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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>As filed with the Securities and
Exchange Commission on May 6, 2020</B></P>

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<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;</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>

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

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

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

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

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<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>

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    <TD STYLE="width: 34%; 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: 31%; 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>7990</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>&nbsp;</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 </FONT><BR>
    <FONT STYLE="font-size: 10pt">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
    </FONT><BR>
    <FONT STYLE="font-size: 10pt">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 </FONT><BR>
    <FONT STYLE="font-size: 10pt">Identification No.)</FONT></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>222 Berkeley Street, 5<SUP>th</SUP>
Floor</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Boston, MA 02116</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(617) 986-6744</B></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>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>222 Berkeley Street, 5th Floor</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Boston, Massachusetts 02116</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(617) 986-6744</B></P>

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

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

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

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<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>

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<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">&#9746;</FONT></P>

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<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">&#9744;</FONT></P>

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<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">&#9744;</FONT></P>

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<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">&#9744;</FONT></P>

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<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>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 20%"><FONT STYLE="font-size: 10pt">Large accelerated filer</FONT></TD>
    <TD STYLE="width: 50%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9744;</FONT></TD>
    <TD STYLE="width: 25%"><FONT STYLE="font-size: 10pt">Accelerated filer</FONT></TD>
    <TD STYLE="width: 5%"><FONT STYLE="font-size: 10pt">&#9744;</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">&#9746;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Smaller reporting company</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9746;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Emerging growth company</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9746;</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">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">&nbsp;</P>

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<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="17" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>CALCULATION OF
    REGISTRATION FEE</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid"><FONT STYLE="font-size: 10pt"><B>Title of Each Class of Securities to be Registered&nbsp;</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Amount
    </B><BR>
    <B>to be Registered <SUP>(1)</SUP></B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Proposed <BR>
    Maximum </B><BR>
    <B>Offering <BR>
    Price</B><BR>
    <B>Per Share</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Proposed <BR>
    Maximum </B><BR>
    <B>Aggregate </B><BR>
    <B>Offering Price</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Amount
    of </B><BR>
    <B>Registration Fee<SUP>(2)</SUP></B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.25in; width: 31%"><FONT STYLE="font-size: 10pt">Class A common stock, par value $0.0001 per share</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; width: 20%"><FONT STYLE="font-size: 10pt">262,477,485</FONT></TD>
    <TD STYLE="width: 2%"><FONT STYLE="font-size: 10pt"><SUP>(3)</SUP></FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right; width: 8%"><FONT STYLE="font-size: 10pt">18.65</FONT></TD>
    <TD STYLE="width: 3%"><FONT STYLE="font-size: 10pt"><SUP>(4)</SUP></FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right; width: 12%"><FONT STYLE="font-size: 10pt">4,896,204,628.85</FONT></TD>
    <TD STYLE="width: 2%"><FONT STYLE="font-size: 10pt"><SUP>(4)</SUP></FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right; width: 12%"><FONT STYLE="font-size: 10pt">635,527.36</FONT></TD>
    <TD STYLE="width: 2%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 10pt">Private placement warrants to purchase Class A common stock</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">3,299,603</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt"><SUP>(5)</SUP></FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt"><SUP>(6)</SUP></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="border-bottom: black 1pt solid; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt"><B>Totals</B></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">4,896,204,628.85</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">635,527.36</TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><FONT STYLE="font-size: 10pt">(1)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">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.</FONT></TD></TR>
</TABLE>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px">&nbsp;</TD>
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><FONT STYLE="font-size: 10pt">(2)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Calculated by multiplying the proposed maximum aggregate offering price of securities
    to be registered by 0.0001298.</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><FONT STYLE="font-size: 10pt">(3)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Consists of the following shares of Class A common stock issued by us: (i) 3,333,332 shares
    of Class A common stock issuable upon the exercise of the private placement warrants (as defined below), (ii) 16,333,323
    shares of Class A common stock issuable upon the exercise of the public warrants (as defined below), based on the number of
    public warrants outstanding on as of May 4, 2020, and the PIPE Warrants, (iii) 120,670 shares of Class A common stock
    issuable upon the exercise of the Old DK Warrants (as defined below), (iv) 6,000,000 shares of Class A common stock issuable
    upon the satisfaction of certain triggering events, (v) 252,707 shares of Class A common stock issuable upon the exercise of
    outstanding options granted under the DraftKings Inc. 2017 Equity Incentive Plan (the &ldquo;2017 Equity Incentive
    Plan&rdquo;) and DraftKings Inc. 2012 Stock Option &amp; Restricted Stock Incentive Plan (the &ldquo;2012 Equity Incentive
    Plan&rdquo;) held by former employees or former consultants of DraftKings Inc., a Delaware corporation, and (vi) 1,386,034
    shares of Class A common stock issuable upon the exercise of outstanding options granted under the SBTech (Global) Limited
    2011 Global Share Option Plan held by former employees or former consultants of SBTech (Global) Limited (together with the
    2017 Equity Incentive Plan and the 2012 Equity Incentive Plan, the &ldquo;Plans&rdquo;). Also consists of 235,051,419 shares
    of Class A common stock registered for sale by the selling securityholders named in this registration statement, which
    includes (i) up to 3,659,241 shares of Class A common stock that were formerly founder shares held by the DEAC Stockholder
    Group (as defined below), (ii) 221,971,905 Stock Consideration Shares (as defined below), (iii) 6,000,000 earnout shares,
    (iv) 3,299,603 shares of Class A common stock issuable upon exercise of the private placement warrants and (v) 120,670 shares
    of Class A common stock issuable upon exercise of the Old DK Warrants.</FONT></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">&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: 48px"><FONT STYLE="font-size: 10pt">(4)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Pursuant to Rule 457(c) and Rule 457(g) under the Securities Act, and solely for the
    purpose of calculating the registration fee, the proposed maximum offering price is (a) for shares of Class A common stock
    other than those issuable under the Plans or the warrants, $19.37, which is the average of the high and low prices of shares
    of the Class A common stock on April 30, 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) on The Nasdaq Global Select Market, (b) for shares
    issuable upon the exercise of outstanding options granted under the 2017 Equity Incentive Plan and 2012 Equity Incentive Plan
    is based on $2.56, which is the weighted-average exercise price of such outstanding options, (c) for shares issuable upon the
    exercise of outstanding options granted under the SBTech (Global) Limited 2011 Global Share Option Plan is based on $0.16,
    which is the weighted-average exercise price of such outstanding options, and (d) for shares underlying the DEAC warrants and
    the Old DK Warrants, based on the exercise price of the warrants ($11.50 and $0.0283, respectively). </FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><FONT STYLE="font-size: 10pt">(5)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Represents the resale of 3,299,603 warrants to purchase shares of Class A common stock
    that were issued in a private placement and, which, represent warrants to acquire shares of Class A common stock.</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><FONT STYLE="font-size: 10pt">(6)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">In accordance with Rule 457(i), the entire registration fee for the private placement
    warrants is allocated to the shares of common stock underlying the private placement warrants, and no separate fee is payable
    for the private placement warrants.</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>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&nbsp;8(a) of&nbsp;the Securities
Act of 1933 or until this registration statement shall become effective on such date as the Commission, acting pursuant to said
Section&nbsp;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">&nbsp;</P>


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<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; 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 MAY 6, 2020</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;<IMG SRC="lg_draftkings-4c.jpg" ALT="" STYLE="height: 159px; width: 300px"></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"></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>262,477,485</B> <B>Shares of Class A
Common Stock</B><BR>
<B>3,299,603 Warrants to Purchase Class A Common Stock</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: 0.5in">This prospectus relates to the issuance
by us of (i) 19,666,655 shares of our Class A common stock, par value $0.0001 per share (&ldquo;Class A common stock&rdquo;),
<FONT STYLE="background-color: white">that may be issued upon exercise of warrants to purchase Class&nbsp;A common stock at an
exercise price of $11.50 per share of Class&nbsp;A common stock, including the public warrants, the PIPE Warrants and the private placement warrants
(each as defined below), (ii) 120,670 shares of our Class A common stock that may be issued upon the exercise of Old DK Warrants
(as defined below) to purchase Class A common stock at an exercise price of $0.0283 per share, (</FONT>iii)&nbsp;6,000,000 shares
of Class A common stock issuable upon the satisfaction of certain triggering events (as described herein), (iv) 252,707 shares
of Class A common stock issuable upon the exercise of outstanding options granted under the DraftKings Inc. 2017 Equity Incentive
Plan (the &ldquo;2017 Equity Incentive Plan&rdquo;) and DraftKings Inc. 2012 Stock Option &amp; Restricted Stock Incentive Plan
(the &ldquo;2012 Equity Incentive Plan&rdquo;) held by former employees or former consultants of DraftKings Inc., a Delaware corporation,
and (v) 1,386,034 shares of Class A common stock issuable upon the exercise of outstanding options granted under the SBTech (Global)
Limited 2011 Global Share Option Plan held by former employees or former consultants of SBTech (Global) Limited (together with
the 2017 Equity Incentive Plan and the 2012 Equity Incentive Plan, the &ldquo;Plans&rdquo;)<FONT STYLE="background-color: white">.</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">The prospectus also relates to the offer and sale from time
to time by the selling securityholders named in this prospectus (the &ldquo;Selling Securityholders&rdquo;), or their permitted
transferees, of (i) up to 235,051,419 shares of our Class A common stock and (ii) up to 3,299,603 warrants. We will not receive
any proceeds from the sale of shares of Class A common stock or warrants by the Selling Securityholders pursuant to this prospectus,<FONT STYLE="background-color: white">&nbsp;except
with respect to amounts received by us upon exercise of the warrants to the extent such warrants are exercised for cash. However,
we will pay the expenses, other than </FONT>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<FONT STYLE="background-color: white">, associated with the sale of securities pursuant to this prospectus</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">Our registration of the securities covered
by this prospectus does not mean that either we or the Selling Securityholders will issue, offer or sell, as applicable, any of
the securities. The Selling Securityholders may offer and sell the securities covered by this prospectus in a number of different
ways and at varying prices. We provide more information about how the Selling Securityholders may sell the shares in the section
entitled &ldquo;<I>Plan of Distribution</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">&nbsp;<FONT STYLE="background-color: white">You
should read this prospectus and any prospectus supplement or amendment carefully before you invest in our securities.</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">Our Class A common stock and warrants
are listed on The Nasdaq Global Select Market under the symbols &ldquo;DKNG&rdquo; and &ldquo;DKNGW,&rdquo;
respectively. On May 4, 2020, the closing price of our Class A common stock was $20.99 per share and the closing price for our
warrants was $9.08.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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 an <FONT STYLE="background-color: white">&ldquo;emerging
growth company,&rdquo; as that term is defined under the federal securities laws and, as such, are subject to certain reduced public
company reporting requirements.</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"><B>Investing in our securities involves
risks that are described in the &ldquo;Risk Factors&rdquo; section beginning on page  12 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;&nbsp;</P>

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


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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_001a">ABOUT
THIS PROSPECTUS</A></TD>
    <TD STYLE="text-align: right"><A HREF="#a_001a">ii</A></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><A HREF="#a_001b">TRADEMARKS</A></TD>
    <TD STYLE="text-align: right"><A HREF="#a_001b">ii</A></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 90%"><FONT STYLE="font-size: 10pt"><A HREF="#a001">SELECTED DEFINITIONS</A></FONT></TD>
    <TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 10pt"><A HREF="#a001">iii</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 10pt"><A HREF="#a002">CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><A HREF="#a002">vi</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt"><A HREF="#a003">SUMMARY OF THE PROSPECTUS</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><A HREF="#a003">1</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 10pt"><A HREF="#a004">SELECTED HISTORICAL FINANCIAL INFORMATION OF DEAC</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><A HREF="#a004">5</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt"><A HREF="#a005">SELECTED HISTORICAL FINANCIAL INFORMATION OF DRAFTKINGS</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><A HREF="#a005">6</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 10pt"><A HREF="#a006">SELECTED HISTORICAL FINANCIAL INFORMATION OF SBT</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><A HREF="#a006">8</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt"><A HREF="#a007">SUMMARY UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><A HREF="#a007">9</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 10pt"><A HREF="#a008">COMPARATIVE HISTORICAL AND UNAUDITED PRO FORMA PER SHARE FINANCIAL INFORMATION</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><A HREF="#a008">10</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">&#8203;<A HREF="#a009">MARKET PRICE, TICKER SYMBOL AND DIVIDEND INFORMATION</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><A HREF="#a009">11</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 10pt"><A HREF="#a010">RISK FACTORS</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><A HREF="#a010">12</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt"><A HREF="#a011">USE OF PROCEEDS</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><A HREF="#a011">40</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 10pt"><A HREF="#a012">UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><A HREF="#a012">41</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt"><A HREF="#a013">NOTES TO THE UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><A HREF="#a013">48</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 10pt"><A HREF="#a014">BUSINESS</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><A HREF="#a014">56</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt"><A HREF="#a015">DRAFTKINGS&rsquo; INDUSTRY</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><A HREF="#a015">80</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 10pt"><A HREF="#a016">DRAFTKINGS&rsquo; MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS OF FINANCIAL
    CONDITION AND RESULTS OF OPERATIONS</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><A HREF="#a016">84</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt"><A HREF="#a017">SBT&rsquo;S MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
    AND RESULTS OF OPERATIONS</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><A HREF="#a017">101</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 10pt"><A HREF="#a018">MANAGEMENT</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><A HREF="#a018">108</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt"><A HREF="#a019">EXECUTIVE COMPENSATION</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><A HREF="#a019">117</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 10pt"><A HREF="#a020">DESCRIPTION OF SECURITIES</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><A HREF="#a020">127</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt"><A HREF="#a021">SECURITIES ACT RESTRICTIONS ON RESALE OF SECURITIES</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><A HREF="#a021">139</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 10pt"><A HREF="#a022">BENEFICIAL OWNERSHIP OF SECURITIES</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><A HREF="#a022">141</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt"><A HREF="#a023">SELLING SECURITYHOLDERS</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><A HREF="#a023">143</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 10pt"><A HREF="#a024">CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><A HREF="#a024">158</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt"><A HREF="#a025">UNITED STATES FEDERAL INCOME TAX CONSIDERATIONS</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><A HREF="#a025">164</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 10pt"><A HREF="#a026">PLAN OF DISTRIBUTION</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><A HREF="#a026">169</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt"><A HREF="#a027">LEGAL MATTERS</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><A HREF="#a027">174</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 10pt"><A HREF="#a028">EXPERTS</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><A HREF="#a028">174</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt"><A HREF="#a029">WHERE YOU CAN FIND MORE INFORMATION</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><A HREF="#a029">175</A></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 10pt"><A HREF="#a030">INDEX TO FINANCIAL STATEMENTS</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><A HREF="#a030">F-1</A></FONT></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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="a_001a"></A>ABOUT
THIS PROSPECTUS</B></FONT></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"><FONT STYLE="background-color: white">This
prospectus is part of a registration statement on Form&nbsp;S-1&nbsp;that we filed with the Securities and Exchange Commission
(the &ldquo;SEC&rdquo;) using a &ldquo;shelf&rdquo; registration process. Under this shelf registration process, we and the Selling
Securityholders may, from time to time, issue, offer and sell, as applicable, any combination of the securities described in this
prospectus in one or more offerings. We may use the shelf registration statement to issue (i) up to an aggregate of 19,666,655
shares of Class&nbsp;A common stock upon exercise of the public warrants, the PIPE Warrants and the private placement warrants,
(ii) up to an aggregate of 120,670 shares of our Class A common stock that may be issued upon the exercise of Old DK Warrants
to purchase Class A common stock, (iii) up to an aggregate of 6,000,000 shares of Class A common stock issuable upon the satisfaction
of certain triggering events (as described herein), (iv) up to an aggregate of 252,707 shares of Class A common stock issuable
upon the exercise of outstanding options granted under the 2017 Equity Incentive Plan and 2012 Equity Incentive Plan held by former employees or former consultants
of DraftKings Inc., a Delaware corporation, and (v) up to an aggregate of 1,386,034 shares of Class A common stock issuable upon
the exercise of outstanding options granted under the SBTech (Global) Limited 2011 Global Share Option Plan held by former employees
or former consultants of SBTech (Global) Limited. The Selling Securityholders may use the shelf registration statement to sell
up to an aggregate of 235,051,419 shares of Class&nbsp;A common stock and up to 3,299,603 warrants from time to time through any
means described in the section entitled &ldquo;<I>Plan of Distribution</I>.&rdquo; More specific terms of any securities that
the Selling Securityholders offer and sell may be provided in a prospectus supplement that describes, among other things, the
specific amounts and prices of the Class&nbsp;A common stock and/or warrants being offered and the terms of the offering.</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; background-color: white">A prospectus
supplement may also add, update or change information included in this prospectus. Any statement contained in this prospectus
will be deemed to be modified or superseded for purposes of this prospectus to the extent that a statement contained in such prospectus
supplement modifies or supersedes such statement. Any statement so modified will be deemed to constitute a part of this prospectus
only as so modified, and any statement so superseded will be deemed not to constitute a part of this prospectus. You should rely
only on the information contained in this prospectus, any applicable prospectus supplement or any related free writing prospectus.
See &ldquo;<I>Where You Can Find More Information.</I>&rdquo;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Neither we
nor the Selling Securityholders have authorized anyone to provide any information or to make any representations other than those
contained in this prospectus, any accompanying prospectus supplement or any free writing prospectus we have prepared. We and the
Selling Securityholders take no responsibility for, and can provide no assurance as to the reliability of, any other information
that others may give you. This prospectus is an offer to sell only the securities offered hereby and only under circumstances
and in jurisdictions where it is lawful to do so. No dealer, salesperson or other person is authorized to give any information
or to represent anything not contained in this prospectus, any applicable prospectus supplement or any related free writing prospectus.
This prospectus is not an offer to sell securities, and it is not soliciting an offer to buy securities, in any jurisdiction where
the offer or sale is not permitted. You should assume that the information appearing in this prospectus or any prospectus supplement
is accurate only as of the date on the front of those documents only, regardless of the time of delivery of this prospectus or
any applicable prospectus supplement, or any sale of a security. Our business, financial condition, results of operations and
prospects may have changed since those dates.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">This prospectus
contains summaries of certain provisions contained in some of the documents described herein, but reference is made to the actual
documents for complete information. All of the summaries are qualified in their entirety by the actual documents. Copies of some
of the documents referred to herein have been filed, will be filed or will be incorporated by reference as exhibits to the registration
statement of which this prospectus is a part, and you may obtain copies of those documents as described below under &ldquo;<I>Where
You Can Find More Information</I>.&rdquo;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On April 23, 2020 (the &ldquo;Closing
Date&rdquo;), Diamond Eagle Acquisition Corp., our predecessor company (&ldquo;DEAC&rdquo;), consummated the previously announced
business combination (the &ldquo;Business Combination&rdquo;) pursuant to the terms of: (i) the business combination agreement
(as amended by Amendment No. 1 thereto, dated April 7, 2020, the &ldquo;Business Combination Agreement&rdquo;) with DraftKings
Inc., a Delaware corporation (&ldquo;Old 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;SBTech&rdquo;), the
shareholders of SBTech (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 DEAC (&ldquo;DEAC NV&rdquo;) and DEAC Merger Sub Inc.,
a Delaware corporation and a wholly-owned subsidiary of DEAC (&ldquo;Merger Sub&rdquo;) and (ii) the agreement and plan of merger,
dated as of March 12, 2020, by and among DEAC and DEAC NV. Immediately upon the completion of the Business Combination and the
other transactions contemplated by the Business Combination Agreement (the &ldquo;Transactions&rdquo;, and such completion, the
 &ldquo;Closing&rdquo;), Old DK became a direct wholly-owned subsidiary of DEAC NV. In connection with the Transactions, DEAC NV
changed its name to DraftKings Inc.</P>

