequent to its adoption, all awards of stock options granted by DraftKings (including to the
NEOs) have been granted under the 2017 Equity Incentive Plan. The 2017 Equity Incentive Plan does not provide for any default "single-trigger"
vesting upon a change in control. Under the 2017 Equity Incentive Plan, upon a change in control, the board of directors may, in
its sole discretion, provide that outstanding stock option awards are assumed or substituted by the surviving or acquiring corporation,
accelerate vesting conditions, in whole or in part, or cancel awards at the effective time of the change in control in exchange
for consideration (or no consideration), among other actions enumerated in the 2017 Equity Incentive Plan. For purposes of the
2018 and 2019 LTIP Performance Options granted to the Named Executive Officers under the 2017 Equity Incentive Plan, a change in
control of DraftKings constitutes a "liquidity event" upon which achievement of pre-determined stock price targets
would be evaluated in light of the consideration payable in respect of
one share of DraftKings common stock in connection with such transaction to determine whether, and to what extent, the applicable
vesting conditions are achieved.
141
Each of the 2012 Equity Incentive Plan and
the 2017 Equity Incentive Plan provide that, upon a termination other than for "cause" (as defined in the applicable
plan document), each Named Executive Officer would forfeit any outstanding stock options to the extent unvested at the time of
such termination, and would have a period of three months following his termination date (or, if earlier, until the expiration
of the applicable term) in which he could exercise his vested stock options.
Employment Agreements and Transaction Awards
DraftKings expects to enter into employment
agreements with each of Messrs. Robins and Liberman that will govern the terms of their continuing employment with DraftKings and,
following the completion of the Business Combination, New DraftKings. The employment agreements with Messrs. Robins and Liberman
are expected to provide for an annual base salary of $650,000 and $425,000 respectively, subject to increase from time to time,
and an annual target bonus opportunity of 150% and 125% of base salary, respectively. Each of Messrs. Robins and Liberman will
continue to be eligible to participate in any executive benefit plans in effect from time to time. In the event of the termination
of Mr. Robins' or Mr. Liberman's employment without cause or for good reason within 12 months following a change in
control (or within six months prior to a change in control where the termination was in connection with the change in control),
it is expected that he will be entitled to severance equal to two times the sum of his base salary and target bonus; continued
health benefits for 24 months; and vesting of outstanding equity awards, with performance awards vested based on target performance.
In the event of a termination without cause or for good reason not in connection with a change in control, it is expected that
he will be entitled to severance equal to two times his base salary; a pro rata bonus for the year of termination based on actual
performance; continued health benefits for 24 months; and pro rata vesting of outstanding equity awards with performance awards
vested based on actual performance. Severance benefits will be subject to Messrs. Robins' and Liberman's execution
of a release of claims and compliance with restrictive covenants, including a non-solicitation and non-disparagement covenant.
Mr. Park entered into an employment agreement
with DraftKings in connection with his appointment as Chief Financial Officer. The employment agreement with Mr. Park provides
for an annual base salary of $350,000, subject to increase from time to time as determined by the board of directors of DraftKings,
and an annual target bonus opportunity of $350,000 (prorated for 2019). Mr. Park was also entitled to the sign-on bonus and option
awards described Under "Sign-on Cash Bonus" and "Stock Option Awards" above, respectively. The employment
agreement provides that Mr. Park's Time-vested Options will vest in connection with a change in control in which those awards
are not assumed or substituted for similar awards, or, if the Time-vested Options granted to Mr. Park are assumed or substituted,
upon the termination of Mr. Park's employment without cause or for good reason within three months prior to, or 12 months
following, the change in control. Mr. Park is entitled to participate in any executive benefit plan adopted by DraftKings from
time to time. In the event of Mr. Park's termination without cause or for good reason, and subject to Mr. Park's execution
of a release of claims, Mr. Park is entitled to 12 months' base salary and continued benefits for 12 months. Mr. Park is
subject to a non-competition covenant that continues for 12 months after termination of employment for any reason, other than a
termination without cause, and a covenant to refrain from soliciting customers, clients, vendors, employees and contractors that
continues for 12 months after termination of employment for any reason.
In connection with the pending Business
Combination, DraftKings has awarded transaction bonus opportunities to each of the Named Executive Officers, which will be payable
in cash shortly following the completion of the Business Combination subject to continued employment. The amount of each transaction
bonus will be determined based on the level of redemptions, with maximum bonus opportunities earned if redemptions are no greater
than 10%. The maximum bonus opportunity for Mr. Robins is $3,000,000, for Mr. Liberman is $1,500,000, and for Mr. Park is $1,000,000.
DraftKings also has awarded the Named
Executive Officers a grant of restricted stock units ("RSUs") that contain vesting terms generally consistent
with those described with respect to the LTIP Performance Options under "Stock Option Awards - Long-Term
Performance Incentive Plan (LTIP)" above. The RSUs become eligible to vest upon achievement of any one of five
specified performance targets tied to DraftKings' annual consolidated gross gaming revenue with respect to any fiscal
year, DraftKings' annual adjusted EBITDA with respect to any fiscal year and the fair market value of a share of
DraftKings common stock upon (or, in the event of a public offering, for 30 trading days following) the occurrence of a
 "liquidity event" (defined consistent with the LTIP). Any RSUs that do not vest within ten years of grant will be
forfeited. Messrs. Robins, Park and Liberman were granted 14,764,728, 1,120,762 and 7,382,364 RSUs, respectively, each of
which represents the right to receive one share of DraftKings common stock after vesting. At the completion of the Business
Combination, the RSUs will be converted into restricted stock units settled in shares of New DraftKings Class A common stock
subject to vesting.
142
New DraftKings' Class B shares will
be issued to Mr. Robins in connection with the Business Combination, which will carry 10 votes per share and will allow Mr. Robins
to have approximately 90% of the voting power of the capital stock of New DraftKings on a fully-diluted basis. The terms of the
New DraftKings' Class B shares are described in more detail under "
Description of Securities — New DraftKings
Common Stock — Class B Common Stock
".
Director Compensation
The board of directors of DraftKings sets
non-employee director compensation which is designed to provide competitive compensation necessary to attract and retain high quality
non-employee directors and to encourage ownership of DraftKings stock to further align their interests with those of our stockholders.
Each non-employee director of DraftKings is eligible to receive the following compensation:
·
A stock option award with a value of $400,000 (based on the DraftKings fair-market value on the date of grant), upon
such director's election to office, subject to vesting as to 25% of the award on the 6-month anniversary of grant and the
remaining 75% in equal monthly installments over the following 18 months;
·
An annual stock option award with a value of $200,000 (based on the DraftKings fair-market value on the date of grant),
for service on the board of directors subject to vesting as to 25% of the award on the 6-month anniversary of grant and the remaining
75% in equal monthly installments over the following 18 months; and
·
An annual stock option award with a value of $5,000 (based on the DraftKings fair-market value on the date of grant),
for service on any committee of the board of directors subject to vesting as to 25% of the award on the 6-month anniversary of
grant and the remaining 75% in equal monthly installments over the following 18 months.
DraftKings also pays reasonable travel and
accommodation expenses of the non-employee directors in connection with their participation in meetings of the board of directors.
Director Compensation Table
The following table provides information
concerning the compensation of each non-employee director who served on DraftKings' board of directors in 2019. DraftKings
employees do not receive compensation for serving as directors. Accordingly, Messrs. Robins and Liberman do not receive any compensation
for their service as directors.
Name
Fees Earned or
Paid in Cash
($)
Stock Awards
($)
Option Awards
($)(1)
All Other
Compensation
($)
Total
($)
Woodrow Levin
$
0
$
0
$
92,404
$
0
$
92,404
Ryan Moore(2)
$
0
$
0
$
0
$
0
$
0
Steven Murray
$
0
$
0
$
0
$
0
$
0
Hany Nada
$
0
$
0
$
0
$
0
$
0
Richard Rosenblatt
$
0
$
0
$
90,205
$
0
$
90,205
Marni Walden
$
0
$
0
$
80,589
$
0
$
80,589
John Salter(2)
$
0
$
0
$
0
$
0
$
0
(1)
The amounts in this column represent the aggregate grant-date
fair value of option awards granted to each non-employee director, computed in accordance with FASB ASC Topic 718. See Note 10
to DraftKings' audited consolidated financial statements included elsewhere in this ​prospectus for a discussion of
all assumptions made by us in determining the grant-date fair value of our equity awards. The aggregate number of options held
by each non- employee director as of December 31, 2019 were: Mr. Levin: 319,192; Mr. Rosenblatt: 676,454; and Ms. Walden: 436,535.
143
(2)
Ryan Moore is an affiliate of Accomplice Fund I, L.P. and Accomplice Management Holdings, LLC; and Mr. Salter is affiliated
with RPII DK LLC. Each of the entities affiliated with Accomplice, LLC; and RPII DK LLC held more than 5% of DraftKings capital
stock as of the date of this prospectus. None of these individuals received compensation from DraftKings for their service as a
director in 2019.
New Director Compensation Program
In connection with the business combination,
DraftKings adopted a new board of directors compensation program which is designed to provide competitive compensation necessary
to attract and retain high quality non-employee directors and to encourage ownership of DraftKings stock to further align their
interests with those of our stockholders. The new program will provide the following compensation for non-employee directors going
forward:
·
An annual cash retainer of $45,000;
·
An annual cash retainer of $20,000 for the chair of the audit committee, $17,500 for the chair of the compensation committee
and $10,000 for the chair of the nominating and corporate governance committee;
·
An annual cash retainer of $10,000 for members of the audit committee, $7,500 for members of the compensation committee and
$5,000 for members of the nominating and corporate governance committee;
·
An equity retainer with a value of $200,000 upon such director's election to office, payable in the form of stock options
or restricted stock units, granted in connection with each annual shareholders meeting that vests at the sooner of the following
annual shareholders meeting or the one-year anniversary of the grant; and
·
An additional annual cash retainer of $75,000 for serving as our non-executive chair and $20,000 for serving as our lead director,
in each case, if applicable.
All cash retainers will be payable quarterly
in arrears; provided that the retainers will be delivered in equity until DraftKings is profitable. Chairs and members of other
committees, such as the compliance committee, will be eligible to receive retainers that will be set relative to the retainers
granted to the chairs and members of the audit, compensation and nominating and corporate governance committees, based on relative
scope and time commitment.
New DraftKings Incentive Award Plan
Prior to the consummation of the Business
Combination, we expect that our Board will approve and adopt, subject to shareholder approval, the DraftKings Inc. 2020 Incentive
Award Plan (the "Plan"), under which we would be authorized to grant cash and equity incentive awards to eligible service
providers in order to attract, motivate and retain the talent for which we compete. A copy of the Plan is filed as Exhibit 10.1
hereto. Our Board is still in the process of developing, approving and implementing the Plan and, accordingly, there can be no
assurance that the Plan will be implemented or will contain the terms described below.
Material Terms of the Plan
The material terms of the Plan, as currently
contemplated by our Board, are summarized below. As noted above, our Board is still in the process of developing, approving and
implementing the Plan and, accordingly, there can be no assurance that the Plan will be implemented or will contain the terms described
below. Accordingly, this summary is subject to change. A copy of the Plan is filed as Exhibit 10.1 hereto.
Administration
. The
compensation committee of our board of directors will administer the Plan. The compensation committee will generally have the
authority to designate participants, determine the type or types of awards to be granted to a participant, determine the
terms and conditions of any agreements evidencing any awards granted under the Plan and to adopt, alter and repeal rules,
guidelines and practices relating to the Plan. The compensation committee will have full discretion to administer and
interpret the Plan and to make any other determination and take any other action that it deems necessary or desirable for the
administration of the Plan.
144
Eligibility
. Employees, directors,
officers, advisors or consultants and prospective employees, directors, officers, advisors or consultants of New DraftKings or
its affiliates are eligible to participate in the Plan. Following the consummation of the Business Combination, it is expected
that approximately 2,200 employees, consultants and service providers and all of our eight non-executive officer directors will
be eligible to participate in the Plan.
Number of Shares Authorized
. The
Plan provides for an aggregate of 52,870,000 shares of New DraftKings Class A common stock to be delivered; provided that the total
number of shares that will be reserved, and that may be issued, under the Plan will automatically increase on the first trading
day of each calendar year, beginning with calendar year 2021, by a number of shares equal to five percent (5%) of the total outstanding
shares of New DraftKings Class A common stock on the last day of the prior calendar year (subject to a maximum annual increase
of 33,000,000 Common Shares). Notwithstanding the foregoing, the Board may act prior to January 1st of a given year to provide
that there will be no such increase in the share reserve for such year or that the increase in the share reserve for such year
will be a lesser number of shares than would otherwise occur pursuant to the preceding sentence. The maximum aggregate grant-date
fair value of awards granted and cash fees paid to any non-employee director pursuant to the Plan during any fiscal year may not
exceed a total value of $750,000, provided that the non-employee directors who are considered independent (under the rules of The
NASDAQ Stock Market or other securities exchange on which the Common Shares are traded) may make exceptions to this limit for a
non-executive chair of the Board, if any, in which case the non-employee Director receiving such additional compensation may not
participate in the decision to award such compensation. Shares of New DraftKings Class A common stock underlying awards under the
Plan that are forfeited, canceled, expire unexercised or are settled in cash will be available again for new awards under the Plan.
The Plan also permits the compensation committee to deliver an aggregate of 52,870,000 shares of New DraftKings Class B common
stock to employees, directors, consultants or advisors who are eligible to hold New DraftKings Class B common stock under the Proposed
Charter; provided, that the total number of shares of New DraftKings Class B common stock that will be reserved, and that may be
issued, under the Plan will automatically increase on the first trading day of each calendar year, beginning with calendar year
2021, by a number of shares of New DraftKings Class B common stock equal to five percent (5%) of the total outstanding shares of
DraftKings Class B common stock on the last day of the prior calendar year (subject to a maximum annual increase of 33,000,000
shares of DraftKings Class B common stock). Notwithstanding the foregoing, the Board may act prior to January 1st of a given year
to provide that there will be no such increase in the share reserve for such year or that the increase in the share reserve for
such year will be a lesser number of shares than would otherwise occur pursuant to the preceding sentence. If there is any change
in our corporate capitalization, the compensation committee in its sole discretion may make substitutions or adjustments to the
number of shares of New DraftKings Class A common stock and New DraftKings Class B common stock reserved for issuance under the
Plan, the number of shares of New DraftKings Class A common stock and New DraftKings Class B common stock covered by awards then
outstanding under the Plan, the limitations on awards under the Plan, the exercise price of outstanding options and such other
equitable substitutions or adjustments as it may determine appropriate.
The Plan will have a term of 10 years from
the date it is approved by shareholders and no further awards may be granted under the Plan after that date.
Awards Available for Grant
. The compensation
committee may grant awards of nonqualified stock options, ISOs, stock appreciation rights ("SARs"), restricted stock
awards, restricted stock units, stock bonus awards, performance compensation awards (including cash bonus awards) or any combination
of the foregoing.
Options
. The compensation
committee will be authorized to grant options to purchase shares of New DraftKings Class A common stock that are either
 "qualified," meaning they are intended to satisfy the requirements of Section 422 of the Code, for ISOs, or
 "nonqualified," meaning they are not intended to satisfy the requirements of Section 422 of the Code. Options
granted under the Plan will be subject to such terms, including the exercise price and the conditions and timing of exercise,
as may be determined by the compensation committee and specified in the applicable award agreement. The maximum aggregate
number of Common Shares that may be issued through the exercise of Incentive Stock Options granted under the Plan is
52,870,000 Common Shares. In general, the exercise price per share of New DraftKings Class A common stock for each option
granted under the Plan will not be less than the fair market value of such share at the time of grant. The maximum term of an
option granted under the Plan will be 10 years from the date of grant (or five years in the case of ISOs granted to a 10%
shareholder). However, if the option would expire at a time when the exercise of the option by means of a cashless exercise
or net exercise method (to the extent such method is otherwise then permitted by the compensation committee for purposes of
payment of the exercise price and/or applicable withholding taxes) would violate applicable securities laws or any securities
trading policy adopted by us, the expiration date applicable to the option will be automatically extended to a date that is
30 calendar days following the date such cashless exercise or net exercise would no longer violate applicable securities laws
or applicable securities trading policy (so long as such extension does not violate Section 409A of the Code), but not later
than the expiration of the original exercise period. Payment in respect of the exercise of an option may be made in cash or
by check, by surrender of unrestricted shares (at their fair market value on the date of exercise) that have been held by the
participant for any period deemed necessary by our accountants to avoid an additional compensation charge or have been
purchased on the open market, or the compensation committee may, in its discretion and to the extent permitted by law, allow
such payment to be made through a broker-assisted cashless exercise mechanism, a net exercise method, or by such other method
as the compensation committee may determine to be appropriate.
145
Stock Appreciation Rights
. The compensation
committee will be authorized to award SARs under the Plan. SARs will be subject to the terms and conditions established by the
compensation committee. A SAR is a contractual right that allows a participant to receive, either in the form of cash, shares of
New DraftKings Class A common stock or any combination of cash and shares of New DraftKings Class A common stock, the appreciation,
if any, in the value of a common share over a certain period of time. An option granted under the Plan may include SARs and SARs
may also be awarded to a participant independent of the grant of an option. SARs granted in connection with an option will be subject
to terms similar to the option corresponding to such SARs. SARs will be subject to terms established by the compensation committee
and reflected in the award agreement.
Restricted Stock
. The compensation
committee will be authorized to award restricted stock under the Plan. Each award of restricted stock will be subject to the terms
and conditions established by the compensation committee, including any dividend or voting rights. Restricted stock awards are
shares of New DraftKings Class A common stock that generally are non-transferable and subject to other restrictions determined
by the compensation committee for a specified period. Unless the compensation committee determines otherwise or specifies otherwise
in an award agreement, if the participant terminates employment or services during the restricted period, then any unvested restricted
stock is forfeited. Dividends, if any, that may have been withheld by the compensation committee will be distributed to the participant
in cash or, at the sole discretion of the compensation committee, in shares of New DraftKings Class A common stock having a fair
market value equal to the amount of such dividends, upon the release of any applicable restrictions, and if the applicable share
is forfeited, the participant will have no right to such dividends (except as otherwise provided in the applicable award agreement).
Restricted Stock Unit Awards
. The
compensation committee will be authorized to award restricted stock unit awards under the Plan. The compensation committee will
determine the terms of such restricted stock units, including any dividend rights. Unless the compensation committee determines
otherwise or specifies otherwise in an award agreement, if the participant terminates employment or services during the period
of time over which all or a portion of the units are to be earned, then any unvested units will be forfeited. At the election of
the compensation committee, the participant will receive a number of shares of New DraftKings Class A common stock equal to the
number of units earned or an amount in cash equal to the fair market value of that number of shares of New DraftKings Class A common
stock at the expiration of the period over which the units are to be earned or at a later date selected by the compensation committee.
Dividends, if any, that may have been withheld by the compensation committee will be distributed to the participant in cash or,
at the sole discretion of the compensation committee, in shares of New DraftKings Class A common stock having a fair market value
equal to the amount of such dividends, upon the release of any applicable restrictions, and if the applicable share is forfeited,
the participant will have no right to such dividends (except as otherwise provided in the applicable award agreement).
Stock Bonus Awards
. The compensation
committee will be authorized to grant awards of unrestricted shares of New DraftKings Class A common stock, shares of New DraftKings
Class B common stock or other awards denominated in shares of New DraftKings Class A common stock or New DraftKings Class B common
stock, either alone or in tandem with other awards, under the Plan, on such terms and conditions as the compensation committee
may determine.
Performance Compensation Awards
.
The compensation committee will be authorized to grant any award, including in the form of cash, under the Plan in the form of
a performance compensation award by conditioning the vesting of the award on the satisfaction of certain performance goals, measured
on an absolute or relative basis, for a particular performance period. The compensation committee may establish performance criteria
that will be used to establish these performance goals with reference to one or more of the following, without limitation:
146
·
Net earnings or net income (before or after taxes);
·
basic or diluted earnings per share (before or after taxes);
·
revenue or revenue growth (measured on a net or gross basis);
·
gross profit or gross profit growth;
·
operating profit (before or after taxes);
·
return measures (including, but not limited to, return on assets, capital, invested capital, equity or sales);
·
cash flow (including, but not limited to, operating cash flow, free cash flow, net cash provided by operations and cash flow
return on capital);
·
financing and other capital-raising transactions (including, but not limited to, sales of New DraftKings' equity or debt
securities);
·
earnings before or after taxes, interest, depreciation, and/or amortization;
·
gross or operating margins;
·
productivity ratios;
·
share price (including, but not limited to, growth measures and total shareholder return);
·
expense targets;
·
margins;
·
productivity and operating efficiencies;
·
measures of customer satisfaction;
·
customer growth;
·
working capital targets;
·
measures of economic value added;
·
inventory control;
·
enterprise value;
·
sales;
·
debt levels and net debt;
·
combined ratio;
·
timely launch of new facilities;
·
client retention;
·
employee retention;
·
timely completion of new product rollouts;
147
·
cost targets;
·
reductions and savings;
·
productivity and efficiencies;
·
strategic partnerships or transactions;
·
measures of personal targets, goals or completion of projects; or
·
any combination of the foregoing.
The compensation committee is authorized
to adjust or modify the calculation of a performance goal for a performance period based on and in order to appropriately reflect
certain circumstances or events that occur during such performance period.
Transferability
. Each award may be
exercised during the participant's lifetime only by the participant or, if permissible under applicable law, by the participant's
guardian or legal representative and may not be otherwise transferred or encumbered by a participant other than by will or by the
laws of descent and distribution. The compensation committee, however, may permit awards (other than ISOs) to be transferred to
family members, a trust for the benefit of such family members, a partnership or limited liability company whose partners or stockholders
are the participant and his or her family members or anyone else approved by it.
Amendment and Termination
. In general,
our Board may amend, suspend or terminate the Plan at any time. However, shareholder approval to amend the Plan may be necessary
if the law or the Plan so requires (
e
.
g
., repricing, performance goals, approval is necessary to comply with any
tax or regulatory requirement, etc.). No amendment, suspension or termination will impair the rights of any participant or recipient
of any award without the consent of the participant or recipient.
Change in Control
. In the event of
a "Change in Control" (as defined in the Plan), the compensation committee may adjust the number of shares of Class
A common stock or other securities of New DraftKings (or number and kind of other securities or other property) subject to an award,
the exercise or strike price of an award, or any applicable performance measure, and may provide for the substitution or assumption
of outstanding awards in a manner that substantially preserves the terms of such awards, the acceleration of the exercisability
or lapse of restrictions applicable to outstanding awards and the cancellation of outstanding awards in exchange for the consideration
received by shareholders of New DraftKings in connection with such Change in Control transaction.
Israeli Sub-Plan
The Company has adopted an Israeli Sub-Plan
to the Plan in order to enable the grant of awards to employees and directors of the Company's Israeli subsidiaries and affiliates
that are intended to qualify, subject to compliance with certain terms and conditions, for beneficial treatment for Israeli tax
purposes. The Company currently intends to grant Awards pursuant to Section 102 of the Israeli Income Tax Ordinance [New Version] - 1961
(the "Israeli Ordinance") pursuant to the trustee capital gains route that will be held in trust for the benefit of
eligible Israeli participants (the "Trustee 102 Awards").
Effectiveness
. Prior to granting
Trustee 102 Awards, the Company will make the appropriate filings with the Israeli Tax Authority. The grant of Trustee 102 Awards
will not become effective prior to the lapse of 30 days from the date on which the Plan, the Israeli Sub-Plan and the relevant
forms have been submitted for approval by, and will be conditioned upon the approval of, the Israeli Tax Authority.
Trust
. One of the primary
requirements for beneficial Israeli tax treatment is the engagement of a trustee. Trustee 102 Awards granted under the
Sub-Plan and any share of New DraftKings Class A common stock allocated or issued in connection therewith will be issued to a
trustee or will be under the supervision of the trustee, for the benefit of the applicable Israeli participants in accordance
with the provisions of Section 102 of the Israeli Ordinance. The trustee will hold the awards and shares at least until the
end of the statutory holding period, but the Israeli participants may sell shares before that date and pay higher taxes
(including social security and health tax). The trustee may not release or sell any shares unless the Company, its Israeli
subsidiary or affiliate and the trustee are satisfied that the full amounts of tax due have been paid or will be paid. The
main role of the trustee is ensuring compliance with tax withholding obligations. Upon receipt of any Trustee 102 Award, the
Israeli participant will consent to the grant of such award under the specific tax route elected by the Company as required
under the Israeli Ordinance.
148
Assignability and Transferability
.
Awards or any right with respect awards will not be assignable, transferable or given as collateral, and, during the lifetime of
the Israeli participant, the Israeli participant's rights with respect to an award will belong only to the Israeli participant.
As long as awards or shares issued or purchased under the Israeli Sub-Plan are held or supervised, as the case may be, by the trustee
on behalf of an Israeli participant, all rights of the Israeli participant over the shares may not be transferred, assigned, pledged
or mortgaged, other than by will or laws of descent and distribution.
149
DESCRIPTION
OF SECURITIES
As a result of the Business Combination,
DEAC Stockholders who receive shares of New DraftKings Class A common stock in the transactions will become New DraftKings stockholders.
Your rights as New DraftKings stockholders will be governed by Nevada law and the New DraftKings' charter and bylaws. The
following description of the material terms of New DraftKings' securities reflects the anticipated state of affairs upon
completion of the Business Combination.
In connection with the reincorporation
as part of the Business Combination, DEAC Nevada will amend and restate its articles of incorporation and bylaws. The following
summary of the material terms of New DraftKings' securities following the Business Combination is not intended to be a complete
summary of the rights and preferences of such securities. The full text of the Proposed Charter and post-Business Combination bylaws
are filed as
Exhibit 3.3
and
Exhibit 3.4
, respectively, to this prospectus. You are encouraged to read the applicable
provisions of Nevada law, the Proposed Charter and the post-Business Combination bylaws in their entirety for a complete description
of the rights and preferences of New DraftKings' securities following the Business Combination.
Authorized and Outstanding Capital Stock
The Proposed Charter authorizes the issuance
of 2,100,000,000 shares, of which 900,000,000 shares will be shares of Class A common stock, par value $0.0001 per share, 900,000,000
shares will be shares of Class B common stock, par value $0.0001 per share, and 300,000,000 shares will be shares of preferred
stock, par value $0.0001 per share.
As of April 13, 2020, DEAC had approximately
2,648,774 units, each consisting of one share of Class A common stock and one-third of one redeemable warrant, 37,351,226 shares
of Class A common stock, par value $0.0001 per share, and 18,783,740 warrants, each whole warrant exercisable for one share of
Class A common stock, issued and outstanding and one holder of record of Class A common stock. After giving effect to the Business
Combination, New DraftKings will have approximately 313 million shares of Class A common stock outstanding (assuming no redemptions)
and approximately 394 million shares of Class B common stock outstanding (assuming no redemptions).
New DraftKings Common Stock
Class A Common Stock
Voting Rights
Holders of New DraftKings Class A common
stock will be entitled to cast one vote per Class A share. Generally, holders of all classes of New DraftKings common stock vote
together as a single class, and an action is approved by New DraftKings stockholders if the number of votes cast in favor of the
action exceeds the number of votes cast in opposition to the action, while directors are elected by a plurality of the votes cast.
Holders of New DraftKings Class A common stock will not be entitled to cumulate their votes in the election of directors.
Dividend Rights
Holders of New DraftKings Class A common
stock will share ratably (based on the number of shares of Class A common stock held) if and when any dividend is declared by the
New DraftKings board of directors out of funds legally available therefor, subject to restrictions, whether statutory or contractual
(including with respect to any outstanding indebtedness), on the declaration and payment of dividends and to any restrictions on
the payment of dividends imposed by the terms of any outstanding preferred stock or any class or series of stock having a preference
over, or the right to participate with, the New DraftKings Class A common stock with respect to the payment of dividends.
Liquidation, Dissolution and Winding
Up
On the liquidation, dissolution, distribution
of assets or winding up of New DraftKings, each holder of New DraftKings Class A common stock will be entitled, pro rata on a per
share basis, to all assets of New DraftKings of whatever kind available for distribution to the holders of common stock, subject
to the designations, preferences, limitations, restrictions and relative rights of any other class or series of preferred stock
of New DraftKings then outstanding.
150
Other Matters
No shares of New DraftKings Class A common
stock will be subject to redemption (except as described below under "
Redemption Rights and Transfer Restrictions with
Respect to Capital Stock held by Unsuitable Persons and Their Affiliates
") or have preemptive rights to purchase additional
shares of Class A common stock. Holders of shares of New DraftKings Class A common stock do not have subscription, redemption or
conversion rights. Upon completion of the Business Combination, all the outstanding shares of New DraftKings Class A common stock
will be validly issued, fully paid and non-assessable.
Class B Common Stock
Issuance of Class B common stock
with Common Units
Shares of New DraftKings Class B common
stock may be issued only to, and registered in the name of, Mr. Robins and any entities wholly owned by Mr. Robins (including all
subsequent successors, assigns and permitted transferees) (collectively, "Permitted Class B Owners").
Voting Rights
Holders of New DraftKings Class B common
stock will be entitled to cast 10 votes per Class B share. Generally, holders of all classes of New DraftKings common stock vote
together as a single class, and an action is approved by New DraftKings stockholders if the number of votes cast in favor of the
action exceeds the number of votes cast in opposition to the action, while directors are elected by a plurality of the votes cast.
Holders of New DraftKings Class B common stock will not be entitled to cumulate their votes in the election of directors.
Dividend Rights
Holders of New DraftKings Class B common
stock will not participate in any dividend declared by the board of directors.
Liquidation Rights
On the liquidation, dissolution, distribution
of assets or winding up of New DraftKings, holders of New DraftKings Class B common stock will not be entitled to receive any distribution
of New DraftKings assets of whatever kind available until distribution has first been made to all holders of New DraftKings Class
A common stock. Notwithstanding this, due to the liquidation rights of New DraftKings Class A common stock described above in which
all assets of New DraftKings of whatever kind available will be distributed to holders of New DraftKings Class A common stock,
no assets of New DraftKings will be available for liquidating distributions in respect of the New DraftKing Class B common stock.
Transfers
Pursuant to the Proposed Charter, holders
of New DraftKings Class B common stock are generally restricted from transferring such shares, other than to a Permitted Class
B Owner or in connection with a divorce or domestic relations order or decree.
Mandatory Cancellation
Each share of New DraftKings Class B
common stock will be (1) automatically canceled for no consideration in the event that shares of Class A common stock that
are then held by Permitted Class B Owners (including without limitation all shares of Class A common stock that are the
subject of unvested stock options or other equity awards held by Mr. Robins) represent less than 33% of Base Class A Shares
(as defined in the Proposed Charter) and (2) subject to cancelation by New DraftKings (without consideration) one year after
the date that both of the following conditions apply (the "Founder Termination Anniversary Date"): (a) the
earliest to occur of  (i) Mr. Robins' employment as Chief Executive Officer of New DraftKings being terminated
due to termination of employment for cause or due to death or permanent disability and (ii) Mr. Robins resigns (other than
for good reason) as the Chief Executive Officer of New DraftKings and (b) either (i) Mr. Robins no longer serves as a member
of the board of directors of New DraftKings or (ii) Mr. Robins' service to New DraftKings is not his primary business
occupation. In the event that Mr. Robins is reinstated as the Chief Executive Officer of New DraftKings or is reelected or
reappointed to serve as a member of the board of directors of New DraftKings prior to the Founder Termination Anniversary
Date (each, a "Reset Event"), then the shares of Class B common stock will not be canceled pursuant to clause (2)
unless and until the one-year anniversary of the date that both of the foregoing conditions are subsequently met; provided
that in the event of a subsequent Reset Event, the next Founder Termination Anniversary Date will extend until the one-year
anniversary of the date that both of the foregoing conditions are subsequently met without a Reset Event occurring prior to
such anniversary.
151
Other Matters
No shares of New DraftKings Class B common
stock will be subject to redemption (except as described below under "
Redemption Rights and Transfer Restrictions with
Respect to Capital Stock Held by Unsuitable Persons and Their Affiliates
") or have preemptive rights to purchase additional
shares of Class B common stock. Holders of shares of New DraftKings Class B common stock do not have subscription, redemption or
conversion rights. Upon completion of the Business Combination, all outstanding shares of New DraftKings Class B common stock will
be validly issued, fully paid and non-assessable.
Preferred Stock
New DraftKings' amended and restated
articles of incorporation provide that the New DraftKings board of directors has the authority, without action by the stockholders,
to designate and issue shares of preferred stock in one or more classes or series, and the number of shares constituting any such
class or series, and to fix the voting powers, designations, preferences, limitations, restrictions and relative rights of each
class or series of preferred stock, including, without limitation, dividend rights, dividend rates, conversion rights, exchange
rights, voting rights, rights and terms of redemption, dissolution preferences, and treatment in the case of a merger, business
combination transaction, or sale of New DraftKings' assets, which rights may be greater than the rights of the holders of
the common stock. There will be no shares of preferred stock outstanding immediately upon consummation of the Business Combination.
The purpose of authorizing the New DraftKings
board of directors to issue preferred stock and determine the rights and preferences of any classes or series of preferred stock
is to eliminate delays associated with a stockholder vote on specific issuances. The simplified issuance of preferred stock, while
providing flexibility in connection with possible acquisitions, future financings and other corporate purposes, could have the
effect of making it more difficult for a third party to acquire, or could discourage a third party from seeking to acquire, a majority
of New DraftKings outstanding voting stock. Additionally, the issuance of preferred stock may adversely affect the holders of New
DraftKings Class A common stock by restricting dividends on the Class A common stock, diluting the voting power of the Class A
common stock or subordinating the dividend or liquidation rights of the Class A common stock. As a result of these or other factors,
the issuance of preferred stock could have an adverse impact on the market price of New DraftKings Class A common stock.
Unvested Stock Options
As of December 31, 2019, DraftKings had
unvested outstanding options to purchase 80,809,423 shares of its common stock, with a weighted average exercise price of $1.31
per share, which, upon Closing, will convert to (i) 28,789,603 options to purchase shares of New DraftKings Class A Common Stock
and (ii) the right to receive earnout shares, if any.
As of December 31, 2019, SBTech had unvested
outstanding options to purchase 164 shares of its common stock, with a weighted average exercise price of $9,586.72 per share,
which, upon Closing, will convert to 166,408 options to purchase shares of New DraftKings Class A Common Stock.
Warrants
Public Stockholders' Warrants
There are currently outstanding an aggregate
of 19,666,667 warrants, which, following the consummation of the Business Combination, will entitle the holder to acquire New DraftKings
Class A common stock. Each whole warrant will entitle the registered holder to purchase one share of New DraftKings Class A common
stock at a price of $11.50 per share, subject to adjustment as discussed below, beginning 30 days after the Closing. A holder
may exercise its warrants only for a whole number of shares of New DraftKings Class A common stock. This means only a whole warrant
may be exercised at a given time by a warrant holder. No fractional warrants will be issued upon separation of the units and only
whole warrants will trade. Accordingly, unless you hold at least three units, you will not be able to receive or trade a whole
warrant. The warrants will expire five years after the completion of the Business Combination, at 5:00 p.m., New York City time,
or earlier upon redemption or liquidation.
152
Redemption of Warrants for Cash
Once the warrants become exercisable, New
DraftKings may call the warrants for redemption for cash:
·
in whole and not in part; at a price of $0.01 per warrant;
·
upon not less than 30 days' prior written notice of redemption (the "30-day redemption period") to each warrant
holder; and
·
if, and only if, the closing price of the New DraftKings Class A common stock equals or exceeds $18.00 per share (as adjusted
for stock splits, stock capitalizations, reorganizations, recapitalizations and the like) for any 20 trading days within a 30-trading
day period ending three business days before New DraftKings sends the notice of redemption to the warrant holders.
If and when the warrants become redeemable
by New DraftKings for cash, New DraftKings may exercise its redemption right even if it is unable to register or qualify the underlying
securities for sale under all applicable state securities laws.
The last of the redemption criterion discussed
above prevents a redemption call unless there is at the time of the call a significant premium to the warrant exercise price. If
the foregoing conditions are satisfied and New DraftKings issues a notice of redemption of the warrants, each warrant holder will
be entitled to exercise his, her or its warrant prior to the scheduled redemption date. However, the price of the New DraftKings
Class A common stock may fall below the $18.00 redemption trigger price (as adjusted for stock splits, stock capitalizations, reorganizations,
recapitalizations and the like) as well as the $11.50 warrant exercise price after the redemption notice is issued.
Redemption of warrants for shares of Class
A common stock
Commencing 90 days after the warrants become
exercisable, New DraftKings may redeem the outstanding warrants for shares of New DraftKings Class A common stock:
·
in whole and not in part (including both public warrants and private placement warrants);
·
at a price equal to a number of shares of New DraftKings Class A common stock to be determined by reference to the table below,
based on the redemption date and the "fair market value" of New DraftKings Class A common stock, except as otherwise
described below;
·
upon a minimum of 30 days' prior written notice of redemption;
·
if, and only if, the last reported sale price of New DraftKings Class A common stock equals or exceeds $10.00 per share (as
adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) on the trading day prior to the date
on which New DraftKings sends the notice of redemption to the warrant holders;
·
if, and only if, the private placement warrants are also concurrently exchanged at the same price (equal to a number of shares
of New DraftKings Class A common stock) as the outstanding public warrants, as described above; and
·
if, and only if, there is an effective registration statement covering the shares of New DraftKings Class A common stock issuable
upon exercise of the warrants and a current prospectus relating thereto available throughout the 30-day redemption period after
written notice of redemption is given.
The numbers in the table below represent
the "redemption prices," or the number of shares of New DraftKings Class A common stock that a warrant holder will
receive upon redemption by us pursuant to this redemption feature, based on the "fair market value" of New DraftKings
Class A common stock on the corresponding redemption date, determined based on the average of the last reported sales price for
the 10 trading days ending on the third trading day prior to the date on which the notice of redemption is sent to the holders
of warrants, and the number of months that the corresponding redemption date precedes the expiration date of the warrants, each
as set forth in the table below.
153
The share prices set forth in the column
headings of the table below will be adjusted as of any date on which the number of shares issuable upon exercise of a warrant is
adjusted. The adjusted stock prices in the column headings will equal the stock prices immediately prior to such adjustment, multiplied
by a fraction, the numerator of which is the number of shares deliverable upon exercise of a warrant immediately prior to such
adjustment and the denominator of which is the number of shares deliverable upon exercise of a warrant as so adjusted. The number
of shares in the table below shall be adjusted in the same manner and at the same time as the number of shares issuable upon exercise
of a warrant.
​
Fair Market Value of New DraftKings Class A Common Stock
Redemption Date
(period to expiration of warrants)
$
10.00
$
11.00
$
12.00
$
13.00
$
14.00
$
15.00
$
16.00
$
17.00
$
18.00
57 months
0.257
0.277
0.294
0.310
0.324
0.337
0.348
0.358
0.365
54 months
0.252
0.272
0.291
0.307
0.322
0.335
0.347
0.357
0.365
51 months
0.246
0.268
0.287
0.304
0.320
0.333
0.346
0.357
0.365
48 months
0.241
0.263
0.283
0.301
0.317
0.332
0.344
0.356
0.365
45 months
0.235
0.258
0.279
0.298
0.315
0.330
0.343
0.356
0.365
42 months
0.228
0.252
0.274
0.294
0.312
0.328
0.342
0.355
0.364
39 months
0.221
0.246
0.269
0.290
0.309
0.325
0.340
0.354
0.364
36 months
0.213
0.239
0.263
0.285
0.305
0.323
0.339
0.353
0.364
33 months
0.205
0.232
0.257
0.280
0.301
0.320
0.337
0.352
0.364
30 months
0.196
0.224
0.250
0.274
0.297
0.316
0.335
0.351
0.364
27 months
0.185
0.214
0.242
0.268
0.291
0.313
0.332
0.350
0.364
24 months
0.173
0.204
0.233
0.260
0.285
0.308
0.329
0.348
0.364
21 months
0.161
0.193
0.223
0.252
0.279
0.304
0.326
0.347
0.364
18 months
0.146
0.179
0.211
0.242
0.271
0.298
0.322
0.345
0.363
15 months
0.130
0.164
0.197
0.230
0.262
0.291
0.317
0.342
0.363
12 months
0.111
0.146
0.181
0.216
0.250
0.282
0.312
0.339
0.363
9 months
0.090
0.125
0.162
0.199
0.237
0.272
0.305
0.336
0.362
6 months
0.065
0.099
0.137
0.178
0.219
0.259
0.296
0.331
0.362
3 months
0.034
0.065
0.104
0.150
0.197
0.243
0.286
0.326
0.361
0 months
-
-
0.042
0.115
0.179
0.233
0.281
0.323
0.361
The "fair market value" of New
DraftKings Class A common stock means the average last reported sale price of New DraftKings Class A common stock for the 10 trading
days ending on the third trading day prior to the date on which the notice of redemption is sent to the holders of warrants.
The exact fair market value and redemption
date may not be set forth in the table above, in which case, if the fair market value is between two values in the table or the
redemption date is between two redemption dates in the table, the number of shares of New DraftKings Class A common stock to be
issued for each warrant redeemed will be determined by a straight-line interpolation between the number of shares set forth for
the higher and lower fair market values and the earlier and later redemption dates, as applicable, based on a 365- or 366-day year,
as applicable. For example, if the average last reported sale price of New DraftKings Class A common stock for the 10 trading days
ending on the third trading date prior to the date on which the notice of redemption is sent to the holders of the warrants is
$11.00 per share, and at that time there are 57 months until the expiration of the warrants, New DraftKings may choose to, pursuant
to this redemption feature, redeem the warrants at a "redemption price" of 0.277 shares of Class A common stock for
each whole warrant. For an example where the exact fair market value and redemption date are not as set forth in the table above,
if the average last reported sale price of New DraftKings Class A common stock for the 10 trading days ending on the third trading
date prior to the date on which the notice of redemption is sent to the holders of the warrants is $13.50 per share, and at such
time there are 38 months until the expiration of the warrants, New DraftKings may choose to, pursuant to this redemption feature,
redeem the warrants at a "redemption price" of 0.298 shares of New DraftKings Class A common stock for each whole warrant.
Finally, as reflected in the table above, New DraftKings can redeem the warrants for no consideration in the event that the warrants
are "out of the money" (i.e., the trading price of New DraftKings Class A common stock is below the exercise price
of the warrants) and about to expire.
154
Any public warrants held by New DraftKings
officers or directors will be subject to this redemption feature, except that such officers and directors will only receive "fair
market value" for such public warrants so redeemed ("fair market value" for such public warrants held by New
DraftKings officers or directors being defined as the last reported sale price of the public warrants on such redemption date).
New DraftKings can redeem the warrants when
the shares of New DraftKings Class A common stock are trading at a price starting at $10.00, which is below the exercise price
of   $11.50. As a result, if New DraftKings chooses to redeem the warrants when the shares of New DraftKings Class
A common stock are trading at a price below the exercise price of the warrants, this could result in the warrant holders receiving
fewer shares of New DraftKings Class A common stock than they would have received if they had chosen to wait to exercise their
warrants for shares of New DraftKings Class A common stock if and when such shares of New DraftKings Class A common stock were
trading at a price higher than the exercise price of $11.50.
No fractional shares of New DraftKings Class
A common stock will be issued upon redemption. If, upon redemption, a holder would be entitled to receive a fractional interest
in a share, New DraftKings will round down to the nearest whole number of the number of shares of New DraftKings Class A common
stock to be issued to the holder.
Redemption Procedures and Cashless Exercise
If New DraftKings calls the warrants for
redemption as described above, its management will have the option to require any holder that wishes to exercise his, her or its
warrant to do so on a "cashless basis." To exercise warrants on a cashless basis, the holders of exercised warrants
would pay the exercise price by surrendering their warrants for that number of shares of New DraftKings Class A common stock equal
to the quotient obtained by dividing (x) the product of the number of shares of New DraftKings Class A common stock underlying
the warrants, multiplied by the excess of the "fair market value" of the shares of New DraftKings Class A common stock
over the exercise price of the warrants by (y) the fair market value. The "fair market value" will mean the average
closing price of the New DraftKings Class A common stock for the ten (10) trading days ending on the third (3rd) trading day prior
to the date on which the notice of redemption is sent to the holders of warrants or the warrant agent, as applicable. The notice
of redemption will contain the information necessary to calculate the number of shares of New DraftKings Class A common stock to
be received upon exercise of the warrants, including the "fair market value" in such case. Requiring a cashless exercise
in this manner will reduce the number of shares to be issued and thereby lessen the dilutive effect of a warrant redemption. If
New DraftKings management calls the warrants for redemption and does not require the holders to exercise their warrants on a cashless
basis, the holders of the private placement warrants and their permitted transferees would be entitled to exercise their private
placement warrants for cash or on a cashless basis using the same formula described above that other warrant holders would have
been required to use had all warrant holders been required to exercise their warrants on a cashless basis, as described in more
detail below.
A holder of a warrant may notify New DraftKings
in writing in the event it elects to be subject to a requirement that such holder will not have the right to exercise such warrant,
to the extent that after giving effect to such exercise, such person (together with such person's affiliates), to the warrant
agent's actual knowledge, would beneficially own in excess of 4.9% or 9.8% (as specified by the holder) of the New DraftKings
Class A common stock outstanding immediately after giving effect to such exercise.
If the number of outstanding shares of New
DraftKings Class A common stock is increased by a share capitalization payable in shares of New DraftKings Class A common stock,
or by a split-up of common stock or other similar event, then, on the effective date of such share capitalization, split-up or
similar event, the number of shares of New DraftKings Class A common stock issuable on exercise of each warrant will be increased
in proportion to such increase in the outstanding shares of common stock. A rights offering to holders of common stock entitling
holders to purchase New DraftKings Class A common stock at a price less than the fair market value will be deemed a share capitalization
of a number of shares of Class A common stock equal to the product of  (i) the number of shares of New DraftKings Class
A common stock actually sold in such rights offering (or issuable under any other equity securities sold in such rights offering
that are convertible into or exercisable for New DraftKings Class A common stock) and (ii) the quotient of  (x) the price
per share of New DraftKings Class A common stock paid in such rights offering and (y) the fair market value. For these purposes
(i) if the rights offering is for securities convertible into or exercisable for shares of New DraftKings Class A common stock,
in determining the price payable for New DraftKings Class A common stock, there will be taken into account any consideration received
for such rights, as well as any additional amount payable upon exercise or conversion and (ii) fair market value means the volume
weighted average price of shares of New DraftKings Class A common stock as reported during the ten (10) trading day period ending
on the trading day prior to the first date on which the New DraftKings Class A common stock trades on the applicable exchange or
in the applicable market, regular way, without the right to receive such rights.
155
In addition, if New DraftKings, at any time
while the warrants are outstanding and unexpired, pays a dividend or makes a distribution in cash, securities or other assets to
the holders of New DraftKings Class A common stock on account of such New DraftKings Class A common stock (or other securities
into which the warrants are convertible), other than (a) as described above, (b) certain ordinary cash dividends or (c) to satisfy
the redemption rights of the holders of New DraftKings Class A common stock in connection with the Business Combination, then the
warrant exercise price will be decreased, effective immediately after the effective date of such event, by the amount of cash and/or
the fair market value of any securities or other assets paid on each share of New DraftKings Class A common stock in respect of
such event.
If the number of outstanding shares of New
DraftKings Class A common stock is decreased by a consolidation, combination, reverse share split or reclassification of New DraftKings
Class A common stock or other similar event, then, on the effective date of such consolidation, combination, reverse share split,
reclassification or similar event, the number of shares of New DraftKings Class A common stock issuable on exercise of each warrant
will be decreased in proportion to such decrease in outstanding shares of New DraftKings Class A common stock.
Whenever the number of shares of New DraftKings
Class A common stock purchasable upon the exercise of the warrants is adjusted, as described above, the warrant exercise price
will be adjusted by multiplying the warrant exercise price immediately prior to such adjustment by a fraction (x) the numerator
of which will be the number of shares of New DraftKings Class A common stock purchasable upon the exercise of the warrants immediately
prior to such adjustment, and (y) the denominator of which will be the number of shares of New DraftKings Class A common stock
so purchasable immediately thereafter.