<P STYLE="font: 10pt Times New Roman, 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"><FONT STYLE="text-transform: uppercase"><A NAME="a_001b"></A><B>Trademarks</B></FONT></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; background-color: white"><FONT STYLE="background-color: white">This
document contains references to trademarks and service marks belonging to other entities. Solely for convenience, trademarks and
trade names referred to in this prospectus may appear without the&#8203; &reg; or &trade; symbols, but such references are not
intended to indicate, in any way, that the applicable licensor will not assert, to the fullest extent under applicable law, its
rights to these trademarks and trade names. We do not intend our use or display of other companies&rsquo; trade names, trademarks
or service marks to imply a relationship with, or endorsement or sponsorship of us by, any other companies.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="a001"></A>SELECTED
DEFINITIONS</B></FONT></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%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">&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, Old DK, SBT, the SBT
    Sellers party thereto, the SBT Sellers&rsquo; Representative, DEAC Nevada and Merger Sub.</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">&ldquo;Board&rdquo; or &ldquo;board of directors&rdquo; refers to our board of directors.</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">&ldquo;Business Combination&rdquo; refers to the transactions contemplated by the BCA.</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">&ldquo;Charter&rdquo; refers to our amended and restated articles of incorporation.</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">&ldquo;Class A common stock&rdquo; refers to the Class A common stock, par value $0.0001
    per share, of the Company.</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD>&ldquo;Class B common stock&rdquo; refers to the Class B common stock, par value $0.0001 per share, of the Company.</TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0"></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">&ldquo;Closing&rdquo; refers to the closing of the Business Combination.</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">&ldquo;Closing Date&rdquo; refers to April 23, 2020, the date on which the Closing occurred.</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">&ldquo;Continental&rdquo; refers to Continental Stock Transfer &amp; Trust Company, the transfer agent, warrant agent and escrow agent of DEAC.</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">&ldquo;Convertible Notes&rdquo; refers to those certain subordinated convertible notes,
    issued by Old DK on or after December 16, 2019 to certain investors in an aggregate principal amount of approximately $109.2
    million.</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">&ldquo;DEAC&rdquo; refers to Diamond Eagle Acquisition Corp., a Delaware corporation.</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">&ldquo;DEAC Class A common stock&rdquo; refers to the shares of Class A common stock, par value $0.0001 per share, of DEAC.</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">&ldquo;DEAC Class B common stock&rdquo; refers to the shares of Class B common stock, par value $0.0001 per share, of DEAC.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in">&nbsp;&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">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">&ldquo;DEAC NV&rdquo; refers to DEAC NV Merger Corp., a Nevada corporation, which was
    renamed DraftKings Inc. in connection with the Closing.</FONT></TD></TR>
</TABLE>
<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>&nbsp;</TD></TR>
</TABLE>
<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">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">&ldquo;DEAC Shares&rdquo; refers to shares of DEAC Class A common stock and shares of DEAC Class B common stock.</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">&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.</FONT></TD></TR>
</TABLE>

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

<P STYLE="margin: 0"></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">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">&ldquo;DEAC warrants&rdquo; refers to the public warrants, the private placement warrants
    and the PIPE Warrants, each of which was 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 upon the Closing, became warrants to acquire shares of DraftKings Class A common
    stock on the same terms as DEAC&rsquo;s currently outstanding warrants.</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; text-align: left">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">&ldquo;dollars&rdquo; or &ldquo;$&rdquo; refers to U.S. dollars.</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">&ldquo;DraftKings&rdquo; refers to, prior to the Business Combination, DraftKings Inc.,
    a Delaware corporation, and following the Business Combination, DraftKings Inc., a Nevada corporation, and its consolidated
    subsidiaries.</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">&ldquo;DraftKings Class A common stock&rdquo; refers to the shares of Class A common
    stock, par value $0.0001 per share, of DraftKings.</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">&ldquo;DraftKings Class B common stock&rdquo; refers to the shares of Class B common
    stock, par value $0.0001 per share, of DraftKings.</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">&ldquo;earnout shares&rdquo; refers to the (i) 5,388,000 shares of DraftKings Class A
    common stock that were delivered and deposited into a custodian account and (ii) 612,000 shares of DraftKings Class A common
    stock that were delivered to I.B.I. Trust Management, the trustee, in each case, to be released pro-rata to the recipients
    thereof only upon the occurrence of certain triggering events that relate to the achievement of certain stock price thresholds
    based upon the volume weighted average share price of our Class A common stock ranging from $12.50 to $16.00 at any time during
    a four-year period commencing on the Closing Date.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">&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 were issued upon the automatic conversion of those shares in connection with the Closing.</FONT></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">&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; text-align: left">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">&ldquo;Merger Sub&rdquo; refers to DEAC Merger Sub Inc., a Delaware corporation.</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; text-align: left">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">&ldquo;Nasdaq&rdquo; refers The Nasdaq Global Select Market.</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">&ldquo;Old DK&rdquo; refers to, prior to the Business Combination, DraftKings Inc., a
    Delaware corporation.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">&ldquo;Old DK Warrants&rdquo; refers to the 180,103 warrants initially issued by Old
    DK to certain institutional investors and which were assumed by the Company and remain outstanding.</FONT></TD></TR>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">&ldquo;PIPE Investors&rdquo; refers to certain institutional and accredited investors who are party to the Subscription Agreements.</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">&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 upon the Closing, became warrants to acquire shares of DraftKings Class A common
    stock on the same terms as DEAC&rsquo;s currently outstanding warrants.</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">&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.</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">&ldquo;private placement warrants&rdquo; refers to the 3,333,332 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 our Class A common stock at an exercise price of $11.50 per share,
    in accordance with its terms, and does not include the PIPE Warrants.</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">&ldquo;Proxy Statement&rdquo; refers to the definitive proxy statement/prospectus filed
    with the SEC by the Company on April 15, 2020 in connection with the Business Combination.</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">&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 became shares of Class A common stock in connection with the Closing.</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">&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.</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">&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 was 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 upon the Closing, became warrants to acquire shares of Class
    A common stock on the same terms as DEAC&rsquo;s warrants.</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">&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 NV, with
    DEAC NV surviving the merger, pursuant to the terms and subject to the conditions of the Reincorporation Merger Agreement.</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">&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 NV.</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">&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.</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">&ldquo;SBT Sellers&rdquo; refers to each of the holders of capital stock of SBT party to the BCA.</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">&ldquo;SBT Sellers&rsquo; Representative&rdquo; refers to Shalom Meckenzie in his capacity as representative of the SBT Sellers under the BCA.</FONT></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">&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">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">&ldquo;SBT shares&rdquo; refers to the ordinary shares, par value $0.10 per share, of SBT.</FONT></TD></TR>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">&ldquo;SEC&rdquo; refers to the U.S. Securities and Exchange Commission.</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">&ldquo;Sponsor&rdquo; refers to Eagle Equity Partners, LLC, a Delaware limited liability company controlled by Jeff Sagansky and Eli Baker.</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">&ldquo;Stock Consideration Shares&rdquo; refers to the shares of Class A common stock
    issued to the stockholders of Old DK and SBT as stock consideration pursuant to the transactions contemplated by the BCA.</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">&ldquo;Subscription Agreements&rdquo; refers to the subscription agreements, dated December
    22, 2019, between DEAC and the PIPE Investors, pursuant to which DEAC 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&thinsp;$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 were exchanged, on a one-for-one basis, for shares of DraftKings Class A common stock
    and all of DEAC&rsquo;s outstanding warrants became warrants to acquire shares of DraftKings Class A common stock on the same
    terms as DEAC&rsquo;s warrants.</FONT></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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="a002"></A>CAUTIONARY
NOTE REGARDING FORWARD-LOOKING STATEMENTS</B></FONT></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">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.
Forward-looking statements include statements relating to our 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:&nbsp;</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%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.75in">&nbsp;</TD>
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">our ability to maintain the listing of our shares of Class A common stock and warrants
    on Nasdaq;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.75in">&nbsp;</TD>
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">our ability to raise financing in the future;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.75in">&nbsp;</TD>
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">our success in retaining or recruiting officers, key employees or directors;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.75in">&nbsp;</TD>
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">factors relating to our business, operations and financial performance, including:</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 1.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">our ability to effectively compete in the global entertainment and gaming industries;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 1.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">our ability to successfully acquire and integrate new operations;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 1.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">our ability to obtain and maintain licenses with gaming authorities;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 1.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">our inability to recognize deferred tax assets and tax loss carryforwards;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.75in">&nbsp;</TD>
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">market conditions and global and economic factors beyond our control, including the potential
    adverse effects of the ongoing global coronavirus (COVID-19) pandemic on capital markets, general economic conditions, unemployment
    and our liquidity, operations and personnel;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.75in">&nbsp;</TD>
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">intense competition and competitive pressures from other companies worldwide in the industries
    in which we operate;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.75in">&nbsp;</TD>
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">litigation and the ability to adequately protect our intellectual property rights; and</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0; text-indent: 0.25in">&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: 0.75in">&nbsp;</TD>
    <TD STYLE="width: 0.25in">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">other factors detailed herein under the section entitled &ldquo;<I>Risk Factors.</I>&rdquo;</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&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,
and 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;<I>Risk Factors</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">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;&nbsp;</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"><FONT STYLE="text-transform: uppercase"><B><A NAME="a003"></A>SUMMARY
OF THE PROSPECTUS</B></FONT></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; text-align: left"><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;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; &ldquo;Unaudited Pro Forma Condensed Combined Financial Statements&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; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B>The Company</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: 0.5in; text-align: left">We are a digital sports entertainment
and gaming company. We provide users with daily fantasy sports, sports betting and iGaming opportunities, and we are also involved
in 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; text-align: left">&nbsp;</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B>Background</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: 0.5in; text-align: left">DraftKings Inc., a Nevada corporation
(the &ldquo;Company&rdquo;), was originally known as DEAC NV Merger Corp. (&ldquo;DEAC NV&rdquo;), a wholly-owned subsidiary of
our predecessor Diamond Eagle Acquisition Corp. (&ldquo;DEAC&rdquo;), a special purpose acquisition company, which completed its
initial public offering in May 2019. DEAC was incorporated for the purpose of effecting a merger, share exchange, asset acquisition,
stock purchase, reorganization or similar business combination with one or more businesses, and, prior to the Business Combination,
the Company was a &ldquo;shell company&rdquo; as defined under the Securities Exchange Act of 1934, as amended (the &ldquo;Exchange
Act&rdquo;), because it had no operations and nominal assets consisting almost entirely of cash. On April 23, 2020, DEAC consummated
the Business Combination. In connection with the Closing of the Business Combination, (i) DEAC changed its jurisdiction of incorporation
to Nevada by merging with and into DEAC NV, with DEAC NV surviving the merger and changing its name to &ldquo;DraftKings Inc.&rdquo;,
(ii) following the reincorporation, DEAC Merger Sub Inc., a wholly-owned subsidiary of DEAC, merged with and into Old DK, with
Old DK surviving the merger (the &ldquo;DK Merger&rdquo;) and (iii) immediately following the DK Merger, the Company acquired
all of the issued and outstanding share capital of SBT (the &ldquo;SBTech Acquisition&rdquo;). Upon consummation of the foregoing
transactions, Old DK and SBT became wholly-owned subsidiaries of the Company. In connection with the Closing of the Business Combination, the issued and outstanding shares of DEAC&rsquo;s Class A common stock were exchanged, on a one-for-one basis, for shares of
DraftKings Class A common stock. Similarly, all of DEAC&rsquo;s outstanding warrants became warrants to acquire shares
of DraftKings Class A common stock on the same terms as DEAC&rsquo;s warrants.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">Our Class A common stock and our warrants
are currently listed on Nasdaq under the 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; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">The rights of holders of our Class A
common stock and warrants are governed by our Charter, our bylaws and the Nevada Revised Statutes, and in the case of the warrants,
the Warrant Agreement, dated May 10, 2019, by and between DEAC and Continental, as warrant agent (as assigned pursuant to the Assignment and Assumption Agreement, dated April 23, 2020, by and
among DraftKings Inc., DEAC, Continental, Computershare Trust Company, N.A. and Computershare
Inc.). See the sections entitled &ldquo;<I>Description of Securities</I>&rdquo; and &ldquo;<I>Selling Securityholders</I>.&rdquo;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;<B>Emerging Growth Company</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: 0.5in; text-align: left"><FONT STYLE="background-color: white">We
are an &ldquo;emerging growth company,&rdquo; as defined in Section&nbsp;2(a) of the Securities Act of 1933, as amended (the &ldquo;Securities
Act&rdquo;), as modified by the </FONT>Jumpstart Our Business Startups Act of 2012 (the &ldquo;JOBS Act&rdquo;)<FONT STYLE="background-color: white">,
and we may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies
that are not emerging growth companies, including, but not limited to, not being required to comply with the auditor attestation
requirements of Section&nbsp;404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in
our periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive
compensation and stockholder approval of any golden parachute payments not previously approved.</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"></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; text-align: left"><FONT STYLE="background-color: white">Further,
</FONT>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 registration statement under the Securities
Act 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 an election to opt out is irrevocable.
We have 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, we, 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 our 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: 0.5in; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">We will remain an emerging growth company
until the earlier of: (1)&nbsp;the last day of the fiscal year (a)&nbsp;following the fifth anniversary of the closing of the Company&rsquo;s
initial public offering, (b)&nbsp;in which we have total annual revenue of at least $1.07&nbsp;billion, or (c)&nbsp;in which we
are deemed to be a large accelerated filer, which means the market value of our common equity that is held by non-affiliates exceeds
$700&nbsp;million as of the end of the prior fiscal year&rsquo;s second fiscal quarter; and (2)&nbsp;the date on which we have
issued more than $1.00&nbsp;billion in non-convertible debt securities during the prior three-year period. References herein to
 &ldquo;emerging growth company&rdquo; have the meaning associated with it in the JOBS Act.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B>Risk Factors</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: 0.5in; text-align: left"><FONT STYLE="background-color: white">Our
business is subject to numerous risks and uncertainties, including those highlighted in the section titled &ldquo;<I>Risk Factors</I>&rdquo;,
that represent challenges that we face in connection with the successful implementation of our strategy and growth of our business</FONT>.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B>Corporate Information</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: 0.5in; text-align: left">Our principal executive offices are located
at 222 Berkeley Street, 5th Floor, Boston, MA 02116. Our telephone number is (617) 986-6744, and our website address is www.draftkings.com.
Information contained on our website or connected thereto is provided for textual reference only and does not constitute part of,
and is not incorporated by reference into, this prospectus or the registration statement of which it forms a part.</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; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>THE OFFERING</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: 0.25in; text-align: left">We are registering the issuance by us
of up to (i) 19,666,655 shares of our Class A common stock <FONT STYLE="background-color: white">that may be issued upon exercise
of warrants to purchase Class&nbsp;A common stock at an exercise price of $11.50 per share of Class&nbsp;A common stock, including
the public warrants, the PIPE Warrants and the private placement warrants, (ii) 120,670 shares of our Class A common stock that may be issued upon
the exercise of Old DK Warrants to purchase Class A common stock at an exercise price of $0.0283 per share of Class A common stock,
(i</FONT>ii)&nbsp; 6,000,000 shares of Class A common stock issuable upon the satisfaction of certain triggering events (as described
herein), (iv) 252,707 shares of Class A common stock issuable upon the exercise of outstanding options granted under the 2017 Equity Incentive Plan and 2012 Equity Incentive Plan held by former employees or former consultants of DraftKings
Inc., a Delaware corporation, and (v) 1,386,034 shares of Class A common stock issuable upon the exercise of outstanding options
granted under the SBTech (Global) Limited 2011 Global Share Option Plan held by former employees or former consultants of SBTech
(Global) Limited<FONT STYLE="background-color: white">.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in; text-align: left">We are also registering the resale by
the Selling Securityholders or their permitted transferees of (i) up to 235,051,419 shares of Class A common stock and (ii) up
to 3,299,603 warrants. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in; text-align: left">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;<I>Risk Factors</I>&rdquo; on page 12 of this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&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: 50%; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt"><B>Issuance of Class A Common Stock</B></FONT></TD>
    <TD STYLE="width: 50%; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following information is as of May 4, 2020 and does not
        give effect to issuances of our Class A common stock or warrants after such date, or the exercise of warrants after such date.</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: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Shares of our Class A common stock to be issued upon exercise
        of all public warrants, PIPE Warrants, private placement warrants and Old DK Warrants</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD>
    <TD STYLE="padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">19,787,325 shares</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Shares of our Class A common stock outstanding prior to exercise
        of all warrants</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD>
    <TD STYLE="padding-left: 5.4pt">312,504,813 <FONT STYLE="font-size: 10pt"> shares<SUP>(1)</SUP></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">Use of proceeds</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We will receive up to an aggregate of approximately $226,166,532
        from the exercise of all DEAC warrants and $5,097 from the exercise of Old DK Warrants, assuming
        the exercise in full of all such warrants for cash. </P>
        <P STYLE="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 will receive up to an aggregate of approximately $646,037
        from the exercise of stock options under the 2017 Equity Incentive Plan and the 2012 Equity Incentive Plan, and $225,748 from the
        exercise of stock options under the SBTech (Global) Limited 2011 Global Share Option 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">We will not receive any proceeds from the issuance of the
        earnout shares.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Unless we inform you otherwise in a prospectus supplement
        or free writing prospectus, we intend to use the net proceeds from the exercise of such warrants and stock options for general
        corporate purposes which may include acquisitions or other strategic investments or repayment of outstanding indebtedness.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
</TABLE>