In case of any reclassification or reorganization
of the outstanding New DraftKings Class A common stock (other than those described above or that solely affects the par value of
such New DraftKings Class A common stock), or in the case of any merger or consolidation of us with or into another corporation
(other than a consolidation or merger in which New DraftKings is the continuing corporation and that does not result in any reclassification
or reorganization of outstanding New DraftKings Class A common stock), or in the case of any sale or conveyance to another corporation
or entity of the assets or other property of us as an entirety or substantially as an entirety in connection with which New DraftKings
is dissolved, the holders of the warrants will thereafter have the right to purchase and receive, upon the basis and upon the terms
and conditions specified in the warrants and in lieu of the New DraftKings Class A common stock immediately theretofore purchasable
and receivable upon the exercise of the rights represented thereby, the kind and amount of shares of New DraftKings Class A common
stock or other securities or property (including cash) receivable upon such reclassification, reorganization, merger or consolidation,
or upon a dissolution following any such sale or transfer, that the holder of the warrants would have received if such holder had
exercised its warrants immediately prior to such event. If less than 70% of the consideration receivable by the holders of New
DraftKings Class A common stock in such a transaction is payable in the form of New DraftKings Class A common stock in the successor
entity that is listed for trading on a national securities exchange or is quoted in an established over-the-counter market, or
is to be so listed for trading or quoted immediately following such event, and if the registered holder of the warrant properly
exercises the warrant within 30 days following public disclosure of such transaction, the warrant exercise price will be reduced
as specified in the warrant agreement based on the Black-Scholes Warrant Value (as defined in the warrant agreement) of the warrant.
The purpose of such exercise price reduction is to provide additional value to holders of the warrants when an extraordinary transaction
occurs during the exercise period of the warrants pursuant to which the holders of the warrants otherwise do not receive the full
potential value of the warrants.
The warrants are issued in registered form
under a warrant agreement between Continental, as warrant agent, and DEAC. The warrant agreement provides that the terms of the
warrants may be amended without the consent of any holder to cure any ambiguity or correct any defective provision, and that all
other modifications or amendments will require the vote or written consent of the holders of at least 50% of the then outstanding
public warrants, and, solely with respect to any amendment to the terms of the private placement warrants, a majority of the then
outstanding private placement warrants. You should review a copy of the warrant agreement, which will be filed as an exhibit to
this proxy solicitation/​prospectus, for a complete description of the terms and conditions applicable to the warrants.
The warrants may be exercised upon surrender
of the warrant certificate on or prior to the expiration date at the offices of the warrant agent, with the exercise form on the
reverse side of the warrant certificate completed and executed as indicated, accompanied by full payment of the exercise price
(or on a cashless basis, if applicable), by certified or official bank check payable to us, for the number of warrants being exercised.
The warrant holders do not have the rights or privileges of holders of common stock and any voting rights until they exercise their
warrants and receive New DraftKings Class A common stock. After the issuance of New DraftKings Class A common stock upon exercise
of the warrants, each holder will be entitled to one vote for each share held of record on all matters to be voted on by holders
of New DraftKings
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Class A common stock.
No fractional shares will be issued upon
exercise of the warrants. If, upon exercise of the warrants, a holder would be entitled to receive a fractional interest in a share,
New DraftKings will, upon exercise, round down to the nearest whole number the number of shares of New DraftKings Class A common
stock to be issued to the warrant holder.
Private Placement Warrants
The private placement warrants (including
the New DraftKings Class A common stock issuable upon exercise of the private placement warrants) will not be transferable, assignable
or salable until thirty (30) days after the Closing (except in limited circumstances) and they will not be redeemable by New DraftKings
for cash so long as they are held by our initial stockholders or their permitted transferees. The initial purchasers of the private
placement warrants, or their permitted transferees, have the option to exercise the private placement warrants on a cashless basis.
Except as described in this section, the private placement warrants have terms and provisions that are identical to those of the
warrants sold in our initial public offering, including that they may be redeemed for shares of New DraftKings Class A common stock.
If the private placement warrants are held by holders other than the initial purchasers thereof or their permitted transferees,
the private placement warrants will be redeemable by New DraftKings and exercisable by the holders on the same basis as the warrants
included in the units being sold in our initial public offering.
Exclusive Forum
The Proposed Charter provides that, to the
fullest extent permitted by law, unless New DraftKings otherwise consents in writing, the Eighth Judicial District Court of Clark
County, Nevada (or if the Eighth Judicial District Court of Clark County, Nevada does not have jurisdiction, any other state district
court located in the State of Nevada, and if no state district court in the State of Nevada has jurisdiction, any federal court
located in the State of Nevada) will be the exclusive forum for any action or proceeding brought in the name or right of New DraftKings
or on its behalf, any action asserting a claim for breach of any fiduciary duty owed by any director, officer, employee or agent
of New DraftKings to New DraftKings or its stockholders, any action asserting a claim arising pursuant to any provision of NRS
Chapters 78 or 92A, New DraftKings' amended and restated articles of incorporation or the New DraftKings bylaws, any action
to interpret, apply, enforce or determine the validity of the New DraftKings Articles of Incorporation or the New DraftKings bylaws
or any action asserting a claim governed by the internal affairs doctrine. The exclusive forum provision will provide federal courts
located in the State of Nevada as the forum for suits brought to enforce any duty or liability for which Section 27 of the Exchange
Act establishes exclusive jurisdiction with the federal courts or any other claim for which the federal courts have exclusive jurisdiction.
Anti-Takeover Effects of Provisions of the New DraftKings
Amended and Restated Articles of Incorporation, the New DraftKings Amended and Restated Bylaws and Applicable Law
Certain provisions of New DraftKings'
amended and restated articles of incorporation, amended and restated bylaws and laws of the State of Nevada, where New DraftKings
is incorporated, may discourage or make more difficult a takeover attempt that a stockholder might consider in his or her best
interest. These provisions may also adversely affect prevailing market prices for New DraftKings common stock. We believe that
the benefits of increased protection give New DraftKings the potential ability to negotiate with the proponent of an unsolicited
proposal to acquire or restructure New DraftKings and outweigh the disadvantage of discouraging those proposals because negotiation
of the proposals could result in an improvement of their terms.
Authorized but Unissued Shares
The authorized but unissued shares of Class
A and B common stock and preferred stock are available for future issuance without stockholder approval, subject to any limitations
imposed by the listing standards of The Nasdaq Stock 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 more difficult or discourage an attempt to obtain control of New DraftKings by means of a proxy contest,
tender offer, merger or otherwise.
Dual Class Stock
As described above in "- New DraftKings
Common Stock - Class A Common Stock - Voting Rights" and "- New DraftKings Common Stock - Class
B Common Stock - Voting Rights," the New DraftKings amended and restated articles of incorporation will provide
for a dual class common stock structure, which will provide Mr. Robins with the ability to control the outcome of matters requiring
stockholder approval, even though he owns significantly less than a majority of the shares of outstanding New DraftKings Class
A and Class B common stock, including the election of directors and significant corporate transactions, such as a merger or other
sale of New DraftKings or its assets.
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Number of Directors
The New DraftKings amended and restated
articles of incorporation and amended and restated bylaws provide that, subject to any rights of holders of preferred stock to
elect additional directors under specified circumstances, the number of directors may be fixed from time to time pursuant to a
resolution adopted by the New DraftKings board of directors or, from and after the time that Mr. Robins beneficially owns less
than a majority of the voting power of the outstanding capital stock of New DraftKings, may be modified by the affirmative vote
of at least two-thirds of the voting power of the outstanding capital stock of New DraftKings. The initial number of directors
will be fixed at 13.
Requirements for Advance Notification
of Stockholder Meetings, Nominations and Proposals
The New DraftKings Bylaws will establish
advance notice procedures with respect to stockholder proposals and the nomination of candidates for election as directors, other
than nominations made by or at the direction of the Board of Directors or a committee of the Board of Directors. In order for any
matter to be "properly brought" before a meeting, a stockholder will have to comply with advance notice requirements
and provide New DraftKings with certain information. Generally, to be timely, a stockholder's notice must be received at
New DraftKings' principal executive offices not less than 90 days nor more than 120 days prior to the first anniversary date
of the immediately preceding annual meeting of stockholders. The New DraftKings Bylaws will also specify requirements as to the
form and content of a stockholder's notice. The New DraftKings Bylaws will allow the chairman of the meeting at a meeting
of the stockholders to adopt rules and regulations for the conduct of meetings which may have the effect of precluding the conduct
of certain business at a meeting if the rules and regulations are not followed. These provisions may also defer, delay or discourage
a potential acquirer from conducting a solicitation of proxies to elect the acquirer's own slate of directors or otherwise
attempting to influence or obtain control of us.
Limitations on Stockholder Action by Written
Consent
Nevada law permits stockholder action by
written consent unless the corporation's articles of incorporation or bylaws provide otherwise. Pursuant to Section 78.320
of the NRS, any action required to be taken at any annual or special meeting of the stockholders may be taken without a meeting,
if a written consent to such action is signed by the holders of outstanding stock having at least a majority of the voting power
of all classes entitled to vote, or such different proportion that would be required for such an action at a meeting of the stockholders.
New DraftKings' amended and restated articles of incorporation provides that stockholder action by written consent will be
permitted so long as Mr. Robins beneficially owns a majority of the voting power of the then-outstanding shares of capital stock
of New DraftKings. Once Mr. Robins no longer beneficially owns a majority of the voting power of the then-outstanding shares of
capital stock of New DraftKings, all stockholder actions must be taken at a meeting of New DraftKings stockholders.
Amendment of Amended and Restated Articles
of Incorporation or Bylaws
Nevada law provides generally that a
resolution of the board of directors is required to propose an amendment to a corporation's articles of incorporation
and that the amendment must be approved by the affirmative vote of a majority of the voting power of all classes entitled to
vote, as well as a majority of any class adversely affected. Nevada law also provides that the corporation's bylaws,
including any bylaws adopted by its stockholders, may be amended by the board of directors and that the power to adopt, amend
or repeal the bylaws may be granted exclusively to the directors in the corporation's articles of incorporation. New
DraftKings' amended and restated articles of incorporation provide that, except as otherwise provided by applicable
law, amendments to the Proposed Charter must be approved by (1) a majority of the combined voting power of all shares of New
DraftKings capital stock entitled to vote, voting together as a single class, so long as shares representing a majority of
the voting power of all of the then-outstanding shares of capital stock of New DraftKings entitled to vote is beneficially
owned by Mr. Robins or (2) two-thirds of the combined voting power of all shares entitled to vote, voting together as a
single class, thereafter. The New DraftKings amended and restated articles of incorporation and bylaws provide that the New
DraftKings amended and restated bylaws may be amended or repealed by either the affirmative vote of a majority of the New
DraftKings board of directors or by the affirmative vote of stockholders representing a majority of the voting power of all
of the then-outstanding shares of capital stock of New DraftKings entitled to vote, while Mr. Robins beneficially owns shares
representing at least a majority of the voting power of the capital stock of New DraftKings, or, thereafter, by the
affirmative vote of stockholders representing at least two-thirds or more of the voting power of New DraftKings capital
stock.
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Business Combinations
The "business combination" provisions
of Sections 78.411 to 78.444, inclusive, of the NRS generally prohibit a publicly traded Nevada corporation with at least 200 stockholders
of record from engaging in various "combination" transactions with any interested stockholder for a period of up to
four years after the date of the transaction in which the person became an interested stockholder, unless the combination or transaction
was approved by the board of directors before such person became an interested stockholder or the combination is approved by the
board of directors, if within two years after the date in which the person became an interested stockholder, and is approved at
a meeting of the stockholders by the affirmative vote of stockholders representing at least 60% (for a combination within two years
after becoming an interested stockholder) or a majority (for combinations between two and four years thereafter) of the outstanding
voting power held by disinterested stockholders. Alternatively, a corporation may engage in a combination with an interested stockholder
more than two years after such person becomes an interested stockholder if:
·
the consideration to be paid to the holders of the corporation's stock, other than 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 the transaction in which it became an interested stockholder, whichever
is higher, plus interest compounded annually, (b) the market value per share of common stock on the date of announcement of the
combination or the date the interested stockholder acquired the shares, whichever is higher, less certain dividends paid or (c)
for holders of preferred stock, the highest liquidation value of the preferred stock, if it is higher; and
·
the interested stockholder has not become the owner of any additional voting shares since the date of becoming an interested
stockholder except by certain permitted transactions.
A "combination" is generally
defined to include (i) mergers or consolidations with the "interested stockholder" or an affiliate or associate of
the interested stockholder, (ii) any sale, lease exchange, mortgage, pledge, transfer or other disposition of assets of the corporation,
in one transaction or a series of transactions, to or with the interested stockholder or an affiliate or associate of the interested
stockholder: (a) having an aggregate market value equal to 5% or more of the aggregate market value of the assets of the corporation,
(b) having an aggregate market value equal to 5% or more of the aggregate market value of all outstanding shares of the corporation
or (c) representing more than 10% of the earning power or net income (determined on a consolidated basis) of the corporation, (iii)
any issuance or transfer of securities to the interested stockholder or an affiliate or associate of the interested stockholder,
in one transaction or a series of transactions, having an aggregate market value equal to 5% or more of the aggregate market value
of all of the outstanding voting shares of the corporation (other than under the exercise of warrants or rights to purchase shares
offered, or a dividend or distribution made pro rata to all stockholders of the corporation), (iv) adoption of a plan or proposal
for liquidation or dissolution of the corporation with the interested stockholder or an affiliate or associate of the interested
stockholder and (v) certain other transactions having the effect of increasing the proportionate share of voting securities beneficially
owned by the interested stockholder or an affiliate or associate of the interested stockholder.
In general, an "interested stockholder"
means any person who (i) beneficially owns, directly or indirectly, 10% or more of the voting power of the outstanding voting shares
of a corporation, or (ii) is an affiliate or associate of the corporation that beneficially owned, within two years prior to the
date in question, 10% or more of the voting power of the then-outstanding shares of the corporation.
New DraftKings has opted out of these provisions
in its amended and restated articles of incorporation until Mr. Robins ceases to beneficially own shares of common stock of New
DraftKings representing at least 15% of the outstanding voting stock of New DraftKings.
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Control Share Acquisitions
The "control share"
provisions of Sections 78.378 to 78.3793, inclusive, of the NRS apply to "issuing corporations" that are Nevada
corporations doing business, directly or through an affiliate, in Nevada, and having at least 200 stockholders of record,
including at least 100 of whom have addresses in Nevada appearing on the stock ledger of the corporation. The control share
statute prohibits an acquirer, under certain circumstances, from voting its "control shares" of an issuing
corporation's stock after crossing certain ownership threshold percentages, unless the acquirer obtains approval of the
issuing corporation's disinterested stockholders or unless the issuing corporation amends its articles of incorporation
or bylaws within 10 days of the acquisition. The statute specifies three thresholds: one-fifth or more but less than
one-third, one-third but less than a majority, and a majority or more, of the outstanding voting power of a corporation.
Generally, once an acquirer crosses one of the foregoing thresholds, those shares acquired in an acquisition or offer to
acquire in an acquisition and acquired within 90 days immediately preceding the date that the acquirer crosses one of the
thresholds become "control shares," and such control shares are deprived of the right to vote until disinterested
stockholders restore the right. In addition, the corporation, if provided in its articles of incorporation or bylaws in
effect on the tenth (10th) day following the acquisition of a controlling interest, may cause the redemption of all of the
control shares at the average price paid for such shares if the stockholders do not accord the control shares full voting
rights. If control shares are accorded full voting rights and the acquiring person has acquired a majority or more of all
voting power, all other stockholders who did not vote in favor of authorizing voting rights to the control shares are
entitled to demand payment for the fair value of their shares in accordance with statutory procedures established for
dissenters' rights.
New DraftKings has opted out of these provisions
in its amended and restated articles of incorporation until Mr. Robins ceases to beneficially own shares of common stock of New
DraftKings representing at least 15% of the outstanding voting stock of New DraftKings. After such time, New DraftKings may opt
out of the "control share" statute by amending its articles of incorporation or bylaws within 10 days of the acquisition
as provided by Nevada law.
Limitations on Liability and Indemnification of Officers
and Directors
New DraftKings' amended and restated
articles of incorporation eliminate the liability of New DraftKings officers and directors to the fullest extent permitted by Nevada
law. Nevada law provides that New DraftKings directors and officers will not be individually liable to us, New DraftKings stockholders
or New DraftKings creditors for any damages for any act or failure to act in the capacity of a director or officer other than in
circumstances where both (i) the presumption that the director or officer acted in good faith, on an informed basis and with a
view to the interests of the corporation has been rebutted, and (ii) the act or failure to act of the director or officer is proven
to have been a breach of his or her fiduciary duties as a director or officer and such breach is proven to have involved intentional
misconduct, fraud or a knowing violation of law.
New DraftKings' amended and restated
articles of incorporation and bylaws also provide for indemnification for New DraftKings' directors and officers to the fullest
extent permitted by Nevada law. New DraftKings intends to enter into indemnification agreements with each of its directors that
may, in some cases, be broader than the specific indemnification provisions contained under Nevada law. The effect of these provisions
is to restrict New DraftKings rights and the rights of New DraftKings stockholders in derivative suits to recover any damages against
a director for breach of fiduciary duties as a director, because a director will not be individually liable for acts or omissions,
except where the act or failure to act constituted a breach of fiduciary duty and such breach involved intentional misconduct,
fraud or a knowing violation of law, and the presumption that the director or officer acted in good faith, on an informed basis,
and with a view to the interests of the corporation, has been rebutted.
These provisions may be held not to be enforceable
for certain violations of the federal securities laws of the United States.
New DraftKings is also expressly authorized
to carry directors' and officers' insurance to protect its directors, officers, employees and agents against certain
liabilities.
The limitation of liability and indemnification
provisions under Nevada law and in New DraftKings' amended and restated articles of incorporation and amended and restated
bylaws may discourage stockholders from bringing a lawsuit against directors for breach of their fiduciary duties. These provisions
may also have the effect of reducing the likelihood of derivative litigation against directors and officers, even though such an
action, if successful, might otherwise benefit New DraftKings and New DraftKings stockholders. However, these provisions do not
limit or eliminate New DraftKings rights, or those of any stockholder, to seek non-monetary relief such as injunction or rescission
in the event of a breach of a director's fiduciary duties. Moreover, the provisions do not alter the liability of directors
under the federal securities laws. In addition, your investment may be adversely affected to the extent that, in a class action
or direct suit, New DraftKings pays the costs of settlement and damage awards against directors and officers pursuant to these
indemnification provisions.
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The foregoing provisions of New
DraftKings' amended and restated articles of incorporation and amended and restated bylaws could discourage potential
acquisition proposals and could delay or prevent a change in control. These provisions are intended to enhance the likelihood
of continuity and stability in the composition of New DraftKings' board of directors and in the policies formulated by
New DraftKings' board of directors and to discourage certain types of transactions that may involve an actual or
threatened change of control. These provisions are designed to reduce New DraftKings' vulnerability to an unsolicited
acquisition proposal. The provisions also are intended to discourage certain tactics that may be used in proxy fights.
However, such provisions could have the effect of discouraging others from making tender offers for New DraftKings shares
and, as a consequence, they also may inhibit fluctuations in the market price of New DraftKings shares of Class A common
stock that could result from actual or rumored takeover attempts. Such provisions also may have the effect of preventing
changes in New DraftKings management or delaying or preventing a transaction that might benefit you or other minority
stockholders.
Corporate Opportunities
In anticipation that Mr. Robins may engage
in activities or lines of business similar to those in which New DraftKings engages, New DraftKings' amended and restated
articles of incorporation provide for, to the fullest extent permitted under Nevada law, the renouncement by New DraftKings of
all interest and expectancy that New DraftKings otherwise would be entitled to have in, and all rights to be offered an opportunity
to participate in, any business opportunity that from time to time may be presented to any director, stockholder, officer or agent
of New DraftKings (or any affiliate thereof), other than an employee of New DraftKings or any of its subsidiaries. Specifically,
no holder of shares of common stock, nor any non-employee director, of New DraftKings has any duty to refrain from engaging in
the same or similar business activities or lines of business that New DraftKings does or otherwise competing with New DraftKings.
In the event that any holder of shares of common stock of New DraftKings or any director that is not an employee of New DraftKings
or its subsidiaries acquires knowledge of a potential transaction or matter which may be a corporate opportunity for itself and
New DraftKings, that person will not have any duty to communicate or offer such corporate opportunity to New DraftKings and may
pursue or acquire such corporate opportunity for itself or direct such opportunity to another person.
To the fullest extent permitted by Nevada
law, no potential transaction or business opportunity may be deemed to be a potential corporate opportunity of New DraftKings or
its subsidiaries unless (a) New DraftKings and its subsidiaries would be permitted to undertake such transaction or opportunity
in accordance with the New DraftKings amended and restated articles of incorporation, (b) New DraftKings and its subsidiaries at
such time have sufficient financial resources to undertake such transaction or opportunity and (c) such transaction or opportunity
would be in the same or similar line of business in which New DraftKings and its subsidiaries are then engaged or a line of business
that is reasonably related to, or a reasonable extension of, such line of business.
Redemption Rights and Transfer Restrictions with Respect
to Capital Stock Held by Unsuitable Persons and Their Affiliates
The Proposed Charter provides that any
common stock or any other equity securities of New DraftKings, or securities exchangeable or exercisable for, or convertible
into, such other equity securities of New DraftKings owned or controlled by a person whom the board determines in good faith
(following consultation with reputable outside gaming regulatory counsel) pursuant to a resolution adopted by the unanimous
affirmative vote of all of the disinterested members of the New DraftKings board of directors (i) fails or refuses to file an
application (or fails or refuses, as an alternative, to otherwise formally request from the relevant Gaming Authority a
waiver or similar relief from filing such application) within 30 days (or such shorter period imposed by any gaming
authority, including any extensions of that period granted by the relevant gaming authority, but in no event more than such
original thirty (30) days) after having been requested in writing and in good faith to file an application by New DraftKings
(based on consultation with reputable outside gaming regulatory counsel), or has withdrawn or requested the withdrawal of a
pending application (other than for technical reasons with the intent to promptly file an amended application following such
withdrawal), to be found suitable by any gaming authority or for any gaming license when such finding of suitability or
gaming license is required by gaming laws or gaming authorities for the purpose of obtaining a material gaming license for,
or compliance with material gaming laws by New DraftKings "or any affiliated company", (ii) is denied or
disqualified from eligibility for any material gaming license by any gaming authority, (iii) is determined by a gaming
authority in any material gaming jurisdiction to be unsuitable to own or control any equity interests, or be affiliated,
associated or involved with a person engaged in gaming activities, (iv) is determined by a gaming authority to have caused,
in whole or in part, any material gaming license of New DraftKings or any affiliated company to be lost, rejected, rescinded,
suspended, revoked or not renewed by any gaming authority, or to have cause, in whole or in part, New DraftKings or any
affiliated company to be threatened by any gaming authority with the loss, rejection, rescission, suspension, revocation or
non-renewal of any material gaming license (in each of  (ii) through (iv) above, only if such denial, disqualification
or determination by a gaming authority is final and non-appealable), or (v) is reasonably likely to (1) preclude or
materially delay, impede, impair, threaten or jeopardize any material gaming license held or desired in good faith to be held
by New DraftKings or any affiliated company or New DraftKings' or any affiliated company's application for, right
to the use of, entitlement to, or ability to obtain or retain, any material gaming license held or desired in good faith to
be held by New DraftKings or any affiliated company, or (2) cause or otherwise be reasonably likely to result in the
imposition of any materially burdensome terms or conditions on any material gaming license held or desired to be held by New
DraftKings or any affiliated company (each of such persons, an "Unsuitable Person") or its affiliates will be
subject to mandatory sale and transfer on the terms and conditions set forth in the Proposed Charter to either New DraftKings
or one or more third-party transferees (as described in the Proposed Charter) and in such number and class(es)/series as
determined by the New DraftKings board of directors.
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Any such sale or transfer will not occur
until the later to occur of: (i) delivery to the Unsuitable Person of a copy of a resolution duly adopted by the unanimous affirmative
vote of all of the disinterested members of the New DraftKings board of directors at a meeting thereof called and held for the
purpose (after providing reasonable notice to such person and a reasonable opportunity for such person, together with their counsel,
to be heard and to provide documents and written arguments), finding that the New DraftKings board of directors has determined
in good faith (following consultation with reputable outside gaming regulatory counsel) that (A) such person is an Unsuitable Person
and (B) it is necessary for such person or an affiliate of such person (as applicable) to sell and transfer such number and class(es)/series
of equity interests in order for New DraftKings or an affiliated company to: (1) obtain, renew, maintain or prevent the loss, rejection,
rescission, suspension, revocation or non-renewal of a material gaming license; (2) comply in any material respect with a material
gaming law; (3) ensure that any material gaming license held or desired in good faith to be held by New DraftKings or any affiliated
company, or New DraftKings' or any affiliated company's application for, right to the use of, entitlement to, or ability
to obtain or retain, any material gaming license held or desired in good faith to be held by New DraftKings or any affiliated company,
is not precluded, delayed, impeded, impaired, threatened or jeopardized in any material respect; or (4) prevent the imposition
of any materially burdensome terms or conditions on any material gaming license held or desired in good faith to be held by New
DraftKings or any affiliated company, and specifying the reasoning for such determinations in reasonable detail, and (ii) conclusion
of any arbitration process brought in accordance with the provisions of the Proposed Charter.
Following (x) the determination of unsuitability
by the New DraftKings board of directors and (y) if applicable, an arbitrator determining that such determinations were made in
good faith by the New DraftKings board of directors, New DraftKings will deliver a transfer notice to the Unsuitable Person or
its affiliate(s) and will purchase and/or cause one or more third-party transferees to purchase such number and class(es)/series
of equity interests determined in good faith by the New DraftKings board of directors for the purchase price set forth in the transfer
notice, which will be determined in accordance with the Proposed Charter; provided that an Unsuitable Person or its affiliate(s)
will be permitted, during the 45-day period commencing on the date of the transfer notice (or before a transfer notice is formally
delivered), to effect and close a disposition of the number and class(es)/series of equity interests specified in the transfer
notice (or a portion of them) to a person that the New DraftKings board of directors determines in good faith (following consultation
with reputable outside gaming regulatory counsel) is not an Unsuitable Person, on terms agreed between the Unsuitable Person and
such person (an "Alternate Private Transaction").
At the closing of a sale and transfer other
than an Alternate Private Transaction, (i) New DraftKings or the third-party transferee(s) (as applicable), will deliver the aggregate
applicable purchase price for the equity interests being purchased by each of the foregoing by wire transfer of immediately available
funds to the account specified in writing by the Unsuitable Person or an affiliate of such Unsuitable Person (as applicable) in
the case of third-party transferees, by unsecured promissory note in the case of New DraftKings, or a combination of both in the
case of New DraftKings in such proportion as it may determine in its sole and absolute discretion and (ii) the Unsuitable Person
or affiliate thereof will deliver to New DraftKings or each such third-party transferee, such stock powers, assignment instruments
and other agreements as are necessary or appropriate to fully convey all right, title and interest in and to the equity interests
being purchased by each of the foregoing, free and clear of all liens and other encumbrances and to evidence the subordination
of any promissory note if and only to the extent required by any debt obligations of New DraftKings (and to the minimum extent
required pursuant to such subordination arrangement).
The Proposed Charter provides that, in
the case of a sale and transfer to New DraftKings, from and after the transfer date and subject only to the right to receive
the purchase price for such equity interests, the equity interests will be deemed no longer outstanding and the Unsuitable
Person or any affiliate thereof will cease to be a stockholder, and all rights of such Unsuitable Person or any affiliate
thereof, other than the right to receive the purchase price, will cease. In the case of an Alternate Private Transaction or a
transfer to one or more third-party transferees, from and after the earlier to occur of: (i) the transfer date, in the case
of a transfer to one or more such third-party transferees, or (ii) consummation of an Alternate Private Transaction, subject
only to the right to receive the purchase price for such Unsuitable Person's equity securities, all rights and
entitlements of the Unsuitable Person or any affiliates thereof will be terminated, including, without limitation, any such
person will from such date no longer be entitled to: (i) receive any dividend, payment, distribution or interest with regard
to the applicable equity interests which has been declared following such date or of which the due payment date according to
the applicable declaration is following such date, other than the right to receive the purchase price or (ii) to exercise,
directly or indirectly or through any proxy, trustee, or nominee, any voting or other right (including, without limitation,
observer and information rights) conferred by the underlying equity interests.
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Further, to the extent that a sale and transfer
to one or more third-party transferees is determined to be invalid or unenforceable for any reason, New DraftKings will be permitted
to redeem or repurchase the equity interests owned or controlled by an Unsuitable Person or an affiliate thereof for the price
and under the terms contemplated by the Proposed Charter promptly following any such determination.
Dissenters' Rights of Appraisal and Payment
Under Nevada law, subject to certain exceptions
and conditions, as long as shares of Class A common stock are traded on Nasdaq, holders of shares of New DraftKings Class A common
stock will not have dissenters' rights to payment of an appraised fair value for such shares in connection with a plan of
merger, conversion or exchange, unless such action requires holders of a class or series of shares to accept for such shares anything
other than cash, certain publicly traded shares or securities of certain investment companies redeemable at the option of the holder.
To the extent that dissenters' rights may be available under Nevada law, stockholders who properly request and perfect such
rights in connection with such merger or consolidation will have the right to receive payment of the fair value of their shares
as determined by the Nevada court.
Stockholders' Derivative Actions
Under Nevada law, any of New DraftKings'
stockholders may bring an action in New DraftKings' name to procure a judgment in New DraftKings' favor, also known
as a derivative action, provided that the stockholder bringing the action was a holder of New DraftKings shares at the time of
the transaction to which the action relates or such stockholder's stock thereafter devolved by operation of law and such
suit is brought in a Nevada court. See "
Exclusive Forum
" above.
Transfer Agent and Registrar
The transfer agent for New DraftKings Class
A common stock and warrants will be Computershare Trust Company, N.A.
163
BENEFICIAL
OWNERSHIP OF SECURITIES
The following table sets forth information
regarding (i) the actual beneficial ownership of shares of Class A common stock of DEAC Nevada as of April 13, 2020 and (ii) expected
beneficial ownership of New DraftKings common stock immediately following the Closing (assumed as April 23, 2020), assuming that
no public shares are redeemed, and alternatively that 30,564,789 public shares are redeemed, by:
·
each person who is, or is expected to be, the beneficial owner of more than 5% of issued and outstanding shares of our common
stock or of New DraftKings Class A common stock or New DraftKings Class B common stock;
·
each of our current executive officers and directors;
·
each person who will become an executive officer or director of New DraftKings post-Business Combination; and
·
all executive officers and directors of DEAC as a group pre-Business Combination and all executive officers and directors of
New DraftKings post-Business Combination.
Beneficial ownership is determined according
to the rules of the SEC, which generally provide that a person has beneficial ownership of a security if he, she or it possesses
sole or shared voting or investment power over that security, including options and warrants that are currently exercisable or
exercisable within 60 days.
The beneficial ownership of shares of Class
A common stock of DEAC Nevada pre-Business Combination is based on one share of Class A common stock issued and outstanding as
of April 13, 2020.
The expected beneficial ownership of shares
of New DraftKings common stock post-Business Combination assuming none of the public shares are redeemed has been determined based
upon the following: (i) that no public stockholders exercise their redemption rights (no redemptions scenario), (ii) that none
of the investors set forth in the table below has purchased or purchases shares of DEAC common stock (pre-Business Combination)
or New DraftKings common stock (post-Business Combination), (iii) that 41,725,831 shares of DEAC Class A common stock (which will
be exchanged for shares of New DraftKings Class A common stock in the reincorporation) are issued to the PIPE Investors, including
to holders of Convertible Notes, (iv) that 186,831,051 shares of New DraftKings Class A common stock are issued to the DK Equityholders
(which excludes (a) shares held by non-accredited investors that will be cashed out at Closing and (b) 43.2 million in restricted
stock units that DraftKings expects to issue prior to Closing and that will be unvested at Closing), applying a 0.3546 exchange
ratio, and 393,954,594 shares of New DraftKings Class B common stock are issued to Jason Robins, (v) that 40,861,997 shares of
New DraftKings Class A common stock are issued to the SBT Sellers, applying a 1,001.5 exchange ratio (and a $1.090 to €1.00
exchange rate), (vi) the DEAC Founders forfeit an aggregate of 270,000 founder shares in connection with the Closing and (vii)
there will be an aggregate of 313,077,942 shares of New DraftKings Class A common stock and 393,954,594 shares of New DraftKings
Class B common stock issued and outstanding at Closing (excluding 6,000,000 Earnout Shares held in escrow, which may be released
to the DEAC Founders, the DK Equityholders and the SBT Sellers subject to the achievement of certain stock price targets).
The expected beneficial ownership of shares
of New DraftKings common stock post-Business Combination assuming the maximum number of public shares have been redeemed has been
determined based on the following: (i) that holders of 30,564,789 public shares exercise their redemption rights (based on $403,961,209
held in trust as of December 31, 2019 and a redemption price of $10.10 per share) (maximum redemptions scenario), (ii) that none
of the investors set forth in the table below has purchased or purchases shares of DEAC common stock (pre-Business Combination)
or New DraftKings common stock (post-Business Combination), (iii) that 41,725,831 shares of DEAC Class A common stock (which will
be exchanged for shares of New DraftKings Class A common stock in the reincorporation) are issued to the PIPE Investors, including
to holders of Convertible Notes, (iv) that 186,831,051 shares of New DraftKings Class A common stock are issued to the DK Equityholders
(which excludes (a) shares held by non-accredited investors that will be cashed out at Closing and (b) 43.2 million in restricted
stock units that DraftKings expects to issue prior to Closing and that will be unvested at Closing), applying a 0.3546 exchange
ratio, and 366,446,284 shares of New DraftKings Class B common stock are issued to Jason Robins, (v) that 40,861,997 shares of
New DraftKings Class A common stock are issued to the SBT Sellers, applying a 1,001.5 exchange ratio (and a $1.090 to €1.00
exchange rate), (vi) the DEAC Founders forfeit an aggregate of 270,000 founder shares in connection with the Closing and (vii)
there will be an aggregate of 282,513,153 shares of New DraftKings Class A common stock and 366,446,284 shares of New DraftKings
Class B common stock issued and outstanding at Closing (excluding 6,000,000 Earnout Shares held in escrow, which may be released
to the DEAC Founders, the DK Equityholders and the SBT Sellers subject to the achievement of certain stock price targets).
164
Before
                                         the Business
Combination
After
    the Business Combination
Assuming
No
Redemption
Assuming
    Maximum
Redemption
Name
    and Address of
Beneficial Owner
Number
    of
shares of
Class A
common
stock
%
%
                                         of
Total
Voting
Power**
Number
                                         of
shares
                                         of
New
DraftKings
Class
                                         A
Common
Stock
%
Number
                                         of
shares
                                         of
New
DraftKings
Class
                                         B
Common
Stock
%
%
                                         of
Total
Voting
Power**
Number
                                         of
shares
                                         of
New
DraftKings
Class
                                         A
Common
Stock
%
Number
                                         of
shares
                                         of
New
DraftKings
Class
                                         B
Common
Stock
%
%
                                         of
Total
Voting
Power**
Eagle
    Equity Partners,
LLC
(1)(2)
—
—
—
2,718,529
*
—
—
*
2,718,529
1.0
%
—
—
*
Jeff Sagansky
(1)(2)
—
—
—
2,718,529
*
—
—
*
2,718,529
1.0
%
—
—
*
Eli Baker
(1)(2)
—
—
—
2,718,529
*
—
—
*
2,718,529
1.0
%
—
—
*
All
    Directors and Executive
Officers of DEAC Nevada as a Group
(Two Individuals)
—
—
—
2,718,529
*
—
—
*
2,718,529
1.0
%
—
—
*
Directors
    and Executive Officers of
New DraftKings After
Consummation of the Business
Combination
Jason Robins
(3)(4)(5)
—
—
—
8,477,273
2.6
%
393,954,594
100
%
92.7
%
8,477,273
2.9
%
366,446,284
100
%
92.9
%
Matthew Kalish
(3)(5)(6)
—
—
—
4,029,059
1.3
%
—
—
*
4,029,059
1.4
%
—
—
*
Paul Liberman
(3)(5)(7)
—
—
—
4,675,105
1.5
%
—
—
*
4,675,105
1.6
%
—
—
*
M. Gavin Isaacs
(8)(9)
—
—
—
480,729
*
—
—
*
480,729
*
—
—
*
Woodrow Levin
(3)(5)(10)
—
—
—
413,438
*
—
—
*
413,438
*
—
—
*
Shalom Meckenzie
(8)(11)
—
—
—
34,732,698
11.1
%
—
—
*
34,732,698
12.3
%
—
—
*
Ryan R. Moore
(3)(5)(12)
—
—
—
10,445,673
3.3
%
—
—
*
10,445,673
3.7
%
—
—
*
Steven J. Murray
(3)(5)(13)
—
—
—
7,789,689
2.5
%
—
—
*
7,789,689
2.8
%
—
—
*
Hany M. Nada
(3)(5)(14)
—
—
—
7,231,531
2.3
%
—
—
*
7,231,531
2.6
%
—
—
*
Richard Rosenblatt
(3)(15)
—
—
—
225,071
*
—
—
*
225,071
*
—
—
*
John S. Salter
(3)(5)(16)
—
—
—
22,824,818
7.3
%
—
—
*
22,824,818
8.1
%
—
—
*
Harry E. Sloan
(1)(17)
—
—
—
2,718,528
*
—
—
*
2,718,528
1.0
%
—
—
*
Marni M. Walden
(3)(18)
—
—
—
90,136
*
—
—
*
90,136
*
—
—
*
R. Stanton Dodge
(3)(19)
—
—
—
1,739,199
*
—
—
*
1,739,199
*
—
—
*
Jason Park
(3)(20)
—
—
—
253,878
*
—
—
*
253,878
*
—
—
*
All
    Directors and Executive
Officers of New DraftKings as a Group (15
Individuals
)
—
—
—
106,126,823
32.1
%
393,954,594
100
%
94.7
%
106,126,823
35.4
%
366,446,284
100
%
95.1
%
Five Percent
    Holders:
Shalom Meckenzie
(8)
—
—
—
34,732,698
11.1
%
—
—
*
34,732,698
12.3
%
—
—
*
RPII DK LLC
(3)(5)
—
—
—
22,824,818
7.3
%
—
—
*
22,824,818
8.1
%
—
—
*
TFCF
    Sports Enterprises,
LLC
(3)(5)
—
—
—
18,599,456
5.9
%
—
—
*
18,599,456
6.6
%
—
—
*
*
Less than one percent.
**
Percentage of total voting power represents voting power with respect
                                         to all shares of New DraftKings Class A common stock and Class B common stock, as a single
                                         class. After the Business Combination, each share of New DraftKings Class B common stock
                                         will be entitled to ten votes per share and each share of New DraftKings Class A common
                                         stock will be entitled to one vote per share. For
m
ore information about the voting
                                         rights of New DraftKings common stock after the Business Combination, see
"Description
                                         of Securities - New DraftKings Common Stock."
(1)
The business address of each of these shareholders is 2121 Avenue of the Stars, Suite 2300, Los Angeles, CA 90067.
(2)
Eagle Equity Partners, LLC is the record holder of the shares reported herein. Messrs. Baker and Sagansky are the members and
managers of Eagle Equity Partners, LLC and share voting and investment discretion with respect to the common stock held of record
by Eagle Equity Partners, LLC. Pre-Business Combination amounts consist entirely of founder shares, which will be exchanged for
shares of New DraftKings Class A common stock in connection with the reincorporation and the Closing, and excludes 2,833,335 shares
of Class A common stock underlying private placement warrants that will only become exercisable 30 days after completion of an
initial business combination. Post-Business Combination amounts include 929,100 shares
underlying private placement warrants and excludes (i) 158,279 founder shares which the Sponsor will forfeit in connection with
the Closing, (ii) 3,036,291 Earnout Shares which will be placed in escrow at the Closing, (iii) 36,001 founder shares which will
be forfeited and which value will be added to the value used in the formula of the SBT Share Exchange Ratio for the benefit of
the SBT Equityholders in connection with the Closing and (iv) an aggregate of 1,904,235 private placement warrants which will be
forfeited to New DraftKings in connection with the Closing.
165
(3)
The business address of each of these shareholders is 222 Berkeley Street, 5th Floor, Boston, MA 02116.
(4)
Includes 1,318,093 shares of New DraftKings Class A common stock and 7,025,013 vested options to exercise New DraftKings Class
A common stock beneficially owned by Mr. Robins, Jason Robins Revocable Trust u/d/t January 8, 2014 and/or Robins Family Trust,
for which Mr. Robins has sole investment and voting power. Also includes 126,112 shares of unvested DraftKings common stock that
will vest within 60 days of the Closing of the Business Combination.
(5)
Includes such holder's pro rata portion of New DraftKings Class A common stock underlying the private placement warrants
transferred from the DEAC Founders to DK Equityholders that will become exercisable 30 days after the completion of the Business
Combination as follows: 8,055 shares to Mr. Robins and entities affiliated with him; 7,174 shares to Mr. Kalish; 6,792 shares to
Mr. Liberman; 1,964 shares to Mr. Levin; 63,450 shares to Mr. Moore either directly or indirectly through entities affiliated with
him; 47,317 to Mr. Murray either directly or indirectly through entities affiliated with him; 43,926 shares to Mr. Nada either
directly or indirectly through entities affiliated with him; 138,644 shares to RPII DK LLC, for which Mr. Salter would have share
investment and voting power; and 112,978 shares to TFCF Sports Enterprises, LLC.
(6)
Includes 1,173,797 shares of New DraftKings Class A common stock and 2,805,947 vested options to exercise New DraftKings Class
A common stock and 42,141 shares of unvested DraftKings common stock that will vest within 60 days of the Closing of the Business
Combination.
(7)
Includes 1,111,306 shares of New DraftKings Class A common stock and 3,514,866 vested options to exercise New DraftKings Class
A common stock and 42,141 shares of unvested DraftKings common stock that will vest within 60 days of the Closing of the Business
Combination.
(8)
The business address of Messrs. Isaacs and Meckenzie is c/o Herzog Fox & Neeman, Asia House, 4 Weizman St. Tel Aviv 6423904,
Israel.
(9)
Represents vested options to exercise New DraftKings Class A common stock.
(10)
Includes 321,304 shares of New DraftKings Class A common stock and 83,040 vested options to exercise New DraftKings Class A
common stock and 7,130 shares of unvested DraftKings common stock that will vest within 60 days of the Closing of the Business
Combination.
(11)
Represents shares of New DraftKings Class A common stock.
(12)
Represents shares of New DraftKings Class A common stock held by entities affiliated with Mr. Moore for which he shares investment
and voting control.
(13)
Represents shares of New DraftKings Class A common stock held by Revolution Growth III, LP, for which Mr. Murray shares in
investment and voting control.
(14)
Represents shares of New DraftKings Class A common stock held by ACME SPV DK, LLC, for which Mr. Nada shares investment and
voting control.
(15)
Represents 221,244 vested options to exercise New DraftKings Class A common stock and 3,826 shares of unvested DraftKings common
stock that will vest within 60 days of the Closing of the Business Combination.
(16)
Represents shares of New DraftKings Class A common stock held by RPII DK LLC, for which Mr. Salter shares investment and voting
control.
166
(17)
Pre-Business Combination amounts consist entirely of founder shares, which will be exchanged for shares of New DraftKings Class
A common stock in connection with the reincorporation and the Closing, and exclude 3,166,667 shares of Class A common stock underlying
the private placement warrants that will only become exercisable 30 days after completion of an initial business combination. Post-Business
Combination amounts include 929,099 shares underlying private placement warrants and exclude (i) 111,721 founder shares which Mr.
Sloan will forfeit in connection with the Closing, (ii) 2,963,709 Earnout Shares which will be placed in escrow at the Closing,
(iii) 35,141 founder shares which will be forfeited and which value will be added to the value used in the formula of the SBT Share
Exchange Ratio for the benefit of the SBT Equityholders in connection with the Closing and (iv) an aggregate of 2,237,568 private
placement warrants which will be forfeited to New DraftKings in connection with the Closing.
(18)
Represents 81,234 vested options to exercise New DraftKings Class A common stock and 8,902 shares of unvested DraftKings common
stock that will vest within 60 days of the Closing of the Business Combination.
(19)
Includes 1,614,392 vested options to exercise New DraftKings Class A common stock and 124,807 shares of unvested DraftKings
common stock that will vest within 60 days of the Closing of the Business Combination.
(20)
Includes 108,639 vested options to exercise New DraftKings Class A common stock and 145,239 shares of unvested DraftKings common
stock that will vest within 60 days of the Closing of the Business Combination.
167
SELLING
SECURITYHOLDERS
This prospectus relates to the resale by
the Selling Securityholders from time to time of up to 44,725,831 shares of Class A common stock and 3,000,000 warrants. The Selling
Securityholders may from time to time offer and sell any or all of the Class A common stock and warrants set forth below pursuant
to this prospectus and any accompanying prospectus supplement. When we refer to the "Selling Securityholders" in this
prospectus, we mean the persons listed in the table below, and the pledgees, donees, transferees, assignees, successors, designees
and others who later come to hold any of the Selling Securityholders' interest in the Class A common stock or warrants other
than through a public sale.
The following table sets forth, as of the
date of this prospectus, the names of the Selling Securityholders, the aggregate number of shares of Class A Common Stock and warrants
owned prior to the Business Combination, the aggregate number of shares of Class A common stock and warrants that the Selling Securityholders
may offer pursuant to this prospectus and the number of shares of Class A common stock and warrants beneficially owned by the Selling
Securityholders after the sale of the securities offered hereby after the Business Combination assuming (i) none of DEAC's
public stockholders exercise their redemption rights and (ii) holders of 30,564,789 public shares exercise their redemption rights.
Before
    the Business Combination
After
    the Business Combination
Assuming No Redemption
Assuming Maximum Redemption
Shares
                                         of Class A
Common Stock
Beneficially
Owned
(1)
Warrants
Shares of
Class A
Common
Stock
Warrants
Shares
    of Class A
Common Stock
Beneficially Owned
After Sale of All Shares of Class A Common Stock Offered Hereby
(2)
Warrants
Beneficially
Owned After
Sale of All
Warrants
Shares
    of Class A
Common Stock
Beneficially Owned
After Sale of All Shares of Class A Common Stock Offered Hereby
(3)
Warrants
Beneficially
Owned After
Sale of All
Warrants
Name of Beneficial Owner
Shares
Percentage
Beneficially
                                         Owned
Registered
                                         Hereby
Registered
Hereby
Shares
Percentage
Offered
Hereby
Shares
Percentage
Offered
Hereby
Certain
    Funds and Accounts Advised by ArrowMark Colorado Holdings LLC
(4)
—
—
—
2,000,000
162,414
—
—
—
—
—
—
Certain
    Funds and Accounts Advised by Monashee Investment Management LLC
(5)
—
—
—
1,400,000
113,690
—
—
—
—
—
—
Tech
    Opportunities, LLC
(6)
—
—
—
1,000,000
81,207
—
—
—
—
—
—
Certain
    Funds and Accounts Advised by Millennium Management LLC
(7)
1,061,607
3.7
%
421,666
1,500,000
121,810
1,061,607
*
421,666
1,061,607
*
421,666
Certain
    Funds and Accounts Advised by Capital Research & Management Company
(8)
—
—
—
12,000,000
375,000
—
—
—
—
—
—
Certain
    Funds and Accounts Advised by Bain Capital Public Equity Management II, LLC
(9)
—
—
—
4,000,000
324,827
—
—
—
—
—
—
Certain
    Funds and Accounts Advised by Franklin Advisers, Inc.
(10)
—
—
—
1,998,900
162,324
—
—
—
—
—
—
Certain
    Funds and Accounts Advised by Caledonia (Private) Investments Pty Limited
(11)
—
—
—
2,381,694
193,410
—
—
—
—
—
—
Certain
    Funds and Accounts Advised by Caledonia US, LP
(12)
—
—
—
2,618,306
212,624
—
—
—
—
—
—
Certain
    Funds and Accounts Advised by Wellington Management Company LLP
(13)
—
—
—
1,000,00
127,694
—
—
—
—
—
—
MVP
    Opportunity Fund VI LLC
(14)
—
—
—
467,377
—
—
—
—
—
—
—
Mark
    E. Fusco
—
—
—
207,049
—
—
—
—
—
—
—
Certain
    Funds and Accounts Advised by Gordon Family Office
(15)
—
—
—
2,193,168
—
—
—
—
—
—
—
Accomplice
    DK Investors, LLC
(16)
409,071
TTBSP,
    L.P.-Opportunity Series
(17)
204,536
Carnegie
    GM Partners, LLC
(18)
—
—
—
565,555
—
—
—
—
—
—
—
Certain
    Funds and Accounts Advised by The Kraft Group
(19)
—
—
—
408,634
—
—
—
—
—
—
—
John
    P. Tatum, II
—
—
—
102,131
—
—
—
—
—
—
—
Certain
    Funds and Accounts Advised by Carmenta Funds
(20)
—
—
—
2,063,402
—
—
—
—
—
—
—
SP
    Investment Associates, L.P.
(21)
—
—
—
517,623
—
—
—
—
—
—
—
Clarendon
    Investment Partners II, LP
(22)
—
—
—
1,860,855
—
—
—
—
—
—
—
Ezra
    Hamway
—
—
—
204,536
—
—
—
—
—
—
—
Touchdown
    2, LLC
(23)
—
—
—
510,656
—
—
—
—
—
—
—
Black
    Diamond Group Inc.
(24)
—
—
—
204,262
—
—
—
—
—
—
—
Bailey
    Family 1998 Grandchildren's Trust
(25)
—
—
—
818,142
—
—
—
—
—
—
—
Sazka
    Group A.S.
(26)
—
—
—
517,483
—
—
—
—
—
—
—
*
Represents beneficial ownership of less than 1%.
(1)
The percentage of beneficial ownership before the Business Combination is calculated based on 1,000 shares of DEAC Nevada's common stock outstanding as of April 13, 2020. Unless otherwise indicated, we believe that all persons named in the table have sole voting and investment power with respect to all shares beneficially owned by them.
(2)
The percentage of beneficial ownership after the Business Combination,
assuming none of the public shares are redeemed, has been determined based upon the following: (i) that no public stockholders
exercise their redemption rights (no redemptions scenario), (ii) that none of the investors set forth in the table below has purchased
or purchases shares of DEAC common stock (pre-Business Combination) or New DraftKings common stock (post-Business Combination),
(iii) that 41,725,831shares of DEAC Class A common stock (which will be exchanged for shares of New DraftKings Class A common stock
in the reincorporation) are issued to the PIPE Investors, including to holders of Convertible Notes, (iv) that 186,831,051 shares
of New DraftKings Class A common stock are issued to the DK Equityholders (which excludes (a) shares held by non-accredited investors
that will be cashed out at Closing and (b) 4.23 million in restricted stock units that DraftKings expects to issue prior to Closing
and that will be unvested at Closing), applying a 0.3546 exchange ratio, (v) that 40,861,997 shares of New DraftKings Class A common
stock are issued to the SBT Sellers, applying a 1,001.5 exchange ratio (and a $1.090 to €1.00 exchange rate), (vi) the DEAC
Founders forfeit an aggregate of 270,000 founder shares in connection with the Closing and (vii) there will be an aggregate of
313,077,942 shares of New DraftKings Class A common stock issued and outstanding at Closing (excluding 6,000,000 Earnout Shares
held in escrow, which may be released to the DEAC Founders, the DK Equityholders and the SBT Sellers subject to the achievement
of certain stock price targets).
168
(3)
The percentage of beneficial ownership after the Business Combination,
assuming the maximum number of public shares have been redeemed, has been determined based on the following: (i) that holders of
30,564,789 public shares exercise their redemption rights (based on $403,961,209 held in trust as of December 31, 2019 and a redemption
price of  $10.10 per share) (maximum redemptions scenario), (ii) that none of the investors set forth in the table below
has purchased or purchases shares of DEAC common stock (pre-Business Combination) or New DraftKings common stock (post-Business
Combination), (iii) that 41,725,831 shares of DEAC Class A common stock (which will be exchanged for shares of New DraftKings Class
A common stock in the reincorporation) are issued to the PIPE Investors, including to holders of Convertible Notes, (iv) that 186,831,051
shares of New DraftKings Class A common stock are issued to the DK Equityholders (which excludes (a) shares held by non-accredited
investors that will be cashed out at Closing and (b) 43.2 million in restricted stock units that DraftKings expects to issue prior
to Closing and that will be unvested at Closing), applying a 0.3546 exchange ratio, (v) that 40,861,997 shares of New DraftKings
Class A common stock are issued to the SBT Sellers, applying a 1,001.5 exchange ratio (and a $1.090 to €1.00 exchange rate),
(vi) the DEAC Founders forfeit an aggregate of 270,000 founder shares in connection with the Closing and (vii) there will be an
aggregate of 282,513,153 shares of New DraftKings Class A common stock issued and outstanding at Closing (excluding 6,000,000 Earnout
Shares held in escrow, which may be released to the DEAC Founders, the DK Equityholders and the SBT Sellers subject to the achievement
of certain stock price targets).
(4)
Includes (i) Meridian Growth Fund and (ii) Meridian Small
    Cap Growth Fund (the "ArrowMark Portfolios"). Each of Chad Meade and Brian Schaub have investment discretion over
    the securities held by the ArrowMark Portfolios and may be deemed to beneficially own such securities. The address of this
    securityholder is 100 Fillmore Street, Suite 325, Denver, Colorado 80206.
(5)
Includes (i) BEMAP Master Fund LTD and (ii) Monashee Pure Alpha SPV I LP (the "Monashee Funds"). Jeff Muller has investment discretion over the securities held by the Monashee Funds and may be deemed to beneficially own such securities. The address of this securityholder is 125 High Street, 28th Floor, Boston, Massachusetts 02110.
(6)
Hudson Bay Capital Management LP is the investment manager of Tech Opportunities, LLC and has voting and investment power over these securities. Sander Gerber is the managing member of Hudson Bay Capital GP LLC, which is the general partner of Hudson Bay Capital Management LP. Mr. Gerber disclaims beneficial ownership over these securities except to the extent of his pecuniary interest therein. The address of this securityholder is 777 Third Avenue, 30th Floor, New York, New York 10017.
(7)
Includes (i) 1,061,607 shares of DEAC Class A common stock, (ii) 421,666 public warrants, (iii) 421,666 shares of Class A common stock underlying the public warrants, (iv) 1,500,000 shares of Class A common stock that will be issued in connection with the Private Placement, (v) 121,810 warrants that will be issued in connection with the Private Placement, and (vi) 121,810 shares of Class A common stock underlying such warrants. These securities are held by ICS Opportunities II LLC and Integrated Core Strategies (US) LLC (collectively, the "Millennium Funds"). Millennium Management LLC is a registered investment advisor and the general partner of the managing member of Integrated Core Strategies (US) LLC. Millennium Management LLC is also the general partner of the 100% owner of ICS Opportunities II LLC.  Millennium International Management LP is the investment manager of ICS Opportunities II LLC.   Millennium Management LLC may be deemed to have shared voting control and investment discretion over the securities held by each of Integrated Core Strategies (US) LLC and ICS Opportunities II LLC.  Millennium International Management LP may be deemed to have shared voting control and investment discretion over the securities held by ICS Opportunities II LLC.  Millennium Group Management LLC is the managing member of Millennium Management LLC and the general partner of Millennium International Management LP and may also be deemed to have shared voting control and investment discretion over the securities held by Integrated Core Strategies (US) LLC and ICS Opportunities II LLC.  The managing member of Millennium Group Management LLC is a trust of which Israel A. Englander currently serves as the sole voting trustee.  Therefore, Mr. Englander may also be deemed to have shared voting control and investment discretion over the securities held by the Millennium Funds. The foregoing should not be construed in and of itself as an admission by Millennium Management LLC, Millennium International Management LP, Millennium Group Management LLC or Mr. Englander as to the beneficial ownership of the securities held by the Millennium Funds. The business address of the Millennium Funds is c/o Millennium Management LLC, 666 Fifth Avenue, 8th Floor, New York, New York 10103.
(8)
Includes (i) The New Economy Fund ("NEF") and (ii) SMALLCAP World Fund, Inc. ("SCWF" and, together with NEF, the "CMRC Funds"). Capital Research and Management Company ("CRMC") is the investment adviser to each of the CRMC Funds. CRMC, Capital Research Global Investors ("CRGI") and/or Capital World Investors ("CWI") may be deemed to be the beneficial owners of the securities held by the CRMC Funds; however, each of CRMC, CRGI and CWI expressly disclaim that it is the beneficial owner of such securities.  Timothy D. Armour, Mathews Cherian, Claudia P. Huntington, Caroline Jones, Harold H. La and Richmond Wolf, as portfolio managers, have voting and investment power over the securities held by NEF.  Julian N. Abdey, Michael Beckwith, Noriko H. Chen, Peter Eliot, Brady L. Enright, Bradford F. Freer, Leo Hee, Roz Hongsaranagon, Claudia P. Huntington, Jonathan Knowles, Harold H. La, Dimitrije Mitrinovic, Aidan O'Connell, Andraz Razen, Gregory W. Wendt and Dylan Yolles, as portfolio managers, have voting and investment power over the securities held by SCWF.  The address for each of the CRMC Funds is c/o Capital Research and Management Company, 333 South Hope Street, 50th Floor, Los Angeles, CA 90071.  Each of the CRMC Funds acquired the securities being registered hereby in the ordinary course of its business.
169
(9)
Includes (i) 529,113 shares of DEAC Class A common stock, (ii) 153,190 public warrants, (iii) 529,113 shares of Class A common stock underlying the public warrants, (iv) 4,000,000 shares of Class A common stock that will be issued in the Private Placement, (v) 324,827 warrants that will be issued in the Private Placement and (vi) 324,827 shares of Class A common stock underlying such warrants. These securities are held by (i) Brookside Capital Trading Fund, LP ("Brookside") and (ii) Bain Capital Public Equity Global Long Equity Fund, LP ("Global Long" and, together with Brookside, the "BC Funds"). Voting and investment decisions on behalf of Brookside are made by the members of Bain Capital Public Equity Management II, LLC ("BC Public Equity Management II"), which has sole authority and discretion over the investment decisions of Bain Capital Public Equity Management, LLC, which is the general partner of Brookside Capital Investors, L.P., which is the general partner of Brookside. Voting and investment decisions on behalf of Global Long are made by the members of BC Public Equity Management II, which is the general partner of Bain Capital Public Equity Global Long Equity General Partner, LLC, which is the general partner of Global Long. The address of the Bain Funds is c/o Bain Capital Public Equity Management II, LLC, 200 Clarendon Street, Boston, Massachusetts 02116.
(10)
Includes (i) Franklin Strategic Series - Franklin Small Cap Growth Fund, (ii) Franklin Templeton Investment Funds - Franklin Technology Fund, (iii) Franklin Templeton Variable Insurance Products Trust - Franklin Small-Mid Cap Growth VIP Fund and (iv) Franklin Strategic Series - Franklin Small-Mid Cap Growth Fund (collectively, the "Franklin Funds"). Franklin Advisers, Inc. is the investment manager of the Franklin Funds and has voting and investment control over the securities owned by the Franklin Funds. Michael McCarthy, Jonathan Curtis and John Scandalios are the portfolio managers of the Franklin Funds. Each of Messrs. McCarthy, Curtis and Scandalios disclaim beneficial ownership over the securities held by the Franklin Funds except to the extent of their pecuniary interest therein. The address of this security holder is One Franklin Parkway, San Mateo, CA 94403.
(11)
Includes (i) GSA Cal Pty. Ltd., (ii) AES Caledonia Fund, (iii) ALD Investment Fund, (iv) Caledonia Carbrook Trust, (v) Caledonia Global Fund, (vi) CJH Family Trust, (vii) GJJ Family Trust, (viii) IDD Caledonia Trust, (vix) Caledonia Indweco Trust, (x) JA Darling Caledonia Trust, (xi) JSD Caledonia Trust, (xii) Longbridge Caledonia Investment Trust, (xiii) MAN Caledonia Investment Trust, (xiv) MGD Investment Fund, (xv) MJM Caledonia Investment Trust, (xvi) Caledonia Siddle Family Investment Fund and (xvii) SMD Investment Trust (collectively, the "Caledonia AU Funds"). Caledonia (Private) Investments Pty Limited is the investment manager of the Caledonia AU Funds and, therefore, has investment and voting power over the securities. The address of the Caledonia AU Funds is c/o Caledonia (Private) Investments Pty Limited, Level 10, 131 Macquarie Street, Sydney, NSW 2000 Australia.
(12)
Includes (i) Caledonia GEM Fund, (ii) AJM Australian Holdings LLC, (iii) AJM Caledonia LLC, (iv) Caledonia Master Fund Ltd and (v) Caledonia Aggregated Fund LLC (collectively, the "Caledonia US Funds"). Caledonia US, LP is the investment manager of the Caledonia US Funds and, therefore, has investment and voting power over the securities. The address of the Caledonia US Funds is c/o Caledonia US, LP, 650 Madison Avenue, 24th Floor, New York, New York 10022.
(13)
Includes (i) Hartford Capital Appreciation HLS Fund, (ii) Hartford Growth Opportunities HLS Fund, (iii) The Hartford Capital Appreciation Fund, (iv) The Hartford Growth Opportunities Fund, (v) Hadley Harbor Master Investors (Cayman) L.P., (vi) SA Multi-Managed Mid Cap Growth Portfolio and (vii) SA Wellington Capital Appreciation Portfolio (collectively, the "Wellington Funds"). Wellington Management Company LLP is the investment advisor to each of the Wellington Funds and, therefore, has investment and voting power over the securities. The address of the Wellington Funds is c/o Wellington Management Company LLP, 280 Congress Street, Boston, Massachusetts 02210.
(14)
Eric Brachfeld is the manager of MVP Manager LLC, which is the manager of MVP Opportunity Fund VI LLC, and has investment and voting power over the securities. Mr. Brachfeld disclaims ownership over the securities except to the extent of his pecuniary interest therein. The address for this securityholder is c/o Manhattan Venture Partners, 152 Madison Avenue, 7th Floor, New York, New York 10016.
(15)
Includes (i) Howard Gale LLC, (ii) Gordon Family Foundation and (iii) Title 19 Maverick LLC (the "Gordon Funds"). Michael Gordon is the manager of each of Howard Gale LLC and Title 19 Maverick LLC and controls the investments of the Gordon Family Foundation, and therefore has investment and voting power over the securities held by the Gordon Funds. The address of the Gordon Funds is c/o Gordon Family Office, 126 Brookline Ave., Floor 3, Boston, Massachusetts 02215.
(16)
Accomplice Management, LLC is the manager of Accomplice DK Investors, LLC. Ryan Moore and Jeff Fagnan share investment and voting power over the securities controlled by Accomplice Management, LLC. The address of this securityholder is c/o Accomplice Management, LLC,
56 Wareham Street, 3rd Floor, Boston, Massachusetts 02118.
(17)
Garth A. L. Timoll Sr. is the managing director of TTBSP, L.P. – Opportunity Series and has investment and voting power over the securities. The address of this securityholder is 600 Montgomery Street, Suite 480, San Francisco, California 94111.
170
(18)
Andrew C. Walter and Geraldine F. Mimanus are the managers of this securityholder and have investment and voting power over the securities. The address of this securityholder is c/o Granger Management LLC, Suite 3220, New York, New York 10004.
(19)
Includes (i) JAK II LLC ("JAK") and (ii) Two R LLC ("Two R" and, together with JAK, the "Kraft Funds"). Jonathan A. Kraft is the manager, and has investment and voting power over the securities of JAK, and Robert K. Kraft is the manager, and has investment and voting power of Two R. The address of the Kraft Funds is c/o The Kraft Group, One Patriot Place, Foxborough, Massachusetts 02035.
(20)
Includes (i) Carmenta Growth Portfolio 2019, L.P., (ii) Carmenta Capital Co-Investments, L.P. and (iii) Shea Ventures LLC (collectively, the "Carmenta Funds"). Kirk Dizon, as the managing member, and Andrew Dipkin, as the chief operating officer, have investment and voting power over the securities held by the Carmenta Funds. The address of the Carmenta Funds is 191 Knoll Place, St. Helena, California 94574.
(21)
Anastasios Parafestas and Stephen G. Pagliuca are the managers of Roundview Partners, LLC, which is the general partner of the securityholder. Messrs. Parafestas and Pagliuca have voting and investment power over the securities. The address of this securityholder is One Joy Street, Boston, Massachusetts, 02108.
(22)
BCES Management, LLC ("BCES") is the general partner of Clarendon Investment Partners II, LP ("Clarendon"). Colin Campbell and Michael Ward are managing directors of BCES and have voting and investment power over the securities held by Clarendon. The address of this securityholder is 200 Clarendon Street, Boston, Massachusetts 02116.
(23)
Daniel Snyder is the sole member of this securityholder and has investment and voting power over the securities.
(24)
Robert Rothman is the sole owner of this securityholder and has investment and voting power over the securities.
(25)
Ester Jerome and Michele Bailey-Horovitz are the trustees of this securityholder and have investment and voting power over the securities. Ms. Jerome and Ms. Bailey-Horovitz disclaim ownership of the securities except to the extent of their pecuniary interest therein. The address of this securityholder is 150 Broadway, Suite 800, New York, New York 10038.
(26)
The address of this securityholder is Vinohradska 1511/230, 100 00 Prague 10, Czech Republic.
We have determined beneficial ownership
in accordance with the rules of the SEC and the information is not necessarily indicative of beneficial ownership for any other
purpose. Unless otherwise indicated below, to our knowledge, the persons and entities named in the tables have sole voting and
sole investment power with respect to all securities that they beneficially own, subject to community property laws where applicable.
Selling Securityholder information for each
additional Selling Securityholder, if any, will be set forth by prospectus supplement to the extent required prior to the time
of any offer or sale of such Selling Securityholder's shares pursuant to this prospectus. Any prospectus supplement may add,
update, substitute, or change the information contained in this prospectus, including the identity of each Selling Securityholder
and the number of shares registered on its behalf. A Selling Securityholder may sell or otherwise transfer all, some or none of
such shares in this offering. See "Plan of Distribution."
Listing of Common Stock
Application will be made for the shares
of New DraftKings Class A common stock to be approved for listing on Nasdaq under the symbol "DKNG."
171
CERTAIN RELATIONSHIPS AND RELATED
PARTY TRANSACTIONS
DEAC
On March 28, 2019, our Sponsor purchased
an aggregate of 10,062,500 founder shares in exchange for a capital contribution of $25,000, or approximately $0.002 per share.
On April 10, 2019, our Sponsor transferred 4,930,625 founder shares to Harry E. Sloan for a purchase price of $12,250 (the
same per-share price initially paid by our Sponsor), resulting in our Sponsor holding 5,131,875 founder shares. On May 10, 2019,
the Sponsor and Mr. Sloan each forfeited at no cost 31,875 and 30,625 founder shares, respectively, to DEAC in connection with
the election by the underwriters to exercise their over-allotment option in part and not in full, resulting in an aggregate of
10,000,000 founder shares outstanding, consisting of 5,100,000 held by the Sponsor and 4,900,000 held by Mr. Sloan.
The Sponsor and Mr. Sloan purchased an aggregate
of 6,333,334 private placement warrants in connection with DEAC's initial public offering, at a price of $1.50 per
warrant, or $9,550,000 in the aggregate. Each private placement warrant entitles the holder to purchase one share of Class A common
stock at $11.50 per share. The private placement warrants (including the Class A common stock issuable upon exercise of the private
placement warrants) may not, subject to certain limited exceptions, be transferred, assigned or sold until 30 days after the completion
of the Business Combination.
DEAC currently sub-leases its executive
offices at 2121 Avenue of the Stars, Suite 2300, Los Angeles, CA 90067 from Global Eagle Acquisition LLC, an affiliate of our Sponsor.
Commencing upon consummation of its initial public offering, DEAC reimburses Global Eagle Acquisition LLC for office space, secretarial
and administrative services provided to members of our management team in an amount not to exceed $15,000 per month. Upon completion
of DEAC's initial business combination or liquidation, it will cease paying these monthly fees.
DEAC's officers and directors are
entitled to reimbursement for any out-of-pocket expenses incurred in connection with activities on DEAC's behalf such as
identifying potential target businesses and performing due diligence on suitable business combinations. DEAC's audit committee
reviews on a quarterly basis all payments that were made to our Sponsor, DEAC's officers, directors or its or their affiliates.
In addition, in order to finance transaction
costs in connection with an intended initial business combination, our Sponsor or an affiliate of our Sponsor or certain of its
officers and directors may, but are not obligated to, loan DEAC funds as may be required on a non-interest basis. If DEAC completes
the Business Combination, it would repay such loaned amounts. In the event that the Business Combination does not close, DEAC may
use a portion of the working capital held outside the trust account to repay such loaned amounts but no proceeds from its trust
account would be used for such repayment. The warrants would be identical to the private placement warrants. Except as set forth
above, the terms of such loans, if any, have not been determined and no written agreements exist with respect to such loans.
DraftKings
Transaction with Co-Founder and Chief
Executive Officer
To facilitate the delivery of Class B common
stock of DraftKings to Mr. Robins, DraftKings will enter into an exchange agreement with Mr. Robins, effective as of immediately
prior to the consummation of the Business Combination, pursuant to which each share of DraftKings common stock held by Mr. Robins
will automatically be exchanged for one share of DraftKings Class A common stock and a certain number of shares of DraftKings Class
B common stock such that as of immediately following the completion of the Business Combination, Mr. Robins will have approximately
90% of the voting power of the capital stock of New DraftKings on a fully-diluted basis. Such shares of DraftKings Class B Common
Stock will be converted into the right to receive the same number of shares of New DraftKings Class B common stock upon the consummation
of the Business Combination and will provide Mr. Robins with approximately 90% of the voting power of the capital stock of New
DraftKings on a fully-diluted basis. The related exchange agreement to be entered into in respect of such DraftKings Class B common
stock to be issued to Mr. Robins in exchange for the shares of DraftKings common stock held Mr. Robins as of immediately prior
to the effective time of the DK Merger will provide that New DrafKings agrees to treat the share exchange as a tax-free transaction
and agrees to indemnify Mr. Robins for taxes and any applicable penalties and associated costs if such exchange is not tax free.
172
Private Placements of Securities
Series E-1 Preferred Stock Financing
Between March 2017 and April 2017, DraftKings
sold an aggregate of 54,901,310 shares of its Series E-1 preferred stock in multiple closings at a purchase price of $2.202916
per share, for an aggregate purchase amount of approximately $120.9 million. Certain related persons participated in the financing
round through investment funds in which they participate in management and/or have a financial interest. The following table summarizes
purchases of DraftKings' Series E-1 preferred stock by related persons:
Name
​
Number of
Shares
Purchase Price
($)
Revolution Growth III, LP
(1)
​
2,269,718
4,999,998.10
RPII DK LLC
(2)
​
1,361,830
2,999,997.10
Entities affiliated with Accomplice, LLC
(3)
​
453,943
999,998.30
Entities affiliated with Redpoint Ventures
(4)
​
453,943
999,998.30
(1)
Steven J. Murray is a member of the DraftKings board of directors, is to be named a director of New DraftKings and is an affiliate
of Revolution Growth III, LP.
(2)
John Salter is a member of the DraftKings board of directors, is to be named a director of New DraftKings and is an affiliate
of RPII DK LLC. RPII DK LLC held more than 5% of DraftKings capital stock as of the date of this prospectus.
(3)
Consists of 453,943 shares purchased by Accomplice Fund I, L.P. Ryan Moore is a member of the DraftKings board of directors,
is to be named a director of New DraftKings and is an affiliate of Accomplice Fund I, L.P. Entities affiliated with Accomplice,
LLC held over 5% of DraftKings capital stock as of the date of this prospectus.
(4)
Consists of 440,325 shares purchased by Redpoint Omega II, L.P. and 13,618 shares purchased by Redpoint Omega Associates II,
LLC. Redpoint Omega II, L.P. and Redpoint Omega Associates II, LLC collectively held more than 5% of DraftKings capital stock as
of the date of this prospectus.
Series F Preferred Stock Financing
Between August 2018 and March 2020, DraftKings
sold an aggregate of 59,663,975 shares of its Series F preferred stock in multiple closings at a purchase price of $2.549560
per share, for an aggregate amount of approximately $152.1 million, after accounting for redemptions. Certain related persons participated
in the financing round through investment funds in which they participate in management and/or have a financial interest. The following
table summarizes purchases of DraftKings' Series F preferred stock by related persons:
Name
Number of
Shares
Purchase Price
($)
Revolution Growth III, LP
(1)
3,922,245
9,999,998.97
Italianflare & Co., as nominee for Hadley Harbor Master Investors (Cayman) L.P.
(2)
980,561
2,499,999.11
Accomplice Fund II, L.P.
(3)
784,449
1,999,999.80
Jason Robins Revocable Trust u/d/t January 8, 2014
(4)
39,222
99,998.85
(1)
Steven J. Murray is a member of the DraftKings board of directors, is to be named a director of New DraftKings and is an affiliate
of Revolution Growth III, LP.
(2)
Hadley Harbor Master Investors (Cayman) L.P. is an affiliate of Wellington Management Company, LLC. Entities affiliated with
Wellington Management Company, LLC held over 5% of DraftKings capital stock as of the date of this prospectus.
(3)
Ryan Moore is a member of the DraftKings board of directors, is to be named a director of New DraftKings and is an affiliate
of Accomplice Fund II, L.P. Entities affiliated with Accomplice Fund II, L.P. held over 5% of DraftKings capital stock as of the
date of this prospectus.
173
(4)
Jason Robins, the trustee of Jason Robins Revocable Trust u/d/t January 8, 2014, is the Chief Executive Officer, a member of
the board of directors of DraftKings and to be named a director of New DraftKings.
Investor Rights Agreement
DraftKings entered into an amended and restated
investor rights agreement dated August 17, 2018, granting registration rights and information rights, among other things, to holders
of its preferred stock, including Fox, RPII DK LLC, Revolution Growth III, LP, Jason Robins, Jason Robins Revocable Trust u/d/t
January 8, 2014, Paul Liberman, Matthew Kalish, Kevin Kalish and entities affiliated with Accomplice, LLC, Eldridge Industries
LLC, GGV Capital Holdings L.L.C., Redpoint Ventures, and Wellington Management Company, LLC (the "Agreement Parties").
This agreement will terminate upon the Closing.
Right of First Refusal Agreement
DraftKings entered into an amended and restated
right of first refusal and co-sale agreement dated August 17, 2018 with holders of its preferred stock, including the Agreement
Parties, pursuant to which such holders have a right of first refusal and co-sale in respect of certain sales of securities by
certain of DraftKings' current and former service providers and their affiliates, including Jason Robins, Jason Robins Revocable
Trust u/d/t January 8, 2014, Paul Liberman, Matthew Kalish and Woodrow Levin. To the extent this agreement does not terminate in
accordance with its terms, DraftKings intends to amend the agreement and terminate it at the Closing of the Business Combination.
Voting Rights Agreement
DraftKings is a party to the Voting Rights
Agreement dated August 17, 2018 pursuant to which holders of its preferred stock, including the Agreement Parties, and certain
of its current and former service providers, including Woodrow Levin, have agreed to vote in a certain way on certain matters,
including with respect to the election of directors of DraftKings. Upon the Closing, the Voting Rights Agreement will terminate
and none of DraftKings' stockholders will have any special rights regarding the election or designation of members of the
DraftKings board of directors, and to the extent this agreement doesn't terminate in accordance with its terms, DraftKings
intends to amend the agreement and terminate it at the Closing of the Business Combination.
Raine 2019 Engagement Letter
On August 28, 2019, DraftKings entered into
an engagement letter, which was subsequently amended on December 13, 2019, with Raine Securities LLC ("Raine Securities"),
an affiliate of Raine. John Salter, a member of the board of directors of DraftKings, is a partner of Raine. Pursuant to the engagement
letter, Raine Securities has acted as the exclusive financial advisor to DraftKings in connection with the acquisition of SBTech
and the Business Combination with DEAC. Under the terms of the engagement letter, DraftKings has agreed to pay Raine Securities
the following fees in addition to any other fees and expenses that may become payable under the terms of the engagement letter:
(i) a success fee of $5.0 million for services in connection with the consummation of the SBTech Acquisition; and (ii) a success
fee of $7.0 million for services in connection with the consummation of the Business Combination. The engagement letter is terminable
at will by either party upon written notice to the other party.
DKFS
On August 27, 2019, DraftKings and other
investors, including Accomplice Fund II, L.P. and Hany Nada, as well as Jason Robins and Jason Park, acquired equity interests
of DKFS, LLC, a newly created joint venture, which among other things, will invest in early stage companies in the sports entertainment
industry. Jason Robins and Jason Park are managers of DKFS. The following table summarizes the equity interests of DKFS, LLC held
by DraftKings and related persons, as well as the consideration paid for such interests:
Name
​
Common
Units
​
​
Incentive
Units(1)
​
​
Cash
Consideration ($)
​
​
In-Kind
Consideration ($)(2)
​
DraftKings
​
4,500,000
​
​
-
​
​
-
​
​
3,000,000
​
Accomplice Fund II, L.P.
(3)
​
1,500,000
​
​
-
​
​
1,000,000
​
​
-
​
Hany Nada
(4)
​
375,000
​
​
-
​
​
250,000
​
​
-
​
Jason Robins
(5)
​
-
​
​
126,603
​
​
-
​
​
-
​
Jason Park
(6)
-
63,301
-
-
174
(1)
One-fourth of each recipient's incentive units vest on the one-year anniversary of the date of issuance and the remainder
vest in equal monthly installments over the subsequent 36 months, subject to the recipient's continued provision of services
to DKFS, LLC.
(2)
Consists of the contribution to DKFS, LLC of a license to use certain proprietary marks and logos owned by DraftKings.
(3)
Accomplice Fund II, L.P. is an affiliate of entities holding over 5% of DraftKings capital stock.
(4)
Hany Nada is a member of the DraftKings board of directors and is to be named a director of New DraftKings.
(5)
Jason Robins is the Chief Executive Officer, a member of the board of directors of DraftKings and is to be named a director
of New DraftKings.
(6)
Jason Park is the Chief Financial Officer of DraftKings.
In connection with the investment in DKFS,
LLC, DraftKings also agreed to enter into a services agreement with Drive by DraftKings, Inc., a wholly-owned subsidiary of DKFS,
LLC. Pursuant to this services agreement, DraftKings will provide certain administrative and other services to Drive by DraftKings,
Inc. Specifically, DraftKings provides office space and general overhead support to DKFS, LLC. The overhead support relates to
rent, utilities and general and administrative support services. As of December 31, 2019, DraftKings had $959,000 of receivables
from this entity related to these services. We anticipate that the service agreement fees incurred by Drive by DraftKings, Inc.
will be approximately $120,000 annually.
Smack Transfer Transaction
On May 11, 2018, DraftKings entered into
an asset purchase agreement with Smack Inc. ("Smack") and certain stockholders of Smack, including Jason Robins and
OneSix Red, LLC. Woodrow Levin, a director of DraftKings, is a manager of and has a financial interest in OneSix Red, LLC, primarily
to hire certain key employees of Smack, which at the time, made mobile-based applications for end users. The stockholders party
to the asset purchase agreement received shares of DraftKings common stock as consideration for the transaction totaling 258,621
shares in the aggregate at a price per share of $1.16 (for a total value of $300,000.36). Jason Robins received 761 shares (valued
at $882.76) and OneSix Red, LLC received 8,747 shares (valued at $10,146.52). In connection with the transaction, the Smack stockholders,
including Jason Robins and OneSix Red, LLC, entered into a stockholder agreement with DraftKings, which, among other things, requires
such stockholders to vote the shares received as consideration in a certain way in the event of a change of control of DraftKings.
Fox Right of First Negotiation
On July 15, 2015, DraftKings and Fox entered
into a right of first negotiation agreement (the "ROFN Agreement") in connection with Fox's purchase of DraftKings'
Series D preferred stock. Pursuant to the ROFN Agreement, Fox has the right to submit a non-binding offer to acquire DraftKings
in the event that DraftKings takes certain steps in connection with a sale of the company or a change of control, subject to certain
terms and conditions. If DraftKings rejects Fox's offer and, during the subsequent 12-month period, intends to enter into
a definitive agreement to sell the company on terms inferior to those proposed by Fox, DraftKings must provide Fox with the exclusive
opportunity to acquire DraftKings on such inferior terms. The ROFN Agreement will terminate upon the Closing, and to the extent
this agreement does not terminate in accordance with its terms, DraftKings intends to amend the agreement and terminate it at the
Closing of the Business Combination.
Fox Media Agreement
On August 1, 2014, DraftKings entered into
a fantasy games advertising agreement with Fox Sports Interactive Media, LLC, which was incorporated into a media purchase agreement
between DraftKings and Fox Networks Group, Inc., dated July 13, 2015 (as amended from time to time thereto, the "Media Purchase
Agreement"). Fox Networks Group, Inc., until March 2019, was an affiliate of Fox, which holds over 5% of DraftKings capital
stock. Pursuant to the Media Purchase Agreement, and effective January 2019, DraftKings is committed
to an aggregate minimum commitment of $14.4 million through December 31, 2021 ($5 million per year). The Media Purchase Agreement
will expire December 31, 2021 unless DraftKings elects to extend it.
175
Convertible Notes
As part of DraftKings' issuance of
Convertible Notes, Accomplice DK Investors, LLC invested an aggregate of $4 million. Ryan Moore is a member of the DraftKings board
of directors, is to be named a director of New DraftKings and is an affiliate of Accomplice Fund I, L.P. and Accomplice Management
Holdings, LLC. Entities affiliated with Accomplice, LLC held over 5% of DraftKings capital stock as of the date of this prospectus.
SBTech
In the three years ended December 31, 2019,
2018 and 2017, SBTech engaged Collaborative Marketing OOD, a consulting company owned by Mr. Meckenzie and another individual,
pursuant to which Collaborative Marketing OOD provided marketing, sales and business development services to SBTech in exchange
for a fee of €446 thousand, €296 thousand and €235 thousand, in 2019, 2018 and 2017, respectively, including a one-time
termination fee of €243 thousand in 2019.
Additionally, during the three years ended
December 31, 2019, 2018 and 2017, Water Tree Group, a company wholly owned by Mr. Meckenzie's brother, transacted with SBTech
for its platform licensing services. The amount received from Water Tree Group for the license was €6.265 million, €6.870
million and €8.765 million in 2019, 2018 and 2017, respectively.
Furthermore, during the three years ended
December 31, 2019, 2018 and 2017, A.L. Skyshield LTD ("Skyshield"), a real-estate company owned by Mr. Meckenzie, leased
offices in Israel to Gaming Tech Ltd., a subsidiary of SBTech. The amount paid out to Skyshield in respect of lease was €627
thousand, €480 thousand and €127 thousand in 2019, 2018 and 2017, respectively. Additionally, SBTech provided a loan
to Skyshield in the amount of  €2.810 million. The loan bears interest at Libor +2.25% per annum. In 2019, there were
no repayments against this loan. In 2018, SBTech received repayments which amounted to €1.550 million. As of December 31,
2019, the loan amounted to €1.430 million. This loan will be repaid at the Closing of the Business Combination.
Related Person Transaction Policy Following the Business
Combination
Upon consummation of the Business Combination,
it is anticipated that the New DraftKings board of directors will adopt a written related person transaction policy that sets forth
the following policies and procedures for the review and approval or ratification of related person transactions.
A "Related Person Transaction"
is a transaction, arrangement or relationship in which New DraftKings or any of its subsidiaries was, is or will be a participant,
the amount of which involved exceeds $120,000, and in which any related person had, has or will have a direct or indirect material
interest. A "Related Person" means:
·
any person who is, or at any time during the applicable period was, one of New DraftKings' executive officers or a member
of New DraftKings' board of directors;
·
any person who is known by New DraftKings to be the beneficial owner of more than five percent (5%) of our voting stock;
·
any immediate family member of any of the foregoing persons, which means any child, stepchild, parent, stepparent, spouse,
sibling, mother-in-law, father-in-law, daughter-in-law, brother-in-law or sister-in-law of a director, officer or a beneficial
owner of more than five percent (5%) of our voting stock, and any person (other than a tenant or employee) sharing the household
of such director, executive officer or beneficial owner of more than five percent (5%) of our voting stock; and
·
any firm, corporation or other entity in which any of the foregoing persons is a partner or principal or in a similar position
or in which such person has a 10 percent (10%) or greater beneficial ownership interest.
It is also anticipated that New DraftKings
will have policies and procedures designed to minimize potential conflicts of interest arising from any dealings it may have with
its affiliates and to provide appropriate procedures for the disclosure of any real or potential conflicts of interest that may
exist from time to time. Specifically, pursuant to its audit committee charter, the audit committee will have the responsibility
to review related person transactions.
176
United
STATES FEDERAL INCOME TAX CONSIDERATIONS
The following is a discussion of certain
material U.S. federal income tax consequences of the acquisition, ownership and disposition of our common stock and warrants, which
we refer to collectively as our securities. This discussion applies only to securities that are held as capital assets for U.S.
federal income tax purposes and is applicable only to holders who are receiving our securities in this offering.
This discussion is a summary only and does
not describe all of the tax consequences that may be relevant to you in light of your particular circumstances, including but not
limited to the alternative minimum tax, the Medicare tax on certain investment income and the different consequences that may apply
if you are subject to special rules that apply to certain types of investors (such as the effects of Section 451 of the Internal
Revenue Code of 1986, as amended (the "Code")), including but not limited to:
·
financial institutions or financial services entities;
·
broker-dealers;
·
governments or agencies or instrumentalities thereof;
·
regulated investment companies;
·
real estate investment trusts;
·
expatriates or former long-term residents of the U.S.;
·
persons that actually or constructively own five percent or more of our voting
shares;
·
insurance companies;
·
dealers or traders subject to a mark-to-market method of accounting with
respect to the securities;
·
persons holding the securities as part of a "straddle," hedge,
integrated transaction or similar transaction;
·
U.S. holders (as defined below) whose functional currency is not the U.S.
dollar;
·
partnerships or other pass-through entities for U.S. federal income tax purposes
and any beneficial owners of such entities; and
·
tax-exempt entities.
This discussion is based on the Code, and
administrative pronouncements, judicial decisions and final, temporary and proposed Treasury regulations as of the date hereof,
which are subject to change, possibly on a retroactive basis, and changes to any of which subsequent to the date of this prospectus
may affect the tax consequences described herein. This discussion does not address any aspect of state, local or non-U.S. taxation,
or any U.S. federal taxes other than income taxes (such as gift and estate taxes).
We have not sought, and will not seek, a
ruling from the IRS as to any U.S. federal income tax consequence described herein. The IRS may disagree with the discussion herein,
and its determination may be upheld by a court. Moreover, there can be no assurance that future legislation, regulations, administrative
rulings or court decisions will not adversely affect the accuracy of the statements in this discussion. You are urged to consult
your tax advisor with respect to the application of U.S. federal tax laws to your particular situation, as well as any tax consequences
arising under the laws of any state, local or foreign jurisdiction.
177
This discussion does not consider the tax
treatment of partnerships or other pass-through entities or persons who hold our securities through such entities. If a partnership
(or other entity or arrangement classified as a partnership or other pass-through entity for United States federal income tax purposes)
is the beneficial owner of our securities, the United States federal income tax treatment of a partner or member in the partnership
or other pass-through entity generally will depend on the status of the partner or member and the activities of the partnership
or other pass-through entity. If you are a partner or member of a partnership or other pass-through entity holding our securities,
we urge you to consult your own tax advisor.
THIS DISCUSSION IS ONLY A SUMMARY OF
CERTAIN UNITED STATES FEDERAL INCOME TAX CONSIDERATIONS ASSOCIATED WITH THE ACQUISITION, OWNERSHIP AND DISPOSITION OF OUR SECURITIES.
EACH PROSPECTIVE INVESTOR IN OUR SECURITIES IS URGED TO CONSULT ITS OWN TAX ADVISOR WITH RESPECT TO THE PARTICULAR TAX CONSEQUENCES
TO SUCH INVESTOR OF THE ACQUISITION, OWNERSHIP AND DISPOSITION OF OUR SECURITIES, INCLUDING THE APPLICABILITY AND EFFECT OF ANY
UNITED STATES FEDERAL NON-INCOME, STATE, LOCAL, AND NON-U.S. TAX LAWS.
U.S. Holders
This section applies to you if you are a
 "U.S. holder." A U.S. holder is a beneficial owner of our shares of common stock or warrants who or that is, for U.S.
federal income tax purposes:
·
an individual who is a citizen or resident of the United States;
·
a corporation (or other entity taxable as a corporation) organized in or
under the laws of the United States, any state thereof or the District of Columbia; or
·
an estate the income of which is includible in gross income for U.S. federal
income tax purposes regardless of its source; or
·
a trust, if (i) a court within the United States is able to exercise
primary supervision over the administration of the trust and one or more U.S. persons (as defined in the Code) have authority to
control all substantial decisions of the trust or (ii) it has a valid election in effect under Treasury Regulations to be
treated as a U.S. person.
Taxation of Distributions.
If we
pay distributions in cash or other property (other than certain distributions of our stock or rights to acquire our stock) to U.S.
holders of shares of our common stock, such distributions generally will constitute dividends for U.S. federal income tax purposes
to the extent paid from our current or accumulated earnings and profits, as determined under U.S. federal income tax principles.
Distributions in excess of current and accumulated earnings and profits will constitute a return of capital that will be applied
against and reduce (but not below zero) the U.S. holder's adjusted tax basis in our common stock. Any remaining excess will
be treated as gain realized on the sale or other disposition of the common stock and will be treated as described under "
U.S.
Holders—Gain or Loss on Sale, Taxable Exchange or Other Taxable Disposition of common stock and Warrants
" below.
Dividends we pay to a U.S. holder that is
a taxable corporation generally will qualify for the dividends received deduction if the requisite holding period is satisfied.
With certain exceptions (including, but not limited to, dividends treated as investment income for purposes of investment interest
deduction limitations), and provided certain holding period requirements are met, dividends we pay to a non-corporate U.S. holder
may constitute "qualified dividends" that will be subject to tax at the maximum tax rate accorded to long-term capital
gains. If the holding period requirements are not satisfied, then a corporation may not be able to qualify for the dividends received
deduction and would have taxable income equal to the entire dividend amount, and non-corporate holders may be subject to tax on
such dividend at regular ordinary income tax rates instead of the preferential rate that applies to qualified dividend income.
178
Gain or Loss on Sale, Taxable Exchange
or Other Taxable Disposition of common stock and Warrants.
Upon a sale or other taxable disposition of our common stock or
warrants, a U.S. holder generally will recognize capital gain or loss in an amount equal to the difference between the amount realized
and the U.S. holder's adjusted tax basis in the common stock or warrants. Any such capital gain or loss generally will be
long-term capital gain or loss if the U.S. holder's holding period for the common stock or warrants so disposed of exceeds
one year. If the holding period requirements are not satisfied, any gain on a sale or taxable disposition of the shares or warrants
would be subject to short-term capital gain treatment and would be taxed at regular ordinary income tax rates. Long-term capital
gains recognized by non-corporate U.S. holders will be eligible to be taxed at reduced rates. The deductibility of capital losses
is subject to limitations.
Generally, the amount of gain or loss recognized
by a U.S. holder is an amount equal to the difference between (i) the sum of the amount of cash and the fair market value
of any property received in such disposition and (ii) the U.S. holder's adjusted tax basis in its common stock or warrants
so disposed of. A U.S. holder's adjusted tax basis in its common stock or warrants generally will equal the U.S. holder's
acquisition cost for the common stock or warrant less, in the case of a share of common stock, any prior distributions treated
as a return of capital. In the case of any shares of common stock or warrants originally acquired as part of an investment unit,
the acquisition cost for the share of common stock and warrant that were part of such unit would equal an allocable portion of
the acquisition cost of the unit based on the relative fair market values of the components of the unit at the time of acquisition.
Exercise or Lapse of a Warrant.
Except
as discussed below with respect to the cashless exercise of a warrant, a U.S. holder generally will not recognize taxable gain
or loss on the acquisition of our common stock upon exercise of a warrant for cash. The U.S. holder's tax basis in the share
of our common stock received upon exercise of the warrant generally will be an amount equal to the sum of the U.S. holder's
initial investment in the warrant and the exercise price. It is unclear whether the U.S. holder's holding period for the
common stock received upon exercise of the warrants will begin on the date following the date of exercise or on the date of exercise
of the warrants; in either case, the holding period will not include the period during which the U.S. holder held the warrants.
If a warrant is allowed to lapse unexercised, a U.S. holder generally will recognize a capital loss equal to such holder's
tax basis in the warrant.
The tax consequences of a cashless exercise
of a warrant are not clear under current tax law. A cashless exercise may be tax-free, either because the exercise is not a realization
event or because the exercise is treated as a recapitalization for U.S. federal income tax purposes. In either tax-free situation,
a U.S. holder's basis in the common stock received would equal the holder's basis in the warrants exercised therefor.
If the cashless exercise were treated as not being a realization event, it is unclear whether a U.S. holder's holding period
in the common stock would be treated as commencing on the date following the date of exercise or on the date of exercise of the
warrant; in either case, the holding period would not include the period during which the U.S. holder held the warrants. If the
cashless exercise were treated as a recapitalization, the holding period of the common stock would include the holding period of
the warrants exercised therefor.
It is also possible that a cashless exercise
could be treated in part as a taxable exchange in which gain or loss would be recognized. In such event, a U.S. holder could be
deemed to have surrendered warrants equal to the number of shares of common stock having a value equal to the exercise price for
the total number of warrants to be exercised. The U.S. holder would recognize capital gain or loss in an amount equal to the difference
between the fair market value of the common stock received in respect of the warrants deemed surrendered and the U.S. holder's
tax basis in the warrants deemed surrendered. In this case, a U.S. holder's tax basis in the common stock received would
equal the sum of the fair market value of the common stock received in respect of the warrants deemed surrendered and the U.S.
holder's tax basis in the warrants exercised. It is unclear whether a U.S. holder's holding period for the common stock
would commence on the date following the date of exercise or on the date of exercise of the warrant; in either case, the holding
period would not include the period during which the U.S. holder held the warrant.
Due to the absence of authority on the U.S.
federal income tax treatment of a cashless exercise, including when a U.S. holder's holding period would commence with respect
to the common stock received, there can be no assurance which, if any, of the alternative tax consequences and holding periods
described above would be adopted by the IRS or a court of law. Accordingly, U.S. holders should consult their tax advisors regarding
the tax consequences of a cashless exercise.
179
Possible Constructive Distributions.
The terms of each warrant provide for an adjustment to the number of shares of common stock for which the warrant may be exercised
or to the exercise price of the warrant in certain events, as discussed in the section of this registration statement entitled
 "
Description of Securities—Warrants
." An adjustment which has the effect of preventing dilution generally
is not taxable. The U.S. holders of the warrants would, however, be treated as receiving a constructive distribution from us if,
for example, the adjustment to the number of such shares or to such exercise price increases the warrantholders' proportionate
interest in our assets or earnings and profits (e.g., through an increase in the number of shares of common stock that would
be obtained upon exercise or through a decrease in the exercise price of the warrant) as a result of a distribution of cash or
other property, such as other securities, to the holders of shares of our common stock, or as a result of the issuance of a stock
dividend to holders of shares of our common stock, in each case which is taxable to the holders of such shares as a distribution.
Such constructive distribution would be subject to tax as described under that section in the same manner as if the U.S. holders
of the warrants received a cash distribution from us equal to the fair market value of such increased interest.
Information Reporting and Backup Withholding.
In general, information reporting requirements may apply to dividends paid to a U.S. holder and to the proceeds of the sale or
other disposition of our shares of common stock and warrants, unless the U.S. holder is an exempt recipient. Backup withholding
may apply to such payments if the U.S. holder fails to provide a taxpayer identification number, a certification of exempt status
or has been notified by the IRS that it is subject to backup withholding (and such notification has not been withdrawn).
Any amounts withheld under the backup withholding
rules generally should be allowed as a refund or a credit against a U.S. holder's U.S. federal income tax liability provided
the required information is timely furnished to the IRS.
Non-U.S. Holders
This section applies to you if you are a
 "Non-U.S. holder." As used herein, the term "Non-U.S. holder" means a beneficial owner of our common stock
or warrants who or that is for U.S. federal income tax purposes:
·
a non-resident alien individual (other than certain former citizens and residents
of the U.S. subject to U.S. tax as expatriates);
·
a foreign corporation or
·
an estate or trust that is not a U.S. holder;
but generally does not include an individual who is present
in the U.S. for 183 days or more in the taxable year of disposition. If you are such an individual, you should consult your
tax advisor regarding the U.S. federal income tax consequences of the acquisition, ownership or sale or other disposition of our
securities.
Taxation of Distributions.