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

<P STYLE="margin: 0"></P>
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<P STYLE="margin: 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="padding-left: 5.4pt; width: 50%"><FONT STYLE="font-size: 10pt"><B>Resale of Class A common stock and warrants</B></FONT></TD>
    <TD STYLE="padding-left: 5.4pt; width: 50%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Shares of Class A common stock offered by the Selling Securityholders
        (including 3,420,273 shares of Class A common stock that may be issued upon exercise of the private placement warrants and the Old DK Warrants)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD>
    <TD STYLE="padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">235,051,419 shares</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Warrants offered by the Selling Securityholders (representing
        the private placement warrants)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD>
    <TD STYLE="padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">3,299,603 warrants</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">Exercise price</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">$11.50 per share, subject to adjustment as described herein
        </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-left: 5.4pt"><FONT STYLE="font-size: 10pt">Redemption</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The warrants are redeemable in certain circumstances. See
        &ldquo;<I>Description of Securities&mdash;Warrants</I>&rdquo; for further discussion.</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-left: 5.4pt"><FONT STYLE="font-size: 10pt">Use of proceeds</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We will not receive any proceeds from the sale of the Class
        A common stock and warrants to be offered by the Selling Holders. With respect to shares of Class A common stock underlying the
        warrants, we will not receive any proceeds from such shares except with respect to amounts received by us upon exercise of such
        warrants to the extent such warrants are exercised for cash.</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-left: 5.4pt"><FONT STYLE="font-size: 10pt">Lock-up agreements</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Certain of our stockholders are subject to certain restrictions
        on transfer until the termination of applicable lock-up periods. See &ldquo;<I>Securities Act Restrictions on Resale of Securities
        &mdash;Lock-up Agreements</I>&rdquo; for further discussion.</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-left: 5.4pt"><FONT STYLE="font-size: 10pt">Ticker symbols</FONT></TD>
    <TD STYLE="padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">&ldquo;DKNG&rdquo; and &ldquo;DKNGW&rdquo; for the Class A common stock and warrants, respectively.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: left; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>1</SUP> Represents the number of shares of Class A
common stock outstanding as of May 4, 2020. Excludes 6,000,000 earnout shares of
Class A common stock held in escrow, which may be released to the Sponsor and Harry E. Sloan, certain equityholders of Old DK
and the SBT Sellers, subject to the achievement of certain stock price targets. The number of issued and outstanding shares of
Class A Common Stock also does not include (i) the shares of Class A common stock reserved for issuance under the DraftKings Inc.
2020 Incentive Plan or (ii) the shares of Class A common stock reserved for issuance under the DraftKings Employee Stock Purchase
Plan (&ldquo;ESPP&rdquo;).</P>

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

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 36%; padding-right: 5pt"></TD>
    <TD STYLE="width: 64%; padding-left: 5pt"></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="a004"></A>SELECTED
HISTORICAL FINANCIAL INFORMATION OF DEAC</B></FONT></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; text-align: left">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; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">The information is only a summary and
should be read in conjunction with DEAC&rsquo;s consolidated financial statements and related notes contained elsewhere herein.
The historical results included below and elsewhere in this prospectus are not indicative of the future performance of the Company.
In connection with the Business Combination, DraftKings was determined to be the accounting acquirer.</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%">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid"><FONT STYLE="font-size: 10pt"><B>Statement of Operations Data</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>For the Period</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>from</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>March 27, 2019</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>(inception) to</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>December 31, 2019</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-size: 10pt"><B>&#8203;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></FONT></TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; text-align: center"><FONT STYLE="font-size: 10pt"><B>(in actual dollars and shares)</B></FONT></TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="background-color: White">&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt"><B>Revenue</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 76%; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">General and administrative expenses</FONT></TD>
    <TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 20%; border-bottom: black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">1,857,305</FONT></TD>
    <TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="background-color: White">&nbsp;</TD>
    <TD STYLE="padding-left: 9pt"><FONT STYLE="font-size: 10pt">Loss from operations</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(1,857,305</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Other income&thinsp;-&thinsp;interest on Trust Account</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">5,111,208</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="background-color: White">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">Provision for income tax</FONT></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"><FONT STYLE="font-size: 10pt">(944,494</FONT></TD>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt"><B>Net income</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>2,309,409</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="background-color: White">&nbsp;</TD>
    <TD STYLE="padding-left: 9pt"><FONT STYLE="font-size: 10pt">Weighted average Class A common stock outstanding</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">40,000,000</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt"><B>Basic and diluted net income per share, Class A</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">0.09</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="background-color: White">&nbsp;</TD>
    <TD STYLE="padding-left: 9pt"><FONT STYLE="font-size: 10pt">Weighted average Class B common stock outstanding</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">10,010,045</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt"><B>Basic and diluted net loss per share, Class B</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(0.15</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">)</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid"><FONT STYLE="font-size: 10pt"><B>Balance Sheet Data</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>December 31, 2019</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-size: 10pt"><B>(in actual dollars)</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 1%; background-color: White">&nbsp;</TD>
    <TD STYLE="width: 76%"><FONT STYLE="font-size: 10pt">Total assets</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="width: 20%; text-align: right"><FONT STYLE="font-size: 10pt">404,771,673</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Total liabilities</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">15,493,133</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="background-color: White">&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Total shareholders&rsquo; equity and Class A common shares subject to possible redemptions</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">389,278,540</FONT></TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<center><DIV STYLE="border: Black 1pt solid; padding: 10pt; width: 96%">

<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"><FONT STYLE="text-transform: uppercase"><B><A NAME="a005"></A>SELECTED
HISTORICAL FINANCIAL INFORMATION OF DRAFTKINGS</B></FONT></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; text-align: left">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; text-align: left">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left"><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 our results
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 CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt"><B>&#8203;&nbsp;</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>For the year ended December 31,</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid"><FONT STYLE="font-size: 10pt"><B>Statement of Operations Data</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2019</B></FONT></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"><FONT STYLE="font-size: 10pt"><B>2018</B></FONT></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"><FONT STYLE="font-size: 10pt"><B>2017</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="10" STYLE="text-align: center"><FONT STYLE="font-size: 10pt"><B>(in thousands)</B></FONT></TD>
    <TD>&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 67%"><FONT STYLE="font-size: 10pt"><B>Revenue</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 8%; text-align: right"><FONT STYLE="font-size: 10pt">323,410</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="width: 8%; text-align: right"><FONT STYLE="font-size: 10pt">226,277</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="width: 8%; text-align: right"><FONT STYLE="font-size: 10pt">191,844</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">Total costs and expenses</FONT></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"><FONT STYLE="font-size: 10pt">469,955</FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</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"><FONT STYLE="font-size: 10pt">303,058</FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</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"><FONT STYLE="font-size: 10pt">265,042</FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 9pt"><FONT STYLE="font-size: 10pt">Loss from operations</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(146,545</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(76,781</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(73,198</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">)</FONT></TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-size: 10pt">Other income (expense):</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 9pt"><FONT STYLE="font-size: 10pt">Interest income (expense), net</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1,348</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">666</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(1,541</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">)</FONT></TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-left: 9pt"><FONT STYLE="font-size: 10pt">Gain on initial equity method investment</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">3,000</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 9pt"><FONT STYLE="font-size: 10pt">Other expense, net</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(607</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">)</FONT></TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-size: 10pt">Income Tax Provision</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">58</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">105</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">210</FONT></TD>
    <TD>&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">Loss from equity method investment</FONT></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"><FONT STYLE="font-size: 10pt">479</FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</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"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</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"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt"><B>Net Loss</B></FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>(142,734</B></FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt"><B>)</B></FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>(76,220</B></FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt"><B>)</B></FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>$</B></FONT></TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>(75,556</B></FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt"><B>)</B></FONT></TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-size: 10pt"><B>Statement of Cash Flows Data</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD>&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-size: 10pt">Net cash provided by (used in) operating activities</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(78,880</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(45,579</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(88,437</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">)</FONT></TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-size: 10pt">Net cash provided by (used in) investing activities</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(42,271</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(26,672</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(7,715</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">)</FONT></TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-size: 10pt">Net cash provided by (used in) financing activities</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">79,776</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">140,892</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">118,531</FONT></TD>
    <TD>&nbsp;</TD>
    </TR>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<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"><FONT STYLE="font-size: 10pt"><B>As of December 31,</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid"><FONT STYLE="font-size: 10pt"><B>Balance Sheet Data</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2019</B></FONT></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"><FONT STYLE="font-size: 10pt"><B>2018</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center"><FONT STYLE="font-size: 10pt"><B>(in thousands)</B></FONT></TD>
    <TD>&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 78%"><FONT STYLE="font-size: 10pt">Total assets</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="width: 8%; text-align: right"><FONT STYLE="font-size: 10pt">330,725</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="width: 8%; text-align: right"><FONT STYLE="font-size: 10pt">299,393</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-size: 10pt">Total liabilities</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">380,305</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">223,343</FONT></TD>
    <TD>&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-size: 10pt">Total redeemable convertible preferred stock and stockholders&rsquo; deficit</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(49,580</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">76,050</FONT></TD>
    <TD>&nbsp;</TD>
    </TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B>Key Performance Indicators </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: 0.5in; text-align: left">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; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left"><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&thinsp;&mdash;&thinsp;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"></P>
</div></center>
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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 -->
<center><DIV STYLE="border: Black 1pt solid; padding: 10pt; width: 96%">
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">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 CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt"><B>&nbsp;&#8203;</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Year ended December 31,</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt"><B>&#8203;&nbsp;</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2019</B></FONT></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"><FONT STYLE="font-size: 10pt"><B>2018</B></FONT></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"><FONT STYLE="font-size: 10pt"><B>2017</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 61%"><FONT STYLE="font-size: 10pt">Adjusted EBITDA <I>(dollars in thousands)</I><SUP>(1)</SUP></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 10pt">(98,640</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 10pt">(58,850</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 10pt">(48,884</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-size: 10pt">Monthly Unique Payers (MUPs) <I>(in thousands)</I><SUP>(2)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">684</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">601</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">574</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-size: 10pt">Average Revenue per MUP (ARPMUP) <I>(in whole dollars)</I><SUP>(2)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">39</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">31</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">28</FONT></TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 48px"><FONT STYLE="font-size: 10pt">(1)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Adjusted EBITDA is a non-GAAP financial measure. See &ldquo;<I>DraftKings&rsquo; Management&rsquo;s
    Discussion and Analysis of Financial Condition and Results of Operations&thinsp;&mdash;&thinsp;Non-GAAP Information</I>&rdquo;
    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.</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 48px"><FONT STYLE="font-size: 10pt">(2)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">For important information about how we use our MUPs and ARPMUP, see &ldquo;<I>DraftKings&rsquo;
    Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations&thinsp;&mdash;&thinsp;Our Business
    Model&thinsp;&mdash;&thinsp;Growing Our User Base.</I>&rdquo; 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 &ldquo;<I>DraftKings&rsquo;
    Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations&thinsp;&mdash; Quarterly Performance
    Trend and Seasonality.</I>&rdquo;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

</div></center>
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<center><DIV STYLE="border: Black 1pt solid; padding: 10pt; width: 96%">