In general,
any distributions we make to a Non-U.S. holder of shares of our common stock, to the extent paid out of our current or accumulated
earnings and profits (as determined under U.S. federal income tax principles), will constitute dividends for U.S. federal income
tax purposes and, provided such dividends are not effectively connected with the Non-U.S. holder's conduct of a trade or
business within the United States, we will be required to withhold tax from the gross amount of the dividend at a rate of 30%,
unless such Non-U.S. holder is eligible for a reduced rate of withholding tax under an applicable income tax treaty and provides
proper certification of its eligibility for such reduced rate (usually on an IRS Form W-8BEN or W-8BEN-E). Any distribution
not constituting a dividend will be treated first as reducing (but not below zero) the Non-U.S. holder's adjusted tax basis
in its shares of our common stock and, to the extent such distribution exceeds the Non-U.S. holder's adjusted tax basis,
as gain realized from the sale or other disposition of the common stock, which will be treated as described under "
Non-U.S.
Holders—Gain on Sale, Taxable Exchange or Other Taxable Disposition of common stock and Warrants
" below.
The withholding tax does not apply to dividends
paid to a Non-U.S. holder who provides a Form W-8ECI, certifying that the dividends are effectively connected with the Non-U.S.
holder's conduct of a trade or business within the United States. Instead, the effectively connected dividends will be subject
to regular U.S. income tax as if the Non-U.S. holder were a U.S. resident, subject to an applicable income tax treaty providing
otherwise. A Non-U.S. corporation receiving effectively connected dividends may also be subject to an additional "branch
profits tax" imposed at a rate of 30% (or a lower treaty rate).
180
Exercise of a Warrant.
The U.S. federal
income tax treatment of a Non-U.S. holder's exercise of a warrant, or the lapse of a warrant held by a Non-U.S. holder, generally
will correspond to the U.S. federal income tax treatment of the exercise or lapse of a warrant by a U.S. holder, as described under
 "
U.S. holders—Exercise or Lapse of a Warrant
" above, although to the extent a cashless exercise results
in a taxable exchange, the consequences would be similar to those described below in "
Non-U.S. Holders—Gain on Sale,
Taxable Exchange or Other Taxable Disposition of common stock and Warrants
."
Gain on Sale, Taxable Exchange or Other
Taxable Disposition of common stock and Warrants.
A Non-U.S. holder generally will not be subject to U.S. federal income or
withholding tax in respect of gain recognized on a sale, taxable exchange or other taxable disposition of our common stock, unless:
·
the gain is effectively connected with the conduct of a trade or business
by the Non-U.S. holder within the United States (and, under certain income tax treaties, is attributable to a United States permanent
establishment or fixed base maintained by the Non-U.S. holder); or
·
we are or have been a "U.S. real property holding corporation"
for U.S. federal income tax purposes at any time during the shorter of the five-year period ending on the date of disposition or
the period that the Non-U.S. holder held our common stock, and, in the case where shares of our common stock are regularly traded
on an established securities market, the Non-U.S. holder has owned, directly or constructively, more than 5% of our common stock
at any time within the shorter of the five-year period preceding the disposition or such Non-U.S. holder's holding period
for the shares of our common stock. There can be no assurance that our common stock will be treated as regularly traded on an established
securities market for this purpose.
Unless an applicable treaty provides otherwise,
gain described in the first bullet point above will be subject to tax at generally applicable U.S. federal income tax rates as
if the Non-U.S. holder were a U.S. resident. Any gains described in the first bullet point above of a Non-U.S. holder that is a
foreign corporation may also be subject to an additional "branch profits tax" at a 30% rate (or lower treaty rate).
If the second bullet point above applies
to a Non-U.S. holder, gain recognized by such holder on the sale, exchange or other disposition of our common stock or warrants
will be subject to tax at generally applicable U.S. federal income tax rates.
Possible Constructive Distributions.
The terms of each warrant provide for an adjustment to the number of shares of common stock for which the warrant may be exercised
or to the exercise price of the warrant in certain events, as discussed in the section of this prospectus captioned "
Description
of Securities—Warrants
." An adjustment which has the effect of preventing dilution is generally not a taxable event.
Nevertheless, a Non-U.S. holder of warrants would be treated as receiving a constructive distribution from us if, for example,
the adjustment increases the holder's proportionate interest in our assets or earnings and profits (e.g., through an
increase in the number of shares of common stock that would be obtained upon exercise) as a result of a distribution of cash or
other property, such as other securities, to the holders of shares of our common stock which is taxable to such holders as a distribution.
Any constructive distribution received by a Non-U.S. holder would be subject to U.S. federal income tax (including any applicable
withholding) in the same manner as if such Non-U.S. holder received a cash distribution from us equal to the fair market value
of such increased interest without any corresponding receipt of cash. Any resulting withholding tax may be withheld from future
cash distributions.
Information Reporting and Backup Withholding.
Information returns will be filed with the IRS in connection with payments of dividends and the proceeds from a sale or other disposition
of our shares of common stock and warrants. A Non-U.S. holder may have to comply with certification procedures to establish that
it is not a United States person in order to avoid information reporting and backup withholding requirements. The certification
procedures required to claim a reduced rate of withholding under a treaty will satisfy the certification requirements necessary
to avoid the backup withholding as well. The amount of any backup withholding from a payment to a Non-U.S. holder will be allowed
as a credit against such holder's U.S. federal income tax liability and may entitle such holder to a refund, provided that
the required information is timely furnished to the IRS.
FATCA Withholding Taxes.
Provisions
commonly referred to as "FATCA" impose withholding of 30% on payments of dividends (including constructive dividends)
on our common stock to "foreign financial institutions" (which is broadly defined for this purpose and in general includes
investment vehicles) and certain other Non-U.S. entities unless various U.S. information reporting and due diligence requirements
(generally relating to ownership by U.S. persons of interests in or accounts with those entities) have been satisfied by, or an
exemption applies to, the payee (typically certified as to by the delivery of a properly completed IRS Form W-8BEN-E). Foreign
financial institutions located in jurisdictions that have an intergovernmental agreement with the United States governing FATCA
may be subject to different rules. Under certain circumstances, a Non-U.S. holder might be eligible for refunds or credits of such
withholding taxes, and a Non-U.S. holder might be required to file a U.S. federal income tax return to claim such refunds
or credits. Prospective investors should consult their tax advisers regarding the effects of FATCA on their investment in our securities.
181
PLAN OF
DISTRIBUTION
We are registering the possible resale by
the Selling Securityholders of up to 44,725,831 shares of Class A common stock (including 3,000,000 shares of Class A common stock
issuable upon the exercise of the PIPE Warrants and 11,254,479 shares of Class A common stock issuable upon conversion of Convertible
Notes held by such Selling Securityholders.
We will not receive any of the proceeds
from the sale of the securities by the Selling Securityholders. We will receive proceeds from warrants exercised in the event that
such warrants are exercised for cash. The aggregate proceeds to the Selling Securityholders will be the purchase price of the securities
less any discounts and commissions borne by the Selling Securityholders.
The Selling Securityholders will pay any
underwriting discounts and commissions and expenses incurred by the Selling Securityholders for brokerage, accounting, tax or legal
services or any other expenses incurred by the Selling Securityholders in disposing of the securities. We will bear all other costs,
fees and expenses incurred in effecting the registration of the securities covered by this prospectus, including, without limitation,
all registration and filing fees, Nasdaq listing fees and fees and expenses of our counsel and our independent registered public
accountants.
The securities beneficially owned by the
Selling Securityholders covered by this prospectus may be offered and sold from time to time by the Selling Securityholders. The
term "Selling Securityholders" includes donees, pledgees, transferees or other successors in interest selling securities
received after the date of this prospectus from a Selling Securityholder as a gift, pledge, partnership distribution or other transfer.
The Selling Securityholders will act independently of us in making decisions with respect to the timing, manner and size of each
sale. Such sales may be made on one or more exchanges or in the over-the-counter market or otherwise, at prices and under terms
then prevailing or at prices related to the then current market price or in negotiated transactions. Each Selling Securityholder
reserves the right to accept and, together with its respective agents, to reject, any proposed purchase of securities to be made
directly or through agents. The Selling Securityholders and any of their permitted transferees may sell their securities offered
by this prospectus on any stock exchange, market or trading facility on which the securities are traded or in private transactions.
If underwriters are used in the sale, such underwriters will acquire the shares for their own account. These sales may be at a
fixed price or varying prices, which may be changed, or at market prices prevailing at the time of sale, at prices relating to
prevailing market prices or at negotiated prices. The securities may be offered to the public through underwriting syndicates represented
by managing underwriters or by underwriters without a syndicate. The obligations of the underwriters to purchase the securities
will be subject to certain conditions. The underwriters will be obligated to purchase all the securities offered if any of the
securities are purchased.
Subject to the limitations set forth in
any applicable registration rights agreement, the Selling Securityholders may use any one or more of the following methods when
selling the securities offered by this prospectus:
·
purchases by a broker-dealer as principal and resale
by such broker-dealer for its own account pursuant to this prospectus;
·
ordinary brokerage transactions and transactions
in which the broker solicits purchasers;
·
block trades in which the broker-dealer so engaged
will attempt to sell the securities as agent but may position and resell a portion of the block as principal to facilitate the
transaction;
·
an over-the-counter distribution in accordance with
the rules of the Nasdaq;
·
through trading plans entered into by a Selling Securityholder
pursuant to Rule 10b5-1 under the Exchange Act that are in place at the time of an offering pursuant to this prospectus and any
applicable prospectus supplement hereto that provide for periodic sales of their securities on the basis of parameters described
in such trading plans;
·
through one or more underwritten offerings on
a firm commitment or best efforts basis;
·
settlement of short sales entered into after the date
of this prospectus;
·
agreements with broker-dealers to sell a specified number of the securities
at a stipulated price per share or warrant;
·
in "at the market" offerings,
as defined in Rule 415 under the Securities Act, at negotiated prices, at prices prevailing at the time of sale or at prices related
to such prevailing market prices, including sales made directly on a national securities exchange or sales made through a
market maker other than on an exchange or other similar offerings through sales agents;
182
·
directly to purchasers, including through a specific
bidding, auction or other process or in privately negotiated transactions;
·
through the writing or settlement of options or other
hedging transactions, whether through an options exchange or otherwise;
·
through a combination of any of the above methods
of sale; or
·
any other method permitted pursuant to applicable law.
In addition, a Selling Securityholder that
is an entity may elect to make a pro rata in-kind distribution of securities to its members, partners or stockholders pursuant
to the registration statement of which this prospectus is a part by delivering a prospectus with a plan of distribution. Such members,
partners or stockholders would thereby receive freely tradeable securities pursuant to the distribution through a registration
statement. To the extent a distributee is an affiliate of ours (or to the extent otherwise required by law), we may file a prospectus
supplement in order to permit the distributees to use the prospectus to resell the securities acquired in the distribution.
There can be no assurance that the Selling
Securityholders will sell all or any of the securities offered by this prospectus. In addition, the Selling Securityholders may
also sell securities under Rule 144 under the Securities Act, if available, or in other transactions exempt from registration,
rather than under this prospectus. The Selling Securityholders have the sole and absolute discretion not to accept any purchase
offer or make any sale of securities if they deem the purchase price to be unsatisfactory at any particular time.
The Selling Securityholders also may transfer
the securities in other circumstances, in which case the transferees, pledgees or other successors-in-interest will be the selling
beneficial owners for purposes of this prospectus. Upon being notified by a Selling Securityholder that a donee, pledgee, transferee,
other successor-in-interest intends to sell our securities, we will, to the extent required, promptly file a supplement to this
prospectus to name specifically such person as a selling securityholder.
With respect to a particular offering of
the securities held by the Selling Securityholders, to the extent required, an accompanying prospectus supplement or, if appropriate,
a post-effective amendment to the registration statement of which this prospectus is part, will be prepared and will set forth
the following information:
·
the specific securities to be offered and sold;
·
the names of the selling securityholders;
·
the respective purchase prices and public offering prices, the proceeds to be received from the sale, if any, and other material
terms of the offering;
·
settlement of short sales entered into after the date of this prospectus;
·
the names of any participating agents, broker-dealers or underwriters; and
·
any applicable commissions, discounts, concessions and other items constituting compensation from the selling securityholders.
​
​
In
connection with distributions of the securities or otherwise, the Selling Securityholders may enter into hedging transactions
with broker-dealers or other financial institutions. In connection with such transactions, broker-dealers or other financial institutions
may engage in short sales of the securities in the course of hedging the positions they assume with Selling Securityholders. The
Selling Securityholders may also sell the securities short and redeliver the securities to close out such short positions. The
Selling Securityholders may also enter into option or other transactions with broker-dealers or other financial institutions which
require the delivery to such broker-dealer or other financial institution of securities offered by this prospectus, which securities
such broker-dealer or other financial institution may resell pursuant to this prospectus (as supplemented or amended to reflect
such transaction). The Selling Securityholders may also pledge securities to a broker-dealer or other financial institution, and,
upon a default, such broker-dealer or other financial institution, may effect sales of the pledged securities pursuant to this
prospectus (as supplemented or amended to reflect such transaction).
183
In order to facilitate the offering of the
securities, any underwriters or agents, as the case may be, involved in the offering of such securities may engage in transactions
that stabilize, maintain or otherwise affect the price of our securities. Specifically, the underwriters or agents, as the case
may be, may overallot in connection with the offering, creating a short position in our securities for their own account. In addition,
to cover overallotments or to stabilize the price of our securities, the underwriters or agents, as the case may be, may bid for,
and purchase, such securities in the open market. Finally, in any offering of securities through a syndicate of underwriters, the
underwriting syndicate may reclaim selling concessions allotted to an underwriter or a broker-dealer for distributing such securities
in the offering if the syndicate repurchases previously distributed securities in transactions to cover syndicate short positions,
in stabilization transactions or otherwise. Any of these activities may stabilize or maintain the market price of the securities
above independent market levels. The underwriters or agents, as the case may be, are not required to engage in these activities,
and may end any of these activities at any time.
The Selling Securityholders may solicit
offers to purchase the securities directly from, and it may sell such securities directly to, institutional investors or others.
In this case, no underwriters or agents would be involved. The terms of any of those sales, including the terms of any bidding
or auction process, if utilized, will be described in the applicable prospectus supplement.
It is possible that one or more underwriters
may make a market in our securities, but such underwriters will not be obligated to do so and may discontinue any market making
at any time without notice. We cannot give any assurance as to the liquidity of the trading market for our securities. DEAC's
shares of Class A common stock are currently listed on Nasdaq under the symbol "DEAC" and DEAC's public warrants
are currently listed on Nasdaq under the symbol "DEACW". In connection with the Business Combination, we expect our
shares of Class A common stock and warrants to be listed on Nasdaq under the symbol "DKNG" and "DKNGW",
respectively.
The Selling Securityholders may authorize
underwriters, broker-dealers or agents to solicit offers by certain purchasers to purchase the securities at the public offering
price set forth in the prospectus supplement pursuant to delayed delivery contracts providing for payment and delivery on a specified
date in the future. The contracts will be subject only to those conditions set forth in the prospectus supplement, and the prospectus
supplement will set forth any commissions we or the Selling Securityholders pay for solicitation of these contracts.
A Selling Securityholder may enter into
derivative transactions with third parties, or sell securities not covered by this prospectus to third parties in privately negotiated
transactions. If the applicable prospectus supplement indicates, in connection with those derivatives, the third parties may sell
securities covered by this prospectus and the applicable prospectus supplement, including in short sale transactions. If so, the
third party may use securities pledged by any Selling Securityholder or borrowed from any Selling Securityholder or others to settle
those sales or to close out any related open borrowings of stock, and may use securities received from any Selling Securityholder
in settlement of those derivatives to close out any related open borrowings of stock. The third party in such sale transactions
will be an underwriter and will be identified in the applicable prospectus supplement (or a post-effective amendment). In addition,
any Selling Securityholder may otherwise loan or pledge securities to a financial institution or other third party that in turn
may sell the securities short using this prospectus. Such financial institution or other third party may transfer its economic
short position to investors in our securities or in connection with a concurrent offering of other securities.
In effecting sales, broker-dealers or agents
engaged by the Selling Securityholders may arrange for other broker-dealers to participate. Broker-dealers or agents may receive
commissions, discounts or concessions from the Selling Securityholders in amounts to be negotiated immediately prior to the sale.
In compliance with the guidelines of the
Financial Industry Regulatory Authority ("FINRA"), the aggregate maximum discount, commission, fees or other items
constituting underwriting compensation to be received by any FINRA member or independent broker-dealer will not exceed 8% of the
gross proceeds of any offering pursuant to this prospectus and any applicable prospectus supplement.
If at the time of any offering made under
this prospectus a member of FINRA participating in the offering has a "conflict of interest" as defined in FINRA Rule
5121 ("Rule 5121"), that offering will be conducted in accordance with the relevant provisions of Rule 5121.
To our knowledge, there are currently
no plans, arrangements or understandings between the Selling Securityholders and any broker-dealer or agent regarding the
sale of the securities by the Selling Securityholders. Upon our notification by a Selling Securityholder that any material
arrangement has been entered into with an underwriter or broker-dealer for the sale of securities through a block trade,
special offering, exchange distribution, secondary distribution or a purchase by an underwriter or broker-dealer, we will
file, if required by applicable law or regulation, a supplement to this prospectus pursuant to Rule 424(b) under the
Securities Act disclosing certain material information relating to such underwriter or broker-dealer and such offering.
184
Underwriters, broker-dealers or agents may
facilitate the marketing of an offering online directly or through one of their affiliates. In those cases, prospective investors
may view offering terms and a prospectus online and, depending upon the particular underwriter, broker-dealer or agent, place orders
online or through their financial advisors.
In offering the securities covered by this
prospectus, the Selling Securityholders and any underwriters, broker-dealers or agents who execute sales for the Selling Securityholders
may be deemed to be "underwriters" within the meaning of the Securities Act in connection with such sales. Any discounts,
commissions, concessions or profit they earn on any resale of those securities may be underwriting discounts and commissions under
the Securities Act.
The underwriters, broker-dealers and agents
may engage in transactions with us or the Selling Securityholders, or perform services for us or the Selling Securityholders, in
the ordinary course of business.
In order to comply with the securities laws
of certain states, if applicable, the securities must be sold in such jurisdictions only through registered or licensed brokers
or dealers. In addition, in certain states the securities may not be sold unless they have been registered or qualified for sale
in the applicable state or an exemption from the registration or qualification requirement is available and is complied with.
The Selling Securityholders and any other
persons participating in the sale or distribution of the securities will be subject to applicable provisions of the Securities
Act and the Exchange Act, and the rules and regulations thereunder, including, without limitation, Regulation M. These provisions
may restrict certain activities of, and limit the timing of purchases and sales of any of the securities by, the Selling Securityholders
or any other person, which limitations may affect the marketability of the shares of the securities.
We will make copies of this prospectus available
to the Selling Securityholders for the purpose of satisfying the prospectus delivery requirements of the Securities Act. The Selling
Securityholders may indemnify any agent, broker-dealer or underwriter that participates in transactions involving the sale of the
securities against certain liabilities, including liabilities arising under the Securities Act.
We have agreed to indemnify the Selling
Securityholders against certain liabilities, including certain liabilities under the Securities Act, the Exchange Act or other
federal or state law. Agents, broker-dealers and underwriters may be entitled to indemnification by us and the Selling Securityholders
against certain civil liabilities, including liabilities under the Securities Act, or to contribution with respect to payments
which the agents, broker-dealers or underwriters may be required to make in respect thereof.
PIPE Warrants
The PIPE Warrants may be exercised commencing
on May 23, 2020 and on or before the expiration date by delivering to the warrant agent, Continental Stock Transfer & Trust
Company (the "Warrant Agent"), at its corporate trust department in the Borough of Manhattan, City and State of New
York, (i) the certificate in physical form (the "Definitive Warrant Certificate") evidencing the public warrants to
be exercised, or, in the case of a book-entry certificate (the "Book-Entry Warrant Certificate") the public warrants
to be exercised on the records of the Depositary to an account of the Warrant Agent at The Depository Trust Company (the "Depositary")
designated for such purposes in writing by the Warrant Agent to the Depositary from time to time, (ii) an election to purchase
shares of common stock pursuant to the exercise of a public warrant, properly completed and executed by the holder on the reverse
of the Definitive Warrant Certificate or, in the case of a Book-Entry Warrant Certificate, properly delivered by the DTC participant
in accordance with the Depositary's procedures, and (iii) by paying in full the warrant price for each full shares of common
stock as to which the public warrant is exercised and any and all applicable taxes due in connection with the exercise of the public
warrant, the exchange of the public warrant for the shares of common stock and the issuance of such common stock.
The warrants will be required to be
exercised on a cashless basis in the event of a redemption of such warrants pursuant to the warrant agreement governing the
public warrants in which our Board has elected to require all holders of the public warrants who exercise their public
warrants to do so on a cashless basis. In such event, such the holders of exercised warrants would pay the exercise price by
surrendering their warrants for that number of shares of New DraftKings Class A common stock equal to the quotient obtained
by dividing (x) the product of the number of shares of New DraftKings Class A common stock underlying the warrants,
multiplied by the excess of the "fair market value" of the shares of New DraftKings Class A common stock over the
exercise price of the warrants by (y) the fair market value. The "fair market value" will mean the average
closing price of the New DraftKings Class A common stock for the ten (10) trading days ending on the third (3rd) trading day
prior to the date on which the notice of redemption is sent to the holders of warrants or the warrant agent, as applicable.
The notice of redemption will contain the information necessary to calculate the number of shares of New DraftKings Class A
common stock to be received upon exercise of the warrants, including the "fair market value" in such case.
No fractional shares will be issued upon
the exercise of the public warrants. If, upon the exercise of such public warrants, a holder would be entitled to receive a fractional
interest in a share, we will, upon the exercise, round down to the nearest whole number of shares of common stock to be issued
to such holder.
Convertible Notes
Pursuant to the terms of the Convertible
Notes, the outstanding principal and accrued interest on the Convertible Notes will convert immediately prior to the reincorporation
into shares of DEAC Class A common stock, at a price per share equal to the price per share paid by the PIPE Investors in the Private
Placement. The shares of DEAC Class A common stock issued upon conversion of the Convertible Notes will be converted into shares
of New DraftKings Class A common stock upon consummation of the reincorporation and the Business Combination.
185
LEGAL MATTERS
Greenberg Traurig, LLP has passed upon the
validity of the common stock of DEAC Nevada offered by this prospectus and certain other legal matters related to this ​prospectus.
Certain legal matters relating to the validity of the warrants offered by this prospectus and certain other legal matters related to this prospectus has been passed upon for us by Winston
 & Strawn LLP, New York, New York.
EXPERTS
The consolidated financial statements of
Diamond Eagle Acquisition Corp. as of December 31, 2019 and for the period from March 27, 2019 (date of inception) through December
31, 2019 appearing in this prospectus have been audited by WithumSmith+Brown, PC independent registered public accounting firm,
as set forth in their report thereon appearing elsewhere herein and are included in reliance on such report given the authority
of such firm as experts in accounting and auditing.
The consolidated financial statements of
DraftKings Inc. as at December 31, 2019 and 2018, and for the years ended December 31, 2019, 2018 and 2017, appearing in this prospectus,
have been audited by BDO USA, LLP ("BDO"), independent registered public accounting firm, as set forth in their report
appearing elsewhere herein, and are included in reliance upon such report given on the authority of such firm as experts in accounting
and auditing. BDO's report contains an explanatory paragraph regarding DraftKings' ability to continue as a going concern
and the impact of the novel coronavirus.
The consolidated financial statements of
SBT and Subsidiaries as at December 31, 2019 and 2018, and the related consolidated statements of comprehensive income, changes
in shareholders' equity, and cash flows for the years ended December 31, 2019, 2018 and 2017, appearing in this prospectus,
have been audited by Ziv Haft, CPA (Isr.) ("Ziv Haft"), a BDO Member Firm, independent registered public accounting
firm, as stated in their report appearing elsewhere herein, and are included in reliance on the report of such firm given upon
their authority as experts in accounting and auditing. Ziv Haft's report contains an explanatory paragraph regarding the
impact of the novel coronavirus.
WHERE YOU
CAN FIND MORE INFORMATION
We file annual, quarterly and current reports,
proxy statements and other information with the SEC. We have also filed a registration statement on Form S-1, including exhibits,
under the Securities Act of 1933, as amended, with respect to the common stock offered by this prospectus. This prospectus is
part of the registration statement, but does not contain all of the information included in the registration statement or the
exhibits. Our SEC filings are available to the public on the internet at a website maintained by the SEC located at
http://www.sec.gov
.
Following the consummation of the Business Combination, we will also maintain an Internet website at www.draftkings.com. Through
our website, we make available, free of charge, the following documents as soon as reasonably practicable after they are electronically
filed with, or furnished to, the SEC: our Annual Reports on Form 10-K; our proxy statements for our annual and special shareholder
meetings; our Quarterly Reports on Form 10-Q; our Current Reports on Form 8-K; Forms 3, 4 and 5 and Schedules 13D; and amendments
to those documents. The information contained on, or that may be accessed through, our website is not part of, and is not
incorporated into, this prospectus.
186
INDEX TO
FINANCIAL STATEMENTS
DIAMOND EAGLE ACQUISITION CORP.
​
Page
Consolidated Financial Statements as of December 31, 2019
​
Report of Independent Registered Public Accounting Firm
F-4
Consolidated Balance Sheet as of December 31, 2019
F-5
Consolidated Statement of Operations for the period from March 27, 2019 (date of inception) through December 31, 2019
F-6
Consolidated Statement of Changes in Stockholder's equity for the period from March 27, 2019 (date of inception) through December 31, 2019
F-7
Consolidated Statement of Cash Flows for the period from March 27, 2019 (date of inception) through December 31, 2019
F-8
Notes to Consolidated Financial Statements
F-9
F-
1
DRAFTKINGS INC.
Consolidated Financial Statements as of December 31, 2019 and 2018
​
Report of Independent Registered Public Accounting Firm
F-20
Consolidated Balance Sheets as at December 31, 2019 and 2018
F-21
Consolidated Statements of Operations for the years ended December 31, 2019, 2018 and 2017
F-23
Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Deficit for the years ended December 31, 2019, 2018 and 2017
F-24
Consolidated Statements of Cash Flows for the years ended December 31, 2019, 2018 and 2017
F-25
Notes to Consolidated Financial Statements
F-26
F-
2
SBTECH (GLOBAL) LIMITED
Consolidated Financial Statements as of December 31, 2019 and 2018
​
Report of Independent Registered Public Accounting Firm
F-58
Consolidated Statements of Financial Position
F-59
Consolidated Statements of Comprehensive Income
F-60
Consolidated Statements of Changes in Shareholders' Equity
F-61
Consolidated Statements of Cash Flows
F-62
Notes to the Consolidated Financial Statements
F-63
F-
3
Report of Independent Registered Public
Accounting Firm
To the Stockholders and the Board of Directors of
Diamond Eagle Acquisition Corp.
Opinion on the Consolidated Financial Statements
We have audited the accompanying consolidated
balance sheet of Diamond Eagle Acquisition Corp. (the "Company") as of December 31, 2019, and the related consolidated
statements of operations, changes in stockholders' equity and cash flows, for the period from March 27, 2019 (inception)
to December 31, 2019, and the related notes (collectively referred to as the "consolidated financial statements").
In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company
as of December 31, 2019, and the results of its operations and its cash flows for the period from March 27, 2019 (inception)
to December 31, 2019, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These consolidated financial statements are
the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated
financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight
Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the
U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with
the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether
the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required
to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are
required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion
on the effectiveness of the entity's internal control over financial reporting. Accordingly, we express no such opinion.
Our audit included performing procedures
to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing
procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and
disclosures in the consolidated financial statements. Our audit also included evaluating the accounting principles used and significant
estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe
that our audit provides a reasonable basis for our opinion.
/s/ WithumSmith+Brown, PC
We have served as the Company's auditor since 2019.
New York, New York
March 11, 2020
F-
4
DIAMOND EAGLE ACQUISITION CORP.
CONSOLIDATED BALANCE SHEET
December 31, 2019
ASSETS:
Current assets:
Cash and cash equivalents
$
491,225
Prepaid expenses
319,239
Total current assets
810,464
Cash and investments held in Trust Account
403,961,209
Total Assets
$
404,771,673​
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable
$
1,493,133​
Total current liabilities
1,493,133
Deferred underwriting compensation
14,000,000
Total Liabilities
15,493,133
Class A common shares subject to possible redemptions; 38,427,853 shares at approximately $10.00 per share
384,278,530
Stockholders' equity:
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding
—
Class A common stock, $0.0001 par value; 380,000,000 shares authorized; 1,572,147 shares issued and outstanding, (excluding 38,427,853 shares subject to possible redemption)
157
Class B common stock, $0.0001 par value; 20,000,000 shares authorized; 10,000,000 shares issued and outstanding
1,000
Additional paid-in capital
2,689,444
Retained earnings
2,309,409
Total stockholders' equity, net
5,000,010
Total liabilities and stockholders' equity
$
404,771,673​
See accompanying notes to consolidated
financial statements
F-
5
​
DIAMOND EAGLE ACQUISITION CORP.
CONSOLIDATED STATEMENT OF OPERATIONS
For the period from
March 27, 2019
(inception) to
December 31, 2019
Revenue
$
—​
General and administrative expenses
1,857,305
Loss from operations
(1,857,305
)
Other income – interest on Trust Account
5,111,208
Income before provision for income tax
3,253,903
Provision for income tax
(944,494
)
Net income
$
2,309,409​
Two Class Method:
​
Weighted average number of Class A common stock outstanding
40,000,000
Net income per common stock, Class A – basic and diluted
$
0.09​
Weighted average number of Class B common stock outstanding
10,010,045
Net loss per common stock, Class B — basic and diluted
$
(0.15
)
See accompanying notes to consolidated financial
statements
F-
6
DIAMOND EAGLE ACQUISITION CORP.
CONSOLIDATED STATEMENT OF STOCKHOLDERS'
EQUITY
For the period from March 27, 2019 (inception) to December 31, 2019
Common Stock
Additional
Total
Class A
Class B
Paid-in
Retained
Stockholders'
Shares
Amount
Shares
Amount
Capital
Earnings
Equity
Issuance of common stock to initial shareholder at approximately $0.002 per share
—
$
—
10,062,500
$
1,006
$
23,994
$
—
$
25,000
Sale of Units to the public at $10.00 per unit
40,000,000
4,000
—
—
399,996,000
—
400,000,000
Underwriters' discount and offering expenses
—
—
—
—
(22,555,869
)
—
(22,555,869
)
Sale of 6,333,334 Private Placement Warrants at $1.50 per warrant
—
—
—
—
9,500,000
—
9,500,000
Forfeiture of Class B shares by initial shareholders
—
—
(62,500
)
(6
)
6
—
—
Proceeds subject to possible redemption
(38,427,853
)
(3,843
)
—
—
(384,274,687
)
—
(384,278,530
)
Net income
—
—
—
—
—
2,309,409
2,309,409
Balance, December 31, 2019
1,572,147
$
157
10,000,000
$
1,000
$
2,689,444
$
2,309,409
$
5,000,010
See accompanying notes to consolidated financial
statements
F-
7
DIAMOND EAGLE ACQUISITION CORP.
CONSOLIDATED STATEMENT OF CASH FLOWS
​
For
    the period from
March 27, 2019
(inception) to
December 31, 2019
Cash
    flows from operating activities:
​
Net
    income
$
2,309,409
Adjustments
    to reconcile net income to net cash used in operating activities:
​
Trust
    income reinvested in Trust Account
(5,111,208
)
Changes
    in operating assets and liabilities:
​
Prepaid
    expenses
(319,239
)
Accounts
    payable
1,268,808
Net
    cash used in operating activities
(1,852,230
)
Cash
    flows from investing activities:
​
Principal
    deposited in Trust Account
(400,000,000
)
Cash
    withdrawn from Trust for income taxes
1,149,999
Net
    cash used in investing activities
(398,850,001
)
Cash
    flows from financing activities:
​
Proceeds
    from promissory note – related party
60,675
Repayment
    of promissory note – related party
(60,675
)
Proceeds
    from private placement of warrants
9,500,000
Proceeds
    from sale of Class A ordinary shares
400,000,000
Payment
    of underwriters' discount
(8,000,000
)
Payment
    of offering costs
(306,544
)
Net
    cash provided by financing activities
401,193,456
Increase
    in cash during period
491,225
Cash
    and equivalents at beginning of period
—
Cash
    and equivalents at end of period
$
491,225
Supplemental
    disclosure of cash flow information:
​
Cash
    paid for taxes
$
1,149,999
Supplemental
    disclosure of non-cash financing activities:
​
Deferred
    underwriting compensation
$
14,000,000
Class A
    common stock subject to possible redemption
$
384,278,530
Offering
    costs paid by sponsor in exchange for founder shares (Class B Common Stock)
$
25,000
Deferred
    offering costs included in accounts payable
$
224,325
See accompanying notes to consolidated financial
statements
F-
8
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1.
Organization and Business Operations
Incorporation
Diamond Eagle Acquisition Corp. (the "Company")
was incorporated as a Delaware corporation on March 27, 2019.
Subsidiaries
In connection with the proposed business
combination (the "Business Combination") with DraftKings Inc. ("DK") and SBTech (Global) Limited ("SBT"),
the Company formed a wholly-owned subsidiary, DEAC Merger Sub Inc., which was incorporated in Delaware on December 9, 2019
("Merger Sub"). Merger Sub did not have any activity as of December 31, 2019.
Also in connection with an initial business
combination, the Company formed another wholly-owned subsidiary, DEAC NV Merger Corp. ("DEAC Nevada"), which was incorporated
in Nevada on November 13, 2019. DEAC Nevada did not have any activity as of December 31, 2019.
Sponsor
The Company's sponsor is Eagle Equity
Partners, LLC, a Delaware limited liability company (the "Sponsor").
Fiscal Year End
The Company has selected December 31 as its fiscal year
end.
Business Purpose
The Company was formed for the purpose
of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or other similar business combination
with one or more operating businesses that it has not yet selected.
Financing
The registration statement for the Company's
initial public offering (the "Public Offering") (as described in Note 3) was declared effective by the United States
Securities and Exchange Commission (the "SEC") on May 10, 2019. The Company consummated the Public Offering on
May 14, 2019, and, simultaneously with the closing of the Public Offering, the Sponsor and Harry E. Sloan purchased an aggregate
of 6,333,334 warrants in a private placement (as described in Note 4) for a total purchase price of approximately $9,500,000. The
closing of the Public Offering included a partial exercise (5,000,000 units) of the over-allotment option granted to the underwriters.
Upon the closing of the Public Offering
and the private placement, $400,000,000 was placed in a Trust Account with Continental Stock Transfer & Trust Company
acting as trustee (the "Trust Account").
Trust Account
The Trust Account can be invested in permitted
United States "government securities" within the meaning of Section 2(a) (16) of the Investment Company Act
of 1940, as amended (the "Investment Company Act"), having a maturity of 185 days or less or in money market funds
meeting certain conditions under Rule 2a-7 promulgated under the Investment Company Act that invest only in direct U.S. government
treasury obligations.
The Company's amended and
restated certificate of incorporation (the "Charter") provides that, other than the withdrawal of interest to pay
income taxes, and the withdrawal of interest to fund the Company's working capital requirements (subject to an annual
limit of  $250,000) and/or to pay taxes, if any, none of the funds held in Trust will be released until the earlier of:
(i) the completion of an initial business combination; (ii) the redemption of any of the shares of Class A
common stock included in the units sold in the Public Offering (the "Units") properly tendered in connection
with a stockholder vote to amend the Company's Charter to modify the substance or timing of the Company's
obligation to redeem 100% of the shares of Class A common stock included in the Units if the Company does not complete
an initial business combination within 24 months from the closing of the Public Offering (May 14, 2021) or
(iii) the redemption of 100% of the shares of Class A common stock included in the Units if the Company is unable
to complete an initial business combination by May 14, 2021.
F-
9
Cash and Cash Equivalents
The Company considers all short-term investments
with an original maturity of three months or less when purchased to be cash equivalents.
Business Combination
An initial business combination is subject
to the following size, focus and stockholder approval provisions:
Size/Control
— An
initial business combination must occur with one or more target businesses that together have an aggregate fair market value of
at least 80% of the assets held in the Trust Account (excluding the deferred underwriting commissions and taxes payable on the
income earned on the Trust Account) at the time of the agreement to enter into an initial business combination. The Company will
not complete an initial business combination unless it acquires a controlling interest in a target company or is otherwise not
required to register as an investment company under the Investment Company Act.
Tender
Offer/Stockholder Approval
— The Company, after signing a definitive agreement for an initial
business combination, will either (i) seek stockholder approval of an initial business combination at a meeting called for
such purpose in connection with which stockholders may seek to redeem their shares of Class A common stock, regardless of
whether they vote for or against an initial business combination, for cash equal to their pro rata share of the aggregate
amount then on deposit in the Trust Account calculated as of two business days prior to the consummation of an initial business
combination, including interest but less income taxes payable, or (ii) provide stockholders with the opportunity to sell their
shares of Class A common stock to the Company by means of a tender offer (and thereby avoid the need for a stockholder vote)
for an amount in cash equal to their pro rata share of the aggregate amount then on deposit in the Trust Account calculated
as of two business days prior to commencement of the tender offer, including interest but less income taxes payable. The decision
as to whether the Company will seek stockholder approval of an initial business combination or will allow stockholders to sell
their shares of Class A common stock in a tender offer will be made by the Company, solely in its discretion, and will be
based on a variety of factors such as the timing of the transaction and whether the terms of the transaction would otherwise require
the Company to seek stockholder approval. If the Company seeks stockholder approval, it will complete its initial business combination
only if a majority of the outstanding shares of common stock voted are voted in favor of an initial business combination. However,
in no event will the Company redeem its public shares in an amount that would cause its net tangible assets to be less than $5,000,001.
In such case, the Company would not proceed with the redemption of its public shares and the related Business Combination, and
instead may search for an alternate business combination.
If the Company holds a stockholder vote
in connection with an initial business combination, a public stockholder will have the right to redeem its shares of Class A
common stock for an amount in cash equal to its pro rata share of the aggregate amount then on deposit in the Trust Account
calculated as of two business days prior to the consummation of the initial business combination, including interest but less income
taxes payable. As a result, such shares of Class A common stock have been recorded at redemption amount and classified as
temporary equity, in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification
("ASC") 480, "Distinguishing Liabilities from Equity."
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10
Going Concern and Liquidity
The Company has until May 14,
2021 to complete its initial business combination. If the Company does not complete an initial business combination within
this period of time, it shall (i) cease all operations except for the purpose of winding up, (ii) as promptly as
reasonably possible but not more than ten business days thereafter, redeem the public shares, at a per-share price, payable
in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest earned on the funds held in
the Trust Account and not previously released to us to fund our working capital requirements (subject to an annual limit
of  $250,000) (less taxes payable and up to $100,000 of interest to pay dissolution expenses), divided by the number of
then outstanding public shares, which redemption will completely extinguish public stockholders' rights as stockholders
(including the right to receive further liquidation distributions, if any), and (iii) as promptly as reasonably possible
following such redemption, subject to the approval of our remaining stockholders and our board of directors, liquidate and
dissolve, subject in the case of clauses (ii) and (iii) to our obligations under Delaware law to provide for claims
of creditors and in all cases subject to the other requirements of applicable law. The Sponsor, Harry E. Sloan and the
Company's executive officers and directors (the "initial stockholders") have entered into letter agreements
with the Company, pursuant to which they have waived their rights to participate in any redemption with respect to their
Founder Shares (as defined below); however, if the initial stockholders or any of the Company's officers, directors or
affiliates acquire shares of Class A common stock in or after the Public Offering, they will be entitled to a
pro rata share of the Trust Account upon the Company's redemption or liquidation in the event the Company does not
complete an initial business combination within the required time period. In the event of such distribution, it is possible
that the per share value of the residual assets remaining available for distribution (including Trust Account assets) will be
less than the initial public offering price per Unit in the Public Offering.
As of December 31, 2019, the Company
had $491,225 in cash and a working capital deficit of $682,669. In connection with the Company's assessment of going concern
considerations in accordance with ASU 2014-15, "Disclosures of Uncertainties about an Entity's Ability to Continue
as a Going Concern" as of December 31, 2019, the Company does not have sufficient liquidity to meet its current obligations.
However, management has determined that the Company has access to funds from the Sponsor entity, in the form of Working Capital
Loans, that are sufficient to fund the working capital needs of the Company until the earlier of the consummation of an initial
business combination or a minimum one year from the date of issuance of these consolidated financial statements.
2.
Significant Accounting Policies
Basis of Presentation
The accompanying consolidated financial
statements of the Company are presented in U.S. dollars in conformity with accounting principles generally accepted in the United
States of America and pursuant to the rules and regulations of the SEC.
Net Income (Loss) Per Share
Net income (loss) per common share is computed
by dividing net income (loss) by the weighted average number of common shares outstanding for the period. The Company has not considered
the effect of the warrants sold in the Public Offering (including the over-allotment) and private placement warrants to purchase
approximately 13,333,333 and 6,333,334 shares of the Company's Class A common stock, respectively, in the calculation
of diluted income per share, since their inclusion would be anti-dilutive.
The Company's consolidated statement
of operations includes a presentation of net income per share for common shares subject to redemption in a manner similar to the
two-class method of net income (loss) per share. Net income (loss) per common share for basic and diluted Class A common stock
is calculated by dividing the interest income earned on the Trust Account of  $5,111,208, net of applicable franchise taxes
of $153,971, working capital up to $250,000 annually, and income taxes of  $944,494, by the weighted average number of Class A
common stock since issuance. Net loss per common share for basic and diluted for Class B common stock is calculated by dividing
the net loss of  $1,453,333, which excludes income attributable to Class A common stock, by the weighted average number
of Class B common stock outstanding for the period.
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11
Emerging Growth Company
Section 102(b)(1) of the Jumpstart
Our Business Startups Act of 2012 (the "JOBS Act") exempts emerging growth companies from being required to comply
with new or revised financial accounting standards until private companies (that is, those that have not had a registration statement
under the Securities Act of 1933, as amended (the "Securities Act"), declared effective or do not have a class of securities
registered under the Securities Exchange Act of 1934, as amended (the "Exchange Act") are required to comply with the
new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition
period and comply with the requirements that apply to non-emerging growth companies but any such an election to opt out is irrevocable.
The Company has elected not to opt out
of such extended transition period which means that when a standard is issued or revised and it has different application dates
for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time
private companies adopt the new or revised standard. This may make comparison of the Company's consolidated financial statements
with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using
the extended transition period difficult or impossible because of the potential differences in accounting standards used.
Concentration of Credit Risk
Financial instruments that potentially
subject the Company to concentration of credit risk consist of cash accounts in a financial institution which, at times, may exceed
the Federal depository insurance coverage of  $250,000. The Company has not experienced losses on these accounts and management
believes the Company is not exposed to significant risks on such accounts.
Fair Value of Financial Instruments
The fair value of the Company's assets
and liabilities, which qualify as financial instruments under FASB ASC 820, "Fair Value Measurements and Disclosures,"
approximates the carrying amounts represented in the consolidated balance sheet with the exception of investments in Trust, as
they are carried at amortized cost.
Use of Estimates
The preparation of consolidated financial
statements in conformity with accounting principles generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period.
Actual results could differ from those estimates.
Offering Costs
The Company complies with the requirements
of the ASC 340-10-S99-1. Offering costs of  $22,555,869 consisting principally of underwriters' discounts of 
$22,000,000 (including $14,000,000 of which payment is deferred) and $555,869 of professional, printing, filing, regulatory and
other costs were charged to additional paid-in capital upon completion of the Public Offering. Approximately $224,395 of such offering
expenses were accrued but unpaid at December 31, 2019.
Redeemable Shares
As discussed in Note 1, all of the 40,000,000
shares of Class A common stock sold as parts of the Units in the Public Offering contain a redemption feature which allows
for the redemption of shares of Class A common stock under the Company's Charter. In accordance with FASB ASC 480, redemption
provisions not solely within the control of the Company require the security to be classified outside of permanent equity. Ordinary
liquidation events, which involve the redemption and liquidation of all of the entity's equity instruments, are excluded
from the provisions of FASB ASC 480. Although the Company has not specified a maximum redemption threshold, its Charter provides
that in no event will the Company redeem its public shares in an amount that would cause its net tangible assets to be less than
$5,000,001.
F-
12
The Company recognizes changes in redemption
value immediately as they occur and will adjust the carrying value of the security at the end of each reporting period. Increases
or decreases in the carrying amount of redeemable shares of Class A common stock shall be affected by charges against additional
paid in capital.
Accordingly, at December 31, 2019,
38,427,853 shares of the 40,000,000 shares of Class A common stock included in the Units were classified outside of permanent
equity.
Income Taxes
The Company complies with the accounting
and reporting requirements of Financial Accounting Standards Board Accounting Standard Codification, or FASB ASC, 740, "Income
Taxes," which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income
tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities
that will result in future taxable or deductible amounts, based on enacted tax laws and rates applicable to the periods in which
the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred
tax assets to the amount expected to be realized.
There were no unrecognized tax
benefits as of December 31, 2019. FASB ASC 740 prescribes a recognition threshold and a measurement attribute for the
financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those
benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing
authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax
expense. No amounts were accrued for the payment of interest and penalties at December 31, 2019. The Company is
currently not aware of any issues under review that could result in significant payments, accruals or material deviation from
its position. The Company is subject to income tax examinations by major taxing authorities since inception. The
Company's currently taxable income primarily consists of interest income on the Trust Account. The Company's
general and administrative costs are generally considered start-up costs and are not currently deductible. During the period
from March 27, 2019 (inception) to December 31, 2019, the Company recorded an income tax expense of $944,494.
Recent Accounting Pronouncements
Management does not believe that any recently
issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material effect on the Company's
consolidated financial statements.
3.
Public Offering
On May 14, 2019, the Company sold
40,000,000 Units at a price of  $10.00 per unit in the Public Offering. Each Unit consists of one share of Class A
common stock of the Company, $0.0001 par value per share (the "Public Shares"), and one-third of one warrant to purchase
one share of Class A common stock (the "Public Warrants"). The closing of the Public Offering included a partial
exercise (5,000,000 Units) of the overallotment option granted to the underwriters.
Each whole Public Warrant entitles
the holder to purchase one share of Class A common stock at a price of  $11.50 per share. No fractional shares
will be issued upon exercise of the Public Warrants. If, upon exercise of the Public Warrants, a holder would be entitled to
receive a fractional interest in a share, the Company will, upon exercise, round down to the nearest whole number the number
of shares of Class A common stock to be issued to the Public Warrant holder. Each Public Warrant will become exercisable
on the later of 30 days after the completion of an initial business combination and 12 months from the closing of
the Public Offering. However, if the Company does not complete an initial business combination on or prior to the 24-month
period allotted to complete an initial business combination, the Public Warrants will expire at the end of such period. Under
the terms of a warrant agreement between the Company and Continental Stock Transfer & Trust Company, as warrant
agent, the Company has agreed to, following the completion of an initial business combination, use its best efforts to file a
new registration statement under the Securities Act for the registration of the shares of Class A common stock issuable
upon exercise of the Public Warrants. If the Company is unable to deliver registered shares of Class A common stock to
the holder upon exercise of Public Warrants issued in connection with the 40,000,000 Units during the exercise period,
there will be no net cash settlement of these Public Warrants and the Public Warrants will expire worthless, unless they may
be exercised on a cashless basis in the circumstances described in the warrant agreement.
F-
13
The Company granted the underwriters
a 45-day option to purchase up to 5,250,000 additional Units to cover any over-allotments at the Public Offering price less
the underwriting discounts and commissions. The Units that were issued in connection with the over-allotment option are
identical to the Units issued in the Public Offering. Prior to the Public Offering, the underwriters' elected to
exercise a portion of the over-allotment option for 5,000,000 additional Units for additional gross proceeds of 
$50 million. The partial exercise resulted in a reduction of 62,500 shares of Class B common stock subject to
forfeiture and are considered as forfeited in the accompanying consolidated balance sheet.
The Company paid an upfront underwriting
discount of  $8,000,000 ($0.20 per Unit sold) in the aggregate to the underwriters at the closing of the Public Offering,
with an additional fee (the "Deferred Discount") equal to $14,000,000 ($0.35 per Unit sold) to become payable to the
underwriters from the amounts held in the Trust Account solely in the event the Company completes an initial business combination.
The underwriters are not entitled to any interest accrued on the Deferred Discount.
4.
Related Party Transactions
Founder Shares
On March 28, 2019, the Sponsor received
10,062,500 shares of Class B common stock (the "Founder Shares") in exchange for a capital contribution of 
$25,000, or approximately $0.002 per share.
The Founder Shares are identical to the
shares of Class A common stock included in the Units sold in the Public Offering except that the Founder Shares are subject
to certain transfer restrictions, as described in more detail below.
On April 10, 2019, the Sponsor transferred
4,930,625 Founder Shares to Harry E. Sloan (together with the Sponsor, the "initial stockholders") for a purchase price
of  $12,250 (the same per-share price initially paid by the Sponsor), resulting in the Sponsor holding 5,131,875 Founder
Shares. On May 10, 2019, the Sponsor and Mr. Sloan each forfeited at no cost 31,875 and 30,625 Founder Shares, respectively,
to the Company in connection with the election by the underwriters of the Public Offering to exercise their over-allotment option
in part and not in full, resulting in an aggregate of 10,000,000 Founder Shares outstanding. On December 31, 2019, the Sponsor
transferred 20,000 Founder Shares to each of the Company's independent directors, resulting in the Sponsor holding 5,020,000
Founder Shares, for the same per-share purchase price initially paid by the Sponsor.
The initial stockholders and the Company's
independent directors have agreed not to transfer, assign or sell any of their Founder Shares until the earlier of  (A) one
year after the completion of the Company's initial Business Combination, or earlier if, subsequent to the Company's
initial Business Combination, the closing price of the Company's common stock equals or exceeds $12.00 per share (as adjusted
for stock splits, stock capitalizations, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading
day period commencing at least 150 days after the Company's initial Business Combination, and (B) the date on which
the Company completes a liquidation, merger, capital stock exchange or other similar transaction after the initial Business Combination
that results in all of the Company's stockholders having the right to exchange their common stock for cash, securities or
other property.
Rights
— The
Founder Shares are identical to the Public Shares except that (i) the Founder Shares are subject to certain transfer restrictions,
as described above, and (ii) the initial stockholders have agreed to waive their redemption rights in connection with an initial
business combination with respect to the Founder Shares and any Public Shares they may purchase, and to waive their redemption
rights with respect to the Founder Shares if the Company fails to complete an initial business combination within 24 months
from the closing of the Public Offering.
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14
Voting
— If
the Company seeks stockholder approval of an initial business combination, the initial stockholders have agreed to vote their Founder
Shares and any Public Shares purchased during or after the Public Offering in favor of an initial business combination.
Liquidation
— Although
the initial stockholders and their permitted transferees have waived their redemption rights with respect to the Founder Shares
if the Company fails to complete an initial business combination within the prescribed time frame, they will be entitled to redemption
rights with respect to any Public Shares they may own.
Private Placement Warrants
In conjunction with the Public Offering,
the Sponsor and Harry E. Sloan purchased an aggregate of 6,333,334 private placement warrants (the "Private Placement Warrants"),
at a price of  $1.50 per warrant (approximately $9,500,000 in the aggregate) in the Private Placement. Each Private Placement
Warrant entitles the holder to purchase one share of Class A common stock at $11.50 per share. A portion of the purchase price
of the Private Placement Warrants was added to the proceeds from the Public Offering to be held in the Trust Account such that
at closing of the Public Offering, $400,000,000 was placed in the Trust Account. On December 31, 2019, the Sponsor transferred
66,666 Private Placement Warrants to Scott Delman and 133,333 Private Placement Warrants to each of Joshua Kazam and Fredric Rosen
for the same per-warrant purchase price initially paid by the Sponsor.
The Private Placement Warrants (including
the shares of common stock issuable upon exercise of the Private Placement Warrants) are not transferable, assignable or salable
until 30 days after the completion of the initial business combination and they are non-redeemable for cash so long as they
are held by the initial purchasers of the Private Placement Warrants or their permitted transferees. If the Private Placement Warrants
are held by someone other than the initial purchasers of the Private Placement Warrants or their permitted transferees, the Private
Placement Warrants will be redeemable for cash by the Company and exercisable by such holders on the same basis as the warrants
included in the Units sold in the Public Offering. Otherwise, the Private Placement Warrants have terms and provisions that are
identical to those of the Warrants sold as part of the Units in the Public Offering and have no net cash settlement provisions.
If the Company does not complete an initial
business combination, then the proceeds will be part of the liquidating distribution to the public stockholders and the Private
Placement Warrants issued to the Sponsor, Scott Delman, Fredric Rosen, Joshua Kazam and Harry E. Sloan will expire worthless.
Registration Rights
The holders of the Founder Shares, Private
Placement Warrants and Warrants that may be issued upon conversion of working capital loans (and any Class A common stock
issuable upon the exercise of the Private Placement Warrants and warrants that may be issued upon conversion of working capital
loans and upon conversion of the Founder Shares) are entitled to registration rights pursuant to a registration rights agreement,
requiring the Company to register such securities for resale. The holders of these securities are entitled to make up to three
demands, excluding short form demands, that we register such securities. In addition, the holders have certain "piggy-back"
registration rights with respect to registration statements filed subsequent to our completion of our initial business combination.
The Company will bear the expenses incurred in connection with the filing of any such registration statements.
Related Party Loans
The Sponsor agreed to loan the Company
up to an aggregate of  $300,000 by the issuance of an unsecured promissory note (the "Note") to cover expenses
related to the Public Offering. These loans were payable without interest on the earlier of December 31, 2019 or the completion
of the Public Offering. Upon completion of the Public Offering, $60,675 was repaid in full. At December 31, 2019, there were
no amounts outstanding under the Note.
Administrative Services
The Company will reimburse the
Sponsor for office space, secretarial and administrative services provided to members of the Company's management team
by the Sponsor, members of the Sponsor, and the Company's management team or their affiliates in an amount not to
exceed $15,000 per month in the event such space and/or services are utilized and the Company does not pay a third party
directly for such services, from the date of closing of the Public Offering. As of December 31, 2019, $90,000 of
administrative expenses were incurred under this agreement and paid to the Sponsor. Upon completion of an initial business
combination or the Company's liquidation, the Company will cease paying these monthly fees.
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15
Working Capital Loans
In order to finance transaction costs in
connection with an intended initial business combination, the Sponsor or an affiliate of the Sponsor or certain of the Company's
officers and directors intend to loan the Company funds as may be required. Up to $1,500,000 of such loans may be convertible into
warrants of the post-business combination entity at a price of  $1.50 per warrant at the option of the lender. Such
warrants would be identical to the Private Placement Warrants. Except for the foregoing, the terms of such loans, if any, have
not been determined and no written agreements exist with respect to such loans. No amounts were borrowed under this arrangement
as of December 31, 2019.
5.
Commitments and Contingencies
The Company is committed to pay the Deferred
Discount totaling $14,000,000, or 3.5% of the gross offering proceeds of the Public Offering, to the underwriters upon the Company's
consummation of an initial business combination. The underwriters will not be entitled to any interest accrued on the Deferred
Discount, and no Deferred Discount is payable to the underwriters if there is no business combination.
6.
Trust Account and Fair Value Measurements
As of December 31, 2019, investment
securities in the Company's Trust Account consisted of $403,960,089 in United States Treasury Bills and another $1,120 held
as cash and cash equivalents. The Company classifies its Treasury Instruments and equivalent securities as held-to-maturity in
accordance with FASB ASC 320 "Investments — Debt and Equity Securities". Held-to-maturity securities
are those securities which the Company has the ability and intent to hold until maturity. Held-to-maturity treasury securities
are recorded at amortized cost on the accompanying December 31, 2019 consolidated balance sheet and adjusted for the amortization
or accretion of premiums or discounts. The following table presents information about the Company's assets that are measured
at fair value on a recurring basis as of December 31, 2019 and indicates the fair value hierarchy of the valuation techniques
the Company utilized to determine such fair value. In addition, the table presents the carrying value under ASC 320, excluding
accrued interest income and gross unrealized holding gain. Since all of the Company's permitted investments consist of U.S.
government treasury bills and cash, fair values of its investments are determined by Level 1 inputs utilizing quoted prices
(unadjusted) in active markets for identical assets as follows:
​
Carrying Value at
December 31,
2019
Gross unrealized
Holding Gain
Quoted prices in
Active Markets
(Level 1)
Treasury
    Securities Held as of December 31, 2019
(1)
$
403,960,089
$
31,347
$
403,991,436
(1)
Maturity date March 24, 2020.
7.
Stockholders' Equity
Common
Stock
— The authorized shares of common stock of the Company include up to 400,000,000
shares, including 380,000,000 shares of Class A common stock and 20,000,000 shares of Class B common stock. Holders
of the shares of Class A common stock and holders of the shares of Class B common stock vote together as a single
class on all matters submitted to a vote of the Company's stockholders, except as required by law. Each share of common
stock has one vote. At December 31, 2019, there were 40,000,000 shares of Class A common stock outstanding and
10,000,000 shares of Class B common stock outstanding. In connection with the underwriters' partial exercise of
their over-allotment option prior to the closing of the Public Offering, on May 10, 2019, the Sponsor and Harry E. Sloan
surrendered an aggregate of 62,500 Founder Shares (consisting of 31,875 by the Sponsor and 30,625 by Harry E. Sloan) to the
Company for no consideration, resulting in the Sponsor holding 5,100,000 Founder Shares and Harry E. Sloan holding 4,900,000
Founder Shares. On December 31, 2019, the Sponsor transferred 20,000 Founder Shares to each of the Company's
independent directors, resulting in the Sponsor holding 5,020,000 Founder Shares, for the same per-share purchase price
initially paid by the Sponsor.
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16
Preferred
Stock
— The Company is authorized to issue 1,000,000 preferred shares. At December 31,
2019, no preferred shares were outstanding.
Warrants
— Public
Warrants may only be exercised for a whole number of shares. The Public Warrants will become exercisable on the later
of  (a) 30 days after the completion of an initial business combination or (b) 12 months from the
closing of the Public Offering; provided in each case that the Company has an effective registration statement under the
Securities Act covering the shares of Class A common stock issuable upon exercise of the Public Warrants and a current
prospectus relating to them is available (or the Company permits holders to exercise their Public Warrants on a cashless
basis and such cashless exercise is exempt from registration under the Securities Act). The Company has agreed that as soon
as practicable, but in no event later than 15 business days after the closing of an initial business combination, the Company
will use its best efforts to file with the SEC a registration statement for the registration, under the Securities Act, of
the shares of Class A common stock issuable upon exercise of the Public Warrants. The Company will use its best efforts
to cause the same to become effective and to maintain the effectiveness of such registration statement, and a current
prospectus relating thereto, until the expiration of the Public Warrants in accordance with the provisions of the warrant
agreement relating to the warrants. If a registration statement covering the shares of Class A common stock issuable
upon exercise of the warrants is not effective by the sixtieth (60th) day after the closing of the initial business
combination, warrant holders may, until such time as there is an effective registration statement and during any period when
the Company will have failed to maintain an effective registration statement, exercise warrants on a "cashless
basis" in accordance with Section 3(a)(9) of the Securities Act or another exemption. The Public Warrants
will expire five years after the completion of an initial business combination or earlier upon redemption or
liquidation.
The Private Placement Warrants are identical
to the Public Warrants underlying the Units sold in the Public Offering, except that the Private Placement Warrants and the shares
of Class A common stock issuable upon exercise of the Private Placement Warrants will not be transferable, assignable or salable
until 30 days after the completion of an initial business combination, subject to certain limited exceptions. Additionally,
the Private Placement Warrants will be non-redeemable so long as they are held by the initial purchasers or such purchasers'
permitted transferees. If the Private Placement Warrants are held by someone other than their initial purchasers or their permitted
transferees, the Private Placement Warrants will be redeemable by the Company and exercisable by such holders on the same basis
as the Public Warrants.
The Company may call the warrants for redemption
(except with respect to the Private Placement Warrants):
·
in whole and not in part;
·
at a price of  $0.01 per warrant;
·
upon a minimum of 30 days' prior written notice
of redemption; and
·
if, and only if, the last reported closing price of the
Class A common stock equals or exceeds $18.00 per share for any 20 trading days within a 30-trading day period ending on
the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders.
Additionally, commencing ninety days after
the Warrants become exercisable, the Company may redeem its outstanding warrants in whole and not in part, for the number of shares
of Class A common stock determined by reference to the table set forth in the Company's prospectus relating to the
Public Offering based on the redemption date and the "fair market value" of the Class A common stock, upon a
minimum of 30 days' prior written notice of redemption and if, and only if, the last sale price of the shares of Class A
common stock equals or exceeds $10.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations
and the like) on the trading day prior to the date on which the Company sends the notice of redemption to the warrant holders,
if, and only if, the Private Placement Warrants are also concurrently exchanged at the same price (equal to a number of shares
of Class A common stock) as the outstanding warrants, as described above and if, and only if, there is an effective registration
statement covering the shares of Class A common stock issuable upon exercise of the Warrants and a current prospectus relating
thereto available throughout the 30-day period after written notice of redemption is given. The "fair market value"
of the shares of Class A common stock is the average last reported sale price of the Class A common stock for the 10
trading days ending on the third trading day prior to the date on which the notice of redemption is sent to the holders of warrants.
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17
8.
Income Tax
​
The Company incurred United States federal
income tax expense of approximately $944,494 for the period from March 27, 2019 (date of inception) through December 31,
2019.
The Company made three estimated quarterly
tax payments of  $383,333 each, to the Internal Revenue Service ("IRS") for federal income taxes estimated for
2019 on interest earned in the Trust Account. The funds were paid from the Trust Account. At December 31, 2019, the Company
had prepaid federal income taxes of  $205,505 included in prepaid expenses on the accompanying consolidated balance sheet.
The Company's provision for income
tax consists of the following:
For the Period
Ended
December 31,
2019
Federal
Current
$
944,494
Deferred
(261,174
)
State
Current
—
Deferred
—
Change in valuation allowance
261,174
Income tax provision
$
944,494
The Company incurred costs of  $1,237,757
related to its search to complete a business combination which are not deductible for federal income tax purposes and resulted
in the generation of a deferred tax asset of  $261,174 which is available to offset future taxable income.
In assessing the realization of deferred
tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not
be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the
periods in which temporary differences representing net future deductible amounts become deductible. The Company considers the
scheduled reversal of deferred tax assets, projected future taxable income and tax planning strategies in making this assessment.
A reconciliation of the federal income tax
rate to the Company's effective tax rate at December 31, 2019 is as follows:
For the Period
Ended
December 31,
2019
Statutory federal income tax rate
21.0
%
State taxes, net of federal tax benefit
0.0
%
Deferred tax rate change
Change in valuation allowance
8.0
%
Income tax provision
29.0
%
F-
18
9.
Business Combination
​On December 22, 2019, the Company
entered into a business combination agreement (the "Business Combination Agreement") with DraftKings Inc., a Delaware
corporation ("DK"), SBTech (Global) Limited, a company limited by shares, incorporated in Gibraltar and continued as
a company under the Isle of Man Companies Act 2006, with registration number 014119V ("SBT"), the shareholders of SBT
(the "SBT Sellers"), Shalom Meckenzie, in his capacity as the SBT Sellers' Representative, DEAC NV Merger Corp.,
a Nevada corporation and a wholly-owned subsidiary of the Company ("DEAC Nevada") and DEAC Merger Sub Inc., a Delaware
corporation and a wholly-owned subsidiary of the Company ("Merger Sub"), pursuant to which (i) the Company will
change its jurisdiction of incorporation to Nevada by merging with and into DEAC Nevada, with DEAC Nevada surviving the merger
(the "reincorporation"), (ii) Merger Sub will merge with and into DK with DK surviving the merger (the "DK
Merger"), and (iii) immediately following the DK Merger, New DraftKings (as defined below) will acquire all of the issued
and outstanding share capital of SBT. Upon consummation of the transactions contemplated by the Business Combination Agreement,
DraftKings and SBT will become wholly owned subsidiaries of DEAC Nevada, which will be renamed "DraftKings Inc." and
is referred to herein as "New DraftKings" both as of the time of the reincorporation and following such name change.
DK is a digital sports entertainment and
gaming company. DK provides users with daily fantasy sports, sports betting and iGaming opportunities. SBT's principal business
activities involve the design and development of sports betting and casino gaming platform software for online and retail sportsbook
and casino gaming products.
The aggregate value of the consideration
to be paid to DK and SBT shareholders in the Business Combination is approximately $2.7 billion, of which (A) approximately
$2.055 billion will be paid to (i) the current equityholders of DK (the "DK Sellers") in the form of shares
of Class A common stock of New DraftKings ("New DraftKings Class A common stock"), valued at the redemption
price for the Company's public shares in the Business Combination, plus in the case of Jason Robins, such additional number
of shares of Class B common stock of New DraftKings ("New DraftKings Class B common stock") such that as
of immediately following the completion of the Business Combination, Mr. Robins shall have approximately ninety percent
(90%) of the voting power of the capital stock of New DraftKings on a fully-diluted basis, and (ii) holders of vested in-the-money
options and warrants exercisable for DK equity in the form of newly issued options and warrants of New DraftKings exercisable for
New DraftKings Class A common stock, and (B) approximately €590 million will be paid to the SBT Sellers and
holders of vested options exercisable for equity of SBT, consisting of  (i) €180 million in cash, subject
to customary net debt and working capital adjustments as well as certain other specified items (the "Cash Consideration")
payable in respect of the ordinary shares of SBT and 30% of the in-the-money vested options of SBT and (ii) approximately
 €410 million in shares of New DraftKings Class A common stock, valued at the redemption price for the Company's
public shares in the Business Combination, and in the form of newly issued in-the-money vested options of New DraftKings exercisable
for New DraftKings Class A common stock. Outstanding options exercisable for DK or SBT equity (other than cashed-out options
of SBT, for which the holders will receive a portion of the Cash Consideration for such options) will be converted into options
exercisable for shares of New DraftKings Class A common stock. After the execution of the BCA, DK granted restricted stock units
to certain of its employees, which will be converted into restricted stock units denominated in New DraftKings Class A
common stock. The Cash Consideration will come from the following sources: (1) proceeds available from the Company's
Trust Account, after giving effect to any and all redemptions; and (2) proceeds from private placements of shares of the Company's
Class A common stock to certain institutional investors to occur immediately prior to the closing of the Business Combination,
of which the Company currently has commitments for $304.7 million of proceeds.
Additional information regarding DK, SBT
and the Business Combination is available in the definitive proxy statement/prospectus filed with the SEC on January 6, 2020.
F-
19
Report of Independent Registered Public
Accounting Firm
Stockholders and Board of Directors
DraftKings Inc.
Boston, MA
Opinion on the Consolidated Financial Statements
We have audited the accompanying consolidated
balance sheets of DraftKings Inc. (the "Company") as of December 31, 2019 and 2018, the related consolidated statements
of operations, redeemable convertible preferred stock and stockholders' deficit, and cash flows for each of the years in
the three-year period ended December 31, 2019, and the related notes (collectively referred to as the "consolidated financial
statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial
position of the Company at December 31, 2019 and 2018, and the results of its operations and its cash flows for each of the years
in the three-year period ended December 31, 2019, in conformity with accounting principles generally accepted in the United States
of America.
Emphasis of Matter Regarding Going Concern
The accompanying consolidated financial statements
have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the consolidated financial
statements, the Company has suffered recurring losses from operations, negative cash flows from operations, and a significant accumulated
deficit that raise substantial doubt about its ability to continue as a going concern. Management's plans in regard to these
matters are also described in Note 2. The consolidated financial statements do not include any adjustments that might result from
the outcome of this uncertainty.
Emphasis of Matter Regarding Novel Coronavirus
As more fully described in Note 1 to the
consolidated financial statements, the Company has been negatively impacted by the outbreak of a novel coronavirus (COVID-19),
which was declared a global pandemic by the World Health Organization in March 2020.
Basis for Opinion
These consolidated financial statements are
the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated
financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight
Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the
U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with
the standards of the PCAOB and in accordance with auditing standards generally accepted in the United States of America. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements
are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks
of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that
respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in
the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates
made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our
audits provide a reasonable basis for our opinion.
/s/ BDO USA, LLP
We have served as the Company's auditor since 2015.
Boston, MA
March 12, 2020, except for footnotes 1 and 18 which are dated March 26, 2020
F-
20
​
DRAFTKINGS INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
December 31,
2019
2018
Assets
Current assets:
Cash
$
76,533
$
117,908
Cash reserved for users
144,000
111,698
Receivables reserved for users
19,828
21,334
Prepaid expenses and other current assets
20,787
11,233
Total current assets
261,148
262,173
Property and equipment, net
25,945
14,102
Intangible assets, net
33,939
16,876
Goodwill
4,738
4,738
Equity method investment
2,521
—
Deposits
2,434
1,504
Total assets
$
330,725
$
299,393
Liabilities, redeemable convertible preferred stock and stockholders' deficit
Current liabilities:
Accounts payable and accrued expenses
$
85,295
$
56,149
Liabilities to users
163,035
132,769
Term note
6,750
3,750
Settlement liability
—
3,272
Total current liabilities
255,080
195,940
Convertible promissory notes
68,363
—
Other long-term liabilities
56,862
27,403
Total liabilities
$
380,305
$
223,343
Commitments and contingencies (note 13)
See accompanying notes to consolidated
financial statements.
F-
21
DRAFTKINGS INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
December 31,
2019
2018
Redeemable convertible preferred stock:
Series E-1 redeemable convertible preferred stock
, $0.001 par value; 54,901 shares authorized, issued and outstanding at December 31, 2019 and 2018; liquidation preference of  $120,943 as of December 31, 2019
$
119,752
$
119,427
Series F redeemable convertible preferred stock
, $0.001 par value; 78,445 shares authorized, 55,349 and 57,068 shares issued and outstanding at December 31, 2019 and 2018, respectively; liquidation preference of  $141,117 and $145,499 as of December 31, 2019 and 2018, respectively
138,619
141,850
Total redeemable convertible preferred stock
258,371
261,277
Stockholders' deficit:
Common stock, $0.001 par value; 735,000 shares authorized as at December 31, 2019 and 2018; 389,610 and 384,009 shares issued and outstanding at December 31, 2019 and 2018, respectively
390
384
Additional paid-in capital
690,443
670,439
Accumulated deficit
(998,784
)
(856,050
)
Total stockholders' deficit
(307,951
)
(185,227
)
Total liabilities, redeemable convertible preferred stock and stockholders' deficit
$
330,725
$
299,393
See accompanying notes to consolidated
financial statements.
F-
22
DRAFTKINGS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)
Years Ended December 31,
2019
2018
2017
Revenue
$
323,410
$
226,277
$
191,844
Cost of revenue
103,889
48,689
31,750
Sales and marketing
185,269
145,580
156,632
Product and technology
55,929
32,885
20,212
General and administrative
124,868
75,904
56,448
Loss from operations
(146,545
)
(76,781
)
(73,198
)
Other income (expense):
Interest income (expense), net
1,348
666
(1,541
)
Gain on initial equity method investment
3,000
—
—
Other expense, net
—
—
(607
)
Loss before income tax provision
(142,197
)
(76,115
)
(75,346
)
Income tax provision
58
105
210
Loss from equity method investment
479
—
—
Net loss
$
(142,734
)
$
(76,220
)
$
(75,556
)
Loss per share attributable to common stockholders:
Basic and diluted
$
(0.37
)
$
(0.20
)
$
(0.54
)
See accompanying notes to consolidated
financial statements.
F-
23
DRAFTKINGS INC.
CONSOLIDATED STATEMENTS OF REDEEMABLE
CONVERTIBLE PREFERRED STOCK AND
STOCKHOLDERS' DEFICIT
(Amounts in thousands)
Redeemable Convertible
Additional
Total
Preferred Stock
Common Stock
Paid-in
Accumulated
Stockholders'
Shares
Amount
Shares
Amount
Capital
Deficit
Deficit
Balances at December 31, 2016
184,499
$
490,971
22,291
$
22
$
3,998
$
(704,274
)
$
(700,254
)
Conversion of Debt to Series E Preferred Stock
103,077
160,928
—
—
—
—
—
Issuance of Series E-1 Redeemable Convertible Preferred Stock
54,901
118,623
—
—
—
—
—
Issuance of Series D Redeemable Convertible Preferred Stock for In-kind Transfer
714
1,077
—
—
—
—
—
Conversion of Preferred Stock to Common Stock
(288,290
)
(654,103
)
353,850
354
653,749
—
654,103
Exercise of Stock Options
—
—
1,233
1
179
—
180
Issuance of Common Stock for
    In-kind Transfer
—
—
2,558
3
172
—
175
Accretion of Preferred Stock Issuance Cost
—
1,513
—
—
(1,513
)
—
(1,513
)
Stock-Based Compensation Expense
—
—
—
—
4,500
—
4,500
Net Loss
—
—
—
—
—
(75,556
)
(75,556
)
Balances at December 31, 2017
54,901
119,009
379,932
$
380
661,085
(779,830
)
(118,365
)
Issuance of Series F Preferred Stock
57,068
141,590
—
—
—
—
—
Exercise of Stock Options
—
—
2,385
2
550
—
552
Common Stock Issued
—
—
393
1
339
—
340
Issuance of Common Stock for
    In-kind Transfer
—
—
1,299
1
1,933
—
1,934
Accretion of Preferred Stock Issuance Cost
—
678
—
—
(678
)
—
(678
)
Stock-Based Compensation Expense
—
—
—
—
7,210
—
7,210
Net Loss
—
—
—
—
—
(76,220
)
(76,220
)
Balances at December 31, 2018
111,969
$
261,277
384,009
$
384
$
670,439
$
(856,050
)
(185,227
)
Issuance of Series F Preferred Stock
2,879
7,824
—
—
—
—
—
Exercise of Stock Options
—
—
2,873
3
1,145
—
1,148
Common Stock Issued
—
—
1,906
2
437
—
439
Issuance of Common Stock for
    In-kind Transfer
—
—
822
1
1,363
—
1,364
Repurchase of Preferred Stock and Issuance of Promissory Note
(4,598
)
(11,722
)
—
—
—
—
—
Accretion of Preferred Stock Issuance Cost
—
992
—
—
(992
)
—
(992
)
Stock-Based Compensation Expense
—
—
—
—
17,613
—
17,613
Issuance of warrants
—
—
—
—
438
—
438
Net Loss
—
—
—
—
—
(142,734
)
(142,734
)
Balances at December 31, 2019
110,250
$
258,371
389,610
$
390
$
690,443
$
(998,784
)
$
(307,951
)
See accompanying notes to consolidated
financial statements.
F-
24
DRAFTKINGS INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(Amounts in thousands)
Years Ended December 31,
2019
2018
2017
Cash Flows from Operating Activities:
Net loss
(142,734
)
(76,220
)
(75,556
)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization
13,636
7,499
6,301
Non-cash rent expense
377
37
(120
)
Non-cash interest expense
424
31
1,487
Stock-based compensation expense
17,613
7,210
4,500
Advertising expense paid through issuance of common stock and warrants
1,802
1,934
1,252
Amortization of debt discount
—
—
141
Gain on derivative fair value adjustment
—
—
(184
)
Loss on exit activities
179
—
877
Loss on disposal of assets
730
—
185
Loss on conversion of promissory notes
—
—
650
Loss from equity method investment
479
—
—
Gain on initial equity method investment
(3,000
)
—
—
Deferred income taxes
54
19
145
Changes in operating assets and liabilities:
Cash reserved for users
(32,302
)
(22,633
)
(17,346
)
Receivables reserved for users
1,506
(4,087
)
5,680
Prepaid expenses and other current assets
(9,554
)
(2,214
)
(4,175
)
Deposits
(930
)
728
(133
)
Accounts payable and accrued expenses
27,946
5,699
(29,793
)
Other long-term liabilities
18,028
12,068
5,307
Settlement liability
(3,400
)
(2,212
)
783
Liabilities to users
30,266
26,562
11,562
Net cash used in Operating Activities
(78,880
)
(45,579
)
(88,437
)
Cash Flows from Investing Activities:
Purchases of property and equipment
(16,703
)
(13,683
)
(599
)
Capitalization of internal-use software costs
(14,816
)
(12,738
)
(7,116
)
Acquisition of state licenses
(10,752
)
(251
)
—
Net cash used in Investing Activities
(42,271
)
(26,672
)
(7,715
)
Cash Flows from Financing Activities:
Proceeds from term note
3,000
—
—
Repayment of notes payable
—
(1,250
)
—
Net proceeds from issuance of common stock
439
—
—
Net cost due to conversion of Series E Stock
—
—
(272
)
Net proceeds due to issuance of Series E-1 Redeemable Convertible Preferred Stock
—
—
118,623
Net proceeds due to issuance of Series F Redeemable Convertible Preferred Stock
7,824
141,590
—
Repurchase of Series F Redeemable Convertible Preferred Stock
(722
)
—
—
Net proceeds from issuance of convertible promissory notes
68,087
—
—
Proceeds from exercise of stock options
1,148
552
180
Net cash provided by Financing Activities
79,776
140,892
118,531
Net (Decrease) Increase in Cash
(41,375
)
68,641
22,379
Cash at Beginning of Year
117,908
49,267
26,888
Cash at End of Year
76,533
117,908
49,267
Supplemental Disclosure of Non-Cash Investing and Financing Activities:
Non-cash redemption of Series F redeemable convertible preferred to stock through issuance of promissory notes
11,000
—
—
Accretion of Series E-1 and F Redeemable Convertible Preferred Stock
992
678
1,513
Conversion of Series A through E of preferred stock to common stock
—
—
654,103
Conversion of convertible notes into preferred stock
—
—
160,928
Common stock issued
—
340
—
Acquisition of state licenses included in accounts payable and accrued expenses
1,000
—
—
Supplemental Disclosure of Cash Activities:
Cash paid for interest
260
261
285
See accompanying notes to consolidated
financial statements.
F-
25
DRAFTKINGS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands)
1.
Description of Business
DraftKings Inc. (the "Company"
or "DraftKings") was incorporated in Delaware on December 31, 2011. The Company provides online and retail sports
wagering offerings, online daily fantasy sports contests, and online casino games. The Company is headquartered in Boston, MA.
The Company began accepting users in the United States and Canada in 2012. The Company began accepting users in the United Kingdom
in 2016, and in Germany, Malta, Netherlands, Ireland, and Austria in 2017 and in Australia in 2018.
From 2015 through 2017, the daily fantasy
sports industry was subject to government inquiries in the United States. State Attorneys General in Delaware, Georgia, Hawaii,
Illinois, Maryland, Mississippi, Nevada, New York, Ohio, Rhode Island, Tennessee, Texas and West Virginia issued advisory opinions
regarding the legality of daily fantasy sports in their respective states. As of February 20, 2020, the Company had reached
agreements with the Attorneys General of Alabama, Hawaii and Idaho to suspend offering paid contests to individuals physically
present at the time of contest entry in those states until such time a legislative solution is reached. A law authorizing fantasy
sports was enacted by the Alabama legislature this year and DraftKings reentered the state to offer paid fantasy sports contests
on June 18, 2019. The Company has suspended permitting participation in paid contests from Nevada and is currently seeking
judicial clarifications with respect to offering paid contests to individuals in Texas, while continuing to permit participation
from that state.
Due to the Company's interpretation
of existing laws in Arizona, Louisiana, Montana, and Washington, the Company has not historically permitted individuals in those
states to participate in paid contests. In April 2019, the Iowa legislature passed a bill to legalize fantasy sports and,
in May 2019, the bill was signed into law by the Governor of Iowa. DraftKings launched paid fantasy sports contests in Iowa
on October 24, 2019.
Laws defining fantasy sports contests as
games of skill and requiring certain consumer protections have been enacted in New York, Mississippi, Massachusetts, Virginia,
Missouri, Indiana, Colorado, Kansas, Maryland, Arkansas, Tennessee, New Jersey, Delaware, New Hampshire, Vermont, Maine, Connecticut,
Ohio, Alabama, Pennsylvania, Iowa, and Michigan. Of the remaining 20 states (and Washington, D.C.) that the Company operates in,
two states (Kentucky and Nebraska) and one state the Company does not currently operate in (Arizona) have introduced legislation
to authorize and regulate fantasy sports. Two states currently enjoy positive legal opinions from the states Attorneys General
(West Virginia and Rhode Island).
In May 2018, the Supreme Court (the
 "Court") struck down on constitutional grounds the Professional and Amateur Sports Protection Act of 1992 ("PASPA"),
a law that prohibited most states from authorizing and regulating sports betting. Since the Court's decision, states have
moved quickly to legalize and regulate sports betting. U.S. jurisdictions with statutes legalizing statewide online sports betting
as of December 31, 2019 are Nevada, New Jersey, West Virginia, Delaware, Pennsylvania, Indiana, Iowa, Tennessee, New Hampshire,
Washington, D.C, and Rhode Island. States with current or in process statutes for online gaming are Colorado, Illinois, Indiana,
Iowa, Nevada, New Hampshire, New Jersey, Oregon, Pennsylvania, Rhode Island, Tennessee, Washington, D.C. and West Virginia. Colorado
enacted a law that became effective after approval by voters in a referendum in November 2019. States authorizing and regulating
sports betting at specific retail locations are Nevada, New York, North Carolina, Illinois, Iowa, Indiana, New Hampshire, Washington,
D.C., New Jersey, West Virginia, Mississippi, Rhode Island, Delaware, Pennsylvania, Arkansas and Colorado. Some states have passed
laws authorizing sports wagering on the Internet or in retail locations, but no operators are offering live betting yet. The Company
currently operates Internet sports betting in Indiana, Iowa, New Hampshire, New Jersey Pennsylvania, and West Virginia. The Company
has retail sportsbooks in Mississippi, New York, New Jersey and at three locations in Iowa. The Company also has multi-state agreements
in place to expand operations upon the passing of the appropriate laws and regulations and the receipt of the appropriate license.
F-
26
DRAFTKINGS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands)
The Company launched an online casino product in
New Jersey in December 2018.
Recently, the outbreak of the novel coronavirus
("COVID-19") has adversely impacted global commercial activity and contributed to significant declines and volatility
in financial markets. The COVID-19 pandemic and government responses are creating disruption in global supply chains and adversely
impacting many industries. The outbreak could have a continued material adverse impact on economic and market conditions and trigger
a period of global economic slowdown. The rapid development and fluidity of this situation precludes any prediction as to the ultimate
material adverse impact of COVID-19. Nevertheless, COVID-19 presents material uncertainty and risk with respect to the Company,
its performance, and its financial results and could adversely affect the Company's financial information.
2.
Summary of Significant Accounting Policies and Practices
Basis of Presentation and Principles of Consolidation
The accompanying consolidated financial statements
are presented in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP")
and pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). The consolidated financial
statements include the accounts and operations of the Company and its wholly-owned subsidiaries. All intercompany accounts and
transactions have been eliminated upon consolidation.
Going Concern
Since its inception, the Company has funded
its operations primarily with proceeds from sales of convertible preferred stock (including proceeds from convertible debt, which
converted into convertible preferred stock) and borrowings under loan and security agreements. The Company has experienced operating
losses for the years ended December 31, 2019, 2018 and 2017. In addition, as of December 31, 2019, 2018 and 2017,
the Company had negative operating cash flows of  $78,880, $45,579 and $88,437, respectively. The Company expects to continue
to incur operating losses for the foreseeable future. As of March 12, 2020, the issuance date of the annual consolidated financial
statements for the year ended December 31, 2019, the Company does not expect that its cash and cash equivalents, cash provided
by financing activities (including those disclosed in Note 7) and the ability to draw down on its line of credit, will be sufficient
to fund its operating expenses, capital expenditure requirements and debt service payments through March 12, 2021.
The Company plans to seek additional funding
through equity financings or other capital sources, including collaborations with other companies or other strategic transactions.
The Company may not be able to obtain financing on acceptable terms, or at all. The terms of any financing may adversely affect
the holdings or the rights of the Company's stockholders.
If the Company is unable to obtain funding,
the Company will be forced to delay or reduce some of its product portfolio expansion efforts, which could adversely affect its
business prospects, or the Company may be unable to continue operations. Although management continues to pursue these plans, there
is no assurance that the Company will be successful in obtaining sufficient funding on terms acceptable to the Company to fund
continuing operations, if at all.
Based on its recurring losses from operations
incurred, expectation of continuing operating losses for the foreseeable future, and need to raise additional capital to finance
its future operations, as of the issuance date of the annual consolidated financial statements for the year ended December 31,
2019, the Company has concluded that there is substantial doubt about its ability to continue as a going concern within one year
after the date that the consolidated financial statements are issued.
The accompanying consolidated financial
statements do not include any adjustments that might result from the outcome of this uncertainty. Accordingly, the consolidated
financial statements have been prepared on a basis that assumes the Company will continue as a going concern and which contemplates
the realization of assets and satisfaction of liabilities and commitments in the ordinary course of business.
F-
27
DRAFTKINGS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands)
Emerging Growth Company
Section 102(b)(1) of the JOBS Act exempts
emerging growth companies from being required to comply with new or revised financial accounting standards until private companies
(that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities
registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act
provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging
growth companies, but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition
period, which means that when a standard is issued or revised and it has different application dates for public or private companies,
the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or
revised standard. This may make comparison of the Company's consolidated financial statements with another public company
which is neither an emerging growth company nor an emerging growth company, which has opted out of using the extended transition
period, difficult or impossible because of the potential differences in accounting standards used.
Use of Estimates
The preparation of financial statements in
conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates and
assumptions reflected in the financial statements relate to and include, but are not limited to, the valuation of equity awards;
fair value estimates of embedded derivatives; purchase price allocations, including fair value estimates of intangible assets and
long-term contingent liabilities; the estimated useful lives of fixed assets and intangible assets, including internally developed
software costs; and accrued expenses.
Acquisitions
The Company accounts for business combinations
under the acquisition method of accounting, in accordance with Accounting Standards Codification ("ASC") Topic 805,
Business Combinations
, which requires assets acquired and liabilities assumed to be recognized at their fair values on the
acquisition date. Any excess of the fair value of purchase consideration over the fair value of the assets acquired less liabilities
assumed is recorded as goodwill. The fair values of the assets acquired and liabilities assumed are determined based upon the valuation
of the acquired business and involves management making significant estimates and assumptions.
Cash
Cash includes highly liquid checking and
instant access internet banking accounts which are owned by the Company.
Cash Reserved for Users
The Company maintains separate bank accounts
to segregate users' funds from operational funds. In certain regulated jurisdictions, user funds are titled to DK Player
Reserve, LLC, a wholly-owned subsidiary of the Company, which was organized in the State of Delaware, for the purpose of protect
users' funds in the event of creditor claims.
F-
28
DRAFTKINGS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands)
Receivables Reserved for Users
User deposit receivables are stated at the
amount the Company expects to collect from a payment processor. These arise due to the timing differences between a user's
deposit and the receipt of the payment into the Company's bank accounts. Receivables also arise as the result of the securitization
policies of certain payment processors.
Property and Equipment, net
Property and equipment are carried at cost,
net of accumulated depreciation. Depreciation is computed utilizing the straight-line method over the estimated useful life of
the asset. Leasehold improvements depreciation is computed over the shorter of the lease term or estimated useful life of the asset.
Additions and improvements are capitalized, while repairs and maintenance are expensed as incurred. Useful lives of each asset
class are as follows:
​
Computer equipment and software
​
​
3 years
​
​
Furniture and fixtures
​
​
7 years
​
​
Leasehold improvements
​
​
Lesser of the lease terms or the estimated useful lives of the improvements, generally 1 – 10 years
​
Intangible Assets, Net
Intangible assets acquired in a business
combination are recognized at fair value using generally accepted valuation methods deemed appropriate for the type of intangible
asset acquired and reported net of accumulated amortization, separately from goodwill. Intangible assets with finite lives are
amortized on a straight-line basis over their estimated useful lives.
User Relationships
User relationships are finite-lived intangible
assets which are amortized over their estimated useful lives, ranging from six months to eleven years. User relationships
are typically generated through business combinations.
Internally Developed Software
Software that is developed for internal use
is accounted for pursuant to ASC Topic 350-40, Intangibles, Goodwill and Other — Internal-Use Software. Qualifying
costs incurred to develop internal-use software are capitalized when (i) the preliminary project stage is completed, (ii) management
has authorized further funding for the completion of the project and (iii) it is probable that the project will be completed
and performed as intended. These capitalized costs include salaries for employees who devote time directly to developing internal-use
software and external direct costs of services consumed in developing the software. Capitalization of these costs ceases once the
project is substantially complete and the software is ready for its intended purpose. Internally developed software is amortized
using the straight-line method over an estimated useful life of three years and the related amortization expense is classified
as cost of revenue in the consolidated statements of operations.
State Licenses
The Company incurs costs in connection with
operating in certain regulated jurisdictions, including applying for licenses, compliance costs and the purchase of business licenses.
The cost of purchasing business licenses and subsequent renewals of business licenses are capitalized and amortized over the estimated
useful life of the asset or straight-line method, whichever is greater.
F-
29
DRAFTKINGS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands)
Goodwill
The Company performs its annual impairment
testing at December 31. In testing goodwill for impairment, the Company first considers qualitative factors to determine whether
it is more likely than not that the fair value of a reporting unit containing goodwill is less than its carrying value. Such qualitative
factors include macroeconomic conditions, industry and market considerations, cost factors, entity-specific financial performance
and other events, such as changes in management, strategy and primary user base. If the Company determines that it is more likely
than not that the fair value of a reporting unit is less than its carrying value, the Company performs a two-step goodwill impairment
test. The two-step test starts with comparing the fair value of the reporting unit to the carrying amount of a reporting unit,
including goodwill. If the fair value exceeds the carrying amount, no impairment loss is recognized. However, if the carrying amount
of the reporting unit exceeds its fair value, the second step is performed to determine if goodwill is impaired. If the Company
determines that goodwill is impaired, an impairment charge is recorded in the consolidated statements of operations. Based on the
assessment performed during the years ended December 31, 2019 and 2018, the Company determined it was more likely than
not that goodwill is not impaired.
Impairment of Long-Lived Assets
Long-lived assets, except for goodwill, consist
of property and equipment and finite-lived acquired intangible assets, such as internal-use software, state licenses and user relationships.
Long-lived assets, except for goodwill, are tested for recoverability whenever events or changes in business circumstances indicate
that the carrying amount of the assets may not be fully recoverable. An impairment loss would be recognized when the estimated
undiscounted future cash flows expected to result from the asset group are less than its carrying amount. The impairment loss would
be based on the excess of the carrying value of the impaired asset group over its fair value, determined based on discounted future
cash flows. There were immaterial impairments related to previously capitalized software that were not placed in service during
the years ended December 31, 2019 and 2018.
Equity Method Investment
The Company owns 46% of the common stock
of DKFS, LLC. The Company uses the equity method to account for investments in which the Company has the ability to exercise significant
influence over operating and financial policies of the investee, but do not control. The Company's carrying value in the
equity method investee is reflected in the caption "Equity method investment" on the consolidated balance sheets and
changes in value are recorded in other income (expenses), net on the consolidated statements of operations. The Company's
judgment regarding the level of influence over the equity method investee includes considering key factors, such as ownership interest,
representation on the board of directors, and participation in policy-making decisions.
Under the equity method, the Company's
investment is initially measured at cost and subsequently increased or decreased to recognize the Company's share of income
and losses of the investee, dividends received, capital contributions and distributions and impairment losses. The Company performs
a qualitative assessment quarterly and recognizes an impairment if there are sufficient indicators that the fair value of the investment
is less than carrying value.
Deposits
The Company has security deposits with the
lessors of the Company's operating facilities totaling $2,434 and $1,504 as of December 31, 2019 and 2018, respectively.
These balances include approximately $403 held in a certificate of deposit collateralizing the amounts outstanding on the credit
cards.
Liabilities to Users
The Company records liabilities for amounts
due to users which consist of user deposits, plus contest winnings and prizes awarded, less user withdrawals, contest entry fees,
and contest margin earned by the Company. The Company maintains separate bank accounts for the amounts due to users. Total user
liabilities are fully reserved by the cash reserved for users and receivables reserved for users.
F-
30
DRAFTKINGS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands)
Concentrations of Credit Risk
Financial instruments that potentially subject
the Company to concentrations of credit risk consist primarily of operating cash and cash reserved for users. The Company maintains
cash and cash reserves for users primarily across five financial institutions; however, the vast majority is held with one financial
institution within separate bank accounts, which management believes to be of a high credit quality, in amounts that exceed federally
insured limits. The Company does not believe that it is subject to unusual credit risk beyond the normal credit risk associated
with commercial banking relationships.
Leases
The Company accounts for leases under the
provisions of ASC Topic 840,
Leases
, which requires that leases be evaluated and classified as operating or capital leases
for financial reporting purposes. The terms used for the evaluation include renewal option periods in instances in which the exercise
of the renewal option can be reasonably assured and failure to exercise such option would result in an economic penalty. Leases
are classified as capital leases whenever the terms of the lease transfer substantially all of the risks and rewards of ownership
to the lessee. All other leases are recorded as operating leases. As of December 31, 2019 and 2018, all of the Company's
leases were operating leases.
The Company recognizes rent expense on operating
leases on a straight-line basis over the non-cancellable lease term. Operating leases with landlord-funded leasehold improvements
are considered tenant allowances and are amortized as a reduction of rent expense over the non-cancellable lease term. Deferred
rent liability, which is calculated as the difference between contractual lease payments and the rent expense, is recorded in other
long-term liabilities in the consolidated balance sheets.
Revenue Recognition
In 2014, the Financial Accounting Standards
Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09,
Revenue from Contracts with Customers
(Topic 606)
("New Revenue Standard"). The New Revenue Standard requires companies to recognize revenue in a way
that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the
entity expects to be entitled in exchange for those goods or services. In addition, the New Revenue Standard requires disclosures
of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted
the New Revenue Standard effective January 1, 2019 using the modified retrospective method and the cumulative effect was immaterial
to the consolidated financial statements. See Note 15 for a discussion of the effect of the New Revenue Standard on the consolidate
d
financial statements.
The Company determines revenue recognition through
the following steps:
·
Identifying the contract, or contracts, with the customer;
·
Identifying the performance obligations in the contract;
·
Determining the transaction price;
·
Allocating the transaction price to performance obligations in the contract; and
·
Recognizing revenue when, or as, the Company satisfies performance obligations by transferring the promised good or services.
The Company is currently
engaged in the business of digital sports entertainment and gaming and provides users with daily fantasy sports content and online
gaming opportunities. The following is a description of the Company's revenue streams:
F-
31
DRAFTKINGS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands)
Daily Fantasy Sports ("DFS")
is a peer-to-peer platform in which users compete against one another for prizes. Users pay an entry fee (ranging from $0 to $10,000
per user) to join an event and compete against each other in short-duration contests for cash prizes, where the prize money is
distributed to the highest performing competitors in the contest as defined by the prize table. DFS revenue is generated from contest
entry fees from users, net of amounts paid out as prizes and customer incentives. Sportsbook or Sports betting involves a user
placing a bet by wagering money on an event at some fixed odds ("proposition") determined by the Company. In the event
the user wins, the Company pays out the bet. Sportsbook revenue is generated by setting odds such that there is a built-in theoretical
margin in each proposition offered to the users. iGaming, or online casino, offerings typically include the full suite of games
available in land-based casinos, such as blackjack, roulette and slot machines. For these offerings, the Company functions similarly
to land-based casinos, generating revenue through hold, or gross winnings, as users play against the house.
DFS, Sportsbook and iGaming as described
above create a single performance obligation for the Company to operate the contest and award payouts to users based on the contest
results. Revenue is recognized at the end of the respective event. Additionally, frequent player rewards given to customers for
participation in gaming contests create material rights and represent separate performance obligations. Player awards create a
liability when issued to players and are recognized as revenue when redeemed.
Other revenue represents revenue generated
from media services, advertising and sponsored content provided by the Company and other miscellaneous revenue generating Sportsbook
operations. Advertising and sponsored games represent a series of distinct services that are combined into a single performance
obligation. Revenue from all other sources is recognized as control is transferred which is generally when the services are rendered.
Transaction Price Considerations
Variable Consideration: Variability in the
transaction price arises primarily due to market-based pricing and cash discounts. DraftKings offers loyalty programs, free plays,
deposit bonuses, discounts, rebates or other rewards and incentives to its customers in the form of marketing and promotion activities.
Revenue for DFS, Sportsbook and iGaming is collected prior to the contest and is fixed for the arrangement. Player awards are recognized
when awarded to the player. Media contracts typically do not contain variable payments or consideration payable to the customer.
Allocation of transaction price to performance
obligations: Contracts with customers may include multiple performance obligations. For such arrangements, the transaction price
is allocated to performance obligations on a relative standalone selling price basis. Standalone selling prices are estimated based
on observable data of the Company's sales of such products and services to similar customers and in similar circumstances
on a standalone basis. For DFS, Sportsbook and iGaming, the Company will allocate a portion of the transaction price to frequent
player awards that create material rights. In addition, the Company will allocate a portion of the transaction price from qualifier
events to the related live final event within the DFS revenue stream.