<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"><FONT STYLE="text-transform: uppercase"><B><A NAME="a006"></A>SELECTED
HISTORICAL FINANCIAL INFORMATION OF SBT</B></FONT></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; text-align: left">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; text-align: left">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left"><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 our results 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 CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt"><B>&#8203;&nbsp;</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>For the year ended December 31,</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid"><FONT STYLE="font-size: 10pt"><B>Statement of Operations Data</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2019</B></FONT></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"><FONT STYLE="font-size: 10pt"><B>2018</B></FONT></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"><FONT STYLE="font-size: 10pt"><B>2017</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="10" STYLE="text-align: center"><FONT STYLE="font-size: 10pt"><B>(in thousands)</B></FONT></TD>
    <TD>&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 67%"><FONT STYLE="font-size: 10pt"><B>Revenue</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">&euro;</FONT></TD>
    <TD STYLE="width: 8%; text-align: right"><FONT STYLE="font-size: 10pt">96,857</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">&euro;</FONT></TD>
    <TD STYLE="width: 8%; text-align: right"><FONT STYLE="font-size: 10pt">94,147</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">&euro;</FONT></TD>
    <TD STYLE="width: 8%; text-align: right"><FONT STYLE="font-size: 10pt">66,087</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">Total costs and expenses</FONT></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"><FONT STYLE="font-size: 10pt">90,820</FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</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"><FONT STYLE="font-size: 10pt">66,560</FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</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"><FONT STYLE="font-size: 10pt">49,393</FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 9pt"><FONT STYLE="font-size: 10pt">Operating income</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">&euro;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">6,037</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">&euro;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">27,587</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">&euro;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">16,694</FONT></TD>
    <TD>&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-size: 10pt">Other income:</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 9pt"><FONT STYLE="font-size: 10pt">Financial income</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">23</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">97</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">37</FONT></TD>
    <TD>&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-left: 9pt"><FONT STYLE="font-size: 10pt">Financial expenses</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">846</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">340</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">177</FONT></TD>
    <TD>&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-bottom: 1pt; padding-left: 9pt"><FONT STYLE="font-size: 10pt">Income tax expense</FONT></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"><FONT STYLE="font-size: 10pt">638</FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</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"><FONT STYLE="font-size: 10pt">565</FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</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"><FONT STYLE="font-size: 10pt">264</FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt"><B>Net profit</B></FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-size: 10pt"><B>&euro;</B></FONT></TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>4,576</B></FONT></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"><FONT STYLE="font-size: 10pt"><B>&euro;</B></FONT></TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>26,779</B></FONT></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"><FONT STYLE="font-size: 10pt"><B>&euro;</B></FONT></TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right"><FONT STYLE="font-size: 10pt"><B>16,290</B></FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-size: 10pt"><B>Statement of Cash Flows Data</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD>&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-size: 10pt">Net cash provided by (used in) operating activities</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">&euro;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">19,525</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">&euro;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">30,949</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">&euro;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">18,260</FONT></TD>
    <TD>&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-size: 10pt">Net cash provided by (used in) investing activities</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(18,399</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(17,384</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(14,307</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">)</FONT></TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-size: 10pt">Net cash provided by (used in) financing activities</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(13,537</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(1,184</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">190</FONT></TD>
    <TD>&nbsp;</TD>
    </TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt">&nbsp;<B>&#8203;</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>As of December 31,</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 10pt"><B></B></FONT></P>
                                               <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 10pt"><B>Balance Sheet Data</B></FONT></P></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>2019</B></FONT></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"><FONT STYLE="font-size: 10pt"><B>2018</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center"><FONT STYLE="font-size: 10pt"><B>(in thousands)</B></FONT></TD>
    <TD>&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 78%"><FONT STYLE="font-size: 10pt">Total assets</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">&euro;</FONT></TD>
    <TD STYLE="width: 8%; text-align: right"><FONT STYLE="font-size: 10pt">98,853</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">&euro;</FONT></TD>
    <TD STYLE="width: 8%; text-align: right"><FONT STYLE="font-size: 10pt">72,656</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-size: 10pt">Total liabilities</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">45,976</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">14,207</FONT></TD>
    <TD>&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-size: 10pt">Total equity</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">52,877</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">58,449</FONT></TD>
    <TD>&nbsp;</TD>
    </TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

</div></center>
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<center><DIV STYLE="border: Black 1pt solid; padding: 10pt; width: 96%">

<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"><FONT STYLE="text-transform: uppercase"><B><A NAME="a007"></A>SUMMARY
UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION</B></FONT></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; text-align: left">The following summary unaudited pro
forma condensed combined financial data (the &ldquo;summary pro forma data&rdquo;) gives effect to the Business Combination pursuant
to 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 was 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 was treated
as the &ldquo;acquired&rdquo; company for financial reporting purposes. Accordingly, for accounting purposes, the reverse recapitalization
for which Old DK has been determined to be the accounting acquirer (the &ldquo;Reverse Recapitalization&rdquo;) was treated as
the equivalent of Old DK issuing stock for the net assets of DEAC, accompanied by a recapitalization. The net assets of DEAC are
stated at historical cost, with no goodwill or other intangible assets recorded. Operations prior to the Reverse Recapitalization
are those of Old DK. The SBTech Acquisition was treated as a business combination under Financial Accounting Standards Board&rsquo;s
ASC 805, and was accounted for using the acquisition method of accounting. We recorded 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; text-align: left">&nbsp;</P>

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

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




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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid"><B>Pro Forma</B><BR> <B>Combined</B></TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-indent: -9pt; padding-left: 9pt">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-size: 10pt"><B>(in thousands, except share
    and per</B></FONT><BR> <FONT STYLE="font-size: 10pt"><B>share data)</B></FONT></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="font-weight: bold; text-align: left; text-indent: -9pt; padding-left: 9pt">Summary Unaudited Pro Forma Condensed
    Combined Statement of Operations Data Year Ended December 31, 2019</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-size: 10pt"><B>&#8203;</B></FONT></TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 85%; text-indent: -9pt; padding-left: 9pt">Revenue</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">431,834</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Net loss per share&thinsp;-&thinsp;basic and diluted</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.42</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Weighted-average Class A shares outstanding&thinsp;-&thinsp;basic
    and diluted</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">335,917,094</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; text-indent: -9pt; padding-left: 9pt">Summary Unaudited Pro Forma Condensed
    Combined Balance Sheet Data as of December 31, 2019</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-size: 10pt"><B>&#8203;</B></FONT></TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Total assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,854,900</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Total liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">363,770</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Total equity</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,491,130</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>

</div></center>
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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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<center><DIV STYLE="border: Black 1pt solid; padding: 10pt; width: 96%">

<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"><FONT STYLE="text-transform: uppercase"><B><A NAME="a008"></A>COMPARATIVE
HISTORICAL AND UNAUDITED PRO FORMA PER SHARE FINANCIAL INFORMATION</B></FONT></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; text-align: left">The following table sets forth historical
comparative share information for DEAC, Old DK and SBT and unaudited pro forma combined share information after giving effect
to the Business Combination.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">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, Old DK, and SBT and related notes. The unaudited pro forma combined per share information
of DEAC, Old DK, 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; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">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: 80%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="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">Combined Pro Forma</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</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">
    <TD STYLE="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">Diamond<BR> Eagle<BR> (Historical)</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">Pro Forma<BR> Combined</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-indent: -9pt; padding-left: 9pt">As of and for the Year ended December 31, 2019</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-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-size: 10pt"><B>&#8203;</B></FONT></TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 70%; text-indent: -9pt; padding-left: 9pt"><FONT STYLE="font-size: 10pt">Book Value per share<SUP>(1)</SUP></FONT></TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">0.10</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">4.44</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Weighted average shares outstanding of Class A common
    stock&thinsp;- basic and diluted</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">40,000,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">335,917,094</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Weighted average shares outstanding of Class B common
    stock&thinsp;- basic and diluted</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,010,045</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-size: 10pt">&#8203;</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Net income per share of Class A common stock&thinsp;-
    basic and diluted</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.09</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Net loss per share of Class B common stock&thinsp;-
    basic and diluted</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.15</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Net loss per share of Class A common stock&thinsp;-
    basic and diluted</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.42</TD><TD STYLE="text-align: left">)</TD></TR>
</TABLE>


<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">(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>

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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="a009"></A>MARKET PRICE, TICKER SYMBOL AND DIVIDEND
INFORMATION</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>Market Price and Ticker Symbol</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; text-align: left">Our Class&nbsp;A common stock and warrants
are currently listed on Nasdaq under the symbols &ldquo;DKNG,&rdquo; and &ldquo;DKNGW,&rdquo; respectively. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt; text-align: left">The closing price of the&nbsp;Class&nbsp;A
common stock and warrants on May 4, 2020, was $20.99 and $9.08, respectively. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B>Holders </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; text-align: left">As of May 4, 2020,
there were 382 holders of record of our Class&nbsp;A common stock and 380 holders of record of our warrants. Such
numbers do not include beneficial owners holding our securities through nominee names. There is no public market for our
Class B Common Stock. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B>Dividend Policy </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; text-align: left">We have not paid any cash dividends on
our Class A common stock to date. The payment of cash dividends in the future will be dependent upon our revenues and earnings,
if any, capital requirements and general financial condition. The payment of any cash dividends will be within the discretion of
the Board at such 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"></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">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase"><B><A NAME="a010"></A>RISK
FACTORS</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>An
investment in our securities involves a high degree of risk. You should carefully consider the risks described below <FONT STYLE="background-color: white">as
well as the other information included in this prospectus, including &#8220;Cautionary Note Regarding Forward-Looking Statements,&#8221;
 &#8220;Selected Historical Financial Information of DEAC,&#8221; &#8220;Selected Historical Financial Information of DraftKings,&#8221;
 &#8220;Selected Historical Financial Information of SBT,&#8221; &#8220;DraftKings&#8217; Management&#8217;s Discussion and Analysis
of Financial Condition and Results of Operations&#8221; &#8220;SBT&#8217;s Management&#8217;s Discussion and Analysis of Financial
Condition and Results of Operations&#8221; and the consolidated financial statements and the related notes thereto included elsewhere
in this prospectus, before investing in our securities. </FONT>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></FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Risk
Factors Relating to Our Business and Industry </B></FONT></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">&nbsp;&nbsp;</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"><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></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">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
operate in the global entertainment and gaming industries within the broader entertainment industry with our business-to-consumer
offerings such as DFS, Sportsbook and iGaming, and our business-to-business offerings through the SBT platform. Our users 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 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.</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
specific industries in which we 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.</FONT></FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
financial performance is 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;&#8211;&#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.</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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&#8217;
disposable income and advertisers&#8217; budgets. Any one of these changes could have a material adverse effect on our business,
financial condition, results of operations or prospects.</FONT></P>

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


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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
business is 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&#8217; 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.</FONT></FONT></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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">For
example, the recent outbreak of the novel coronavirus (&#8220;COVID-19&#8221;), 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&#8217; 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, our
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.</FONT></FONT></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"><FONT 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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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></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">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
quarterly financial results have fluctuated in the past and we expect our 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.</FONT></FONT></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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
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 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 we have been
able to forecast revenues from our 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&#8217;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.</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">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, we do not insure against random outcomes or jackpot wins.</FONT></FONT></P>

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

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


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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
operate in rapidly changing and competitive industries and our projections are 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 &#8220;up front&#8221; 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.</FONT></FONT></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: 20pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Additionally,
as described above under &#8220;&#8212;&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>&#8221; 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.</FONT></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"><FONT 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"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>We
have a new business model, which makes it difficult for us to forecast our financial results, creates uncertainty as to how investors
will evaluate our prospects, and increases the risk that we will not be successful.</I></B></FONT></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">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">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. Following the consummation of the Business Combination, we 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&#8217; perceptions
and expectations, which can be idiosyncratic and vary widely, with respect to our prospects. Additionally, following the Business
Combination, we are 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&#8217; and SBT&#8217;s past quarterly financial results
as indicators of our future financial performance, and our financial results and stock price may be negatively affected.</FONT></FONT></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"><B><I>DraftKings
has a history of losses and we may continue to incur losses in the future.</I></B></FONT></P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">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&#8217; historical revenues generally have been highest in the fourth quarter. A majority of
our 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. Our 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 or postponement 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 our financial performance.</FONT></FONT></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"><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></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
sports betting and iGaming industries are characterized by an element of chance. Accordingly, we employ 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. We use the hold&nbsp;percentage as an indicator of an iGame&#8217;s or sports bet&#8217;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&#8217;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&#8217;s or sports bet&#8217;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.</FONT></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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&#8217; 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.</FONT></P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
technology infrastructure is 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. We 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 us; 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.</FONT></FONT></P>

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">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&#8217;
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, we 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.</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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&#8217; information may be lost, disclosed, accessed or taken without
our guests&#8217; 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.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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&#8217; 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.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, any party who is able to illicitly obtain a user&#8217;s password could access the user&#8217;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.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
currently host our sports betting, iGaming and daily fantasy sports platforms and support our operations using Amazon Web Services
(&#8220;AWS&#8221;), a third-party provider of cloud infrastructure services, along with other service providers previously 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&#8217; 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&#8217;s continuing and uninterrupted
performance will be critical to our success. We have 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&#8217; service levels may adversely affect our ability to meet the requirements of
our users. Since our platform&#8217;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.</FONT></FONT></P>

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
platform contains software modules licensed to us by third-party authors under &#8220;open source&#8221; 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.</FONT></P>

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
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. We have experienced, and 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.</FONT></FONT></P>

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

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




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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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&#8217;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.</FONT></P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, any misappropriation of, or access to, users&#8217; 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.</FONT></P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">A
substantial portion of our network infrastructure is provided by third parties, including Internet service providers and other
technology-based service providers. See &#8220;&#8212;&nbsp;<I>We 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>&#8221; 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&#8217; 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.</FONT></FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
some states&#8217; sports betting laws, online sports betting is limited to a finite number of retail operators, such as casinos,
tribes or tracks, who own a &#8220;skin&#8221; or &#8220;skins&#8221; under that state&#8217;s law. A &#8220;skin&#8221; is a
legally-authorized license from a state to offer online sports betting services provided by a casino. The &#8220;skin&#8221; provides
a market access opportunity for mobile operators to operate in the jurisdiction pending licensure and other required approvals
by the state&#8217;s regulator. The entities that control those &#8220;skins&#8217;, and the numbers of&#8201; &#8220;skins&#8221;
available, are typically determined by a state&#8217;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 &#8220;skin.&#8221; These &#8220;skins&#8221;
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.</FONT></P>

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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&#8217; 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.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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&#8217;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&#8217; 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.&nbsp;</FONT></P>

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<P STYLE="font: 12pt 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; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</FONT></P>

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

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

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

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

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

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

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

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Our
business model depends upon the continued compatibility between our app and the major mobile operating systems and upon third-party
platforms for the distribution of our 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></FONT></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">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
substantial majority of our users access our DFS, Sportsbook and iGaming product offerings primarily on mobile devices, and we
believe that this will continue to be increasingly important to our long-term success. Our business model depends upon the continued
compatibility between our app and the major mobile operating systems. Third parties with whom we do 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.</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
addition, we rely upon third-party platforms for distribution of our 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 our app. As such, the promotion, distribution and operation of our app are subject to the respective distribution platforms&#8217;
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.</FONT></FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">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. We are 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&#8217; 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.</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Moreover,
our 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, our product offerings must work well with a range
of mobile technologies, systems, networks, regulations, and standards that we do 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.</FONT></FONT></P>

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

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

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">As
part of our business strategy, we have made, and we intend 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:</FONT></FONT></P>

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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the ability to profitably manage acquired
    businesses or successfully integrate the acquired businesses&#8217; operations, personnel, financial reporting, accounting
    and internal controls, technologies and products into our business;</FONT></TD></TR>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center; width: 48px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">diversion of management&#8217;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">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the ability to retain or hire qualified personnel
    required for expanded operations.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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>
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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"><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></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">&nbsp;&nbsp;</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
the past we have been party to, and we 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 &#8220;<I>Business&#8201;&#8212;&#8201;Legal Proceedings</I>.&#8221;
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.</FONT></FONT></P>

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

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

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

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

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
May&nbsp;2018, the U.S. Supreme Court struck down as unconstitutional the Professional and Amateur Sports Protection Act of 1992
(&#8220;PASPA&#8221;). 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 &#8220;<I>Business&#8201;&#8212;&#8201;Government Regulation.</I>&#8221;
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.</FONT></FONT></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">&nbsp;</FONT></P>

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

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

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

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 &#8220;liberalized&#8221; regulatory regimes are considerably more commercially
attractive than others.</FONT></P>




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

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

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

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

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

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

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

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

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

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>We
have been the subject of governmental investigations and inquiries with respect to the operation of our 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></FONT></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">&nbsp;&nbsp;</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
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,
we could be subject to covering significant liabilities.&nbsp;</FONT></P>

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<P STYLE="font: 12pt 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"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>We
follow 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 us to limit
on the individual customer level.</I></B></FONT></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">&nbsp;&nbsp;</FONT></P>

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>The
requirements of being a public company may strain our resources and divert management&#8217;s attention, and the increases in
legal, accounting and compliance expenses may be greater than we anticipate.</I></B></FONT></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
became a public company following the Closing of the Business Combination, and as such (and particularly after we are no longer
an &#8220;emerging growth company&#8221;), have incurred, and will continue to incur, significant legal, accounting and other
expenses that DraftKings and SBT did not incur as private companies. We are subject to the reporting requirements of the Exchange
Act, and are 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
need to devote a substantial amount of time to these compliance initiatives. Moreover, these rules and regulations will increase
our 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 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 &#8220;emerging growth company.&#8221; 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.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>As
private companies, DraftKings and SBT were not 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></FONT></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">DraftKings
and SBT were not required to document and test their internal controls over financial reporting nor was their management required
to certify the effectiveness of their internal controls and their auditors were not required to opine on the effectiveness of
their internal control over financial reporting. Similarly, as an &#8220;emerging growth company,&#8221; DEAC was exempt from
the SEC&#8217;s internal control reporting requirements. We may lose our emerging growth company status and become subject to
the SEC&#8217;s internal control over financial reporting management and auditor attestation requirements in the year in which
we are deemed to be a large accelerated filer, which would occur once we are subject to Exchange Act reporting requirements for
12&nbsp;months, have filed at least one SEC annual report and the market value of our common equity held by non-affiliates exceeds
$700&nbsp;million as of the end of the prior fiscal year&#8217;s second fiscal quarter. We will be subject to the SEC&#8217;s
internal control reporting and attestation requirements with respect to our annual report on Form 10-K for the year ending December
31, 2021. Additionally, our independent registered public accounting firm will be required to formally attest to the effectiveness
of our internal controls over financial reporting commencing with our second annual report on Form 10-K (i.e. for the year ending
December&nbsp;31, 2021). We may not be able to complete our evaluation, testing and any required remediation in a timely fashion.
In addition, our current controls and any new controls that we develop may become inadequate because of poor design and changes
in our 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 our independent registered
public accounting firm and their attestation reports.</FONT></FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Continued
growth and success will depend on the performance of our current and future employees, 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.&nbsp;</I></B></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">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
depend on a limited number of key personnel to manage and operate our business, including DraftKings&#8217; co-founders, our Chief
Financial Officer and our Chief Legal Officer. The leadership of our current executive officers has been a critical element of
Old DK&#8217;s 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.</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
addition, certain of our 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.</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">All
Named Executive Officers (as defined below) are employees-at-will. 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.</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Additionally,
as we grow and develop the infrastructure of a public company, we may find it difficult to maintain our 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.</FONT></FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><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&#8217;s equity securities.</I></B></FONT></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 &#8220;<I>Business &#8212; Government Regulation</I>.&#8221;&nbsp;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
addition, the Charter provides that any of our common stock or other equity securities owned or controlled by any stockholder
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 Board, is an unsuitable person,
will be subject to mandatory sale and transfer to either us or one or more third-party transferees.</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Additionally,
a gaming regulatory body may refuse to issue or renew a gaming license or restrict or condition the same, based on our present
activities or the past activities of DraftKings or SBT, or the past or present activities of their 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 our 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.</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><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&#8217;s historic operating structure afforded it a relatively low
effective corporate tax rate, and we expect to have a higher effective corporate tax rate.</I></B></FONT></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">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
tax obligations will be varied and include U.S. federal, state and international taxes due to the nature of our 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 (&#8220;TCJA&#8221;)
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.</FONT></FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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&#8217; estimated contingent liability for indirect
tax liabilities was $35.9&nbsp;million and $27.2&nbsp;million, respectively. DraftKings&#8217; estimated contingent liability
for indirect taxes represents its best estimate of tax liability for jurisdictions in which it believes taxation is probable.</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">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. We are 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 Old DK&#8217;s consolidated financial statements included herein and may materially
affect our consolidated financial statements in the period or periods in which that determination is made.</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Although
SBT&#8217;s corporate and tax structure resulted in relatively low effective corporate tax rate for the business, we cannot guarantee
the same tax efficiency 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, we may be exposed to a substantial tax liability if the relevant
authorities raise claims with regards to SBT&#8217;s tax status in various jurisdictions, including in particular the manner in
which it allocated or allocates profit amongst relevant jurisdictions for tax purposes.</FONT></FONT></P>

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

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

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

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

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

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




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

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

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

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

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Risk
Factors Relating to the Integration of DraftKings&#8217; and SBTech&#8217;s Businesses</B></FONT></FONT></P>

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<P STYLE="font: 12pt 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"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>While
we work to integrate the DraftKings and SBT businesses and operations, management&#8217;s focus and resources may be diverted
from operational matters and other strategic opportunities.</I></B></FONT></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">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Successful
integration of SBT&#8217;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&#8217;s attention and any difficulties
encountered in the transition and integration process could harm our business, financial condition, results of operations and
prospects. In addition, uncertainty about the effect of the Business Combination on our systems, employees, customers, partners,
and other third parties, including regulators, may have an adverse effect on us. These uncertainties may impair our ability to
attract, retain and motivate key personnel for a period of time after the Business Combination.</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">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&#8217;s time and energy, which could materially impact our business, financial condition and results
of operations.</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
may incur successor liabilities due to conduct arising prior to the completion of the Business Combination.</I></B></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">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
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, we may also face intellectual property infringement, misappropriation, or invalidity/non-infringement claims
from third parties, and some of these claims may lead to litigation. We 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&#8217;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 us negatively.</FONT></FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Business Combination involved the integration of two businesses that previously operated as independent businesses. We are devoting
management attention and resources to integrating the businesses. We may encounter potential difficulties in the integration process
including the following:</FONT></FONT></P>

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

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the inability to successfully integrate the
    two businesses, including operations, technologies, products and services, in a manner that permits us 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>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 us, or deciding to decrease
    their amount of business in order to reduce their reliance on a single company;</FONT></TD></TR>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the necessity of coordinating geographically
    separated organizations, systems and facilities;</FONT></TD></TR>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">potential unknown liabilities and unforeseen
    expenses associated with the Business Combination;</FONT></TD></TR>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the consolidation and rationalization of information
    technology platforms and administrative infrastructures as well as accounting systems and related financial reporting activities;</FONT></TD></TR>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the potential weakening of relationships with
    regulators; and</FONT></TD></TR>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the challenge of preserving important relationships
    and resolving potential conflicts that may arise.</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;&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Furthermore,
it is possible that the integration process could result in the loss of talented employees or skilled workers. The loss of talented
employees and skilled workers could adversely affect our ability to successfully conduct our businesses because of such employees&#8217;
experience and knowledge of the respective business. In addition, we could be adversely affected by the diversion of management&#8217;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 we 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 our business, results
of operations, financial condition or prospects during this transition period and for an undetermined period after completion
of the Business Combination.</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Our
business now includes a B2B business model, primarily in international jurisdictions, which business depends on the underlying
financial performance of our direct operators and its resellers. As a material part of SBT&#8217;s revenue is currently generated
through resellers and direct sales to operators, a decline in such resellers&#8217; or direct operators&#8217; financial performance
or a termination of some or all of the agreements with such resellers or operators could have a material adverse effect on our
business.</I></B></FONT></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">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">SBT
historically offered its services directly to operators in Europe and uses a reseller model in Asia. SBT&#8217;s historical financial
performance depended on the underlying financial performance of its direct operators and its resellers. In particular, SBT relied
primarily on one reseller for its Asia revenue. This reseller accounted for approximately 46% of SBT&#8217;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 our business.<B><I>&nbsp;</I></B></FONT></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"></FONT></P>




<P STYLE="font: 12pt 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"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Given
the increased number of jurisdictions in which we operate, we may experience delays in the licensing application and approval
process, depending on the regulatory requirements in each relevant jurisdiction.</I></B></FONT></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">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Regulated
gaming license applications frequently involve an in-depth suitability review of the applicant&#8217;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&#8217; worth of business and personal financial
records and disclosures which take considerable time to compile, followed by the regulator&#8217;s investigatory process which
may take&nbsp;months or even&nbsp;years to complete. Due to the increased number of jurisdictions in which we now operate, 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.</FONT></FONT></P>

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>SBT&#8217;s
business, which included significant international operations, is likely to expose us 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 our profit and financial position.</I></B></FONT></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">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">SBT&#8217;s
global operations are likely to expose us 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 historically was, and
we are expected to be, exposed to adverse movements in foreign currency exchange rates, which may adversely impact our financial
positions and results of operations.</FONT></FONT></P>

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




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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
functional currency is the U.S. dollar, and as a result, we will be subject to foreign currency fluctuation due to SBT&#8217;s
global presence and the fact that a significant majority of its revenues, operating expenses and assets and liabilities were non-U.S.
dollar denominated. 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 we 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 our operations outside of the United States
expand.</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
foreign currency exposure will reflect SBT&#8217;s historical operations, which have been primarily in Euro (reflecting over 90%
of its revenue in all reporting periods), which was SBT&#8217;s functional and reporting currency, and the British pound (which
accounted for 10.2% and 5.0% of SBT&#8217;s revenue in the years ended December&nbsp;31, 2019 and 2018, respectively). See &#8220;<I>SBT&#8217;s
Management&#8217;s Discussion and Analysis of Financial Condition and Results of Operations&#8201;&#8212;&#8201;Quantitative and
Qualitative Disclosures about Market Risk&#8201;&#8212;&#8201;Foreign Currency Exchange Rate Risk</I>.&#8221; SBT historically
did not hedge its foreign currency transaction or translation exposure, though we 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 our financial position and results of operations, and may adversely impact the comparability of results between periods.</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>We
currently depend on the Kambi platform to operate our Sportsbook and 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></FONT></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">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
currently depends on Kambi and their platform to operate our Sportsbook product offering; however, we intend to transition the
Sportsbook platform to that of SBT&#8217;s over time. Any transition of the Sportsbook platform currently provided by Kambi to
that of SBT&#8217;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.</FONT></FONT></P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Risk
Factors Relating to Our Common Stock</B></FONT></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">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; background-color: white"><B><I>Resales
of our securities may cause the market price of our securities to drop significantly, even if our business is doing well</I></B></FONT></FONT><B><I><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">.</FONT></I></B></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">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">With
certain limited exceptions, (i) no member of the DK Stockholder Group or the SBT Stockholder Group or any other Selling
Securityholder is permitted to transfer any shares of Class A common stock or warrants beneficially owned or owned of record
by such stockholder for a period of 180 days from the Closing, (ii) no member of the DEAC Stockholder Group is permitted to
transfer any shares of Class A common stock or warrants beneficially owned or owned of record by such stockholder until the
earliest of (A) one year from the Closing, (B) the last consecutive trading day where the volume weighted average share price
equals or exceeds $15.00 per share for at least 20 out of 30 consecutive trading days, commencing not earlier than 180 days
after the Closing or (C) at the time DraftKings consummates a transaction after the transactions which results in the
stockholders having the right to exchange their shares of common stock for cash, securities or other property; and (iii) Mr.
Robins is not permitted to transfer any shares of Class A common stock or warrants beneficially owned or owned of record
until two years after the Closing. All other Selling Securityholders are also prohibited from transferring any shares of
Class A common stock and warrants beneficially owned or owned of record by such stockholder for a period of 180 days from the
Closing.</FONT></FONT></P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; background-color: white">We
also intend to register all shares of Class&nbsp;A common stock that we may issue under the Incentive Plan. Once we register these
shares, they can be freely sold in the public market upon issuance, subject to volume limitations applicable to affiliates.</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; ">The
shares of Class A common stock offered by the Selling Securityholders represent approximately 75% of our outstanding Class&nbsp;A
common stock, not including the shares of Class A common stock underlying the warrants. Additionally, 3,454,002 shares of our
Class&nbsp;A common stock will be issuable upon the exercise of our private placement warrants and Old DK Warrants. 3,420,273
shares of Class A common stock underlying our private placement warrants and Old DK Warrants have been registered for resale under
the Securities Act on the registration statement of which this prospectus is a part. As restrictions on resale end, the warrants
become exercisable and registration statements are available for use, the sale or possibility of sale of shares by the Selling
Securityholders could have the effect of increasing the volatility in our share price or the market price of our securities could
decline if the holders of currently restricted shares sell them or are perceived by the market as intending to sell them.</FONT></FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; background-color: white">Outstanding
DEAC warrants to purchase an aggregate approximately 19.7&nbsp;million shares of our Class&nbsp;A common stock will become exercisable
in accordance with the terms of the warrant agreement. These warrants will become exercisable on May 23, 2020. The exercise price
of these warrants will be $11.50 per share.&nbsp;</FONT></FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
the extent such warrants are exercised, additional shares of our Class&nbsp;A common stock will be issued, which will result in
dilution to the holders of our 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 our Class&nbsp;A common
stock.</FONT></P>