Certain costs to obtain or fulfill contracts
Under the New Revenue Standard, certain
costs to obtain or fulfill a contract with a customer must be capitalized, to the extent recoverable from the associated contract
margin, and subsequently amortized as the products or services are delivered to the customer. These costs are capitalized as contract
acquisition costs and are amortized over the period of benefit to the customer. For the Company, the period of benefit has been
determined to be less than or equal to 1 year. As such, the Company applied the practical expedient and contract acquisition costs
are expensed immediately. Customer contract costs which do not qualify for capitalization as contract fulfillment costs are expensed
as incurred.
F-
32
DRAFTKINGS INC.
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(Amounts in thousands)
Contract balances
Contract assets and liabilities represent
the differences in the timing of revenue recognition from the receipt of cash from the Company's customers and billings.
Contract assets reflect revenue recognized and performance obligations satisfied in advance of customer billing. The Company currently
does not have contractual terms that require it to satisfy or partially satisfy its performance obligations in advance of customer
billings.
Deferred revenue relates to payments received
in advance of the satisfaction of performance under the contract. The Company maintains various customer loyalty programs, which
allows users to earn frequent player rewards for playing in DraftKings contests. Player awards represents a material right to the
customer, and awards may be redeemed for future services. Player awards earned by users, but not yet redeemed, are included within
liabilities to users on the consolidated balance sheets. When a user redeems awards, the Company recognizes income in revenue on
the consolidated statements of operations.
Certain player awards do not expire, and
the Company recognizes breakage (amounts not expected to be redeemed) to the extent there is no requirement for remitting balances
to governmental agencies under unclaimed property laws. Revenue from breakage is recognized in proportion to customer redemptions.
Revenue recognized related to breakage was $1,179, $421 and $1,800 in 2019, 2018 and 2017, respectively.
Refer to Note 15 for further information,
including changes in deferred revenue during the period.
Cost of Revenue
Cost of revenue consists primarily of variable
costs. These include mainly (i) payment processing fees and chargebacks, (ii) product taxes, (iii) platform costs
and (iv) revenue share / market access arrangements. The Company incurs payment processing costs on user deposits and occasionally
chargebacks as a result of user complaints (chargebacks have not been material to date).
Sales and Marketing
Sales and marketing expenses consist primarily
of expenses associated with advertising, strategic league and team partnerships and costs related to promotional contests (free
contests funded entirely by the Company), including related personnel costs.
Product and Technology
Product and technology expenses consist of
platform and software development costs prior to product launch, comprised mainly of product development and support personnel
costs, including stock compensation expense, and related professional services, as well as depreciation of related hardware and
software.
General and Administrative
General and administrative expenses consist
primarily of administrative personnel costs, including executive salaries, stock compensation expense and benefits, professional
services (including legal, regulatory, audit, licensing-related, deal-related consulting and lobbying services), rent and facilities
maintenance, legal settlements and contingencies, insurance and depreciation of leasehold improvements and furniture and fixtures.
Advertising and Promotion Costs
Advertising costs and promotion costs are
expensed as incurred and are included in sales and marketing expense in the consolidated statements of operations. During the years
ended December 31, 2019, 2018 and 2017, advertising and promotion costs were $152,203, $124,541 and $137,121, respectively.
F-
33
DRAFTKINGS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands)
Stock-based Compensation
The Company measures compensation expense
for stock options and other stock awards in accordance with ASC Topic 718,
Compensation — Stock Compensation
.
Stock-based compensation is measured at fair value on the grant date and recognized as compensation expense over the requisite
service period. Generally, the Company issues stock options to employees with service-based, market based, or performance-based
vesting conditions. For awards with only service- based vesting conditions, the Company records compensation cost for these awards
using the straight-line method. For awards with performance-based vesting conditions, the Company recognizes compensation cost
on a tranche- by tranche basis (the accelerated attribution method).
Under the provisions of ASC Topic 505-50,
Equity-Based Payments to Non-Employees
, the Company measures stock-based awards granted to non-employees based on the fair
value of the award on the date on which the related service is completed. Compensation expense is recognized over the period during
which services are rendered by non-employees until completed. At the end of each financial reporting period prior to completion
of the service, the fair value of these awards is remeasured using the then-current fair value of the Company's common stock
and updated assumption inputs in the Black-Scholes option-pricing model. The Company classifies stock-based compensation expense
in its consolidated statements of operations in the same manner in which the award recipient's payroll costs are classified
or in which the award recipient's service payments are classified.
Income Taxes
The Company accounts for income taxes using
the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax
consequences of events that have been recognized in the consolidated financial statements or in the Company's tax returns.
Deferred tax assets and liabilities are determined on the basis of the differences between the financial statements and tax bases
of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Changes
in deferred tax assets and liabilities are recorded in the provision for income taxes. The Company assesses the likelihood that
its deferred tax assets will be recovered from future taxable income and, to the extent it believes, based upon the weight of available
evidence, that it is more likely than not that all or a portion of the deferred tax assets will not be realized, a valuation allowance
is established through a charge to income tax provision. Potential for recovery of deferred tax assets is evaluated by considering
taxable income in carryback years, existing taxable temporary differences, prudent and feasible tax planning strategies and
estimated future taxable profits.
The Company accounts for uncertainty in income
taxes recognized in the consolidated financial statements by applying a two-step process to determine the amount of tax benefit
to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external
examination by the taxing authorities. If the tax position is deemed more-likely-than-not to be sustained, the tax position is
then assessed to determine the amount of benefit to recognize in the consolidated financial statements. The amount of the benefit
that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement.
The provision for income taxes includes the effects of any resulting tax reserves, or unrecognized tax benefits, that are considered
appropriate, as well as the related net interest and penalties.
Fair Value Measurements
Certain assets and liabilities are carried
at fair value under U.S. GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer
a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction
between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of
observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be
classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered
observable and the last is considered unobservable:
F-
34
DRAFTKINGS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands)
·
Level 1 — Quoted prices in active markets for identical assets or liabilities.
·
Level 2 — Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data.
·
Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques.
Earnings (loss) per share
Basic earnings (loss) per share ("EPS")
is calculated using the two-class method. Under the two-class method, basic earnings (loss) is computed by dividing net income
(loss) available to common stockholders by the weighted-average number of common shares outstanding during the period after deducting
contractual amounts of accretion on Series E-1 and Series F preferred shares and excluding the effects of any potentially
dilutive securities. Diluted loss per share is computed similar to basic loss per share, except that the denominator is increased
to include the number of additional common shares that would have been outstanding if potential common shares had been issued if
such additional common shares were dilutive. Since the Company had net losses for all the periods presented, basic and diluted
loss per share are the same, and additional potential common shares have been excluded, as their effect would be anti-dilutive.
Recently Adopted Accounting Pronouncements
As noted in the Company's Revenue Recognition
accounting policy above, the Company adopted Accounting Standards Updates ("ASU") No. 2014-09,
Revenue from Contracts
with Customers (Topic 606)
("ASU 2014-09") effective January 1, 2019. The guidance in ASU 2014-09 and subsequently
issued amendments outlines a comprehensive model for all entities to use in accounting for revenue arising from contracts with
customers as well as required disclosures.
DraftKings adopted Topic 606, applying the
modified retrospective method to all contracts that were not completed as of January 1, 2019. For contracts that were modified
before the date of adoption, the Company elected to reflect the aggregate effect of all modifications when (i) identifying
the satisfied and unsatisfied performance obligations, (ii) determining the transaction price, and (iii) allocating the
transaction price to the satisfied and unsatisfied performance obligations. The comparative information has not been restated and
continues to be reported under the accounting standards in effect for these periods. The Company expects the timing of revenue
recognition for its significant revenue streams to remain substantially unchanged, with no material effect on revenue. The adoption
of this ASU did not have a material impact on the Company's consolidated financial statements. See Note 15 — Revenue
Recognition, for further details.
In March 2016, the FASB issued ASU
2016-09,
Compensation — Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting
("ASU 2016-09"). The ASU is intended to simplify various aspects of accounting for share-based compensation arrangements,
including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement
of cash flows. For example, the new guidance requires all excess tax benefits and tax deficiencies related to share-based payments
to be recognized in income tax provision, and for those excess tax benefits to be recognized regardless of whether it reduces
current taxes payable. The ASU also allows an entity-wide accounting policy election to either estimate the number of awards that
are expected to vest or account for forfeitures as they occur. ASU 2016-09 is effective for annual periods beginning after December 15,
2017. The Company adopted this ASU as of January 1, 2018 and elected to estimate the number of awards that are expected to
vest. The Company included the impact of ASU 2016-09 in its consolidated financial statements.
F-
35
DRAFTKINGS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands)
In November 2015, the FASB issued ASU
No. 2015-17,
Income Taxes (Topic 740)
("ASU 2015-17") to simplify the presentation of deferred taxes in a classified
statement of financial position by requiring classification of all deferred tax positions as noncurrent, including valuation allowances,
by jurisdiction. ASU 2015-17 is effective for all other entities for fiscal years beginning after December 15, 2017 and
interim periods within annual periods beginning after December 15, 2018. The Company adopted this ASU as of January 1,
2018 and all deferred tax positions are classified as noncurrent in the Company's consolidated balance sheets.
Recent Accounting Pronouncements Not Yet Adopted
In December 2019, the FASB issued ASU
2019-12,
Simplifying the Accounting for Income Taxes
. ASU 2019-12 eliminates certain exceptions related to the approach
for intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred
tax liabilities for outside basis differences. It also clarifies and simplifies other aspects of the accounting for income taxes.
The Update is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years
beginning after December 15, 2022. Early adoption is permitted. The Company is currently in process of evaluating the impact
of this new standard.
In August 2018, the FASB issued ASU
2018-15,
Intangibles — Goodwill and Other — Internal-Use Software (Subtopic 350-40)
.
This Update addresses users' accounting for implementation costs incurred in a cloud computing arrangement that is a service
contract and also adds certain disclosure requirements related to implementation costs incurred for internal-use software and cloud
computing arrangements. The amendment aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement
that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use
software (and hosting arrangements that include an internal-use software license). This Update is effective for fiscal years
beginning after December 15, 2020, and interim periods in annual periods beginning after December 15, 2021. The amendments
in this Update can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption.
The Company is currently in the process of evaluating the impact of this new standard.
In June 2018, the FASB issued ASU No.
2018-07,
Compensation — Stock Compensation (Topic 718)
, to simplify the accounting for share-based payments
to non-employees by aligning it with the accounting for share-based payments to employees, with certain exceptions. Under the new
standard, equity-classified non-employee awards will be initially measured on the grant date and re-measured only upon modification,
rather than at each reporting period. Measurement will be based on an estimate of the fair value of the equity instruments to be
issued. The standard is effective in fiscal years beginning after December 15, 2019 and interim periods within fiscal years
beginning after December 15, 2020. Early adoption is not permitted before an entity's adoption of ASC 606. The Company
is currently in the process of evaluating the impact of this new standard.
In February 2016, the FASB issued ASU
No. 2016-02,
Leases (Topic 842)
("ASU 2016-02"). ASU 2016-02 increases transparency and comparability
among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about
leasing arrangements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2019, and interim
periods beginning after December 15, 2020. In November 2019, the FASB issued ASU 2019-10,
Financial Instruments —
Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842)
, to delay the adoption date for ASU
2016-02. ASU 2016-02 is now effective for fiscal years beginning after December 15, 2020, and interim periods within
fiscal years beginning after December 15, 2021. Early adoption is still permitted. The Company is currently in the process
of evaluating the impact of this new standard.
F-
36
DRAFTKINGS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands)
3.
Property and Equipment
Property and equipment, net consists of the
following:
December 31,
2019
2018
Computer equipment and software
$
9,685
$
5,537
Furniture and fixtures
5,891
4,018
Leasehold improvements
17,373
7,924
Property and Equipment
32,949
17,479
Accumulated depreciation
(7,004
)
(3,377
)
Property and Equipment, net
$
25,945
$
14,102
Depreciation expense on property and equipment
was $4,131, $1,185 and $1,934 during the years ended December 31, 2019, 2018 and 2017, respectively.
In 2019, the Company disposed of furniture
and fixtures that were no longer in use. The loss on disposal of fixed assets for the year ended December 31, 2019, 2018 and
2017 totaled $730, $0, and $185, respectively.
4.
Intangible Assets and Goodwill
The Company has the following intangible
assets, net at December 31, 2019:
Weighted-
Average
Amortization
Period
Gross
Carrying
Amount
Accumulated
Amortization
Net
User relationships
—
$
3,328
$
(3,328
)
$
—
Internally developed software
2.35 years
43,753
(21,188
)
22,565
State licenses
4.86 years
12,003
(629
)
11,374
Intangible Assets, net
$
59,084
$
(25,145
)
$
33,939
The Company has the following intangible
assets, net at December 31, 2018:
Weighted-
Average
Amortization
Period
Gross
Carrying
Amount
Accumulated
Amortization
Net
User relationships
0.5 years
$
3,328
$
(3,013
)
$
315
Internally developed software
2.45 years
28,937
(12,572
)
16,365
State licenses
0.75 years
251
(55
)
196
Intangible Assets, net
$
32,516
$
(15,640
)
$
16,876
The Company recorded amortization expense
of  $9,505, $6,314 and $4,367 for the years ended December 31, 2019, 2018 and 2017, respectively.
F-
37
DRAFTKINGS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands)
At December 31, 2019, estimated future amortization of
intangible assets is as follows:
Year
    ending December 31,
2020
$
13,048
2021
10,250
2022
6,241
2023
2,200
2024
    and thereafter
2,200
Total
$
33,939
Goodwill
The changes in the carrying amount of goodwill
for the years ended December 31, 2019 and 2018 are as follows:
Balance as of December 31, 2017
$
4,399
Goodwill acquired
339
Balance as of December 31, 2018
$
4,738
Goodwill acquired
—
Balance as of December 31, 2019
$
4,738
The Company recorded an increase of 
$339 to goodwill in connection with an immaterial acquisition during the year ended December 31, 2018. No impairment of goodwill
was recorded in the years ended December 31, 2019, 2018 and 2017.
5.
Accounts Payable and Accrued Expenses
​Accounts payable and accrued expenses consist of the
following:
​
December 31,
​
2019
2018
Accounts
    payable
$
16,618
$
11,626
Accrued
    payroll and related expenses
17,770
9,857
Accrued
    litigation, lobbying and compliance
6,153
5,566
Accrued
    loyalty points
4,131
7,272
Accrued
    marketing fees
11,855
3,237
Accrued
    operating taxes
5,745
2,741
Accrued
    partnership fees
7,868
4,340
Accrued
    professional fees
4,191
1,978
Accrued
    software and licenses
1,589
2,263
Accrued
    other
9,375
7,269
Total
$
85,295
$
56,149
F-
38
DRAFTKINGS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands)
6.
Current and Long-term Liabilities
Term Note
In October 2016, the Company entered
into an amended and restated loan and security agreement with Pacific Western Bank, which was most recently amended in August 2019
(as amended, the "Credit Agreement"). The Credit Agreement provides a revolving line of credit of up to $50,000. The
Credit Agreement has a maturity date of September 15, 2020. As of December 31, 2019 and 2018, the Credit Agreement provided
a revolving line of credit of up to $50,000 and $40,000, respectively. Principal amounts outstanding under the Credit Agreement
totaled $6,750 and $3,750 as of December 31, 2019 and 2018, respectively. Net facility available from the Credit Agreement
as of December 31, 2019 and 2018 totaled $38,769 and $31,769, respectively, which exclude the letters of credit outlined in Note
13.
Borrowings under the Credit Agreement bear
interest at a variable annual rate equal to the greater of (i) 1.00% above the prime rate then in effect and (ii) 6.50%,
and the Credit Agreement requires monthly, interest-only payments. In addition, the Company is required to pay quarterly in arrears
a fee equal to 0.25% per annum of the unused portion of the revolving line of credit. Upon the earlier of  (i) an Acquisition,
as defined in the Credit Agreement, or (ii) the closing of an initial public offering, in either case, the Company will also
be required to pay a success fee to Pacific Western Bank in the amount of  $600 or $650 if the outstanding principal amount
exceeds $45,000 at any time.
As of December 31, 2019, the Company
did not meet all financial and non-financial covenants per the Credit Agreement; however, the Company has received waivers from
Pacific Western Bank for all covenants not met.
Borrowings under the Credit Agreement are
secured by a first lien on all issued and outstanding shares of capital stock of the Company's subsidiaries (except for any
foreign subsidiaries, for which 65% of such capital stock is pledged) and on all assets, including intellectual property.
Pursuant to the Credit Agreement, the Company
is required to maintain substantially all depository, operating and investment accounts, excluding any proceeds from the Company's
gaming business, with Pacific Western Bank. The Company is also subject to certain affirmative and negative covenants until maturity.
These covenants include limitations on the Company's ability to incur additional indebtedness and to pay dividends. Obligations
under the Credit Agreement are subject to acceleration upon the occurrence of specified events of default, including failure to
comply with covenants.
In connection with entering into the Credit
Agreement, DraftKings issued a warrant to Pacific Western Bank to purchase 173,913 shares of its common stock at an exercise price
of  $0.23 per share. The warrant is immediately exercisable and expires in October 2020.
Amounts outstanding, were recorded as current
liabilities in the consolidated balance sheets as of December 31, 2019 and 2018. The interest rate in effect at December 31,
2019 and 2018 was 6.5%. The Company recorded interest expense of  $258, $256 and $284 as of December 31, 2019, 2018
and 2017, respectively, which is included in interest income (expense), net on the consolidated statements of operations. The amount
allocated to the warrants in October 2013 was recorded as a debt discount and was fully amortized as of December 31,
2017. The amount was recognized as interest expense over the term of the Credit Agreement using the effective interest method.
F-
39
DRAFTKINGS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands)
Preferred Stock Investor in Series F Note
On September 26, 2019, the Company
entered into share redemption agreements with certain funds managed by Preferred Stock Investor in Series F (the "Preferred
Stock Investor in Series F Funds"), pursuant to which the Company repurchased and redeemed shares of its preferred
stock held by the Preferred Stock Investor in Series F Funds (the "Preferred Stock Investor in Series F Redemption").
A portion of the consideration paid by DraftKings in connection with the Preferred Stock Investor in Series F Redemption,
equaling approximately $11,000, was paid by the issuance of promissory notes to certain of the Preferred Stock Investor in Series F
Funds (the "Preferred Stock Investor in Series F Notes"). The Preferred Stock Investor in Series F Notes
have a maturity date of the earlier of September 26, 2021 and the date on which DraftKings closes an equity financing with
gross proceeds to DraftKings of at least $100 million. Until December 31, 2019, unpaid interest will accrue on the Preferred
Stock Investor in Series F Notes at a rate of 2.33% per annum, computed on a basis of a 365-day year and payable annually
in arrears. Following December 31, 2019, unpaid interest will accrue at a rate of 7.5% per annum, computed on a basis of
a 365-day year and payable annually in arrears. Upon any event of default, as defined in the Preferred Stock Investor in Series F
Notes, and at the option and upon the declaration of the holder thereof, the Preferred Stock Investor in Series F Notes will
accelerate, and all principal and unpaid accrued interest will become due and payable.
The Preferred Stock Investor in Series F
Notes are subordinated to the Credit Agreement and any indebtedness or debentures, notes or other such indebtedness issued in exchange
for the Credit Agreement, pursuant to a subordination agreement entered into by and among the relevant Preferred Stock Investor
in Series F Funds, the Company and Pacific Western Bank, dated as of September 25, 2019.
Indirect Taxes
Taxation of e-commerce is becoming more prevalent
and could negatively affect the Company's business and its users. The ultimate impact of indirect taxes on the Company's
business is uncertain, as is the period required to resolve this uncertainty. The Company's estimated contingent liability
for indirect taxes represents the Company's best estimate of tax liability in jurisdictions in which the Company believes
taxation is probable. The Company frequently reevaluates its tax positions for appropriateness.
Indirect taxation laws are complex and subject
to differences in application and interpretation. Tax authorities may interpret laws originally enacted for mature industries and
apply it to newer industries, such as the Company's, and that application may be inconsistent from jurisdiction to jurisdiction.
Tax authorities may impose indirect taxes on Internet-delivered activities based on statutes and regulations which, in some cases,
were established prior to the advent of the Internet and do not apply with certainty to the Company's business.
Additionally, the Company's jurisdictional
activities may vary from period to period which could result in differences in nexus from period to period. Lastly, the Company's
estimated contingent liability for indirect taxes may be materially impacted by future indirect tax audit results, litigation and
settlements, should they occur.
As of December 31, 2019 and 2018, the
Company's estimated contingent liability for indirect taxes was $35,899, and $27,238, respectively. This is recorded within
other long-term liabilities on the consolidated balance sheets and general and administrative expenses on the consolidated statements
of operations.
Deferred Rent
In conjunction with its newly leased business
facilities, the Company receives incentives from landlords for tenant owned leasehold improvements. These short-term and long-term
amounts are recorded as deferred rent reported in the accounts payable and accrued expenses and other long-term liabilities sections
of the consolidated balance sheet. These amounts are released ratably over the lease term, with an offset to current period lease
expense. As of December 31, 2019, rent expense has been reduced by $377 due to the release of the deferred rent balance.
Short-term and long-term balances of deferred rent are $1,125 and $9,747, respectively.
F-
40
DRAFTKINGS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands)
7.
Convertible Promissory Notes
Beginning in December 2019, DraftKings
issued subordinated convertible promissory notes to certain investors (the "Convertible Notes"). The aggregate principal
amount outstanding under the Convertible Notes was approximately $69,123 (the "Convertible Notes"). Interest accrues
on the Convertible Notes at a rate of 10% per annum and is automatically capitalized and added to the outstanding principal amount
of each Convertible Note on each anniversary of the date of issuance of such Convertible Note. The Convertible Notes may only be
prepaid with the consent of the holders of a majority of the then-outstanding principal amount (the "Majority Holders").
In connection with issuance of the Convertible Notes, the Company incurred fees in the amount of 1.5% of the gross proceeds, payable
to a related party as described in Note 12. These fees are capitalized as debt issuance costs and are recorded in the convertible
promissory notes in the consolidated balance sheets. The amount owed to the related party is recorded in accounts payable and accrued
expenses in the consolidated balance sheets.
The Convertible Notes automatically convert
into equity upon (i) a business combination transaction that results in common shares of DraftKings, its successor or a new
parent company being listed on a national securities exchange (a "Qualified Business Combination"), (ii) the issuance
of equity securities of DraftKings that results in DraftKings receiving a minimum of  $100,000 in proceeds (a "Qualified
Financing") or (iii) an initial public offering of the equity securities of DraftKings pursuant to a registration statement
under the Securities Act of 1933, as amended (an "IPO"). In the case of a Qualified Business Combination, the outstanding
principal and interest on the Convertible Notes will convert into listed common shares of DraftKings, its successor or the new
parent entity, as applicable, at a price per share equal to (i) in the case of the closing of the Private Investment in Public
Entity ("PIPE") Transaction, the price paid by the cash investors purchasing PIPE Shares in the PIPE Transaction and
(ii) in all other cases, the volume weighted average trading price of such shares for the five consecutive trading days ending
on the trading day immediately preceding the closing of the Qualified Business Combination. In the case of a Qualified Financing,
the outstanding principal and interest on the Convertible Notes will convert into the equity securities sold to the cash investors
in such Qualified Financing, at a price per share equal to the price paid by the cash investors in such Qualified Financing. In
the case of an IPO, the outstanding principal and interest on the Convertible Notes will convert into the equity securities sold
in such IPO, at a price per share equal to the initial public offering price.
At the election of the Majority Holders,
the Convertible Notes are convertible into equity upon the issuance of equity securities of DraftKings that results in DraftKings
receiving less than $100,000 in proceeds (a "Non- Qualified Financing"). In the case of a Non-Qualified Financing,
the outstanding principal and interest on the Convertible Notes will convert into the equity securities sold to the cash investors
in such Non-Qualified Financing, at a price per share equal to the price paid by the cash investors in such Non-Qualified Financing.
In the event of a combination, consolidation
or merger, other than a Qualified Business Combination, or a transfer of more than 50% of the voting power of DraftKings'
stock to stockholders that were not stockholders on the date of issuance of the Convertible Notes, the Company will be obligated
to repay the Convertible Notes, an amount equal to the outstanding principal and interest, plus a prepayment premium equal to 15%
of the original principal amount.
In addition to the foregoing, in the event
that the Convertible Notes remain outstanding on December 16, 2022 (the "CN Maturity Date"), the Convertible
Notes will convert as of the CN Maturity Date into shares of a newly created series of DraftKings' preferred stock having
substantially the same rights, privileges and preferences as DraftKings' existing Series F Preferred Stock at a conversion
price equal to $3.31 (as adjusted for any stock split, stock dividend, combination, recapitalization or similar transaction).
F-
41
DRAFTKINGS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands)
The Convertible Notes are subordinated to
the Credit Agreement and any indebtedness or debentures, notes or other such indebtedness issued in exchange for the Credit Agreement,
pursuant to a subordination agreement entered into by and among the holders of the Convertible Notes, DraftKings and Pacific Western
Bank.
The Convertible Notes have a provision requiring
the repayment of the notes at a premium upon a change of control, which constitutes an embedded compound derivative that is being
accounted for separately. Each reporting period, the Company will record the derivative liability at fair value, with any changes
in fair value recorded in the consolidated statements of operations. The Company determined that the fair value of this embedded
compound derivative was $457 at December 31, 2019. The derivative was recorded as a debt discount and will be amortized as
interest expense using the effective interest method. The Company recorded total interest expense of  $276 for the year
ended December 31, 2019.
8.
Redeemable Convertible Preferred Stock
The Company had the following shares of preferred
stock authorized and outstanding at December 31, 2019:
Preferred
Shares
Authorized
Preferred
Shares Issued
and
Outstanding
Carrying
    Value
Series E-1
    redeemable convertible preferred stock
54,901
54,901
$
119,752
Series F
    redeemable convertible preferred stock
78,445
55,349
138,619
Total
133,346
110,250
$
258,371
The Company had the following shares of preferred
stock authorized and outstanding at December 31, 2018:
​
Preferred
Shares
Authorized
Preferred
Shares Issued
and
Outstanding
Carrying
    Value
Series E-1
    redeemable convertible preferred stock
54,901
54,901
$
119,427
Series F
    redeemable convertible preferred stock
78,445
57,068
141,850
Total
133,346
111,969
$
261,277
The Company had the following shares of preferred
stock authorized and outstanding at December 31, 2017:
​
Preferred
Shares
Authorized
Preferred
Shares Issued
and
Outstanding
Carrying Value
Series E-1
    redeemable convertible preferred stock
54,901
54,901
$
119,009
In September 2019, the Company repurchased
4,598 of Series F preferred stock through the issuance of  $11,000 convertible notes and a cash payment of 
$722 as described in Note 6. As of December 31, 2019, the Company had 54,901 and 55,349 Series E-1 and Series F
convertible preferred stock with conversion rates of approximately 1.57 and 2.55 per share, respectively.
As of December 31, 2018, the Company
had 54,901 and 57,068 Series E-1 and Series F convertible preferred stock with conversion rates of approximately 1.57,
and 2.55 per share, respectively.
F-
42
DRAFTKINGS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands)
As of December 31, 2017, the Company
had 54,901 Series E-1 convertible preferred stock issued and outstanding with a conversion rate of approximately 1.12 per
share.
Voting
Each holder of each series of preferred stock
shall be entitled to vote on all matters and shall be entitled to the number of votes equal to the number of whole shares of common
stock into which such holder's shares of preferred stock could be converted, as defined below. Except as otherwise required
by law, or by the provisions of the Certificate of Incorporation, the holders of preferred stock shall vote together with the holders
of common stock as a single class.
Dividends
The holders of Series E-1 and Series F
preferred stock are generally not entitled to any dividends. However, no dividends shall be declared or paid on shares of any other
classes or series of capital stock of the Company, unless the holders of preferred stock first receive a dividend, with the preferred
stock dividend calculated in such a manner that it would result in the highest possible preferred stock dividend. As of December 31,
2019, no dividends have been declared for either Series E-1 or Series F.
Liquidation
In the event of any voluntary or involuntary
liquidation, dissolution or winding up of the Company, the holders of Series E-1 or Series F shall be entitled to be
paid out of the assets of the Company on a pari passu basis before any payments are made to the holders of common stock.
Conversion
Each share of preferred stock is convertible
at the option of the holder by dividing the original issue price by the applicable conversion price. The original issue prices
for Series E-1 and Series F were approximately $2.20 and $2.55, respectively. The conversion prices in effect as of December 31,
2019 for Series E-1 and Series F preferred stock are approximately $1.57 and $2.55, respectively, which result in share
conversion factors of approximately 1.40 for Series E-1 and 1.00 for Series F. If all preferred stock converts to common
stock, the Company would issue 77,132 shares of common stock to the holders of Series E-1 and 55,349 shares of common stock
to the holders of Series F.
The applicable conversion prices are subject
to adjustment, as defined in the Certificate of Incorporation.
Redemption
At any time on or after August 17,
2023, with respect to the Series E-1, the Series E-1 majority and with respect to the Series F, the Series F
majority (each as defined in the Certificate of Incorporation) may request to redeem the applicable original issue price per share
plus all declared but unpaid dividends on each series of preferred stock, in three annual installments commencing not more than
sixty days after receipt by the Company of a written notice requesting redemption. Due to this contingent redemption feature that
is outside of the Company's control and, accordingly, pursuant to ASC 480-10-S99, the preferred shares are recorded at their
redemption value, outside of stockholder's equity (mezzanine equity). Subsequent to the date of the Business Combination
Agreement, the instruments will be assessed to determine whether it is probable of the instruments being redeemed as a result
of a contingency being resolved. When it is deemed probable, the fair value will be adjusted to the new estimate of the fair value
in that period.
F-
43
DRAFTKINGS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands)
9.
Common Stock
Per the Company's Ninth Amended and
Restated Certificate of Incorporation, the Company is authorized to issue 735,000 shares of  $0.001 par value common stock.
As of December 31, 2019 and 2018, 389,610 and 384,009 shares, respectively, of  $0.001 par value common stock were
issued and outstanding.
Each share of common stock entitles the holder
to one vote on all matters submitted to a vote of the Company's stockholders. Common stockholders are entitled to receive
dividends, if any, as may be declared by the board of directors, subject to the preferential dividend rights of the preferred stockholders.
No dividends have been declared through December 31, 2019.
10.
Stock-Based Compensation
In 2012, the Board of Directors adopted the
2012 Stock Option and Restricted Stock Incentive Plan (the "2012 Plan"), which provides for the granting of incentive
and nonqualified stock options, shares of restricted stock, and other equity interests or awards in the Company. As of December 31,
2019 and 2018, the total number of shares available for issuance under the 2012 Plan were 5,614 and 12,313, respectively. Stock
options are generally granted with an exercise price equal to the fair value of the common stock at the grant date, a graded vesting
period of four years and a 10-year contractual term. Incentive stock options may only be granted to employees and the exercise
price shall not be less than the fair value of the stock on the grant date. If an employee owns more than 10% of the combined voting
stock of the Company, the exercise price may not be less than 110% of the fair market value of the stock on the grant date. The
Company only issued service-based vesting awards under the 2012 Plan.
In 2017, the Board approved the 2017 Equity
Incentive Plan (the "2017 Plan" and, together with the 2012 Plan, the "Plans"). No new awards have been
issued under the 2012 Plan following the approval of the 2017 Plan. The 2017 Plan provides for the granting of incentive and nonqualified
stock options, shares of restricted stock, and other equity interests or awards in the Company. As of December 31, 2019, the
total number of shares available for issuance under the Plan was 75,671 shares. As of December 31, 2019, a share reserve established
that the aggregate number of shares may not exceed 130,825 shares under the Plans. The exercise price of stock options issued under
the 2017 Plan will generally not be less than 100% of the fair market value of the Company's common stock on the date of
grant, as determined by the board of directors. The Company issued service-based and performance-based vesting awards under the
2017 Plan. The service-based awards generally vest over a four-year period with graded vesting and expire no later than ten years
from the date of grant. The Company issues two types of performance- based option awards pursuant to the 2017 Plan: Long Term Incentive
Plan ("LTIP") and Performance-Based Stock Compensation Plan ("PSP").
The LTIP is a performance-based stock compensation
plan that utilizes long-term financial metrics to incentivize key executives and align growth objectives between executives and
the Company. The LTIP has vesting targets based on any one of the following thresholds related to annual revenue, annual earnings
before interest, taxes, depreciation and amortization ("EBITDA") or the fair value of the Company's common stock
in the event of an initial public offering, change in control or majority transaction, as defined per the LTIP.
The PSP is a short-term performance-based
stock compensation plan. It was designed to incentivize key members of management and align short-term growth objectives related
to the Company. PSP awards vest based on meeting both revenue and EBITDA targets.
As of December 31, 2019 and 2018, the
Company has only issued stock options that are settled in the Company's common stock. No restricted stock or other forms
of equity-based awards have been issued.
F-
44
DRAFTKINGS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands)
The fair value of each option is estimated
on the grant date using the Black-Scholes option-pricing model and the assumptions noted in the table below. The fair value is
recognized over the requisite service period of the awards, which is generally the vesting period. For awards with only service-based
vesting conditions, the Company recognizes compensation cost using the straight-line method. Expected volatility is based on average
volatility for a representative sample of comparable public companies.
The expected term represents the period of
time that the options are expected to be outstanding. The expected term is estimated using the midpoint between the requisite service
period and the contractual term of the option. The risk-free interest rate is estimated using the rate of return on U.S. treasury
notes with a life that approximates the expected life of the option. The fair value of the stock options issued was measured using
the following assumptions for the years ended December 31:
2019
2018
Risk free interest rate
1.95
%
2.80
%
Expected term (in years)
6.02
6.11
Expected volatility
41.48
%
41.98
%
Expected dividend yield
0
%
0
%
The weighted-average grant-date fair values
of options granted during the years ended December 31, 2019 and 2018 were $0.72 and $0.54 per share, respectively. During
the years ended December 31, 2019 and 2018, the Company received proceeds from the exercise of stock options of 
$1,148 and $552, respectively, and the aggregate intrinsic value of those stock options exercised was $3,406 and $2,234, respectively.
The total grant date fair value of stock options that vested during the years ended December 31, 2019, 2018 and 2017
was $9,803, $7,334 and $3,351, respectively.
As of December 31, 2019, total unrecognized
stock-based compensation expense of  $19,769 related to unvested share-based compensation arrangements granted under the
Plan is expected to be recognized over a weighted-average period of 2.03 years. Total stock-based compensation expense of 
$17,614, $7,210 and $4,500 was recognized for the years ended December 31, 2019, 2018 and 2017, respectively.
LTIP options
LTIP awards have been issued since November 2017
pursuant to the Company's 2017 Plan. The fair value of each LTIP option is estimated on the grant date using the Black-Scholes
option-pricing model for those awards, with only performance conditions and the assumptions noted in the table above. Awards that
vest based on market conditions are valued using a Monte-Carlo model however no compensation cost will be recognized unless an
IPO or liquidity event occurs. Awards vest based on a combination of factors, including achievement of revenue, EBITDA, and stock
value targets measured upon an IPO or liquidity event. For the year ended December 31, 2019, the Company recognized compensation
costs of  $5,236 for LTIP awards. No compensation cost has been recognized for the LTIP for the year ended December 31,
2018 and 2017 because no awards were considered probable of vesting as of December 31, 2018 and 2017 as per the terms of the
LTIP plan.
PSP options
PSP awards have been issued since November 2017
pursuant to the terms of the 2017 Plan. The Plan grants options to key executives that vest based on achievement of short-term
revenue and EBITDA targets. PSP options are valued using the Black-Scholes option-pricing model with the assumptions noted in the
table above. Based on the results of fiscal year 2018 the PSP targets were not achieved. PSP options vested in 2019 after board
approval and $5,221 of compensation costs were recorded for PSP options during the year ended December 31, 2019. Total stock-based
compensation cost of  $0 and $0 was recognized for the years ended December 31, 2018 and 2017.
F-
45
DRAFTKINGS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands)
Non-Employee Warrants
In September 2019, the Company issued
warrants to a non-employee vendor providing marketing services. The warrant allows the vendor to purchase 341 shares of common
stock for an exercise price of $0.01 per share over a 5-year term. The warrants were issued for marketing services provided to
the Company, were fully vested, and had no future requisite service period. Compensation cost of  $444 was recognized entirely
in the year ended December 31, 2019. Compensation cost for this warrant is presented within general and administrative expenses
in the consolidated statement of operations. As of December 31, 2019, the warrant remains unexercised.
The following table shows stock option activity
for the years ended December 31, 2019, 2018 and 2017:
Number
    of Shares
Weighted
Average
Weighted
Average
Remaining
Aggregate
Time
Based
PSP
LTIP
Total
Exercise
Price
Term
(years)
Intrinsic
Value
Outstanding
    at December 31, 2016
$
44,530
—
—
44,530
$
0.22
8.24
$
30,680
Granted
14,165
—
5,131
19,296
1.17
​
​
Exercised
(1,306
)
—
—
(1,306
)
0.15
​
​
Forfeited
(958
)
—
—
(958
)
0.61
​
​
Outstanding
    at December 31, 2017
$
56,431
—
5,131
61,562
$
0.51
8.00
$
32,401
Granted
13,564
5,320
35,058
53,942
1.18
​
​
Exercised
(2,297
)
—
—
(2,297
)
0.25
​
​
Forfeited
(1,171
)
(159
)
—
(1,330
)
0.88
​
​
Outstanding
    at December 31, 2018
$
66,527
5,161
40,189
111,877
$
0.84
8.15
$
69,765
Granted
16,278
6,263
5,628
28,169
1.65
​
​
Exercised
(2,837
)
(112
)
—
(2,949
)
0.41
​
​
Forfeited
(1,196
)
(79
)
—
(1,275
)
1.19
​
​
Outstanding
    at December 31, 2019
$
78,772
11,233
45,817
135,822
$
1.01
7.64
$
203,431
Time
    Vesting*
​
​
​
75,170
$
0.84
7.01
$
125,849
PSP**
​
​
​
10,719
$
1.44
8.92
$
11,484
LTIP**
​
​
​
8,568
$
1.21
8.42
$
11,129
*
Adjusted for assumed forfeitures
**
Adjusted for assumed forfeitures, excludes post-2019 vesting
F-
46
DRAFTKINGS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands)
11.
Income Taxes
Loss before provision for (benefit from)
income taxes for the years ended December 31, 2019, 2018 and 2017 consist of the following:
Year Ended December 31,
​
2019
2018
2017
United States
$
(142,198
)
$
(76,122
)
$
(75,445
)
Foreign
1
7
99
Loss before provision for (benefit from) income taxes
$
(142,197
)
$
(76,115
)
$
(75,346
)
The components of the provision (benefit) for income taxes consisted
of the following:
Year Ended December 31,
2019
2018
2017
Current:
​
​
​
Federal
$
—
$
—
$
—
State
—
—
—
Foreign
4
86
65
Total current provision
4
86
$
65
Deferred:
​
​
​
Federal
$
—
$
9
$
36
State
54
10
109
Foreign
—
—
—
Total deferred provision
54
19
145
Total provision
$
58
$
105
$
210
The reconciliation between income taxes
computed at the U.S. statutory income tax rate to our provision for income taxes for the years ended December 31, 2019,
2018 and 2017 are as follows:
​
Year
    Ended December 31,
​
2019
2018
2017
Provision for income taxes at statutory rate
$
(29,863
)
$
(15,984
)
$
(25,400
)
Prior year provision true-ups
3,164
(157
)
982
State taxes, net of federal benefit
(7,522
)
(7,525
)
(2,769
)
Certain stock-based compensation expenses
2,412
430
536
Non-deductible lobbying expenses
1,885
1,352
2,505
Non-deductible acquisition expenses
2,068
—
—
Change in valuation allowance
19,988
21,584
(66,370
)
Impact of federal rate change on net deferred taxes
—
—
90,889
Net operating loss write-off
7,246
—
—
Other
680
405
(163
)
Provision for income taxes
$
58
$
105
$
210
F-
47
DRAFTKINGS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands)
In 2019, the Company wrote off  $7,246
of the net operating loss deferred tax asset due to the IRC Section 382 limitation discussed below, with a corresponding reduction
to the valuation allowance of  $7,246 for a net provision impact of  $0.
The Tax Cuts and Jobs Act was enacted on
December 22, 2017 ("the Act"). The Act contains significant changes to corporate taxation including, but not limited
to, reducing the U.S. federal corporate tax rate from a top marginal rate of 35% to 21%, requiring companies to pay a one-time
transition tax on earnings of certain foreign subsidiaries that were previously tax deferred, and creating new taxes on certain
foreign sourced earnings. On December 22, 2017, Staff Accounting Bulletin No. 118 ("SAB 118") was issued
to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared,
or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Act.
As of December 31, 2017, the Company
re-measured U.S. federal deferred tax assets and liabilities based on the rates at which they are anticipated to reverse in the
future, which is generally 21%. The amount recorded related to the re-measurement of our deferred tax asset balance was a decrease
of  $90,890, with a corresponding reduction to the valuation allowance of  $91,050 for a net benefit of  $160.
The Act limited the deduction for net operating
loss carryovers generated in the taxable years beginning after December 31, 2017, to 80% of taxable income computed without
regard to the deduction and extended the life of these net operating losses to an indefinite carryforward. Due to the indefinite
life of the net operating losses generated after December 31, 2017 and the annual 80% NOL utilization limitation that would
be imposed in the year of use, the Act resulted in the indefinite life deferred tax liability becoming a source of income against
the realization of the indefinite lived portion of the NOLs and certain deferred tax assets that the Company expects to become
indefinite lived NOLs when they reverse in future years. As of December 31, 2017, the amount recorded related to the scheduling
of the indefinite-lived intangibles was a benefit of  $230.
The one-time transition tax is based on
our total post-1986 earnings and profits ("E&P") for which we have previously deferred from U.S. income taxes.
We recorded a provisional amount for our one-time transition tax liability of  $36 for our foreign subsidiaries, resulting
in an increase of income tax provision of $0 as we are utilizing net operating losses, which had a full valuation allowance, against
the one-time transition tax liability. During the year ended December 31, 2018 we completed our calculation of the total post-1986
foreign E&P for these foreign subsidiaries and increased the one-time transition tax liability by $15, resulting in no change
to income tax expense as we utilized net operating losses, which had a full valuation allowance, against the one-time transition
tax liability.
As a result of the Act and the current
U.S. taxation of deemed repatriated earnings, the additional taxes that might be payable upon repatriation of foreign earnings
are not significant. However, we do not have any current plans to repatriate these earnings because the underlying cash will be
used to fund the ongoing operations of the foreign subsidiaries.
As of December 31, 2018, we have completed
our accounting for the effects of the Act, including the transition tax, remeasurement of deferred taxes, our reassessment of valuation
allowance and electing to account for global intangible low-taxed income ("GILTI") as a period expense. There were
no additional expenses recognized in the year ended December 31, 2018 to adjust the provisional amounts recorded in 2017 related
to the Act.
F-
48
DRAFTKINGS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands)
Significant components of the Company's
deferred tax assets (liabilities) as of December 31, 2019 and 2018 are as follows:
As of December 31,
​
2019
2018
Deferred tax assets:
​
​
Stock-based compensation
$
4,552
$
3,472
Intangible assets
123
187
Fixed assets
—
365
Accrual and other temporary differences
20,907
12,273
Credit carryforwards
15
15
Net operating loss carryforwards
217,836
203,180
Total deferred tax assets:
$
243,433
$
219,492
Deferred tax liability:
​
​
Capitalized software costs
(6,335
)
(4,364
)
Fixed assets
(2,035
)
—
Total Net Deferred Tax Assets
235,063
215,128
Valuation allowance
(235,280
)
(215,292
)
Net deferred tax liabilities
$
(217
)
$
(164
)
The Company has provided a valuation allowance
against the net deferred tax assets since realization of any future benefit from deductible temporary differences and net operating
loss and tax credit carryforwards cannot be sufficiently assured as of December 31, 2019. In computing our valuation allowance
needs, we include the deferred tax liability associated with assets that have an indefinite life for US GAAP purposes because they
provide a source of income against the realization of the indefinite lived portion of the NOLs and certain deferred tax assets
that the Company expects to become indefinite lived NOLs when they reverse in future years. For the year ended December 31,
2019, the valuation allowance increased by approximately $19,988.
As of December 31, 2019, the Company
had federal and state tax net operating loss carryforwards of approximately $676,040 and $759,040, respectively, which may be available
to offset future income tax liabilities and expire at various dates through 2039. The aggregate amount of federal NOLs that are
not expected to be utilized due to the annual Section 382 limitations is $34,504 and the tax effect of  $7,246 was written
off during the year ended December 31, 2019, as discussed in more detail below. Additionally, the Company has $134,400 of
federal net operating loss carryforwards which carryforward indefinitely, subject to an 80% taxable income limitation in the year
of utilization. The Company has generated $171 and $100 of operating loss carryforwards in Malta and Australia, respectively, both
of which carryforward indefinitely. The Company has approximately $15 of federal research credit carryforwards available that expire
through 2032.
Utilization of the NOL carryforwards may
be subject to limitation under Section 382 of the Internal Revenue Code of 1986 due to ownership change limitations that
have occurred previously or that could occur in the future. These ownership changes may limit the amount of NOL and tax credit
carryforwards that can be utilized annually to offset future taxable income and tax, respectively. The Company completed a Section 382
study through December 31, 2019 to assess whether an ownership change had occurred, or whether there had been multiple ownership
changes since its formation. The Company concluded that ownership changes occurred in November 2013 and March 2017.
As a result, the Company's use of NOL carryforwards as of March 2017 are subject to annual limitations through 2037.
For the tax year ending December 31, 2020, these NOLs are subject to a cumulative limitation of  $295,605 and each
year after is subject to an annual limitation of  $77,069 in 2021, $25,247 in 2022 and $15,051 through 2037. Annual limitations
under Section 382 that go unused can be carried forward to allow for an increased limitation in future years. The federal
net operating losses incurred by the Company after February 2017 are not impacted by these limitations as of December 31,
2019. There could be additional ownership changes in the future, which may result in additional limitations on the utilization
of the NOL and tax credit carryforwards.
F-
49
DRAFTKINGS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands)
With limited exception, the Company is no
longer subject to U.S. federal and state income tax audits by taxing authorities for years through 2015. The years subsequent
to 2015 contain matters that could be subject to differing interpretations of applicable tax laws and regulations as it relates
to the amount and/or timing of income, deductions and tax credits. Although the timing and outcome of tax audits is always uncertain,
management has analyzed the Company's income tax positions taken for all open years and has concluded that no provision
for uncertain tax positions is required in the consolidated financial statements.
12.
Related-Party Transactions
Media Purchase Agreement ("MPA")
In July 2015, the Company entered into
a MPA with a related party purchaser for various media placements from 2015 through 2018. The MPA was amended to extend through
2021. The annual commitment for calendar years 2017 through 2021 was $15,000 per year plus an additional contingent commitment
of  $5,000 per year. The contingent commitment relates to the Company's allocation of its non-integration advertising
with other advertisers. Effective January 2019, the future minimum commitments related to the MPA were reduced to $15,000
in aggregate through December 31, 2021 ($5,000 per year) and the contingent commitment was removed. If the Company satisfies
the $15,000 commitment prior to December 31, 2021, the MPA will expire unless the Company elects to extend the MPA through
the next NFL season with no required minimum. The Company recorded expense of  $8,411 and $23,313 related to the MPA for
the years ended December 31, 2019 and 2018, respectively, in sales and marketing expenses in the consolidated statements
of operations. As of December 31, 2019, and 2018, $2,413 and $428, respectively, of MPA contractual obligations were unpaid
and included in accounts payable and accrued expenses in the consolidated balance sheets. Future minimum obligations under the
MPA are included in the other contractual obligations table in Note 13.
Private Placement Agent
In March 2015, the Company entered into
an engagement letter with a related party (the "Private Placement Agent"), pursuant to which the related party served
as a private placement agent for DraftKings in connection with DraftKings' Series E and Series E-1 preferred stock
financings. The engagement letter terminated in June 2018. Of the Company's Series E-1 redeemable convertible preferred
stock issued and outstanding, $119,752 and $119,427 as of December 31, 2019 and 2018, respectively, is held by the related
party. Redeemable convertible preferred stock is discussed in Note 8. In connection with the Company's Series E-1 redeemable
convertible preferred stock issuance, $2,066 of fees were incurred during the year ended December 31, 2017 and $0 in fees
were incurred during the years ended December 31, 2019 and 2018. The 2017 fees are accreted ratably over the expected
life of Series E-1. These fees are presented in the Series E-1 redeemable convertible preferred stock in the consolidated
balance sheets.
The Company also entered into an engagement
letter in August 2019, and amended in December 2019, with the Private Placement Agent. Pursuant to the engagement letter,
the Private Placement Agent has acted as the exclusive financial advisor to DraftKings, and the Company has agreed to pay certain
acquisition and financing fees in connection with potential transactions. Refer to Note 7 for a description of the financing fee
incurred in 2019.
F-
50
DRAFTKINGS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands)
Receivables from Equity Method Investment
The Company provides office space and general
overhead support to DKFS, LLC, an equity-method affiliate. The overhead support relates to rent, utilities and general and administrative
support services. As of December 31, 2019, the Company had $959 of receivables from the entity related to these services and
is included within current assets.
13.
Commitments and Contingencies
Leases
The Company rents its corporate office facilities
under long-term lease arrangements in New York, NY and Boston, MA. The terms of the leases include scheduled base rent increases,
and obligations to pay for a proportionate share of each property's operating costs and tax escalations as defined in each
lease. The total amount of rental payments due over each lease term is charged to rent expense ratably over the life of each lease.
In November 2019, the Company entered
into an agreement to lease office space in Dublin, Ireland. Pursuant to the lease agreement, the lease term is 12 months,
commencing in December 2019. The total payment for the 12-month period is $651 (€598), exclusive of value added taxes,
which will be charged at the prevailing rate.
The Company rents its corporate office facilities
under a 10-year long-term lease arrangement commencing in April 2019. The total lease commitment is $35,642. The Company also
opened a line of credit in the amount of  $3,409 in escrow to act as a security deposit on the lease. The total amount of
rental payments due over each lease term is charged to rent expense ratably over the life of each lease.
Total rent expense for the years ended
December 31, 2019, 2018 and 2017 was $10,412, $5,266 and $3,431, respectively.
Future minimum lease payments are as follows:
Years ending December 31,
2020
$
10,067
2021
8,300
2022
8,374
2023
8,292
2024
7,310
Thereafter
23,685
Total
$
66,028
Other Contractual Obligations and Contingencies
The Company is a party to several non-cancelable
contracts with vendors and licensors for marketing and other strategic partnership related agreements where the Company is obligated
to make future minimum payments under the non-cancelable terms of these contracts as follows:
Years ending December 31,
​
2020
(a)
$
74,390
2021
54,725
2022
33,885
2023
13,689
2024
4,950
Thereafter
4,100
Total
$
185,739
(a)
2020 balance includes $13,880 of contingent success fees.
F-
51
DRAFTKINGS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands)
Included in the above contractual obligations
are related party commitments from the MPA discussed in Note 13.
In connection with the DraftKings Merger
as described in Note 18, the Company has entered into success fee arrangements with third-party advisors that would require the
Company to pay the Private Placement Agent, a related party as described in Note 12, a fee of  $5,000 for services in connection
with the consummation of the SBTech Acquisition and a fee of  $7,000 for services in connection with the consummation of
the DraftKings Merger. The Company also has agreements with two separate advisors for a total fee of  $1,280 for services
in connection with the consummation of the DraftKings Merger.
In addition, as described in Note 6, upon
the earlier of  (i) an Acquisition, as defined in the Credit Agreement, or (ii) the closing of an initial public
offering, in either case, the Company will also be required to pay a success fee to Pacific Western Bank in the amount of 
$600 or $650 if the outstanding principal amount exceeds $45,000 at any time. These success fees have not been recorded in the
consolidated balance sheet or consolidated statement of operations as at December 31, 2019 but have been recorded in the 2020
other contractual obligations above.
Litigation
From time to time, and in the ordinary course
of business, the Company may be subject to certain claims, charges and litigation. Much of civil litigation to which the Company
is a party relates to advertising and consumer protection matters. The majority of these cases were consolidated into a multi-district
litigation ("MDL") in February 2016 in the U.S. District Court for the District of Massachusetts along with claims
against other entities and individuals within the DFS industry (the "DFS defendants"). On November 27, 2019, the
Court granted in part and denied in part the DFS defendants' motions to compel arbitration. The Company intends to vigorously
defend itself. While we do not believe, based on currently available information, that the outcome of this proceeding will have
a material adverse effect on the Company's financial condition, the outcome could be material to the Company's financial
results for any particular period, depending, in part, upon the results for such period.
Settlement Liability
On October 25, 2016, the Company and
The Office of the Attorney General of the State of New York ("NYAG") reached a settlement agreement that resolved all
claims, brought forth by the NYAG, relating to deceptive advertising by the Company. The Company will pay a settlement amount of 
$6,000 in penalties and costs to the State of New York over a period of four years. As of December 31, 2019, the Company
paid all remaining obligations under the agreement. As of December 31, 2018, the Company accrued $2,876 and $0 of current
and non-current liabilities, respectively, on the consolidated balance sheet related to the NYAG settlement agreement.
On September 1, 2017, the Company and
the Commonwealth of Massachusetts through the Office of the Massachusetts Attorney General ("MAAG") reached a settlement
agreement that resolved all claims, demands, liabilities, and causes of action related to the advertising and offering of the Company's
daily fantasy sports contests and operation of the Company's business activities. The Company agreed to pay a settlement
amount of  $1,300 to the Commonwealth of Massachusetts over a period of three years. As of December 31, 2019,
the Company has paid all remaining obligations under the agreement. The Company paid $400 and $400 to MAAG in fiscal years
2019 and 2018, respectively, per the terms of the agreement.
Letters of Credit
In connection with the Credit Agreement
with Pacific Western Bank, the Company has entered into several letters of credit totaling $4,481 as of December 31, 2019
and 2018 for the Company's leases of office space. Refer to Note 6 for further discussion of the Credit Agreement.
F-
52
DRAFTKINGS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands)
14.
Retirement Plans
In August 2017, the Company created
a defined contribution savings plan under Section 401(k) of the Internal Revenue Code. All domestic employees who meet minimum
age and service requirements are permitted to participate in this plan. The plan allows participants to defer a portion of their
annual compensation on a pre-tax basis for the calendar years 2019, 2018 and 2017. Company contributions to the plan are made
based on achievement of designated financial goals. During the years ended December 31, 2019, 2018 and 2017 the Company
contributed $1,342, $842 and $0 respectively.
15.
Revenue Recognition
On January 1, 2019, the Company adopted
ASC 606 using the modified retrospective method and, due to the immaterial difference, there was no adjustment to the opening balance
of accumulated deficit at January 1, 2019. The adoption of the New Revenue Standard did not have a material impact on the
Company's consolidated financial position, results of operations, or cash flows. The Company expects the impact of the adoption
of the New Revenue Standard will be immaterial to net loss on an ongoing basis.
Deferred Revenue
Deferred revenue primarily represents contract
liabilities for the Company's obligation to transfer additional goods or services to users for which the Company has received
consideration, such as wagers or entry fees on unscored events and unredeemed player rewards awarded for participation in DFS,
Sportsbook and iGaming events. These create a liability when issued to users and are recognized as revenue when redeemed or settled.
The Company included deferred revenue within accrued expenses and liabilities to users on the consolidated balance sheets. Deferred
revenue was $20,760 and $13,581 as of December 31, 2019 and 2018, respectively, relating primarily to unredeemed player awards.
The December 31, 2018 deferred revenue balance was recognized as revenue during 2019.
Revenue Disaggregation
The Company disaggregates revenue from contracts
with customers in the following table which is intended to depict how the nature, amount, timing and uncertainty of revenue and
cash flows are affected by economic factors. Disaggregation of revenue for years ended December 31, 2019, 2018 and 2017 are
as follows:
Years Ended December 31,
2019
2018
(a)
2017
(a)
Online Gaming
(b)
$
308,177
$
219,131
$
189,779
Other
15,233
7,146
2,065
Total revenue
$
323,410
$
226,277
$
191,844
(a)
As disclosed in Note 2, prior period amounts have not
been adjusted under the modified retrospective method of adoption of Topic 606.
(b)
Online Gaming includes DFS, iGaming and Sportsbook. These
revenue streams have similar attributes and the same pattern of recognition.
F-
53
DRAFTKINGS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands)
16.
Loss Per Share
The computation of loss per share and weighted-average
shares of the Company's common stock outstanding for the periods presented are as follows:
Years ended December 31,
(in thousands except per share data):
2019
2018
2017
Net loss
$
(142,734
)
$
(76,220
)
$
(75,556
)
Less: accretion of preferred share issuance costs
(992
)
(678
)
(1,513
)
Net loss attributable to common stockholders
$
(143,726
)
$
(76,898
)
$
(77,069
)
Basic and diluted weighted average common share outstanding
386,793
381,821
142,451
Loss per share attributable to common shareholders:
Basic and diluted
$
(0.37
)
$
(0.20
)
$
(0.54
)
There were no preferred or other dividends
declared for the period. For the periods presented, the following securities and Convertible Notes described in Note 7 were not
required to be included in the computation of diluted shares outstanding:
Years ended December 31,
2019
2018
2017
Warrants
515
2,422
2,080
Stock options
135,823
111,877
61,562
Convertible Notes
(a)
20,952
—
—
Total
157,290
114,299
63,642
(a)
Represents the conversion of the outstanding balance
plus accrued interest divided by the stated conversion price of 3.31. These notes are contingently issuable as of December 31,
2019.
F-
54
DRAFTKINGS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands)
17.
Segment Information
The Company operates in a single segment.
Operating segments are identified as components of an enterprise about which separate discrete financial information is available
for evaluation by the chief operating decision maker ("CODM") in making decisions regarding resource allocation and
assessing performance. The Company has determined that its Chief Executive Officer is the CODM. To date, the Company's CODM
has made such decisions and assessed performance at the Company-level.
The Company attributes revenue to individual
countries based on the location of the Company's customers. The Company's products are primarily sold from the United
States, Canada, United Kingdom, Germany, Malta, Netherlands, Ireland, Austria and Australia.
The following table presents the Company's
revenue by geographic region for the periods indicated:
Years ended December 31,
2019
2018
2017
United States
$
318,144
$
219,415
$
187,261
Other
5,266
6,862
4,583
Total revenue
$
323,410
$
226,277
$
191,844
As of the years ended December 31,
2019, and 2018, the Company did not have material assets located outside of the United States.
F-
55
DRAFTKINGS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands)
18.
Subsequent Events
On December 22, 2019, Diamond Eagle
Acquisition Corp, a special purpose acquisition company ("Diamond Eagle"), entered into a Business Combination Agreement
(the "Business Combination Agreement") with DraftKings Inc. ("DraftKings"), the Group, the Group's
shareholders, the representative of the Group's shareholders, DEAC NV Merger Corp., a Nevada corporation and a wholly-owned
subsidiary of DEAC ("DEAC Nevada"), DEAC Merger Sub Inc., a Delaware corporation and a wholly-owned subsidiary of DEAC
("Merger Sub"), pursuant to which (i) Diamond Eagle will merge with and into DEAC Nevada, with DEAC Nevada surviving
the merger (the "reincorporation"), (ii) following the reincorporation, Merger Sub will merge with and into DraftKings
with DraftKings surviving the merger (the "DraftKings Merger"), (iii) immediately following the DraftKings Merger,
Diamond Eagle will acquire all of the issued and outstanding share capital of SBTech and vested in-the-money options exercisable
for SBTech share capital (the "SBTech Acquisition") for approximately €590,000, consisting of (x) €180,000
in cash, subject to customary net debt and working capital and certain other specified adjustments payable in respect of the SBT
shares and 30% of the in-the-money vested SBT options and (y) approximately €410,000 in shares of New DraftKings Class A
common stock, valued at the redemption price for Diamond Eagle's public shares in the Business Combination, and in the form
of newly issued in-the-money vested options of New DraftKings exercisable for New DraftKings Class A common stock and (iv) DEAC
Nevada will be renamed DraftKings Inc. Each of the DraftKings Merger and the SBTech Acquisition will be on the terms and subject
to the conditions set forth in the Business Combination Agreement. The transaction is expected to close in 2020.
In January and February 2020, DraftKings
issued $40,042 of additional Convertible Notes. Refer to Note 7 for the associated terms and conditions.
In February 2020, the Company paid off
its $6,750 term note outstanding at December 31, 2019. In March 2020, the Company withdrew $44,500 in funds from its Credit
Agreement with Pacific Western Bank. The Net facility available from the Credit Agreement for future withdrawals as of March 26,
2020 is $1,019, which represents the $50,000 facility less the $44,500 in funds withdrawn and the $4,481 in letters of credit outlined
in Note 13. The $44,500 remains on deposit with Pacific Western Bank on March 26, 2020.
COVID-19 is having a significant impact on
the Company. The direct impact on the Company beyond disruptions in normal business operations is primarily through the suspension,
postponement and cancellation of major sports seasons and sporting events. Typically, during the March and April time periods,
the Company would have significant user interest and activity in our DFS and Sportsbook product offerings for sporting events such
as the NCAA college basketball tournament, the Masters golf tournament, as well as late season games and early playoff series of
the National Basketball Association and the National Hockey League. The status of most of these sporting events is unknown, including
whether the NBA season will be completed either in part or in its entirety on a delayed schedule or whether the Masters will be
played anytime in calendar year 2020.
The ultimate impact of COVID-19 on the Company's
financial and operating results is unknown and will depend on the length of time that these disruptions exist and whether the sports
seasons and sporting events will ultimately be suspended, postponed, or cancelled; however, COVID-19 has had an impact and may
continue to have an impact, the full extent of which is unknown, but which could be material.
The Company considers events or transactions
that occur after the balance sheet date, but before the consolidated financial statements are issued to provide additional evidence
relative to certain estimates or identify matters that require additional disclosures. The Company evaluated subsequent events
through March 26, 2020, the date on which the consolidated financial statements were available to be issued. The consolidated
financial statements reflect those material items that arose after the balance sheet date, but prior to this date that would be
considered recognized subsequent events.
F-
56
SBTECH (GLOBAL) LIMITED
CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2019
F-
57
Independent Auditor's Report
Board of Directors
SBTECH (GLOBAL) LIMITED
We have audited the accompanying consolidated
financial statements of SBTech (Global) Limited and its subsidiaries (the "Company"), which comprise the consolidated
statements of financial position as of December 31, 2019 and 2018, the related consolidated statements of comprehensive income,
changes in shareholders' equity, and cash flows for the year ended December 31, 2019, 2018 and 2017 and the related
notes to the consolidated financial statements.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation
and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards
as issued by the International Accounting Standards Board; this includes the design, implementation, and maintenance of internal
control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement,
whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion
on these consolidated financial statements based on our audits. We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to
obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend
on the auditor's judgment, including the assessment of the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control.
Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and
the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the
consolidated financial statements.
We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the consolidated financial
statements referred to above present fairly, in all material respects, the financial position of SBTech (Global) Limited and its
subsidiaries as of December 31, 2019 and 2018, and the results of their operations, changes in shareholders' equity
and their cash flows for the year ended December 31, 2019, 2018 and 2017 in accordance with International Financial Reporting
Standards as issued by the International Accounting Standards Board.
Emphasis of Matter
As more fully described in Note 19 to the
consolidated financial statements, the Company has been negatively impacted by the outbreak of a novel coronavirus (COVID-19),
which was declared a global pandemic by the World Health Organization in March 2020.
Tel-Aviv, Israel
/s/ Ziv haft
March 12, 2020, except for footnote 19
Certified Public Accountants (Isr.)
which is dated March 26, 2020
BDO Member Firm
F-
58
SBTECH (GLOBAL) LIMITED
CONSOLIDATED STATEMENTS OF FINANCIAL
POSITION
(in thousands of €)
​
Note
December 31,
2019
December 31,
2018
ASSETS
​
​
​
CURRENT
    ASSETS:
​
​
​
Cash
    and cash equivalents
​
8,144
20,731
Trade
    receivables, net
2
24,745
17,220
Other
    current assets
4
3,258
2,876
Total
    current assets
​
36,147
40,827
NON-CURRENT
    ASSETS:
​
​
​
Intangible
    assets, net
6
26,094
21,980
Right-of-use
    assets
15
25,779
—
Property
    and equipment, net
5
9,930
7,926
Deferred
    tax assets
13
597
235
Other
    non-current assets
7
306
1,688
Total
    non-current assets
​
62,706
31,829
TOTAL
    ASSETS
​
98,853
72,656
LIABILITIES
    AND SHAREHOLDERS' EQUITY
​
​
​
CURRENT
    LIABILITIES:
​
​
​
Trade
    payables
​
8,127
7,006
Lease
    liabilities
15
3,516
—
Other
    accounts payable and accrued expenses
8
11,176
6,923
Total
    current liabilities
​
22,819
13,929
NON-CURRENT
    LIABILITIES:
​
​
​
Lease
    liabilities
15
22,749
—
Accrued
    severance pay, net
​
408
278
Total
    non-current liabilities
​
23,157
278
SHAREHOLDERS'
    EQUITY:
​
​
​
Share
    capital
9
3
3
Actuarial
    reserve
​
(139
)
(65
)
Retained
    earnings
​
51,956
57,928
Equity
    attributable to owners of the parent
​
51,820
57,866
Non-controlling
    interest
18
1,057
583
Total
    shareholders' equity
​
52,877
58,449
TOTAL
    LIABILITIES AND SHAREHOLDERS' EQUITY
​
98,853
72,656
/s/ Richard Carter
/s/ Shay Berka
March 26, 2020
Richard Carter
Chief Executive Officer
Shay Berka
Chief Financial Officer
Date of approval of the
Financial statements
The accompanying notes are an integral
part of the consolidated financial statements.
F-
59
SBTECH (GLOBAL) LIMITED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
(in thousands of €)
​
Note
Year ended
December 31,
2019
Year ended
December 31,
2018
Year ended
December 31,
2017
Revenue
10
96,857
94,147
66,087
Cost of revenue
11
54,173
45,087
31,844
Gross profit
​
42,684
49,060
34,243
Operating expenses:
​
​
​
​
Research and development expenses
​
18,103
10,115
8,693
Selling and marketing expenses
​
6,772
3,722
2,964
General and administrative expenses
​
11,772
7,636
5,892
Total operating expenses
​
36,647
21,473
17,549
Profit from operations
​
6,037
27,587
16,694
Financial income
​
23
97
37
Financial expense
​
846
340
177
Profit before tax
​
5,214
27,344
16,554
Tax expenses
13
638
565
264
Net profit
​
4,576
26,779
16,290
Other comprehensive loss:
​
​
​
​
Items that will not be reclassified to profit or loss:
​
​
​
​
Re-measurements of accrued severance pay
​
148
40
17
Total comprehensive income for the year
​
4,428
26,739
16,273
Profit for the year attributed to:
​
​
​
​
Owners of the parent
​
4,028
26,509
16,110
Non-controlling interest
​
548
270
180
​
​
4,576
26,779
16,290
Total comprehensive income for the year attributed to:
​
​
​
​
Owners of the parent
​
3,954
26,489
16,102
Non-controlling interest
​
474
250
171
​
​
4,428
26,739
16,273
The accompanying notes are an integral
part of the consolidated financial statements.
F-
60
SBTECH (GLOBAL) LIMITED
CONSOLIDATED STATEMENTS OF CHANGES IN
SHAREHOLDERS' EQUITY
(in thousands of €)
Owners of the parent
Non-
Total
Share
capital
Actuarial
reserve
Retained
earnings
Total
controlling
interest
Shareholders'
equity
Balance at December 31, 2016
3
(37
)
17,489
17,455
162
17,617
Changes during 2017:
Net profit
—
—
16,110
16,110
180
16,290
Other comprehensive loss
—
(8
)
—
(8
)
(9
)
(17
)
Total comprehensive income for the year
—
(8
)
16,110
16,102
171
16,273
Dividend declared
—
—
(687
)
(687
)
—
(687
)
Dividend declared and paid
—
—
(313
)
(313
)
—
(313
)
Balance at December 31, 2017
3
(45
)
32,599
32,557
333
32,890
Changes in accounting policy — IFRS
    9 Financial Instruments
—
—
(1,180
)
(1,180
)
—
(1,180
)
Balance at January 1, 2018 as restated
3
(45
)
31,419
31,377
333
31,710
Changes during 2018:
Net profit
—
—
26,509
26,509
270
26,779
Other comprehensive loss
—
(20
)
—
(20
)
(20
)
(40
)
Total comprehensive income for the year
—
(20
)
26,509
26,489
250
26,739
Balance at December 31, 2018
3
(65
)
57,928
57,866
583
58,449
Changes during 2019:
Net profit
—
—
4,028
4,028
548
4,576
Other comprehensive loss
—
(74
)
—
(74)
(74
)
(148
)
Total comprehensive income for the year
—
(74
)
4,028
3,954
474
4,428
Dividend paid
—
—
(10,000
)
(10,000
)
—
(10,000
)
Balance at December 31, 2019
3
(139
)
51,956
51,820
1,057
52,877
The accompanying notes are an integral
part of the consolidated financial statements.
F-
61
SBTECH (GLOBAL) LIMITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of €)
​
Note
Year ended
December 31,
2019
Year ended
December 31,
2018
Year ended
December 31,
2017
CASH
    FLOWS FROM OPERATING ACTIVITIES:
​
​
​
​
Net profit for the year
​
4,576
26,779
16,290
Adjustments required to reflect the cash flows from operating activities:
​
​
​
​
Depreciation and amortization
5,6,15
16,045
8,325
4,222
Interest charged on lease liabilities
15
677
—
—
Gain on sale of fixed assets
5
—
(14
)
—
Increase in trade receivables
​
(7,408
)
(6,706
)
(7,602
)
Decrease (increase) in other current assets
4
1,065
(1,833
)
(245
)
Increase in contract costs
6
(443
)
—
—
Decrease (increase) in other non-current assets
7
(40
)
34
(46
)
Increase in deferred tax assets
13
(362
)
(34
)
(56
)
Increase in trade payables
​
1,180
2,402
3,295
Increase (decrease) in accrued severance pay
​
(18
)
(107
)
13
Increase in other accounts payable and accrued expenses
8
4,050
1,903
2,255
Income tax expenses
13
1,000
565
264
Cash generated from operations
​
20,322
31,314
18,390
Income tax paid
13
(797
)
(365
)
(130
)
Net
    cash provided by operating activities
​
19,525
30,949
18,260
CASH
    FLOWS FROM INVESTING ACTIVITIES:
​
​
​
​
Purchase of property, plant and equipment
5
(4,934
)
(5,865
)
(3,225
)
Disposal of fixed assets
5
—
35
—
Purchase of software and licenses
6
(392
)
(388
)
(215
)
Proceeds from sale of fixed assets
5
—
55
—
Decrease (increase) in restricted deposits
​
(25
)
250
467
Increase in deposits
7
—
(60
)
(72
)
Loans granted to related party
14
—
—
(50
)
Repayment of loan from related party
14
—
1,200
—
Internally generated intangible assets
6
(13,048
)
(12,611
)
(11,212
)
Net
    cash used in investing activities
​
(18,399
)
(17,384
)
(14,307
)
CASH
    FLOWS FROM FINANCING ACTIVITIES:
​
​
​
​
Dividend paid
9
(10,000
)
(687
)
(313
)
Principal paid on lease liabilities
15
(3,537
)
—
—
Loans received from related party
12
—
43
503
Repayment of loan
12
—
(540
)
—
Net
    cash provided by (used in) financing activities
​
(13,537
)
(1,184
)
190
Effects
    of exchange rate changes on cash and cash equivalents
​
(176
)
(104
)
(6
)
Net
    increase (decrease) in cash and cash equivalents
​
(12,587
)
12,277
4,137
Cash
    and cash equivalents at beginning of the year
​
20,731
8,454
4,317
Cash
    and cash equivalents at the end of the year
​
8,144
20,731
8,454
Non-cash
    activities
​
​
​
​
Dividend declared
​
—
—
687
The accompanying notes are an integral
part of the consolidated financial statements.
F-
62
SBTECH (GLOBAL) LIMITED
Notes to the consolidated financial Statements
(in thousands of €, except when specified otherwise)
NOTE 1 — GENERAL:
SBTech (Global) Limited (the "Company")
and its subsidiaries (together, the "Group") was founded in July, 2007 in Gibraltar and since November 2016 has
been domiciled in 33-37 Athol Street, Douglas, Isle of Man, IM1 1LB (Company number 014119V). The Group is an industry-leading
developer of proprietary iGaming platform and sports betting software and solutions for remote gaming operators. These services
are provided on a business-to-business basis.
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES:
The principal accounting policies adopted
in the preparation of the consolidated financial statements are set out below. The policies have been consistently applied to all
the years presented, unless otherwise stated.
Basis of preparation
These consolidated financial statements have
been prepared in accordance with International Financial Reporting Standards ("IFRS"), as issued by the International
Accounting Standard Board ("IASB"). The financial statements have been prepared under the historical cost convention,
except for accrued severance pay, which is accounted for at fair value. The Group has elected to present the statements of comprehensive
income using the function of expense method. In addition, these consolidated financial statements are presented in Euros. All currency
amounts have been recorded to the nearest thousand, unless otherwise indicated.
Use of estimates and assumptions in the preparation of the
financial statements
The preparation of financial statements requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent
assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting
periods. By their nature, these estimates are subject to measurement uncertainty and are reviewed periodically and adjustments,
if necessary, are made in the year which they are identified. Actual results could differ from those estimates. See also Note 3.
Principal of consolidation
The consolidated financial statements include
the accounts of SBTech (Global) Limited Ltd. and its subsidiaries in which it has a controlling interest. All intercompany balances
and transactions have been eliminated upon consolidation. The consolidated financial statements of the Group include the accounts
of the companies detailed in Note 18.
Non-controlling interests
Total comprehensive income of non-wholly
owned subsidiaries is attributed to owners of the parent and to the non-controlling interests in proportion to their relative ownership
interests.
New and amended standards and interpretations adopted in
the period
The Group adopted IFRS 16 with a transition
date of January 1, 2019. The Group has chosen not to restate comparatives on adoption of the standard, and therefore, the
revised requirements are not reflected in the prior year financial statements. Details of the impact this standard has had are
disclosed below. Other new and amended standards and Interpretations issued by the IASB did not impact the Group as they are either
not relevant to the Group's activities or require accounting which is consistent with the Group's current accounting
policies, such as the implementation of IFRIC Interpretation 23 disclosed below. The Group has not early adopted any standards,
interpretations or amendments that have been issued but are not yet effective.
F-
63
SBTECH (GLOBAL) LIMITED
Notes to the consolidated financial Statements
(in thousands of  €, except when specified otherwise)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES: 
(continued)
IFRS 16 Leases
Effective January 1, 2019, IFRS 16 has
replaced IAS 17 Leases and IFRIC 4 Determining whether an Arrangement Contains a Lease. IFRS 16 provides a single lessee accounting
model, requiring the recognition of assets and liabilities for all leases, together with exemptions to exclude leases where the
lease term is 12 months or less, or where the underlying asset is of low-value. IFRS 16 substantially carries forward the
lessor accounting in IAS 17, with the distinction between operating leases and finance leases being retained. The Group does not
have significant leasing acting as a lessor.
IFRS 16 provides for certain optional practical
expedients, including those related to the initial application of the standard. The Group applied the following practical expedients
when applying IFRS 16 to leases previously classified as operating leases under IAS 17:
·
Applied a single discount rate to a portfolio of leases with reasonably similar characteristics;
​
·
Applied the exemption not to recognize right-of-use assets and liabilities for leases with less than 12 months of lease term remaining as of the date of initial application and do not contain a purchase option.
​
As a lessee, the Group previously classified
leases as operating or finance leases based on its assessment of whether the lease transferred substantially all of the risks and
rewards of ownership. Under IFRS 16, the Group recognizes right-of-use assets and lease liabilities for all leases.
The Group adopted IFRS 16 using the modified
retrospective approach, with recognition of transitional adjustments on the date of initial application (January 1, 2019),
without restatement of comparative figures.
On initial application of IFRS 16, the Group
recognized right-of-use assets and lease liabilities in relation to leases of office facilities, motor vehicles, and data centers,
which had previously been classified as operating leases. The lease liabilities were measured at the present value of the remaining
lease payments, discounted using the Group's incremental borrowing rate as at January 1, 2019. The Group's incremental
borrowing rate is the rate at which a similar borrowing could be obtained from an independent creditor under comparable terms and
conditions. The weighted-average rate applied was 2.98%. Right-of-use assets are measured at an amount equal to the lease liability,
adjusted by the amount of any prepaid or accrued lease payments.
The following table presents the impact of
applying IFRS 16 on the consolidated statement of financial position as at January 1, 2019:
​
Under previous policy
The change
Under IFRS 16
Non-current assets:
​
​
​
Right-of-use assets
—
20,769
20,769
Current liabilities:
​
​
​
Lease liabilities
—
2,440
2,440
Non-current liabilities:
​
​
​
Lease liabilities
—
18,329
18,329
For the year ended December 31, 2019:
·
Depreciation expense increased because of the depreciation of right-of-use assets. This resulted in increases in Cost of revenue of 1,792, Research and development expenses of 1,179, Selling and marketing expenses of 10, and General and administrative expenses of 365.
F-
64
SBTECH (GLOBAL) LIMITED
Notes to the consolidated financial Statements
(in thousands of  €, except when specified otherwise)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES: 
(continued)
·
Lease expense relating to previous operating leases decreased by 1,798 in Cost of revenue, 1,307 in Research and development expenses, 20 in Selling and marketing expenses, and 412 in General and administrative expenses.
·
Financial expense increased by 677 relating to the interest expense on additional lease liabilities recognised.
​
·
Income tax expenses decreased, and deferred tax asset increased by 73 relating to the tax effect of these changes in expenses.
​
·
Cash flow from operating activities increased by 677 and cash flows from financing activities decreased by 3,537, relating to decrease in operating lease payments and increases in principal and interest payments of lease liabilities.
Significant accounting policies subsequent to transition
All leases are accounted for by recognising
a right-of-use asset and a lease liability. Lease liabilities are measured at the present value of the contractual payments due
to the lessor over the lease term, with the discount rate determined by reference to the rate implicit in the lease unless (as
is typically the case) this is not readily determinable, in which case the Group's incremental borrowing rate on commencement
of the lease is used. Variable lease payments are only included in the measurement of the lease liability if they depend on an
index or rate. In such cases, the initial measurement of the lease liability assumes the variable element will remain unchanged
throughout the lease term. Other variable lease payments are expensed in the period to which they relate.
On initial recognition, the carrying value of the lease liability
also includes:
·
amounts expected to be payable under any residual value guarantee;
·
the exercise price of any purchase option granted in favor of the Group if it is reasonably certain to exercise that option;
·
any penalties payable for terminating the lease, if the term of the lease has been estimated on the basis of termination option being exercised.
​
Right-of-use assets are initially measured
at the amount of the lease liability, reduced for any lease incentives received, and increased for:
·
lease payments made at or before commencement of the lease;
·
initial direct costs incurred; and
​
·
the amount of any provision recognized where the Group is contractually required to dismantle, remove or restore the leased asset.
​
Subsequent to initial measurement, lease
liabilities increase as a result of interest charged at a constant rate on the balance outstanding and are reduced for lease payments
made. Right-of-use assets are amortized on a straight-line basis over the remaining term of the lease or over the remaining useful
life of the right-of-use asset, if rarely, this is judged to be shorter than the lease term. In the scenario of a purchase option,
the Group amortizes the right-of-use asset over its useful life. Lease liabilities are remeasured when there is a change in future
lease payments arising from a change in an index or rate or when there is a change in the assessment of the term of any lease
the remeasurement being recognized in front of the right-of-use assets.
F-
65
SBTECH (GLOBAL) LIMITED
Notes to the consolidated financial Statements
(in thousands of  €, except when specified otherwise)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES: 
(continued)
The following is a reconciliation of the
Group's liabilities in respect of operating leases disclosed in the financial statements as of December 31, 2018, discounted
at the incremental interest rate on the initial implementation date and lease commitments recognized on January 1, 2019:
​
€
Operating lease commitments as of December 31, 2018
11,309
Less: short-term leases not recognized under IFRS 16
(298
)
Less: effect of termination options reasonably certain to be exercised
(190
)
Plus: effect of extension options reasonably certain to be exercised
12,797
Undiscounted lease payments
23,618
Less: effect of discounting using the weighted average incremental borrowing rate of 2.98% as of January 1, 2019
(2,849
)
Lease liabilities as of January 1, 2019
20,769
Use of estimates and judgements
There have been no material revisions to
the nature and amount of estimates of amounts reported in prior periods except where the implementation of IFRS 16 discussed above
requires a different approach to the accounting previously applied. Significant estimates and judgements that have been required
for the implementation of the new standard are:
·
The determination of whether an arrangement contains a lease;
​
·
The determination of lease term for some lease contracts in which the Group is a lessee that include renewal options and termination options, and the determination whether the Group is reasonably certain to exercise such option; and
​
·
The determination of the incremental borrowing rate used to measure lease liabilities.
​
IFRIC Interpretation 23 Uncertainty over Income Tax Treatments
Effective January 1, 2019, the Interpretation
addresses the accounting for income taxes when tax treatments involve uncertainty that affects the application of IAS 12 Income
Taxes. It does not apply to taxes or levies outside the scope of IAS 12, nor does it specifically include requirements relating
to interest and penalties associated with uncertain tax treatments. The Interpretation specifically addresses the following:
·
Whether an entity considers uncertain tax treatments separately
​
·
The assumptions an entity makes about the examination of tax treatments by taxation authorities
​
·
How an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates
​
·
How an entity considers changes in facts and circumstances
​
The
Group determines whether to consider each uncertain tax treatment separately or together with one or more other uncertain tax
treatments and uses the approach that better predicts the resolution of the uncertainty. The Interpretation did not have an impact
on the consolidated financial statements of the Group.
F-
66
SBTECH (GLOBAL) LIMITED
Notes to the consolidated financial Statements
(in thousands of  €, except when specified otherwise)
NOTE 2 — SIGNIFICANT
ACCOUNTING POLICIES:  (continued)
New standards, interpretations and amendments not yet effective
There are a number of standards, amendments
to standards, and interpretations which have been issued by the IASB that are effective in future accounting periods that the Group
has decided not to adopt early.
Amendments to IAS 1 and IAS 8:
Definition of Material
In October 2018, the IASB issued amendments
to IAS 1 Presentation of Financial Statements and IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors to align
the definition of  "material" across the standards and to clarify certain aspects of the definition. The new
definition states that, "Information is material if omitting, misstating or obscuring it could reasonably be expected to
influence decisions that the primary users of general-purpose financial statements make on the basis of those financial statements,
which provide financial information about a specific reporting entity". The amendments are effective for annual reporting
periods beginning on or after January 1, 2020. The amendments to the definition of material is not expected to have a significant
impact on the Group's consolidated financial statements.
Amendments to IAS 1:
Presentation of Financial Statements
In January 2020, the IASB issued amendments
to IAS 1, which clarify the criteria used to determine whether liabilities are classified as current or non-current. These amendments
clarify that current or non-current classification is based on whether an entity has a right at the end of the reporting period
to defer settlement of the liability for at least twelve months after the reporting period. The amendments also clarify that
 "settlement" includes the transfer of cash, goods, services, or equity instruments unless the obligation to transfer
equity instruments arises from a conversion feature classified as an equity instrument separately from the liability component
of a compound financial instrument. The amendments are effective for annual reporting periods beginning on or after January 1,
2022. The Group is currently assessing the impact of these new accounting standards and amendments. The Group does not believe
that the amendments to IAS 1 will have a significant impact on the Group's consolidated financial statements.
The Group does not expect any other standards
issued by the IASB, but not yet effective, to have a material impact on the Group's consolidated financial statements.
Foreign currency
The financial information of the Group is
presented in Euro which is the Group's functional currency and is the currency that best reflects the economic substance
of the underlying events and circumstances relevant to the Group. Transactions and balances in foreign currencies are converted
into Euro in accordance with the principles set forth by IAS 21 ("The Effects of Changes in Foreign Exchange Rates").
Accordingly, transactions and balances have been converted as follows:
·
Monetary assets and liabilities — at the rate of exchange applicable at the consolidated statements of financial position date.
·
Income and expense items — at exchange rates applicable as of the date of recognition of those items.
​
·
Non-monetary items are converted at the rate of exchange used to convert the related balance sheet items i.e. at the time of the transaction.
​
·
Exchange gains and losses from the aforementioned conversion are recognized in profit or loss.
F-
67
SBTECH (GLOBAL) LIMITED
Notes to the consolidated financial Statements
(in thousands of  €, except when specified otherwise)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES: 
(continued)
Cash and cash equivalents
Cash equivalents are considered by the Group
to be highly-liquid investments, including, inter alia, short-term deposits with banks, the maturity of which do not exceed three months
at the time of deposit and which are not restricted.
Fair value measurement
Fair value is the price that would be received
to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The carrying value of cash and cash equivalents, trade receivables, net and other current assets, and trade payables and other
accounts payables and accrued expenses approximate their fair value due to the short-term nature of these instruments. The fair
value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
A.
In the principal market for the asset or liability; or
B.
In the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible by the Group.
The fair value of an asset or a liability
is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market
participants act in their economic best interest.
A fair value measurement of a non-financial
asset takes into account a market participant's ability to generate economic benefits by using the asset in its highest and
best use or by selling it to another market participant that would use the asset in its highest and best use. When there are no
quoted prices in active markets for identical assets or liabilities, the Group uses valuation techniques that are appropriate in
the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable
inputs and minimizing the use of unobservable inputs.
Classification by fair value hierarchy
Assets and liabilities presented in the consolidated
statements of financial position at fair value are grouped into classes with similar characteristics using the following fair value
hierarchy which is determined based on the source of input used in measuring fair value:
Level 1
—
Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2
—
Inputs other than quoted prices included within Level 1 that are observable either directly or indirectly.
Level 3
—
Inputs that are not based on observable market data (valuation techniques that use inputs that are not based on observable market data).
For assets and liabilities that are recognized
in the financial statements at fair value on a recurring basis, the Group determines whether transfers have occurred between levels
in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement
as a whole) at the end of each reporting period.
F-
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SBTECH (GLOBAL) LIMITED
Notes to the consolidated financial Statements
(in thousands of  €, except when specified otherwise)
NOTE 2 — SIGNIFICANT
ACCOUNTING POLICIES:  (continued)
Financial instruments
1.
Financial Assets
The Group classifies its financial assets
into the following category, based on the business model for managing the financial asset and its contractual cash flow characteristics.
The Group's accounting policy for the relevant category is as follows:
Amortized cost: These assets arise principally
from the services rendered to customers (e.g. trade receivables), but also incorporate other types of financial assets where the
objective is to hold these assets in order to collect contractual cash flows and the contractual cash flows are solely payments
of principal and interest. They are initially recognized at fair value plus transaction costs that are directly attributable to
their acquisition or issue, and are subsequently carried at amortized cost using the effective interest rate method, less provision
for impairment. Impairment provisions for trade receivable are recognized based on the simplified approach within IFRS 9 using
a provision in the determination of the lifetime expected credit losses. During this process the probability of the non-payment
of the trade receivables is assessed. This probability is then multiplied by the amount of the expected loss arising from default
to determine the lifetime expected credit loss for the trade receivables. For trade receivables, which are reported net, such provisions
are recorded in a separate provision account with the loss being recognized within general and administrative expenses in the consolidated
statements of comprehensive income. On assessment that the trade receivable will not be collectable, the gross carrying value of
the asset is written off against the associated provision.
2.
Financial Liabilities
The Group classifies its financial liabilities
based on the purpose for which the liability was acquired. The Group's accounting policy is as follows:
Fair value through profit or loss: The Group
does not have any liabilities held for trading nor has it designated any financial liabilities as being at fair value through profit
or loss.
Amortized cost: Trade payables and certain
other accounts payable and accrued expenses are initially recognized at fair value and subsequently carried at amortized cost using
the effective interest method.
3.
De-recognition
·
Financial Assets — The Group derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the rights to receive the contractual cash flows.
·
Financial Liabilities — The Group derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire.
4.
Impairment of financial assets
The Group assesses at the end of each reporting
period whether there is any objective evidence of impairment of financial assets carried at amortized cost. The Group recognizes
an allowance for expected credit losses ("ECL") for all debt instruments not held at fair value through profit or
loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash
flows that the Group expects to receive, discounted at an approximation of the original effective interest rate. ECLs are recognized
in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition,
ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL).
For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance
is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime
ECL). For trade receivables and contract assets, the Group applies a simplified approach in calculating ECLs. Therefore, the Group
does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each reporting date.
The Group has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking
factors specific to the debtors and the economic environment. The Group assessed its financial assets that are subject to the
expected credit loss model. In order to manage the credit risks associated with customer receivables, the Group aims to secure
certain financial guarantees prior to entering into business relationships with its customers. Payment terms with customers from
different geographical areas are similar.
F-
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SBTECH (GLOBAL) LIMITED
Notes to the consolidated financial Statements
(in thousands of  €, except when specified otherwise)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES: 
(continued)
To this end, the Group developed a matrix,
which is based on past experience and historical data along with projections into consideration, in order to group the ECL:
1.
Receivables with a short billing cycle ("Payment option 1").
2.
Receivables from related party ("Payment option 2").
ECLs are measured as the unbiased probability-weighted
present value of all cash shortfalls over the expected life of each financial asset. ECLs are mainly calculated with a statistical
model using three major risk parameters: probability of default, loss given default and exposure at default. The estimation of
these risk parameters incorporates all available relevant information, not only historical and current loss data, but also reasonable
and supportable forward-looking information reflected by the future expectation factors.
This information includes macroeconomic factors
(e.g., gross domestic product growth, unemployment rate, cost performance index) and forecasts of future economic conditions. For
receivables from financial services, these forecasts are performed using a scenario analysis (base case, adverse and optimistic
scenarios).
Definition of default, including reasons for selecting
the definition
Prior to commencing a business relationship,
the Group will enter into an agreement with the customer. The agreement or contract typically includes details of the terms of
payment to which the Group is entitled. In most cases, the customer updates the Group if there is a delay in the payment beyond
the terms of the agreement. Any delays in payment for more than two months are subject to approval of management. If a customer's
scheduled payment is delayed by more than two months and such delay is not approved by the Group's management, the sale
department will typically make direct contact with the customer's management and inform them of the overdue obligation and
the Group will pursue remedies available (such as legal notice, suspend fully or partially service) to collect the overdue payment.
If the customer and the Group are not able to resolve the matter at that time, the receivable is considered to be in default as
the collectability is no longer certain. If the collection effort is not successful, the Group will retain legal counsel in the
applicable country to assist with collection and sends a demand letter to that effect.
Write-off policy
The Group writes off its financial assets
if any of the following occur:
·
Inability to locate the debtor.
​
·
Discharge of the debt in a bankruptcy.
​
·
It is determined that the efforts to collect the debt are no longer cost effective given the size of receivable.
​
The collections department must comply with
the collection efforts outlined in the policy to collect on delinquent customer accounts before any write-offs are made.
F-
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SBTECH (GLOBAL) LIMITED
Notes to the consolidated financial Statements
(in thousands of  €, except when specified otherwise)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES: 
(continued)
Aging Schedule based on due date
As
    of December 31, 2019
Within
payment
terms
0-90 days
    over
payment terms
90+
    days over
payment terms
Total
Payment
    option 1
14,884
4,574
1,430
20,888
Payment
    option 2
544
158
3,323
4,025
Total
15,428
4,732
4,753
24,913
As
    of December 31, 2018
Within
payment
terms
0-90 days
    over
payment terms
90+
    days over
payment terms
Total
Payment
    option 1
8,890
1,366
3,226
13,482
Payment
    option 2
459
275
3,872
4,606
Total
9,349
1,641
7,098
18,088
Trade receivables by geographic area
​
As
    of
December 31, 2019
As
    of
December 31, 2018
Europe
11,623
9,018
Rest
    of the world
13,290
9,070
Total
24,913
18,088
Two level matrix
​
As
    of
December 31, 2019
As
    of
December 31, 2018
Payment
    option 1
20,888
13,482
Payment
    option 2
4,025
4,606
Total
24,913
18,088
At every reporting date the historical observed
default rates are updated and changes in the forward-looking estimates are analyzed.
Level provision matrix
The Group estimated the following provision matrix:
​
Default
    rate
As
    of
December 31, 2019
ECL
Payment
    option 1
0.8
%
20,888
167
Payment
    option 2
0.04
%
4,025
1
Total
​
24,913
168
​
Default
    rate
As
    of
December 31, 2018
ECL
Payment
    option 1
0.62
%
13,482
84
Payment
    option 2
17.02
%
4,606
784
Total
​
18,088
868
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SBTECH (GLOBAL) LIMITED
Notes to the consolidated financial
Statements
(in thousands of  €, except when specified otherwise)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES: 
(continued)
Movements in the impairment allowance for trade receivables
are as follows:
​
2019
2018
2017
At
    January 1 (under IAS 39)
—
—
—
Restated
    through opening retained earnings
—
1,180
—
At
    January 1 (under IFRS 9)
868
1,180
—
Decrease
    during the year
(700
)
(312
)
—
At
    December 31
168
868
—
As of December 31, 2019, and 2018, ECL for trade receivables
were 168 and 868, respectively.
Intangible assets
Intangible assets include internally generated
capitalized software development costs. Intangible assets with a finite useful life are amortized over their estimated useful lives
and reviewed for impairment whenever there is an indication that the asset may be impaired. The amortization period and the amortization
method for an intangible asset are reviewed at least at each year end. The carrying amount of these assets is reviewed whenever
events or changes in circumstances indicate that the carrying value of an asset may not be recoverable (see also Note 2 — Impairment
of non-financial assets).
Expenditure incurred on development activities
including the Group's software development is capitalized only where the expenditure will lead to new or substantially improved
products, the products are technically and commercially feasible and the Group has sufficient resources to complete the development
and reach the stage for which the product is ready for use. Capitalized development costs are amortized on a straight-line basis
over their estimated useful lives of 4 years once the development is completed and the assets are in use. Subsequent expenditure
on capitalized intangible assets is capitalized only where it clearly increases the economic benefits to be derived from the asset
to which it relates. All other expenditure, including that incurred in order to maintain an intangible asset's current level
of performance, is expensed as incurred (see also Note 2 — Research and development costs). Externally purchased
software and licenses are amortized on a straight-line basis over the period of the software and licenses, which ranges between
two to three years.
Property, plant and equipment
Items of property, plant and equipment are
initially recognized at cost. Cost includes directly attributable costs and the estimated present value of any future costs of
dismantling and removing items. Depreciation is computed by the straight-line method, based on the estimated useful lives of the
assets, as follows:
​
Annual
    depreciation rate (%)
Main
    annual depreciation rate (%)
Motor
    vehicle
15
15
Computers
15-50
33
Furniture
    and office equipment
7-15
15
Leasehold
    improvements
Over
    the shorter of the term of the
lease or useful life
10
F-
72
SBTECH (GLOBAL) LIMITED
Notes to the consolidated financial Statements
(in thousands of  €, except when specified otherwise)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES: 
(continued)
Leasehold improvements are depreciated over
the term of the expected lease including optional extension, or the estimated useful lives of the improvements, whichever is shorter.
Impairment of non-financial assets
Non-financial assets are subject to impairment
test whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Where the carrying
value of the non-financial asset exceeds its recoverable amount (i.e. the higher of value in use and fair value less costs to dispose),
the asset is written down and impairment charge is recognized accordingly. Where it is not possible to estimate the recoverable
amount of an individual asset, the impairment test is carried out on the asset's cash-generating unit (i.e. the smallest
group of assets to which the asset belongs that generates cash inflow that are largely independent of cash inflows from other assets).
An impairment loss allocated to an asset, is reversed only if there have been changes in the estimates used to determine the asset's
recoverable amount since the last impairment loss was recognized. Reversal of an impairment loss, as above, is limited to the lower
of the carrying amount of the asset that would have been determined (net of depreciation or amortization) had no impairment loss
been recognized for the asset in prior years and the assets recoverable amount. After an impairment of non-financial asset
is recognized, the Group examines at each reporting date whether there are indications that the impairment which was recognized
in the past no longer exists or should be reduced. The reversal of impairment loss of an asset is recognized in profit or loss.
Impairment charges are included in general and administrative expenses. During the years ended December 31, 2019, 2018
and 2017 no impairment charges of non-financial assets were recognized.
Research and development costs
Expenditure on research activities is recognized
in profit or loss as incurred. Expenditure incurred on development activities including the Group's development is capitalized
where the expenditure will lead to new or substantially improved products and only if all the following can be demonstrated:
·
The product is technically and commercially feasible.