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




<P STYLE="font: 12pt 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"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>We
may redeem unexpired warrants prior to their exercise at a time that is disadvantageous to you, thereby making your warrants worthless.</I></B></FONT></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">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
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 our 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 are redeemable by us so long as they are held by their initial purchasers or their permitted
transferees.</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
addition, we may redeem warrants after they become exercisable for a number of shares of our Class&nbsp;A common stock determined
based on the redemption date and the fair market value of our 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 &#8220;out-of-the-money,&#8221;
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.</FONT></FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
exercise price for the outstanding DEAC warrants is $11.50 per share of Class&nbsp;A common stock. There can be no assurance that
the DEAC warrants will be in the money following the time they become exercisable and prior to their expiration, and as such,
the DEAC warrants may expire worthless.</FONT></FONT></P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
may be forced to write-down or write-off assets, restructure our operations, or incur impairment or other charges that could result
in losses. Even though these charges may be non-cash items and not have an immediate impact on our liquidity, the fact that we
report charges of this nature could contribute to negative market perceptions about us or our securities. In addition, charges
of this nature may cause us to violate net worth or other covenants to which we may be subject. Accordingly, a stockholder could
suffer a reduction in the value of their shares. </FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>The
trading price of our </I></B></FONT><B><I>Class A common stock and warrants may be volatile.</I></B></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">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
trading price of our securities 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.</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Factors
affecting the trading price of our securities may include:</FONT></FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 72px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">actual or anticipated fluctuations in our quarterly
    financial results or the quarterly financial results of companies perceived to be similar to us;</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>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 72px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">changes in the market&#8217;s expectations about
    our operating results;</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;&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 72px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">success of competitors;</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;&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 72px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">lack of adjacent competitors;</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;&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 72px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our operating results failing to meet the expectation
    of securities analysts or investors in a particular period;</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;&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 72px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">changes in financial estimates and recommendations
    by securities analysts concerning DraftKings or the industries in which we operate in general;</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;&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 72px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">operating and stock price performance of
    other companies that investors deem comparable to us;</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;&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 72px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to market new and enhanced products
    and services on a timely basis;</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;&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 72px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">changes in laws and regulations affecting our
    business;</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;&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 72px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">commencement of, or involvement in, litigation
    involving us;</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;&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 72px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">changes in our capital structure, such as
    future issuances of securities or the incurrence of additional debt;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 72px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the volume of shares of our Class&nbsp;A
    common stock available for public sale;</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;&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 72px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">any major change in our board or management;</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;&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 72px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">sales of substantial amounts of our Class&nbsp;A
    common stock by our directors, executive officers or significant stockholders or the perception that such sales could occur;
    and</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;&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 72px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">general economic and political conditions such
    as recessions, interest rates, fuel prices, international currency fluctuations and acts of war or terrorism.</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">&#8203;&nbsp;</FONT></P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; background-color: white"><B><I>The
coverage of our business or our securities by securities or industry analysts or the absence thereof could adversely affect our
securities and trading volume</I></B></FONT></FONT><B><I><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">.</FONT></I></B></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">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
trading market for our securities will be influenced in part by the research and other reports that industry or securities analysts
may publish about us or our business or industry from time to time. We do not control these analysts or the content and opinions
included in their reports. As a former shell company, we may be slow to attract equity research coverage, and the analysts who
publish information about our securities will have had relatively little experience with our company, which could affect their
ability to accurately forecast our results and make it more likely that we fail to meet their estimates. If no or few analysts
commence equity research coverage of us, the trading price and volume of our securities would likely be negatively impacted. If
analysts do cover us and one or more of them downgrade our securities, or if they issue other unfavorable commentary about us
or our industry or inaccurate research, our stock price would likely decline. Furthermore, if one or more of these analysts cease
coverage or fail to regularly publish reports on us, we could lose visibility in the financial markets. Any of the foregoing would
likely cause our stock price and trading volume to decline.</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
Class&nbsp;A common stock and warrants are currently listed on Nasdaq. If Nasdaq delists our Class&nbsp;A common stock from trading
on its exchange for any reason, we and our stockholders could face significant material adverse consequences including:</FONT></FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 72px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a limited availability of market quotations
    for our securities;</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;&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 72px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a determination that our Class&nbsp;A common
    stock is a &#8220;penny stock&#8221; which will require brokers trading in our 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 our Class&nbsp;A
    common stock;</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;&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 72px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a limited amount of analyst coverage; and</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;&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 72px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a decreased ability to issue additional securities
    or obtain additional financing in the future.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8203;&nbsp;<B><I>&nbsp;&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Because
we are a &#8220;controlled company&#8221; 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></FONT></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">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">So
long as more than 50% of the voting power for the election of directors of DraftKings is held by an individual, a group or another
company, we will qualify as a &#8220;controlled company&#8221; under The Nasdaq Stock Market listing requirements. Mr.&nbsp;Robins
controls a majority of the voting power of our outstanding capital stock. As a result, we are a &#8220;controlled company&#8221;
under The Nasdaq Stock Market listing standards and are not 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&#8217;s selection, either by a majority
of the independent directors or a nominating committee comprised solely of independent directors.</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Mr.&nbsp;Robins
may have his interest in 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 &#8220;controlled company&#8221; exemption under The Nasdaq Stock
Market listing rules. We would then be required to comply with those provisions of The Nasdaq Stock Market listing requirements.</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Our
dual class structure has the effect of concentrating voting power with our Chief Executive Officer and Co-Founder, which limits
an investor&#8217;s ability to influence the outcome of important transactions, including a change in control.</I></B></FONT></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">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Shares
of our Class&nbsp;B common stock have 10 votes per share, while shares of our Class&nbsp;A common stock have one vote per share.
Mr.&nbsp;Robins, one of the founders of DraftKings, holds all of the issued and outstanding shares of our Class&nbsp;B common
stock. Accordingly, Mr.&nbsp;Robins holds approximately 90% of the voting power of our 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 DraftKings, could deprive our stockholders of an opportunity to receive a premium for their capital stock as part
of a sale of DraftKings, and might ultimately affect the market price of shares of our Class&nbsp;A common stock. For information
about our dual class structure, see the section titled &#8220;<I>Description of Securities.</I>&#8221;</FONT></FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>We
cannot predict the impact our dual class structure may have on the stock price of our Class&nbsp;A common stock.</I></B></FONT></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">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
cannot predict whether our dual class structure will result in a lower or more volatile market price of our 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 &#8220;with
unequal voting structures&#8221; 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 our Class&nbsp;A common stock less attractive
to other investors. As a result, the market price of shares of our Class&nbsp;A common stock could be adversely affected.</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Nevada
law and provisions our amended and restated articles of incorporation and bylaws could make a takeover proposal more difficult.</I></B></FONT></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">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
organizational documents are governed by Nevada law. Certain provisions of Nevada law and of our 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 our stockholders. These provisions provide for, among
other things:</FONT></FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 96px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the ability of our Board to issue one or
    more series of preferred stock;</FONT></TD></TR>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 96px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 our capital stock;</FONT></TD></TR>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 96px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">certain limitations on convening special stockholder
    meetings;</FONT></TD></TR>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 96px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">advance notice for nominations of directors
    by stockholders and for stockholders to include matters to be considered at our annual meetings;</FONT></TD></TR>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 96px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">amendment of certain provisions of the organizational
    documents only by the affirmative vote of (i)&nbsp;a majority of the voting power of our capital stock so long as Mr.&nbsp;Robins
    beneficially owns shares representing a majority of the voting power of our capital stock 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 our voting stock; and</FONT></TD></TR>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 96px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a dual class common stock structure, which
    provides 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 our capital stock.</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;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">These
anti-takeover provisions as well as certain provisions of Nevada law could make it more difficult for a third party to acquire
DraftKings, even if the third party&#8217;s offer may be considered beneficial by many of our stockholders. As a result, our stockholders
may be limited in their ability to obtain a premium for their shares. If prospective takeovers are not consummated for any reason,
we may experience negative reactions from the financial markets, including negative impacts on the price of our common stock.
These provisions could also discourage proxy contests and make it more difficult for our stockholders to elect directors of their
choosing and to cause us to take other corporate actions. See &#8220;<I>Description of Securities</I>.&#8221;</FONT></FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Our
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 our stockholders, which could limit stockholders&#8217;
ability to obtain a favorable judicial forum for disputes with us or our directors, officers, employees or agents.</I></B></FONT></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">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
amended and restated articles of incorporation require that, to the fullest extent permitted by law, and unless we otherwise consent
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 Nevada has jurisdiction, any federal court located in the State of Nevada),
will be the exclusive forum for each of the following:</FONT></FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 96px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">any action or proceeding brought in the name
    or right of DraftKings or on its behalf;</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;&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 96px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">any action asserting a claim for breach of
    any fiduciary duty owed by any director, officer, employee or agent of DraftKings to DraftKings or its stockholders;</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;&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 96px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">any action asserting a claim arising pursuant
    to any provision of NRS Chapters&nbsp;78 or 92A, our amended and restated articles of incorporation or our bylaws;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 96px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">any action to interpret, apply, enforce or
    determine the validity of our amended and restated articles of incorporation or our bylaws; or</FONT></TD></TR>
</TABLE>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 96px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">any action asserting a claim governed by the
    internal affairs doctrine.</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">&#8203;&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
exclusive forum provision provides 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 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 our directors and officers.</FONT></FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase"><B><A NAME="a011"></A>USE
OF PROCEEDS</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">All
of the shares of Class A common stock and the 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.</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
will receive up to an aggregate of approximately $226,166,532 from the exercise of the DEAC
warrants and $5,097 from the exercise of the Old DK Warrants, assuming the exercise in full of all such warrants for cash. We
will receive up to an aggregate of approximately $646,037 from the exercise of stock options under the 2017 Equity Incentive Plan
and the 2012 Equity Incentive Plan, and $225,748 from the exercise of stock options under the SBTech (Global) Limited 2011 Global
Share Option Plan. We will not receive any proceeds from the issuance of the earnout shares. 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.</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 &#8220;cashless basis,&#8221; the amount of cash we would receive from the exercise of the warrants will decrease.</FONT><FONT STYLE="font-size: 10pt"><BR STYLE="clear: both"></FONT></P>

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

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

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


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="a012"></A>UNAUDITED
PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION</B></FONT></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"><I>Defined terms included below have
the same meaning as terms defined and included elsewhere in this prospectus. Unless the context otherwise requires, the &ldquo;Company&rdquo;
refers to DraftKings Inc. and its subsidiaries after the Closing, and DEAC prior to the Closing.</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-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left">&nbsp;</P>


<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="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: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD>The
                                         Reverse Recapitalization between Merger Sub and DraftKings Inc., a Delaware corporation
                                         (&ldquo;Old DK&rdquo;);</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: Times New Roman, Times, Serif">&#9679;</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: Times New Roman, Times, Serif">&#9679;</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: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD>The
                                         issuance of Convertible Notes, which converted 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: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD>Old
                                         DK was organized on December 29, 2011, as a Delaware corporation. It 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: Times New Roman, Times, Serif">&#9679;</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 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>

<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 DEAC as of December 31, 2019
and for the period between March 27, 2019 and December 31, 2019, which are incorporated by reference. The historical financial information
of Old DK was derived from Old DK&rsquo;s audited consolidated financial statements for the year ended December 31, 2019, which
are incorporated by reference. The historical financial information of SBTech was derived from SBTech&rsquo;s audited consolidated
financial statements for the year ended December 31, 2019, which are incorporated by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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">This information should be read together
with DEAC&rsquo;s, Old DK&rsquo;s, and SBTech&rsquo;s audited financial statements and related notes, as well as &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; contained in the Proxy,&nbsp;and other financial information,
each of which is incorporated by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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 was accounted
for as a reverse merger for which DraftKings was determined to be the accounting acquirer 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: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD>Old
                                         DK has the largest voting interest in 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: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD>The
                                         board of directors of DraftKings (the &ldquo;Board&rdquo;) has 13 members, and DraftKings
                                         has nominated 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: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD>Old
                                         DK&rsquo;s former management makes up the vast majority of the management of 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: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD>Old
                                         DK 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: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD>DraftKings
                                         Class B common stock issued to one DraftKings stockholder allows 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: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD>The
                                         post-combination company assumed Old DK&rsquo;s 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 Old DK 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 Old DK and Merger
Sub was 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 was treated as the &ldquo;acquired&rdquo; company for financial reporting purposes.
Accordingly, for accounting purposes, the Reverse Recapitalization was treated as the equivalent of Old DK issuing stock for the
net assets of DEAC, accompanied by a recapitalization. The net assets of DEAC are stated at historical cost, with no goodwill or
other intangible assets recorded. Operations prior to the Reverse Recapitalization are those of Old DK. The SBTech Acquisition
was treated as a business combination under Financial Accounting Standards Board&rsquo;s&nbsp;ASC 805, and was accounted for using
the acquisition method of accounting. DraftKings recorded 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: 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 acquired all of the issued and outstanding equity interests of Old DK and SBTech in exchange for cash and equity.
The initial purchase price was based on a combined pre-money enterprise value of Old DK and SBTech, which consists of $195.9 million
of cash being transferred to SBTech shareholders (subject to adjustments as defined in the Business Combination Agreement), and
the remaining value was in the form of shares of DraftKings&rsquo; Class A common stock, options, restricted stock units and warrants
of DraftKings and, in the case of Mr. Robins, shares of Class B common stock 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">The following summarizes the consideration
issued at closing in the Reverse Recapitalization and SBTech Acquisition at a $17.53 share price (as of April 23, 2020):</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: 93%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">Total Consideration (in 000s)</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">Amounts</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">Shares</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: 73%"><FONT STYLE="font-size: 10pt">Share consideration&thinsp;-&thinsp;DraftKings<SUP>(2)</SUP></FONT></TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">3,620,939</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; text-align: right">206,557</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">Cash consideration&thinsp;-&thinsp;SBTech<SUP>(1)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">195,948</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">Share consideration&thinsp;-&thinsp;SBTech<SUP>(2)</SUP></FONT></TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">771,044</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">43,984</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 2pt">Total Merger Consideration</TD><TD STYLE="padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right">4,587,931</TD><TD STYLE="padding-bottom: 2pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right">250,541</TD><TD STYLE="padding-bottom: 2pt; 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 ALIGN="LEFT" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 20%">&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">(1)</TD><TD STYLE="text-align: left">Amount is subject
                                         to adjustment for the Net Debt Amount and Working Capital Amount, 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 average EUR to USD rate for
                                         the seven consecutive business day period ending on the fifth day prior to the Closing
                                         as per the terms of the Business Combination Agreement.</TD>
</TR></TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: -0.35in"></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 0pt 0.35in; text-indent: -0.35in">&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">Represents
                                         the estimated fair value of DraftKings common stock issued to Old DK/SBTech stockholders
                                         pursuant to the Business Combination Agreement. The estimate is based on shares that
                                         were outstanding and options and warrants that vested by the Closing. 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 are held in escrow, three million of which will be for
                                         the benefit of Old DK/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 DraftKings
at close is as follows (including shares issuable pursuant to vested options and warrants that rolled over at the Closing):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 93%; font: 10pt Times New Roman, Times, Serif; margin-left: 0">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">Total Capitalization (in 000s)</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">Shares</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">%</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: 73%; text-align: left">Old DK rollover equity&thinsp;-&thinsp;DraftKings Class A</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; text-align: right">206,557</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: 7%; text-align: right">61.5</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">SBTech rollover equity</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">43,984</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13.1</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">DEAC public shareholders</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">39,991</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11.9</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>DEAC Founders Shares</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,659</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.1</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">DEAC shares issued upon conversion of Convertible Notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,255</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.3</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">DEAC shares issued in PIPE Offering</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">30,471</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">9.1</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 2pt">Total Class A Shares</TD><TD STYLE="padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right">335,917</TD><TD STYLE="padding-bottom: 2pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right">100.0</TD><TD STYLE="padding-bottom: 2pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">DraftKings Class B Shares*</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">393,014</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-size: 10pt">&#8203;</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>



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

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

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 20%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left">&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">*</TD><TD STYLE="text-align: left">DraftKings&rsquo;
                                         Class B shares were issued to Jason Robins, such shares carry 10 votes per share and
                                         allow Jason Robins to have 90% of the voting power of the capital stock of 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, Old DK, 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>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><BR>
<B>Unaudited Pro Forma Condensed Combined Balance Sheet</B><BR>
<B>as of December 31, 2019</B><BR>
<B>(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-align: center"></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; padding-bottom: 0.5pt"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD COLSPAN="10" STYLE="border-bottom: black 1pt solid; padding-bottom: 1.5pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>As
    of December 31, 2019</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-left: 10.3pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-left: 10.3pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-left: 4.2pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-left: 4.2pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-bottom: 0.5pt; text-align: left"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-left: 6.05pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-bottom: 0.5pt; text-align: left"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; padding-bottom: 1.5pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>December
    31, 2019</B></FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-left: 3.7pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: white 1pt solid; padding-bottom: 0.5pt"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; padding-top: 1.1pt; padding-bottom: 1.15pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>DraftKings</B><BR>
    <B>(Historical)</B></FONT></TD>
    <TD STYLE="padding-top: 1.1pt; padding-bottom: 1.15pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-top: 1.1pt; padding-bottom: 1.15pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; padding-top: 1.1pt; padding-bottom: 1.15pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>DEAC</B><BR>
    <B>(Historical)</B></FONT></TD>
    <TD STYLE="padding-top: 1.1pt; padding-bottom: 1.15pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-top: 1.1pt; padding-bottom: 1.15pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; padding-top: 1.1pt; padding-bottom: 1.15pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>SBTech</B><BR>
    <B>(As Adjusted)</B><BR> <B>(Note 3)</B></FONT></TD>
    <TD STYLE="padding-top: 1.1pt; padding-bottom: 1.15pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-top: 1.1pt; padding-bottom: 1.15pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 1.1pt; padding-bottom: 1.15pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 1.1pt; padding-bottom: 1.15pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>Accounting</B><BR>
    <B>Policies and</B><BR>
    <B>Reclassification</B><BR>
    <B>Adjustments</B><BR>
    <B>(Note 2)</B></FONT></TD>
    <TD STYLE="padding-top: 1.1pt; padding-bottom: 1.15pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-top: 1.1pt; padding-bottom: 1.15pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 1.1pt; padding-bottom: 1.15pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 1.1pt; padding-bottom: 1.15pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>Pro
Forma</B></FONT><BR>
<FONT STYLE="font-size: 8pt"><B>Adjustments</B></FONT><BR>
<FONT STYLE="font-size: 8pt"><B>(Note 4&thinsp;- PF</B>)</FONT></TD>
    <TD STYLE="padding-top: 1.1pt; padding-bottom: 1.15pt; text-align: center"></TD>
    <TD STYLE="border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-bottom: 0.5pt; text-align: left"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 1.1pt; padding-bottom: 1.15pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 1.1pt; padding-bottom: 1.15pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>Purchase</B><BR>
    <B>Accounting</B><BR>
    <B>Adjustments</B><BR>
    <B>(Note 4&thinsp;- PPA)</B></FONT></TD>
    <TD STYLE="padding-top: 1.1pt; padding-bottom: 1.15pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-bottom: 0.5pt; text-align: left"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; padding-top: 1.1pt; padding-bottom: 1.15pt; text-align: center"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 8pt"><B>Pro
Forma Combined&nbsp;</B></FONT></P></TD>
    <TD STYLE="border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-top: 1.75pt; padding-bottom: 0.5pt; width: 20%"><FONT STYLE="font-size: 10pt"><B>ASSETS</B></FONT></TD>
    <TD STYLE="text-align: right; width: 1%"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right; width: 1%"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right; width: 8%"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right; width: 1%"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right; width: 1%"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right; width: 1%"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right; width: 8%"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right; width: 1%"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="padding-left: 6.75pt; text-align: right; width: 1%"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right; width: 1%"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right; width: 8%"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="padding-left: 6.75pt; text-align: right; width: 1%"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="padding-left: 10.3pt; text-align: right; width: 1%"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right; width: 1%"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right; width: 7%"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="padding-left: 10.3pt; text-align: right; width: 1%"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="padding-left: 4.2pt; text-align: right; width: 1%"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right; width: 1%"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right; width: 8%"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="padding-left: 4.2pt; text-align: right; width: 1%"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="text-align: right; width: 1%"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; width: 2%; text-align: left"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="text-align: right; width: 1%"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right; width: 1%"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right; width: 8%"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="padding-left: 6.05pt; text-align: right; width: 1%"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; width: 2%; text-align: left"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right; width: 1%"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right; width: 8%"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="padding-left: 3.7pt; text-align: right; width: 1%"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">Current assets:</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 6.05pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 3.7pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">Cash and cash equivalents</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">76,533</FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">491</FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">9,143</FONT></TD>
    <TD STYLE="padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">403,961</FONT></TD>
    <TD STYLE="padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: left"><FONT STYLE="font-size: 10pt"><B>A</B></FONT></TD>
    <TD STYLE="text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">(212,284)</FONT></TD>
    <TD STYLE="padding-left: 6.05pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: left"><FONT STYLE="font-size: 10pt"><B>A</B></FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">592,187</FONT></TD>
    <TD STYLE="padding-left: 3.7pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">(14,000)</FONT></TD>
    <TD STYLE="padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: left"><FONT STYLE="font-size: 10pt"><B>B</B></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 6.05pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 3.7pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">(41,599)</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt; text-align: left"><FONT STYLE="font-size: 10pt"><B>C</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD COLSPAN="3" STYLE="vertical-align: bottom; padding: 0.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding: 0.75pt; vertical-align: bottom; text-align: left"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding: 0.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">40,042</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt; text-align: left"><FONT STYLE="font-size: 10pt"><B>D</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD COLSPAN="3" STYLE="vertical-align: bottom; padding: 0.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding: 0.75pt; vertical-align: bottom; text-align: left"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding: 0.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">304,714</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt; text-align: left"><FONT STYLE="font-size: 10pt"><B>E</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD COLSPAN="3" STYLE="vertical-align: bottom; padding: 0.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding: 0.75pt; vertical-align: bottom; text-align: left"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding: 0.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">(10,000)</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt; text-align: left"><FONT STYLE="font-size: 10pt"><B>L</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD COLSPAN="3" STYLE="vertical-align: bottom; padding: 0.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding: 0.75pt; vertical-align: bottom; text-align: left"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding: 0.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 1.85pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 1.85pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 1.85pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 6.75pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 6.75pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 10.3pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 10.3pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.2pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">(90)</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.2pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt; text-align: left"><FONT STYLE="font-size: 10pt"><B>K</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="vertical-align: bottom; padding: 0.75pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding: 0.75pt; vertical-align: bottom; text-align: left">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding: 0.75pt; text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">(7,732)</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt; text-align: left"><FONT STYLE="font-size: 10pt"><B>M</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD COLSPAN="3" STYLE="vertical-align: bottom; padding: 0.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding: 0.75pt; vertical-align: bottom; text-align: left"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding: 0.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">(1,492)</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt; text-align: left"><FONT STYLE="font-size: 10pt"><B>N</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD COLSPAN="3" STYLE="vertical-align: bottom; padding: 0.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding: 0.75pt; vertical-align: bottom; text-align: left"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding: 0.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">44,500</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt; text-align: left"><FONT STYLE="font-size: 10pt"><B>O</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD COLSPAN="3" STYLE="vertical-align: bottom; padding: 0.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding: 0.75pt; vertical-align: bottom; text-align: left"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding: 0.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">Cash reserved for customers</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">144,000</FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 6.05pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">144,000</FONT></TD>
    <TD STYLE="padding-left: 3.7pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
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    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">19,828</FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 6.05pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">19,828</FONT></TD>
    <TD STYLE="padding-left: 3.7pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">Trade receivables, net</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">27,781</FONT></TD>
    <TD STYLE="padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 6.05pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">27,781</FONT></TD>
    <TD STYLE="padding-left: 3.7pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">Prepaid expenses</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">319</FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">(319)</FONT></TD>
    <TD STYLE="padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 6.05pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 3.7pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">Prepaid expenses and other current assets</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">20,787</FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">4,045</FONT></TD>
    <TD STYLE="padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 6.05pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">24,832</FONT></TD>
    <TD STYLE="padding-left: 3.7pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; padding-top: 2pt; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">Other current
    assets</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 2pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 2pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 2pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 2pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 2pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 2pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">3,726</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 2pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 2pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">(3,726)</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 2pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 2pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; padding-bottom: 0.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 2pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 2pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; padding-left: 6.05pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; padding-bottom: 0.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 2pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 2pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; padding-left: 3.7pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="border-bottom: white 1pt solid; padding-top: 1.75pt; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">Total current
    assets</FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 1.75pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 1.75pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">261,148</FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 1.75pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 1.75pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">810</FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 1.75pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 1.75pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">40,650</FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 1.75pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 1.75pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 1.75pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 1.75pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">718,304</FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-bottom: 0.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 1.75pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 1.75pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">(212,284)</FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-left: 6.05pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-bottom: 0.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 1.75pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 1.75pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">808,628</FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-left: 3.7pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-top: 1.75pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">Cash and investments held in Trust Account</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 1.75pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 1.75pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 1.75pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 1.75pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">403,961</FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 1.75pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 1.75pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 1.75pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 1.75pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 1.75pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 1.75pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">(403,961)</FONT></TD>
    <TD STYLE="padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 1.75pt; padding-bottom: 0.5pt; text-align: left"><FONT STYLE="font-size: 10pt"><B>A</B></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 1.75pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 1.75pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 6.05pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 1.75pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 1.75pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 3.7pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">Property and equipment, net</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">25,945</FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">11,148</FONT></TD>
    <TD STYLE="padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">209</FONT></TD>
    <TD STYLE="padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 6.05pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">37,302</FONT></TD>
    <TD STYLE="padding-left: 3.7pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">Intangible assets, net</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">33,939</FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">29,296</FONT></TD>
    <TD STYLE="padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">(209)</FONT></TD>
    <TD STYLE="padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">240,152</FONT></TD>
    <TD STYLE="padding-left: 6.05pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: left"><FONT STYLE="font-size: 10pt"><B>B</B></FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">303,178</FONT></TD>
    <TD STYLE="padding-left: 3.7pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">Goodwill</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">4,738</FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">695,235</FONT></TD>
    <TD STYLE="padding-left: 6.05pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: left"><FONT STYLE="font-size: 10pt"><B>A</B></FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">699,973</FONT></TD>
    <TD STYLE="padding-left: 3.7pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">Equity method investment</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">2,521</FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 6.05pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">2,521</FONT></TD>
    <TD STYLE="padding-left: 3.7pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">Deposits</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">2,434</FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 6.05pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">2,434</FONT></TD>
    <TD STYLE="padding-left: 3.7pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">Deferred tax assets</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">520</FONT></TD>
    <TD STYLE="padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">(520)</FONT></TD>
    <TD STYLE="padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 6.05pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 3.7pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-top: 2pt; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">Other non-current assets</FONT></TD>
    <TD STYLE="padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-top: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-top: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-bottom: 1pt; padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt; padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-top: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-top: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-bottom: 1pt; padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt; padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-top: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-top: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">344</FONT></TD>
    <TD STYLE="padding-bottom: 1pt; padding-left: 6.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt; padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-top: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-top: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">520</FONT></TD>
    <TD STYLE="padding-bottom: 1pt; padding-left: 10.3pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt; padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-top: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-top: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-bottom: 1pt; padding-left: 4.2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-top: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-top: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-bottom: 1pt; padding-left: 6.05pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-top: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-top: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">864</FONT></TD>
    <TD STYLE="padding-bottom: 1pt; padding-left: 3.7pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-top: 1.75pt; padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt"><B>Total Assets</B></FONT></TD>
    <TD STYLE="text-align: right; padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; padding-top: 1.75pt; text-align: right"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; padding-top: 1.75pt; text-align: right"><FONT STYLE="font-size: 10pt"><B>330,725</B></FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right; padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt; padding-left: 1.85pt; text-align: right"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; padding-top: 1.75pt; text-align: right"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; padding-top: 1.75pt; text-align: right"><FONT STYLE="font-size: 10pt"><B>404,771</B></FONT></TD>
    <TD STYLE="padding-left: 1.85pt; text-align: right; padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="padding-left: 6.75pt; text-align: right; padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; padding-top: 1.75pt; text-align: right"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; padding-top: 1.75pt; text-align: right"><FONT STYLE="font-size: 10pt"><B>81,958</B></FONT></TD>
    <TD STYLE="padding-left: 6.75pt; text-align: right; padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="padding-left: 10.3pt; text-align: right; padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; padding-top: 1.75pt; text-align: right"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; padding-top: 1.75pt; text-align: right"><FONT STYLE="font-size: 10pt"><B>-</B></FONT></TD>
    <TD STYLE="padding-left: 10.3pt; text-align: right; padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="padding-left: 4.2pt; text-align: right; padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; padding-top: 1.75pt; text-align: right"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; padding-top: 1.75pt; text-align: right"><FONT STYLE="font-size: 10pt"><B>314,343</B></FONT></TD>
    <TD STYLE="padding-left: 4.2pt; text-align: right; padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="text-align: right; padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="text-align: right; padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; padding-top: 1.75pt; text-align: right"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; padding-top: 1.75pt; text-align: right"><FONT STYLE="font-size: 10pt"><B>723,103</B></FONT></TD>
    <TD STYLE="padding-left: 6.05pt; text-align: right; padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; padding-top: 1.75pt; text-align: right"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; padding-top: 1.75pt; text-align: right"><FONT STYLE="font-size: 10pt"><B>1,854,900</B></FONT></TD>
    <TD STYLE="padding-left: 3.7pt; text-align: right; padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt"><B>&#8203;</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>