·
The Group intends to complete the product so that it will be
available for use or sale.
·
The Group has the ability to use the product or sell it.
·
The Group has the technical, financial and other resources to
complete the development and to use or sell the product.
·
The Group can demonstrate the probability that the product will
generate future economic benefits.
·
The Group is able to measure reliably the expenditure attributable
to the product during the development.
Capitalized development costs are amortized
on a straight-line basis over their estimated useful lives of four years once the development is completed and the assets
are in use. Subsequent expenditure on capitalized intangible assets is capitalized only where it clearly increases the economic
benefits to be derived from the asset to which it relates. All other expenditure, including that incurred in order to maintain
an intangible asset's current level of performance, is expensed as incurred.
Share based payment
The Group measures the share-based expense
and the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date
at which they are granted. The fair value is determined by using the Black-Scholes and Merton (BSM) model which considers the terms
and conditions upon which the instruments were granted.
F-
73
SBTECH (GLOBAL) LIMITED
Notes to the consolidated financial Statements
(in thousands of  €, except when specified otherwise)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES: 
(continued)
Deferred taxes
Deferred taxes are computed in respect of
temporary differences between the carrying amounts of assets and liabilities in the financial statements and the amounts attributable
for tax purposes. Deferred taxes are recognized in other comprehensive income or directly in equity if the tax relates to those
items.
Deferred taxes are measured at the tax rates
that are expected to apply in the period when the temporary differences are reversed in profit or loss, other comprehensive income
or equity, based on tax laws that have been enacted or substantively enacted at the end of the reporting period. Deferred taxes
in profit or loss represent the changes in the carrying amount of deferred tax balances during the reporting period, excluding
changes attributable to items recognized in other comprehensive income or directly in equity. Deferred tax assets are reviewed
at the end of each reporting period and reduced to the extent that it is not probable that they will be utilized. In addition,
temporary differences (such as carry forward losses) for which deferred tax assets have not been recognized are reassessed and
deferred tax assets are recognized to the extent that their recoverability is probable. Any resulting reduction or reversal is
recognized on "income tax" within the statements of comprehensive income. Taxes that would apply in the event of the
disposal of investments in investees have not been taken into account, as long as the disposal of such investments is not expected
in the foreseeable future and the Group has control over such disposal. The Group's policy is not to initiate distribution
of dividends that triggers an additional tax liability. All deferred tax assets and liabilities are presented in the consolidated
statement of financial position as non-current items, respectively. Deferred taxes are offset in the consolidated statement of
financial position if there is a legally enforceable right to offset a current tax asset against a current tax liability and the
deferred taxes relate to the same taxpayer and the same taxation authority.
Current taxes
The current taxes is calculated on the basis
of the tax laws enacted at the statement of financial position date in countries where the Group operates and generates taxable
income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation
is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax
authorities.
Revenue recognition
Revenue from contracts with customers is
recognized when control of the services are transferred to the customer at an amount that reflects the consideration to which the
Group expects to be entitled in exchange for those services. The Group's key revenue is derived from contracting parties
and comprises as a percentage of the revenue generated by the contracting party from use of the Group's intellectual
property in trading activities. Revenue share income is based on the underlying gaming revenue earned by our licensees and is recognized
in the accounting periods in which the gaming transactions occur. In reseller arrangements, the Group's revenue is comprised
of a base fixed monthly fee plus a fixed monthly fee for each end-user that the reseller contracts with to access the Group's
intellectual property in trading activities. The arrangements with customers do not provide the customer with the right to take
possession of the Group's software suite at any time. Instead, customers are granted continuous access to the Group's
software suite over the contractual period.
F-
74
SBTECH (GLOBAL) LIMITED
Notes to the consolidated financial Statements
(in thousands of  €, except when specified otherwise)
NOTE 3 — CRITICAL ACCOUNTING ESTIMATES
AND JUDGEMENTS:
The areas requiring the use of estimates
and critical judgments that may potentially have a significant impact on the Group's earnings and financial position are:
capitalization and amortization of development costs and the useful life of property and equipment and of intangible assets. Upon
adoption of IFRS 16 as of January 1, 2019, areas requiring the use of estimates and critical judgments also include the determination
of whether an arrangement is or contains a lease, the determination of lease term in contracts in which the Group is a lessee (including
the assessment of whether the Group is reasonably certain to exercise lessee extension or termination options), and the determination
of the incremental borrowing rate used to measure lease liabilities.
Amortization of capitalized development costs and the useful
life of property and equipment
Intangible assets and property and equipment
are amortized or depreciated over their useful lives. Useful lives are based on management's estimates of the period that
the assets will generate revenue, which are periodically reviewed for continued appropriateness. Changes to estimates can result
in significant variations in the amounts charged to the consolidated statements of comprehensive income in specific periods.
Share based payment
The Group has a share-based remuneration
scheme for employees. The share options plan has a "Transaction Event" as described in Note 9.C other than continued
service. As of the balance sheet date, the Group does not expect the occurrence of the Transaction Event to be considered as probable.
As a result, no expense has been recorded.
NOTE 4 — OTHER CURRENT ASSETS:
​
December 31,
2019
December 31,
2018
Related
    parties (see Note 7)
1,503
86
Prepaid
    expenses
1,352
1,286
Institutions
207
567
Other
    receivables
196
937
Total
3,258
2,876
NOTE 5 — PROPERTY AND EQUIPMENT, NET:
​
Leasehold
Improvements
Computers
Furniture
    and
Office
Equipment
Total
Cost
​
​
​
​
At
    January 1, 2019
2,374
7,800
710
10,884
Additions
547
4,196
191
4,934
At
    December 31, 2019
2,921
11,996
901
15,818
Accumulated
    depreciation
​
​
​
​
At
    January 1, 2019
(393
)
(2,352
)
(213
)
(2,958
)
Depreciation
(220
)
(2,616
)
(94
)
(2,930
)
At
    December 31, 2019
(613
)
(4,968
)
(307
)
(5,888
)
Net
    book value at December 31, 2019
2,308
7,028
594
9,930
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75
SBTECH (GLOBAL) LIMITED
Notes to the consolidated financial Statements
(in thousands of  €, except when specified otherwise)
NOTE 5 — PROPERTY AND EQUIPMENT, NET: 
(continued)
Leasehold
Improvements
Motor
Vehicle
Computers
Furniture and
Office Equipment
Total
Cost
At January 1, 2018
783
121
4,263
375
5,542
Additions
1,601
—
3,848
416
5,865
Disposals
(10
)
(121
)
(311
)
(81
)
(523
)
At December 31, 2018
2,374
—
7,800
710
10,884
Accumulated depreciation
At January 1, 2018
(79
)
(33
)
(1,338
)
(170
)
(1,620
)
Depreciation
(319
)
(18
)
(1,324
)
(124
)
(1,785
)
Disposals
5
51
310
81
447
At December 31, 2018
(393
)
—
(2,352
)
(213
)
(2,958
)
Net book value at December 31, 2018
1,981
—
5,448
497
7,926
Leasehold
Improvements
Motor
Vehicle
Computers
Furniture and
Office Equipment
Total
Cost
At January 1, 2017
313
121
1,591
310
2,335
Additions
470
—
2,690
65
3,225
Disposals
—
—
(18
)
—
(18
)
At December 31, 2017
783
121
4,263
375
5,542
Accumulated depreciation
At January 1, 2017
(46
)
(14
)
(650
)
(135
)
(845
)
Depreciation
(33
)
(19
)
(706
)
(35
)
(793
)
Disposals
—
—
18
—
18
At December 31, 2017
(79
)
(33
)
(1,338
)
(170
)
(1,620
)
Net book value at December 31, 2017
704
88
2,925
205
3,922
NOTE 6 — INTANGIBLE ASSETS, NET:
Internally
generated
intangible assets
Software
and licenses
Others
Total
Cost
At January 1, 2019
32,681
603
—
33,284
Additions
13,048
392
443
13,883
At December 31, 2019
45,729
995
443
47,167
Accumulated Amortization
At January 1, 2019
(11,110
)
(194
)
—
(11,304
)
Amortization
(9,601
)
(161
)
(7
)
(9,769
)
At December 31, 2019
(20,711
)
(355
)
(7
)
(21,073
)
Net book value at December 31, 2019
25,018
640
436
26,094
F-
76
SBTECH (GLOBAL) LIMITED
Notes to the consolidated financial Statements
(in thousands of  €, except when specified otherwise)
NOTE 6 — INTANGIBLE ASSETS, NET: 
(continued)
Internally
generated
intangible assets
Software
and licenses
Total
Cost
At January 1, 2018
20,070
215
20,285
Additions
12,611
388
12,999
At December 31, 2018
32,681
603
33,284
Accumulated Amortization
At January 1, 2018
(4,705
)
(59
)
(4,764
)
Amortization
(6,405
)
(135
)
(6,540
)
At December 31, 2018
(11,110
)
(194
)
(11,304
)
Net book value at December 31, 2018
21,571
409
21,980
Internally
generated
intangible assets
Software
and licenses
Total
Cost
At January 1, 2017
8,858
—
8,858
Additions
11,212
215
11,427
At December 31, 2017
20,070
215
20,285
Accumulated Amortization
At January 1, 2017
(1,335
)
—
(1,335
)
Amortization
(3,370
)
(59
)
(3,429
)
At December 31, 2017
(4,705
)
(59
)
(4,764
)
Net book value at December 31, 2017
15,365
156
15,521
NOTE 7 — OTHER NON-CURRENT ASSETS:
December 31, 2019
December 31, 2018
Related parties (see also Note 14)*
—
1,407
Deposit
306
281
Total
306
1,688
*
Other non-current assets for related parties includes as of December 31, 2018 a loan the Group provided to a related party during the years 2015 — 2018 in the amount of 2,810. The loan bears interest of Libor+2.25% per annum. In 2019 there were no repayments against this loan. In 2018 the Group received repayments which amounted to 1,550. As of December 31, 2019, the loan amounted to 1,430 and was classified as short term (see also Note 4). As of December 31, 2018, the loan amounted to 1,407 and was classified as long term.
F-
77
SBTECH (GLOBAL)
LIMITED
Notes to the consolidated financial Statements
(in thousands of  €, except when specified otherwise)
NOTE 8 — OTHER ACCOUNTS PAYABLE AND ACCRUED
EXPENSES:
December 31, 2019
December 31, 2018
Employees, salaries and related liabilities
5,657
3,684
VAT and income tax payable
1,859
373
Accrued expenses
1,772
123
Provision for vacation
1,177
976
Advances and deposits from customers
711
1,767
Total
11,176
6,923
NOTE 9 — SHAREHOLDERS' EQUITY:
A. Composed as follows as of December 31, 2019:
Authorized
Issued and
outstanding
Amount
Ordinary shares of USD 0.1 per share
72,000
40,800
Composed as follows as of December 31, 2018:
Authorized
Issued and
outstanding
Amount
Ordinary shares of USD 0.1 per share
72,000
40,800
Ordinary shares confer upon their holders
the rights to receive notice to participate and vote in general meeting of the Group, and the right to receive dividends if declared.
B. Dividend
On January 10, 2019 and April 8,
2019, the Group's board of directors declared dividends to its shareholders totaling 10,000 (€245.10 per share). In
2019, the dividend has been paid in full to the shareholders. On September 28, 2017, the Group's board of directors
declared a total amount of 1,000 dividend to its shareholders (€24.51 per share), 313 of which was paid to its shareholders
in 2017 and the remaining 687 was paid in 2018. No dividends were declared in 2018.
C. Share Based payments
On July 20, 2011 the Company established
a share option plan (the "Plan"). The Company has assigned up to 15% of its share capital as a pool for options. According
to the Plan, the exercise of the granted options depends on two main cumulative conditions, the maturity of the option after a
certain vesting period and the occurrence of a Transaction Event. A Transaction Event is defined in the Plan as any (i) merger,
consolidation or reorganization of the Company with one or more other entities in which the Company is not the surviving entity;
(ii) sale of all or substantially all of the assets or shares of the Company to another entity; or (iii) IPO.
As of the balance sheet date, the Group
does not expect the occurrence of the Transaction Event. Thus, no expense has been recorded.
F-
78
SBTECH (GLOBAL) LIMITED
Notes to the consolidated financial Statements
(in thousands of  €, except when specified otherwise)
NOTE 9 — SHAREHOLDERS' EQUITY: 
(continued)
Share Option Plan: 2019
Share Option Plan: 2018
Number of
Options
Weighted
Average Exercise
Price
Number of
Options
Weighted
Average
Exercise Price
€
€
Options outstanding at beginning of year
5,217
927
3,120
130
Changes during the year:
Granted
676
10,720
2,337
1,998
Cancelled
—
—
240
997
Options outstanding at end of year
5,893
2,330
5,217
927
NOTE 10 — REVENUE:
Geographical analysis of revenue
For the year ended
December 31,
2019
2018
2017
Europe
37
%
34
%
48
%
Rest of the world
63
%
66
%
52
%
100
%
100
%
100
%
Major customers (in thousands and as a percentage of
total revenues)
Year ended December 31,
2019
2018
2017
€
%
€
%
€
%
Customer A
44,445
46
%
35,510
38
%
26,840
41
%
Customer B
7,980
8
%
14,300
15
%
8,950
14
%
Customer C
6,265
6
%
6,870
7
%
8,765
13
%
Customer D
3,553
4
%
5,432
6
%
2,548
4
%
Others
34,614
36
%
32,035
34
%
18,984
28
%
96,857
100
%
94,147
100
%
66,087
100
%
NOTE 11 — COST OF REVENUE:
Year ended
December 31,
2019
Year ended
December 31,
2018
Year ended
December 31,
2017
Payroll and related expenses
21,448
18,934
15,683
Depreciation and amortization
13,750
7,962
3,972
Games, data providers and related fees
9,785
10,936
7,068
IT
7,220
3,917
3,526
Others
1,970
3,338
1,595
Total
54,173
45,087
31,844
F-
79
SBTECH (GLOBAL) LIMITED
Notes to the consolidated financial
Statements
(in thousands of  €, except when specified otherwise)
NOTE 12 — FINANCING ACTIVITIES IN THE
STATEMENT OF CASH FLOWS:
Reconciliation of the changes in liabilities
for which cash flows have been, or will be classified as financing activities in the consolidated statements of cash flows:
Loans from
related parties
As of January 1, 2017
—
Changes from financing cash flows:
Loan received from related party
(503
)
Exchange rate differences
6
As of December 31, 2017
(497
)
Changes from financing cash flows:
Loan received from related party
(43
)
Exchange rate differences
(27
)
Interest
(28
)
Repayment of loan including interest
595
As of December 31, 2018
—
Changes from financing cash flows:
—
As of December 31, 2019
—
NOTE 13 — TAXES ON INCOME:
1.
Taxes on income
Isle of Man
The Company has been domiciled in Isle of
Man and under the local current laws; the Company is not subject to corporate income tax.
Israel
The tax rates that apply in Israel are 23% in 2019 and 2018,
and 24% in 2017.
Bulgaria
The tax rates that apply in Bulgaria are 10% in 2019, 2018 and
2017.
Ukraine
The tax rates that apply in Ukraine are 18% in 2019, 2018 and
2017.
Malta
The tax rates that apply in Malta are 35% in 2019, 2018 and
2017.
F-
80
SBTECH (GLOBAL) LIMITED
Notes to the consolidated financial Statements
(in thousands of  €, except when specified otherwise)
NOTE 13 — TAXES ON INCOME:  (continued)
2.
Deferred tax assets
​
Deferred tax assets reflect the net tax effects
of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts
used for income tax purposes.
The Group's deferred tax assets result from:
Year ended
December 31, 2019
Year ended
December 31, 2018
Other provisions and employee-related obligations
300
171
Property and equipment, net
131
—
Accrued severance pay, net
93
64
Other
73
—
Deferred tax assets
597
235
The movement on the deferred tax account is as shown below:
Year ended
December 31, 2019
Year ended
December 31, 2018
Year ended
December 31, 2017
At January 1
235
201
145
Recognized in profit and loss — tax income
362
34
56
At December 31
597
235
201
3.
Composition
Year ended
December 31, 2019
Year ended
December 31, 2018
Year ended
December 31, 2017
Current tax
1,000
599
320
Change in deferred tax
(362
)
(34
)
(56
)
Total
638
565
264
4.
Reconciliation between the theoretical tax on the
pre-tax income and the tax expense:
Year ended
December 31, 2019
Year ended
December 31, 2018
Year ended
December 31, 2017
Profit before taxation
5,214
27,344
16,554
Theoretical tax credit at applicable statutory 0%
—
—
—
Tax Rate difference between Isle of Man and the Group's subsidiaries
891
463
188
Non-allowable expenses
58
21
14
Recognition of deferred tax assets
(362
)
(34
)
(56
)
Miscellaneous
51
115
118
Tax on income
638
565
264
F-
81
SBTECH (GLOBAL) LIMITED
Notes to the consolidated financial
Statements
(in thousands of  €, except when specified otherwise)
NOTE 14 — RELATED PARTIES:
Parties are considered to be related if one
party has the ability to control the other party or exercise significant influence over the other party's making of financial
or operational decisions, or if both parties are controlled by the same third party. The Group is controlled by a major shareholder.
Terms and conditions of transactions with related parties
The sales to and purchases from related parties
are made on terms equivalent to those that prevail in arm's length transactions. Outstanding balances at the year-end are
unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party
receivables or payables.
Related party transactions
Year ended
December 31, 2019
Year ended
December 31, 2018
Year ended
December 31, 2017
Revenue received from related party
6,265
6,870
8,765
Lease paid to related party
627
480
127
Salary to related parties
126
395
331
Proceeds from sale of vehicle
—
55
—
Interest income (expense) on loan to (from) related party
23
(40
)
113
Receivables from related parties
Name
Nature of transaction
December 31, 2019
December 31, 2018
Related company
Trade receivables, net
4,025
3,823
Related company
Loan granted*
1,430
1,407
Major shareholder
Ongoing transaction
73
86
*
The Group provided a loan to a related party during the years
2015 — 2018. See also Note 7.
Payables to related parties
Name
Nature of transaction
December 31, 2019
December 31, 2018
Related company
Ongoing transaction
139
—
Key management personnel compensation
Key management personnel are those persons
having authority and responsibility for planning, directing and controlling the activities of the Group.
December 31, 2019
December 31, 2018
December 31, 2017
Salary, benefits and others
1,907
947
814
F-
82
SBTECH (GLOBAL) LIMITED
Notes to the consolidated financial
Statements
(in thousands of  €, except when specified otherwise)
NOTE 15 — LEASES:
The Group has lease contracts for office
facilities, motor vehicles, and data centers used in its operations. Leases of office facilities generally have lease terms between
2 and 10 years, motor vehicles generally have lease terms between 3 and 4 years, and data centers generally have lease
terms between 1 and 4 years. The Group has several lease contracts that include extension options. These options are negotiated
by management to provide flexibility in managing the leased-asset portfolio and align with the Group's business needs. Management
exercises significant judgement in determining whether these extension and termination options are reasonably certain to be exercised
in assessing the lease terms.
The Group also has certain leases of office
facilities with lease terms of 12 months or less. The Group applies the "short-term lease" recognition exemption
for these leases.
Set out below are the carrying amounts
of right-of-use assets recognized and the movements during the period:
​
Office
facilities
Motor
vehicles
Data
centers
Total
As of January 1, 2019
20,569
200
—
20,769
Additions
5,490
16
2,850
8,356
Depreciation expense
(2,833
)
(98
)
(415
)
(3,346
)
As of December 31, 2019
23,226
118
2,435
25,779
Set out below are the carrying amounts of lease liabilities
and the movements during the period:
​
2019
As of January 1, 2019
20,769
Additions
8,356
Accretion of interest
677
Payments
(3,537
)
As of December 31, 2019
26,265
Current
3,516
Non-current
22,749
The following are the amounts recognized in profit or loss:
​
2019
Depreciation expense of right-of-use assets
3,346
Interest expense on lease liabilities
677
Expense relating to short-term leases
319
Total amount recognized
    in profit or loss
4,342
The Group had total cash outflows for leases
of 3,537 in 2019. The Group also had non-cash additions to right-of-use assets and lease liabilities of 8,356 in 2019.
The Group has several lease contracts that
include extension and termination options. These options are negotiated by management to provide flexibility in managing the leased-asset
portfolio and align with the Group's business needs. Management exercises significant judgement in determining whether these
extension and termination options are reasonably certain to be exercised.
F-
83
SBTECH (GLOBAL) LIMITED
Notes to the consolidated financial
Statements
(in thousands of  €, except when specified otherwise)
NOTE 15 — LEASES:  (continued)
Set out below are the undiscounted potential
future rental payments relating to periods following the exercise date of extension and termination options that are not included
in the lease term:
Within five
years
More than
five years
Total
Extension options expected not to be exercised
—
—
—
Termination options expected to be exercised
190
—
190
190
—
190
NOTE 16 — COMMITMENTS AND CONTINGENT LIABILITIES:
As part of the Board's ongoing regulatory
compliance process, the Board continues to monitor legal and regulatory developments and their potential impact on the Group. Management
is not aware of any contingencies that may have a significant impact on the financial position of the Group.
In connection with the anticipated transaction
(see Note 19), which is expected to close in 2020, the Group entered into an agreement with a financial advisor. Pursuant to the
agreement, the Group agreed to pay for success fees equal to (i) USD 2.5 million (€2.2 million), in the event
the sale includes participation by a special purpose acquisition company ("SPAC"), or (ii) USD 2 million
(€1.8 million), in the event that the sale does not include participation by a SPAC. In the event that a sale is not
consummated by the Group and the Group receives a termination or break-up fee, the Group will pay the financial advisor a cash
fee equal to 15% of the termination or break-up fee received by the Group. In addition, the Group entered into an agreement with
a legal advisor by which the Group agreed to pay for fees based on time involved in the engagement and internal time charges. However,
to the extent that the deal is abandoned, the fees will be capped at USD 0.5 million (€0.4 million).
NOTE 17 — FINANCIAL INSTRUMENTS AND RISK
MANAGEMENT:
The Group is exposed to a variety of financial
risks, which results from its financing, operating and investing activities. The objective of financial risk management is to contain,
where appropriate, exposures in these financial risks to limit any negative impact on the Group's financial performance and
position. The Group's financial instruments are its cash, trade receivables, partly other current and non-current assets,
trade payables and other payables. The main purpose of these financial instruments is to raise finance for the Group's operation.
The Group actively measures, monitors and manages its financial risk exposures by various functions pursuant to the segregation
of duties and principals. The risks arising from the Group's financial instruments are mainly credit risk, currency and liquidity
risk. The risk and capital management policies employed by the Group to manage these risks are discussed below.
Capital management
The Group's objective is to maintain,
as possible, a stable capital structure. In the opinion of the Group's management, its current capital structure is stable.
Consistent with others in the industry, the Group maintains or changes the capital structure by adjusting the dividend payments
to shareholders or selling assets in order to repay liabilities. No changes were made in the objectives, policies or processes
for managing capital during the years ended December 31, 2019 and 2018.
F-
84
SBTECH (GLOBAL) LIMITED
Notes to the consolidated financial Statements
(in thousands of  €, except when specified otherwise)
NOTE 17 — FINANCIAL INSTRUMENTS AND RISK
MANAGEMENT:  (continued)
Risk management
Financial assets:
​
Fair value through
profit or loss
Amortized cost
Fair value through other
comprehensive income
​
December 31,
2019
December 31,
2018
December 31,
2019
December 31,
2018
December 31,
2019
December 31,
2018
Cash and cash equivalents
—
—
8,144
20,731
—
—
Trade receivables
—
—
24,745
17,220
—
—
Other current and non-current assets
—
—
1,685
2,713
—
—
Total
—
—
34,574
40,664
—
—
Financial liabilities:
​
Fair value through
profit or loss
Amortized cost
​
December 31,
2019
December 31,
2018
December 31,
2019
December 31,
2018
Trade payables
—
—
8,127
7,006
Other accounts payable and accrued expenses
—
—
1,772
—
Lease liabilities
—
—
26,265
—
Total
—
—
36,164
7,006
Credit risk
Credit risk arises when a failure by counterparties
to discharge their obligations could reduce the amount of future cash inflows from financial assets on hand at the balance sheet
date. The Group closely monitors the activities of its counterparties and controls the access to its intellectual property which
enables it to ensure the prompt collection of customers' balances. The Group's main financial assets are cash and cash
equivalents as well as trade and other receivables and represent the Group's maximum exposure to credit risk in connection
with its financial assets. Trade and other receivables are carried on the balance sheet net of doubtful debt provisions estimated
by the management based on prior year experience and an evaluation of prevailing economic circumstances. The Group holds its funds
with highly reputable financial institutions, the majority of which is held in one UK financial institution. Cash held in UK financial
institutions is protected and insured by the Financial Services Compensation Scheme (FSCS) up to £85,000 per authorized firm.
The carrying amount of financial assets
represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date was:
​
​
​
December 31,
2019
​
​
December 31,
2018
​
Cash
    and cash equivalents
​
​
​
​
8,144
​
​
​
​
​
20,731
​
​
Trade receivables
​
​
​
​
24,745
​
​
​
​
​
17,220
​
​
Other
    current and non-current assets
​
​
​
​
1,685
​
​
​
​
​
2,713
​
​
Total
​
​
​
​
34,574
​
​
​
​
​
40,664
​
​
F-
85
SBTECH (GLOBAL) LIMITED
Notes to the consolidated financial Statements
(in thousands of  €, except when specified otherwise)
NOTE 17 — FINANCIAL INSTRUMENTS AND RISK
MANAGEMENT:  (continued)
Currency risk
Currency risk is the risk that the value
of financial instruments will fluctuate due to changes in foreign exchange rates. Currency risk arises when future commercial transactions
and recognized assets and liabilities are denominated in a currency that is not the Group's functional currency. The Group
is exposed to foreign exchange risk arising from various currency exposures primarily with respect to the New Israeli Shekel ("NIS"),
U.S. Dollar ("USD"), British Pound ("GBP") and Ukrainian Hryvnia ("UAH"). The Group's
policy is not to enter into any currency hedging transactions.
The carrying amounts of the Group's
foreign currency denominated monetary assets and monetary liabilities at the reporting date are as follows:
​
December 31, 2019
December 31, 2018
​
Assets
Liabilities
Total
Assets
Liabilities
Total
NIS
99
(346
)
(247
)
631
(523
)
108
USD
2,743
(4,593
)
(1,850
)
868
(2,304
)
(1,436
)
GBP
6,053
(747
)
5,306
1,796
(1,688
)
108
UAH
117
(37
)
80
14
(58
)
(44
)
​
9,012
(5,723
)
3,289
3,309
(4,573
)
(1,264
)
Sensitivity analysis
The table below details the effect on profit
before tax of a 10% strengthening (and weakening) in the Euro exchange rate at the statement of financial position date for balance
sheet items denominated in British Pound, New Israeli Shekels, U.S. Dollar and the Ukrainian Hryvnia.
​
December 31, 2019
​
Weaknesses
Strengths
NIS
(25
)
25
USD
(185
)
185
GBP
531
(531
)
UAH
8
(8
)
Total
329
(329
)
December 31, 2018
Weaknesses
Strengths
NIS
11
(11
)
USD
(144
)
144
GBP
11
(11
)
UAH
(4
)
4
Total
(126
)
126
F-
86
SBTECH (GLOBAL) LIMITED
Notes to the consolidated financial Statements
(in thousands of  €, except when specified otherwise)
NOTE 17 — FINANCIAL INSTRUMENTS AND RISK
MANAGEMENT:  (continued)
​
December 31, 2017
​
Weaknesses
Strengths
NIS
21
(21
)
USD
(116
)
116
GBP
(19
)
19
UAH
(1
)
1
Total
(115
)
115
Liquidity risks
Liquidity risk is the risk that arises
when the maturity of assets and the maturity of liabilities do not match. An unmatched position potentially enhances profitability
but can also increase the risk of loss. The Group has procedures with the objective of minimizing such loss by maintaining sufficient
cash and other highly liquid current assets and by having available an adequate amount of committed credit facilities. Accordingly,
the Group has a positive working capital.
The following tables detail the Group's
remaining contractual maturity for its financial liabilities. The tables have been drawn up based on the undiscounted cash flows
of financial liabilities based on the earliest date on which the Group can be required to pay.
​
December 31,
2019
December 31,
2018
Current assets
36,147
40,827
Current liabilities
22,819
13,929
Working capital
13,328
26,898
The following table sets out the contractual maturities of financial
liabilities:
​
Up to
3 months
Between 3 and
12 months
Between 1 and
2 years
Between 2 and
5 years
Over 5 years
At December 31, 2019
​
​
​
​
​
Trade payables
8,127
—
—
—
—
Other accounts payable and accrued expenses
27
1,745
—
—
—
Lease liabilities
838
2,678
3,625
9,291
9,833
Total
8,992
4,423
3,625
9,291
9,833
​
Up to
3 months
Between 3 and
12 months
Between 1 and
2 years
Between 2 and
5 years
Over 5 years
At December 31, 2018
​
​
​
​
​
Trade and other payables
12,677
839
413
—
—
Total
12,677
839
413
—
—
F-
87
SBTECH (GLOBAL) LIMITED
Notes to the consolidated financial Statements
(in thousands of  €, except when specified otherwise)
NOTE 18 — SUBSIDIARIES:
Details of the Group's subsidiaries are as below:
Name
​
​
Country
    of
incorporation
​
​
Proportion
    of
voting rights
and ordinary
share capital
held
​
​
Nature
    of business
​
​
Held
    by
​
Gaming
    Tech Ltd*
​
​
Israel
​
​
50%
​
​
General
    and administration, marketing support and research & development
​
​
SBTech
    (Global) Limited
​
SBTech
    (Global) Limited — Subsidiary Bulgaria
​
​
Bulgaria
​
​
100%
​
​
Research,
    development and marketing support
​
​
SBTech
    (Global) Limited
​
SBTech
    Malta Limited
​
​
Malta
​
​
100%
​
​
Holder
    of Maltase and U.S licenses
​
​
SBTech
    (Global) Limited
​
Software
    Co-Work Cyprus Limited
​
​
Cyprus
​
​
100%
​
​
Holding
    company
​
​
SBTech
    (Global) Limited
​
Sky
    Star Eight Limited
​
​
UK
​
​
100%
​
​
Business
    analytics and commercial support
​
​
SBTech
    (Global) Limited
​
SBTech
    Gibraltar Limited
​
​
Gibraltar
​
​
100%
​
​
Commercial
    support and holder of Gibraltar license
​
​
SBTech
    (Global) Limited
​
LLC
    "Software Co-work"
​
​
Ukraine
​
​
100%
​
​
Research
    and development
​
​
Software
    Co-Work Cyprus Limited
​
SBTech
    US Inc.
​
​
United
    States
​
​
100%
​
​
IT
    and Business support
​
​
SBTech
    Malta Limited
​
Lucrative
    Green Leaf Limited
​
​
Ireland
​
​
100%
​
​
IT &
    Hosting services
​
​
SBTech
    Malta Limited
​
*
The owner of the additional 50% of voting rights and
ordinary share capital of the subsidiary has assigned and transferred all his board of director's rights to the Company.
As such, Gaming Tech Ltd. is consolidated in the Group's consolidated financial statements.
​
Gaming Tech Ltd
​
December 31,
2019
December 31,
2018
Current assets
3,689
1,891
Non — current assets
1,723
1,581
Current liabilities
(2,708
)
(1,981
)
Non — current liabilities
(589
)
(325
)
Total assets, net
2,115
1,166
NCI
1,057
583
F-
88
SBTECH (GLOBAL) LIMITED
Notes to the consolidated financial Statements
(in thousands of  €, except when specified otherwise)
NOTE 19 — SUBSEQUENT EVENTS:
1.
On January 30, 2020 the Group's board of directors declared a dividend in a total
                                                                               amount of 3,000 (€73.53 per share) to its shareholders. The Group paid 2,000 on February 7, 2020.
2.
On December 22, 2019, Diamond Eagle Acquisition
Corp, a special purpose acquisition company ("Diamond Eagle"), entered into a Business Combination Agreement (the
 "Business Combination Agreement") with DraftKings Inc. ("DraftKings"), the Group, the Group's shareholders,
the representative of the Group's shareholders, DEAC NV Merger Corp., a Nevada corporation and a wholly-owned subsidiary
of DEAC ("DEAC Nevada"), DEAC Merger Sub Inc., a Delaware corporation and a wholly-owned subsidiary of DEAC ("Merger
Sub"), pursuant to which (i) Diamond Eagle will merge with and into DEAC Nevada, with DEAC Nevada surviving the merger
(the "reincorporation"), (ii) following the reincorporation, Merger Sub will merge with and into DraftKings with
DraftKings surviving the merger (the "DraftKings Merger"), (iii) immediately following the DraftKings Merger,
Diamond Eagle will acquire all of the issued and outstanding share capital of SBTech and vested in-the-money options exercisable
for SBTech share capital (the "SBTech Acquisition") for approximately 590,000, consisting of  (x) 180,000
in cash, subject to customary net debt and working capital and certain other specified adjustments payable in respect of the SBT
shares and 30% of the in-the-money vested SBT options and (y) approximately 410,000 in shares of New DraftKings Class A
common stock, valued at the redemption price for Diamond Eagle's public shares in the Business Combination, and in the form
of newly issued in-the-money vested options of New DraftKings exercisable for New DraftKings Class A common stock and (iv) DEAC
Nevada will be renamed DraftKings Inc. Each of the DraftKings Merger and the SBTech Acquisition will be on the terms and subject
to the conditions set forth in the Business Combination Agreement. The transaction is expected to close in 2020.
3.
The novel coronavirus (COVID-19) is having a significant
impact on the Company. The direct impact on the Company beyond disruptions in normal business operations in several of our offices
is primarily through the suspension, postponement and cancellation of major sports seasons and sporting events. The status of
most of these sporting events is that they are postponed or unknown as to when they will restart. The ultimate impact of COVID-19
on our financial and operating results is unknown and will depend on the length of time that these disruptions exist and whether
the sports seasons and sporting events will ultimately be suspended, postponed, or cancelled; however, COVID-19 has had a significant
impact and may continue to have a significant impact, the full extent of which is unknown, but which could be material.
F-
89
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
Item 13.
Other Expenses of Issuance and Distribution.
The following table sets forth the estimated
expenses to be borne by the registrant in connection with the issuance and distribution of the shares of common stock being registered
hereby.
Securities and Exchange Commission registration fee
$
80,302.28
Accounting fees and expenses
20,000
Legal fees and expenses
50,000
Financial printing and miscellaneous expenses
30,000
Total
$
180,302.28
Item 14. Indemnification of Directors and Officers.
DEAC Nevada's articles of incorporation
eliminate the liability of DEAC Nevada officers and directors to the fullest extent permitted by Nevada law. Nevada law provides
that DEAC Nevada directors and officers will not be individually liable to us, DEAC Nevada stockholders or DEAC Nevada creditors
for any damages for any act or failure to act in the capacity of a director or officer other than in circumstances where both (i)
the presumption that the director or officer acted in good faith, on an informed basis and with a view to the interests of the
corporation has been rebutted, and (ii) the act or failure to act of the director or officer is proven to have been a breach of
his or her fiduciary duties as a director or officer and such breach is proven to have involved intentional misconduct, fraud or
a knowing violation of law.
DEAC Nevada's articles of incorporation
and bylaws also provide for indemnification for DEAC Nevada's directors and officers to the fullest extent permitted by Nevada
law. DEAC Nevada intends to enter into indemnification agreements with each of its directors that may, in some cases, be broader
than the specific indemnification provisions contained under Nevada law. The effect of these provisions is to restrict NEAC Nevada
rights and the rights of DEAC Nevada stockholders in derivative suits to recover any damages against a director for breach of fiduciary
duties as a director, because a director will not be individually liable for acts or omissions, except where the act or failure
to act constituted a breach of fiduciary duty and such breach involved intentional misconduct, fraud or a knowing violation of
law, and the presumption that the director or officer acted in good faith, on an informed basis, and with a view to the interests
of the corporation, has been rebutted.
These provisions may be held not to be enforceable
for certain violations of the federal securities laws of the United States.
DEAC Nevada is also expressly authorized
to carry directors' and officers' insurance to protect its directors, officers, employees and agents against certain
liabilities.
The limitation of liability and indemnification
provisions under Nevada law and in DEAC Nevada's articles of incorporation and amended and restated bylaws may discourage
stockholders from bringing a lawsuit against directors for breach of their fiduciary duties. These provisions may also have the
effect of reducing the likelihood of derivative litigation against directors and officers, even though such an action, if successful,
might otherwise benefit DEAC Nevada and DEAC Nevada stockholders. However, these provisions do not limit or eliminate DEAC Nevada
rights, or those of any stockholder, to seek non-monetary relief such as injunction or rescission in the event of a breach of a
director's fiduciary duties. Moreover, the provisions do not alter the liability of directors under the federal securities
laws. In addition, your investment may be adversely affected to the extent that, in a class action or direct suit, DEAC Nevada
pays the costs of settlement and damage awards against directors and officers pursuant to these indemnification provisions.
Item 15. Recent Sales of Unregistered Securities.
None.
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Item 16. Exhibits and Financial Statements.
(a)
Exhibits
.        The following exhibits
are being followed herewith:
Exhibit No.
Description
2.1†
Business Combination Agreement, dated as of December 22, 2019, among DraftKings Inc., SBTech (Global) Limited, SBTech's shareholders, Diamond Eagle Acquisition Corp., DEAC NV Merger Corp. and a wholly-owned subsidiary of DEAC (incorporated by reference to Exhibit 2.1 of DEAC NV Merger Corp.'s Registration Statement on Form S-4 (Reg. No. 333-235805​), filed with the SEC on April 14, 2020).
2.2
Form of Stockholders Agreement (incorporated by reference to Exhibit 2.2 of DEAC NV Merger Corp.'s Registration Statement on Form S-4 (Reg. No. 333-235805​), filed with the SEC on April 14, 2020).
2.3
Agreement and Plan of Merger, dated as of March 12, 2020, by and among Diamond Eagle Acquisition Corp. and DEAC NV Merger Corp. (incorporated by reference to Exhibit 2.3 of DEAC NV Merger Corp.'s Registration Statement on Form S-4 (Reg. No. 333-235805​), filed with the SEC on April 14, 2020).
2.4
Amendment to Business Combination Agreement, dated as of April 7, 2020, among DraftKings Inc., SBTech (Global) Limited, SBTech's shareholders, Diamond Eagle Acquisition Corp., DEAC NV Merger Corp. and a wholly-owned subsidiary of DEAC (incorporated by reference to Exhibit 2.4 of DEAC NV Merger Corp.'s Registration Statement on Form S-4 (Reg. No. 333-235805​), filed with the SEC on April 14, 2020).
3.1
Articles of Incorporation of DEAC NV Merger Corp (incorporated by reference to Exhibit 3.1 of DEAC NV Merger Corp.'s Registration Statement on Form S-4 (Reg. No. 333-235805​), filed with the SEC on April 14, 2020).
3.2
Bylaws of DEAC NV Merger Corp (incorporated by reference to Exhibit 3.2 of DEAC NV Merger Corp.'s Registration Statement on Form S-4 (Reg. No. 333-235805​), filed with the SEC on April 14, 2020).
3.3
Form of Amended and Restated Articles of Incorporation of New DraftKings (incorporated by reference to Exhibit 3.3 of DEAC NV Merger Corp.'s Registration Statement on Form S-4 (Reg. No. 333-235805​), filed with the SEC on April 14, 2020).
3.4
Form of Amended and Restated Bylaws of New DraftKings (incorporated by reference to Exhibit 3.1 of DEAC NV Merger Corp.'s Registration Statement on Form S-4 (Reg. No. 333-235805​), filed with the SEC on April 14, 2020).
4.1
Specimen Class A Common Stock Certificate of New DraftKings (incorporated by reference to Exhibit 4.1 of DEAC NV Merger Corp.'s Registration Statement on Form S-4 (Reg. No. 333-235805​), filed with the SEC on April 14, 2020).
4.2
Warrant Agreement, dated May 10, 2019, by and between Diamond Eagle Acquisition Corp. and Continental Stock Transfer & Trust Company, as warrant agent (incorporated by reference to Exhibit 4.1 of Diamond Eagle Acquisition Corp.'s Current Report on Form 8-K filed on May 14, 2019).
5.1
Opinion of Greenberg Traurig, LLP as to the validity of the shares of New DraftKings common stock.
5.2
Opinion of Winston & Strawn LLP as to the validity of the warrants of New DraftKings.
10.1
Form of DraftKings Inc. 2020 Incentive Award Plan (incorporated by reference to Exhibit 10.1 of DEAC NV Merger Corp.'s Registration Statement on Form S-4 (Reg. No. 333-235805​), filed with the SEC on April 14, 2020.
10.2
Form of Subscription Agreement, dated December 22, 2019, by and between Diamond Eagle Acquisition Corp. and the undersigned subscriber party thereto (incorporated by reference to Exhibit 10.2 of DEAC NV Merger Corp.'s Registration Statement on Form S-4 (Reg. No. 333-235805​), filed with the SEC on April 14, 2020.
10.3
Executive Employment Agreement, dated May 30, 2019, between DraftKings Inc. and Jason Park (incorporated by reference to Exhibit 10.3 of DEAC NV Merger Corp.'s Registration Statement on Form S-4 (Reg. No. 333-235805​), filed with the SEC on April 14, 2020.
10.4
Form
of DraftKings Inc. Employee Stock Purchase Plan (incorporated by reference to Exhibit 10.4 of DEAC NV Merger Corp.'s Registration
Statement on Form S-4 (Reg. No. 333-235805​), filed with the SEC on April 14, 2020.
10.5†*
Agreement for the Provision of a Sports Betting Solution ("License Agreement"), between Sports Information Services
Limited and Crown Gaming Inc., dated as of June 19, 2018 (incorporated by reference to Exhibit 10.5 of DEAC NV Merger Corp.'s
Registration Statement on Form S-4 (Reg. No. 333-235805), filed with the SEC on April 14, 2020).
10.6†*
Addendum to License Agreement, between Sports Information Services Limited and Crown Gaming Inc., dated as of August 22, 2019
(incorporated by reference to Exhibit 10.6 of DEAC NV Merger Corp.'s Registration Statement on Form S-4 (Reg. No. 333-235805),
filed with the SEC on April 14, 2020).
10.7
Amended and Restated Loan and Security Agreement (the ''LSA''), dated October 21, 2016, by and between
DraftKings Inc. and Pacific Western Bank (incorporated by reference to Exhibit 10.7 of DEAC NV Merger Corp.'s Registration
Statement on Form S-4 (Reg. No. 333-235805), filed with the SEC on April 14, 2020).
10.8
First Amendment to the LSA, dated July 28, 2017, by and between DraftKings Inc. and Pacific Western Bank (incorporated by
reference to Exhibit 10.8 of DEAC NV Merger Corp.'s Registration Statement on Form S-4 (Reg. No. 333-235805), filed with the
SEC on April 14, 2020).
10.9
Second Amendment to the LSA, dated December 28, 2017, by and between DraftKings Inc. and Pacific Western Bank (incorporated
by reference to Exhibit 10.9 of DEAC NV Merger Corp.'s Registration Statement on Form S-4 (Reg. No. 333-235805), filed with
the SEC on April 14, 2020).
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10.10
Third Amendment and Joinder to the LSA, dated July 3, 2018, by and among DraftKings Inc., Crown Gaming Inc., Crown DFS Inc.
and Pacific Western Bank (incorporated by reference to Exhibit 10.10 of DEAC NV Merger Corp.'s Registration Statement on Form
S-4 (Reg. No. 333-235805), filed with the SEC on April 14, 2020).
10.11
Fourth Amendment to the LSA, dated December 19, 2018, by and among DraftKings Inc., Crown Gaming Inc., Crown DFS Inc. and
Pacific Western Bank (incorporated by reference to Exhibit 10.11 of DEAC NV Merger Corp.'s Registration Statement on Form
S-4 (Reg. No. 333-235805), filed with the SEC on April 14, 2020).
10.12
Fifth Amendment to the LSA, dated March 28, 2019 by and among DraftKings Inc., Crown Gaming Inc., Crown DFS Inc. and Pacific
Western Bank (incorporated by reference to Exhibit 10.12 of DEAC NV Merger Corp.'s Registration Statement on Form S-4 (Reg.
No. 333-235805), filed with the SEC on April 14, 2020).
10.13
Sixth Amendment to the LSA, dated August 15, 2019, by and among DraftKings Inc., Crown Gaming Inc., Crown DFS Inc. and Pacific
Western Bank (incorporated by reference to Exhibit 10.13 of DEAC NV Merger Corp.'s Registration Statement on Form S-4 (Reg.
No. 333-235805), filed with the SEC on April 14, 2020).
23.1
Consent of WithumSmith+Brown, PC, independent registered public accounting firm of Diamond Eagle Acquisition Corp.
23.2
Consent of BDO USA, LLP, independent registered public accounting firm of DraftKings Inc.
23.3
Consent of Ziv Haft, CPA (Isr.), a BDO Member Firm, independent registered public accounting firm of SBTech (Global) Limited.
23.4
Consent of Greenberg Traurig, LLP, (included as part of Exhibit 5.1).
23.5
Consent of Winston & Strawn LLP (includes as part of Exhibit 5.2).
24.1
Power of Attorney (included on signature page of this registration statement).
99.1
Consent of Michael Gavin Isaacs.
99.2
Consent of Matthew Kalish.
99.3
Consent of Woodrow H. Levin.
99.4
Consent of Paul Liberman.
99.5
Consent of Shalom Meckenzie.
99.6
Consent of Ryan R. Moore.
99.7
Consent of Steven J. Murray.
99.8
Consent of Hany M. Nada.
99.9
Consent of Jason D. Robins.
99.10
Consent of Richard Rosenblatt.
99.11
Consent of John S. Salter.
99.12
Consent of Harry E. Sloan.
99.13
Consent of Marni M. Walden.
† Certain
of the exhibits and schedules to this Exhibit have been omitted in accordance with Regulation S-K Item 601(a)(5). The Registrant
agrees to furnish a copy of all omitted exhibits and schedules to the SEC upon its request.
* Certain portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv). The Registrant agrees
to furnish an unredacted copy of the exhibit to the SEC upon its request.
(b)
Financial Statements
. The financial
statements filed as part of this registration statement are listed in the index to the financial statements immediately preceding
such financial statements, which index to the financial statements is incorporated herein by reference.
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;
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 Commission pursuant
to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20 percent change in the maximum aggregate
offering price set forth in the "Calculation of Registration Fee" table in the effective registration statement;
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.
(2)
That, for the purpose of determining any liability under the Securities Act of 1933, 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.
(4)
That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser, 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.
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(5)
That, for the purpose of determining any liability under the Securities Act of 1933 to any purchaser in the initial distribution
of the 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 of 1933 may be permitted to directors, officers and controlling persons of the undersigned pursuant
to the foregoing provisions, or otherwise, the undersigned has been advised that in the opinion of the SEC 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 the payment by the undersigned of expenses incurred or paid by a director, officer or controlling
person of the undersigned 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 undersigned will, unless in the opinion of its counsel
the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification
by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.
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SIGNATURES
Pursuant to the requirements of the Securities
Act of 1933, as amended, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of Los Angeles, State of California, on the 15th day of April 2020.
DEAC NV Merger Corp.
By:
/s/ Jeff Sagansky
Name: Jeff Sagansky
Title: President and Chairman
POWER OF
ATTORNEY
Each person whose signature appears below
constitutes and appoints each of Jeff Sagansky and Eli Baker, acting alone or together with another attorney-in-fact, as his or
her true and lawful attorney-in-fact and agent, with full power of substitution and resubstitution, for such person and in his
or her name, place and stead, in any and all capacities, to sign any or all further amendments (including post-effective amendments)
to this registration statement (and any additional registration statement related hereto permitted by Rule 462(b) promulgated under
the Securities Act of 1933 (and all further amendments, including post-effective amendments, thereto)), and to file the same, with
all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said
attorneys-in-fact and agents, and each of them, 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 to all intents and purposes as he might or could do in person, hereby
ratifying and confirming all that said attorney-in-fact and agent, or his or her substitute or substitutes, may lawfully do or
cause to be done by virtue hereof.
Pursuant to the requirements of the Securities
Act, this registration statement has been signed by the following persons in the capacities and on April 15, 2020.
Name
Position
Date
/s/ Jeff Sagansky
President and Chairman
April 15, 2020
Jeff Sagansky
(Principal Executive Officer)
/s/ Eli Baker
Secretary and Vice Chairman
April 15, 2020
Eli Baker
(Principal Financial and Accounting Officer)
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