<!-- Field: Page; Sequence: 54 -->
    <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"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->44<!-- Field: /Sequence --></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"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; padding-bottom: 0.5pt"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD COLSPAN="10" STYLE="vertical-align: bottom; border-bottom: black 1pt solid; padding-bottom: 1.5pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>As
    of December 31, 2019</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: white 1pt solid; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: white 1pt solid; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; padding-bottom: 0.5pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: white 1pt solid; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; padding-bottom: 0.5pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-bottom: black 1pt solid; padding-bottom: 1.5pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>December
    31, 2019</B></FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; padding-bottom: 0.5pt"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; vertical-align: bottom; padding-bottom: 1.15pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>DraftKings</B><BR>
    <B>(Historical)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 1.15pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="vertical-align: bottom; border-bottom: black 1pt solid; padding-bottom: 1.15pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>DEAC</B><BR>
    <B>(Historical)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-bottom: black 1pt solid; padding-bottom: 1.15pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>SBTech</B><BR>
    <B>(As Adjusted)</B><BR>
    <B>(Note 3)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-bottom: black 1pt solid; padding-bottom: 1.15pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>Accounting</B><BR>
    <B>Policies and</B><BR>
    <B>Reclassification</B><BR>
    <B>Adjustments</B><BR>
    <B>(Note 2)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-bottom: black 1pt solid; padding-bottom: 1.15pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>Pro
    Forma</B><BR>
    <B>Adjustments</B><BR>
    <B>(Note 4&thinsp;- PF)</B></FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; padding-bottom: 0.5pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-bottom: black 1pt solid; padding-bottom: 1.15pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>Purchase</B><BR>
    <B>Accounting</B><BR>
    <B>Adjustments</B><BR>
    <B>(Note 4&thinsp;- PPA)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; padding-bottom: 0.5pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-bottom: black 1pt solid; padding-bottom: 1.15pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>Pro
    Forma Combined</B></FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 20%; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt"><B>LIABILITIES AND STOCKHOLDERS&rsquo; EQUITY</B></FONT></TD>
    <TD STYLE="width: 1%; text-align: right"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right; width: 1%"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD NOWRAP STYLE="padding-bottom: 0.5pt; text-align: right; width: 8%"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="width: 1%; padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="width: 1%; padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right; width: 1%"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD NOWRAP STYLE="padding-bottom: 0.5pt; text-align: right; width: 8%"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="width: 1%; text-align: right"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="width: 1%; text-align: right"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right; width: 1%"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD NOWRAP STYLE="padding-bottom: 0.5pt; text-align: right; width: 8%"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="width: 1%; text-align: right"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="width: 1%; text-align: right"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right; width: 1%"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD NOWRAP STYLE="padding-bottom: 0.5pt; text-align: right; width: 7%"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="width: 1%; text-align: right"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="width: 1%; text-align: right"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right; width: 1%"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD NOWRAP STYLE="padding-bottom: 0.5pt; text-align: right; width: 8%"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: right"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="width: 2%; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="width: 1%; text-align: right"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right; width: 1%"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD NOWRAP STYLE="padding-bottom: 0.5pt; text-align: right; width: 8%"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="width: 1%; text-align: right"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="width: 2%; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right; width: 1%"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD NOWRAP STYLE="padding-bottom: 0.5pt; text-align: right; width: 8%"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD NOWRAP STYLE="width: 1%; padding-bottom: 0.5pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">Current liabilities:</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-bottom: 0.5pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">Accounts payable</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">1,492</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">(1,492)</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">Accounts payable and accrued expenses</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">85,295</FONT></TD>
    <TD STYLE="padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">22,364</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">(6,449)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt"><B>C</B></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">99,718</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">(1,492)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt"><B>N</B></FONT></TD>
    <TD COLSPAN="4" STYLE="vertical-align: bottom; padding: 0.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding: 0.75pt; vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding: 0.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">Liabilities to customers</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">163,035</FONT></TD>
    <TD STYLE="padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">799</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">163,834</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">Term note, current portion</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">6,750</FONT></TD>
    <TD STYLE="padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">44,500</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt"><B>O</B></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">51,250</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">Settlement liability, current portion</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">Trade payables</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">9,124</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">(9,124)</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="border-bottom: white 1pt solid; padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">Other accounts
    payable</FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 2pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: black 1pt solid; padding-top: 2pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 2pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: black 1pt solid; padding-top: 2pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 2pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: black 1pt solid; padding-top: 2pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">12,547</FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 2pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: black 1pt solid; padding-top: 2pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">(12,547)</FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 2pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: black 1pt solid; padding-top: 2pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: white 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 2pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: black 1pt solid; padding-top: 2pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 2pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: black 1pt solid; padding-top: 2pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 1pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">Total current liabilities</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">255,080</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">1,492</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">21,671</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">36,559</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">314,802</FONT></TD>
    <TD NOWRAP STYLE="padding-bottom: 1pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">Deferred underwriting commissions</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">14,000</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">(14,000)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt"><B>B</B></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD NOWRAP STYLE="padding-bottom: 0.5pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">Other long-term liabilities</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">56,862</FONT></TD>
    <TD STYLE="padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">458</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">(11,000)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt"><B>P</B></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">2,648</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: justify"><FONT STYLE="font-size: 10pt"><B>C</B></FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">48,968</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">Convertible promissory notes</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">68,363</FONT></TD>
    <TD STYLE="padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">(68,363)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt"><B>D</B></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">Accrued
    severance pay, net</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 2pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: black 1pt solid; padding-top: 2pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 2pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: black 1pt solid; padding-top: 2pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 2pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: black 1pt solid; padding-top: 2pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">458</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 2pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: black 1pt solid; padding-top: 2pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">(458)</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 2pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: black 1pt solid; padding-top: 2pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 2pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: black 1pt solid; padding-top: 2pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: #CCEEFF 1pt solid; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-top: 2pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: black 1pt solid; padding-top: 2pt; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 1pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="border-bottom: white 1pt solid; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">Total liabilities</FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">380,305</FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">15,492</FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">22,129</FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">(56,804)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: white 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">2,648</FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: right"><FONT STYLE="font-size: 10pt">363,770</FONT></TD>
    <TD NOWRAP STYLE="padding-bottom: 1pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 0.5pt; padding-left: 9pt; text-indent: -9pt"><FONT STYLE="font-size: 10pt">Class A common stock
    subject to possible redemption</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">384,279</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">(384,279)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt"><B>F</B></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD NOWRAP STYLE="padding-bottom: 0.5pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">Series E-1 Redeemable Convertible Preferred
    Stock</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">119,752</FONT></TD>
    <TD STYLE="padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">(119,752)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt"><B>H</B></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">Series F Redeemable Convertible Preferred
    Stock</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">138,619</FONT></TD>
    <TD STYLE="padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">(138,619)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt"><B>H</B></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt"><B>Stockholders&rsquo;
    Equity:</B></FONT></TD>
    <TD COLSPAN="4" STYLE="vertical-align: bottom; padding: 0.75pt"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD COLSPAN="4" STYLE="vertical-align: bottom; padding: 0.75pt"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD COLSPAN="4" STYLE="vertical-align: bottom; padding: 0.75pt"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD COLSPAN="4" STYLE="vertical-align: bottom; padding: 0.75pt"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD COLSPAN="5" STYLE="vertical-align: bottom; padding: 0.75pt"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="padding: 0.75pt; vertical-align: bottom"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD COLSPAN="4" STYLE="vertical-align: bottom; padding: 0.75pt"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="padding: 0.75pt; vertical-align: bottom"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding: 0.75pt"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">Class A common stock</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">1</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt"><B>D</B></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">4</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: justify"><FONT STYLE="font-size: 10pt"><B>A</B></FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">34</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">3</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt"><B>E</B></FONT></TD>
    <TD COLSPAN="4" STYLE="vertical-align: bottom; padding: 0.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding: 0.75pt; vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding: 0.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">4</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt"><B>F</B></FONT></TD>
    <TD COLSPAN="4" STYLE="vertical-align: bottom; padding: 0.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding: 0.75pt; vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding: 0.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">1</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt"><B>G</B></FONT></TD>
    <TD COLSPAN="4" STYLE="vertical-align: bottom; padding: 0.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding: 0.75pt; vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding: 0.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt; text-align: justify"><FONT STYLE="font-size: 10pt"><B>M</B></FONT></TD>
    <TD COLSPAN="4" STYLE="vertical-align: bottom; padding: 0.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding: 0.75pt; vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding: 0.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">21</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt"><B>H</B></FONT></TD>
    <TD COLSPAN="4" STYLE="vertical-align: bottom; padding: 0.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding: 0.75pt; vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding: 0.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
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<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt"><B>P</B></FONT></TD>
    <TD COLSPAN="4" STYLE="vertical-align: bottom; padding: 0.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding: 0.75pt; vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding: 0.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-left: 3.85pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-left: 3.85pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt"><B>K</B></FONT></TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="padding-bottom: 0.5pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">Class B common stock</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">1</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">(1)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt"><B>G</B></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">39</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt"><B>H</B></FONT></TD>
    <TD COLSPAN="4" STYLE="vertical-align: bottom; padding: 0.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding: 0.75pt; vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding: 0.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">39</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt"><B>Q</B></FONT></TD>
    <TD COLSPAN="4" STYLE="vertical-align: bottom; padding: 0.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding: 0.75pt; vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding: 0.75pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">Common stock</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">390</FONT></TD>
    <TD STYLE="padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">(390)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt"><B>H</B></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
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    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">3</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">(3)</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt"><B>D</B></FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">Actuarial reserve</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-left: 3.85pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">(156)</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">156</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt"><FONT STYLE="font-size: 10pt"><B>D</B></FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD NOWRAP STYLE="padding-top: 2pt; padding-bottom: 0.5pt; text-align: right">&nbsp;</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"></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">&nbsp;</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; padding-bottom: 0.5pt"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD COLSPAN="10" STYLE="vertical-align: bottom; border-bottom: black 1pt solid; padding-bottom: 1.5pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>As
    of December 31, 2019</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: white 1pt solid; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: white 1pt solid; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; padding-bottom: 0.5pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: white 1pt solid; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; padding-bottom: 0.5pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-bottom: black 1pt solid; padding-bottom: 1.5pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>December
    31, 2019</B></FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; padding-bottom: 0.5pt"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; vertical-align: bottom; padding-bottom: 1.15pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>DraftKings</B></FONT><BR> <FONT STYLE="font-size: 8pt"><B>(Historical)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 1.15pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="vertical-align: bottom; border-bottom: black 1pt solid; padding-bottom: 1.15pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>DEAC</B><BR>
    <B>(Historical)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-bottom: black 1pt solid; padding-bottom: 1.15pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>SBTech</B><BR>
    <B>(As Adjusted)</B><BR>
    <B>(Note 3)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-bottom: black 1pt solid; padding-bottom: 1.15pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>Accounting</B><BR>
    <B>Policies and</B><BR>
    <B>Reclassification</B><BR>
    <B>Adjustments</B><BR>
    <B>(Note 2)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-bottom: black 1pt solid; padding-bottom: 1.15pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>Pro
    Forma</B><BR>
    <B>Adjustments</B><BR>
    <B>(Note 4&thinsp;- PF)</B></FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; padding-bottom: 0.5pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-bottom: black 1pt solid; padding-bottom: 1.15pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>Purchase</B><BR>
    <B>Accounting</B><BR>
    <B>Adjustments</B><BR>
    <B>(Note 4&thinsp;- PPA)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; padding-bottom: 0.5pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-bottom: black 1pt solid; padding-bottom: 1.15pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>Pro
    Forma Combined</B></FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 20%;   text-align: left">Additional paid-in capital</TD><TD STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 1%;   text-align: left">&nbsp;</TD><TD STYLE="width: 8%;   text-align: right">690,443</TD><TD STYLE="width: 1%;   text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 1%;   text-align: left">&nbsp;</TD><TD STYLE="width: 8%;   text-align: right">2,689</TD><TD STYLE="width: 1%;   text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 1%;   text-align: left">&nbsp;</TD><TD STYLE="width: 8%;   text-align: right">-</TD><TD STYLE="width: 1%;   text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 1%;   text-align: left">&nbsp;</TD><TD STYLE="width: 7%;   text-align: right">-</TD><TD STYLE="width: 1%;   text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 1%;   text-align: left">&nbsp;</TD><TD STYLE="width: 8%;   text-align: right">(6,000</TD><TD STYLE="width: 1%;   text-align: left">)</TD><TD STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 2%;   text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>C</B></FONT></TD><TD STYLE="width: 1%;   text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%;   text-align: left">&nbsp;</TD><TD STYLE="width: 8%;   text-align: right">780,280</TD><TD STYLE="width: 1%;   text-align: left">&nbsp;</TD>
    <TD STYLE="width: 2%;   text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>A</B></FONT></TD>
    <TD STYLE="width: 1%;   text-align: left">&nbsp;</TD><TD STYLE="width: 8%;   text-align: right">2,544,091</TD><TD STYLE="width: 1%;   text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&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 STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="  text-align: left">&nbsp;</TD><TD STYLE="  text-align: right">112,544</TD><TD STYLE="  text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="  text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>D</B></FONT></TD><TD STYLE="  text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><B>&nbsp;</B></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>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&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 STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="  text-align: left">&nbsp;</TD><TD STYLE="  text-align: right">304,711</TD><TD STYLE="  text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="  text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>E</B></FONT></TD><TD STYLE="  text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><B>&nbsp;</B></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>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&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 STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="  text-align: left">&nbsp;</TD><TD STYLE="  text-align: right">384,275</TD><TD STYLE="  text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="  text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>F</B></FONT></TD><TD STYLE="  text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><B>&nbsp;</B></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>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&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 STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="  text-align: left">&nbsp;</TD><TD STYLE="  text-align: right">2,310</TD><TD STYLE="  text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="  text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>I</B></FONT></TD><TD STYLE="  text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><B>&nbsp;</B></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>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&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 STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="  text-align: left">&nbsp;</TD><TD STYLE="  text-align: right">258,740</TD><TD STYLE="  text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="  text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>H</B></FONT></TD><TD STYLE="  text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><B>&nbsp;</B></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>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&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 STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="  text-align: left">&nbsp;</TD><TD STYLE="  text-align: right">3,010</TD><TD STYLE="  text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="  text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>J</B></FONT></TD><TD STYLE="  text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><B>&nbsp;</B></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>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&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 STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="  text-align: left">&nbsp;</TD><TD STYLE="  text-align: right">(90</TD><TD STYLE="  text-align: left">)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="  text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>K</B></FONT></TD><TD STYLE="  text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><B>&nbsp;</B></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>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&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 STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="  text-align: left">&nbsp;</TD><TD STYLE="  text-align: right">(7,732</TD><TD STYLE="  text-align: left">)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="  text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>M</B></FONT></TD><TD STYLE="  text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><B>&nbsp;</B></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>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&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 STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="  text-align: left">&nbsp;</TD><TD STYLE="  text-align: right">11,000</TD><TD STYLE="  text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="  text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>P</B></FONT></TD><TD STYLE="  text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><B>&nbsp;</B></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>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&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 STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="  text-align: left">&nbsp;</TD><TD STYLE="  text-align: right">7,911</TD><TD STYLE="  text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="  text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Q</B></FONT></TD><TD STYLE="  text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><B>&nbsp;</B></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">Retained earnings</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="  text-align: left">&nbsp;</TD><TD STYLE="  text-align: right">-</TD><TD STYLE="  text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="  text-align: left">&nbsp;</TD><TD STYLE="  text-align: right">2,310</TD><TD STYLE="  text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="  text-align: left">&nbsp;</TD><TD STYLE="  text-align: right">58,795</TD><TD STYLE="  text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="  text-align: left">&nbsp;</TD><TD STYLE="  text-align: right">(61,105</TD><TD STYLE="  text-align: left">)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="  text-align: left">&nbsp;</TD><TD STYLE="  text-align: right">-</TD><TD STYLE="  text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left"><B>&nbsp;</B></TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="  text-align: left">&nbsp;</TD><TD STYLE="  text-align: right">-</TD><TD STYLE="  text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><B>&nbsp;</B></TD>
    <TD STYLE="  text-align: left">&nbsp;</TD><TD STYLE="  text-align: right">-</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">Accumulated deficit</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="  text-align: left">&nbsp;</TD><TD STYLE="  text-align: right">(998,784</TD><TD STYLE="  text-align: left">)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="  text-align: left">&nbsp;</TD><TD STYLE="  text-align: right">-</TD><TD STYLE="  text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="  text-align: left">&nbsp;</TD><TD STYLE="  text-align: right">-</TD><TD STYLE="  text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="  text-align: left">&nbsp;</TD><TD STYLE="  text-align: right">61,105</TD><TD STYLE="  text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="  text-align: left">&nbsp;</TD><TD STYLE="  text-align: right">(29,150</TD><TD STYLE="  text-align: left">)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="  text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>C</B></FONT></TD><TD STYLE="  text-align: left">&nbsp;</TD>
    <TD STYLE="  text-align: left">&nbsp;</TD><TD STYLE="  text-align: right">(58,795</TD><TD STYLE="  text-align: left">)</TD>
    <TD STYLE="  text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>D</B></FONT></TD>
    <TD STYLE="  text-align: left">&nbsp;</TD><TD STYLE="  text-align: right">(1,053,034</TD><TD STYLE="  text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&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 STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="  text-align: left">&nbsp;</TD><TD STYLE="  text-align: right">(4,140</TD><TD STYLE="  text-align: left">)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="  text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>D</B></FONT></TD><TD STYLE="  text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><B>&nbsp;</B></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>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&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 STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="  text-align: left">&nbsp;</TD><TD STYLE="  text-align: right">(2,310</TD><TD STYLE="  text-align: left">)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="  text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>I</B></FONT></TD><TD STYLE="  text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><B>&nbsp;</B></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>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&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 STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="  text-align: left">&nbsp;</TD><TD STYLE="  text-align: right">(3,010</TD><TD STYLE="  text-align: left">)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="  text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>J</B></FONT></TD><TD STYLE="  text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><B>&nbsp;</B></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>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&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 STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="  text-align: left">&nbsp;</TD><TD STYLE="  text-align: right">(10,000</TD><TD STYLE="  text-align: left">)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="  text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>L</B></FONT></TD><TD STYLE="  text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><B>&nbsp;</B></TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">(7,950</TD><TD STYLE="text-align: left; padding-bottom: 1pt">)</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Q</B></FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt"><B>&nbsp;</B></TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Total parent stockholders&rsquo; equity</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(307,951</TD><TD STYLE="text-align: left">)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">58,642</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,013,797</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left"><B>&nbsp;</B></TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">721,642</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><B>&nbsp;</B></TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,491,130</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Non-controlling interest</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">-</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">-</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">1,187</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">-</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">-</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt"><B>&nbsp;</B></TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">(1,187</TD><TD STYLE="text-align: left; padding-bottom: 1pt">)</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>D</B></FONT></TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">-</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Total stockholders&rsquo; equity</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">(307,951</TD><TD STYLE="text-align: left; padding-bottom: 1pt">)</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">5,000</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">59,829</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">-</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">1,013,797</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt"><B>&nbsp;</B></TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">720,455</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt"><B>&nbsp;</B></TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">1,491,130</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt"><B>Total Liabilities and Stockholders&rsquo; Equity</B></TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt"><B>&nbsp;</B></TD>
    <TD STYLE="text-align: left; padding-bottom: 2.5pt"><B>&nbsp;</B></TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double"><B>330,725</B></TD><TD STYLE="text-align: left; padding-bottom: 2.5pt"><B>&nbsp;</B></TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt"><B>&nbsp;</B></TD>
    <TD STYLE="text-align: left; padding-bottom: 2.5pt"><B>&nbsp;</B></TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double"><B>404,771</B></TD><TD STYLE="text-align: left; padding-bottom: 2.5pt"><B>&nbsp;</B></TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt"><B>&nbsp;</B></TD>
    <TD STYLE="text-align: left; padding-bottom: 2.5pt"><B>&nbsp;</B></TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double"><B>81,958</B></TD><TD STYLE="text-align: left; padding-bottom: 2.5pt"><B>&nbsp;</B></TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt"><B>&nbsp;</B></TD>
    <TD STYLE="text-align: left; padding-bottom: 2.5pt"><B>&nbsp;</B></TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double"><B>-</B></TD><TD STYLE="text-align: left; padding-bottom: 2.5pt"><B>&nbsp;</B></TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt"><B>&nbsp;</B></TD>
    <TD STYLE="text-align: left; padding-bottom: 2.5pt"><B>&nbsp;</B></TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double"><B>314,343</B></TD><TD STYLE="text-align: left; padding-bottom: 2.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 2.5pt"><B>&nbsp;</B></TD>
    <TD STYLE="text-align: left; padding-bottom: 2.5pt"><B>&nbsp;</B></TD><TD STYLE="text-align: left; padding-bottom: 2.5pt"><B>&nbsp;</B></TD>
    <TD STYLE="text-align: left; padding-bottom: 2.5pt"><B>&nbsp;</B></TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double"><B>723,103</B></TD><TD STYLE="text-align: left; padding-bottom: 2.5pt"><B>&nbsp;</B></TD>
    <TD STYLE="text-align: left; padding-bottom: 2.5pt"><B>&nbsp;</B></TD>
    <TD STYLE="text-align: left; padding-bottom: 2.5pt"><B>&nbsp;</B></TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double"><B>1,854,900</B></TD><TD STYLE="text-align: left; padding-bottom: 2.5pt"><B>&nbsp;</B></TD></TR>
</TABLE>



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<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"><BR>
<B>Unaudited Pro Forma Condensed Combined Statement of Operations</B><BR>
<B>for the year ended December 31, 2019</B><BR>
<B>(Amounts in thousands, except per share data)</B></P>

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

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; padding-bottom: 0.5pt"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; vertical-align: bottom; padding-bottom: 1.5pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>For
    the Year ended </B><BR>
    <B>December 31, 2019</B></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; vertical-align: bottom; padding-bottom: 1.5pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; vertical-align: bottom; padding-bottom: 1.5pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; vertical-align: bottom; padding-bottom: 1.5pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>March
    27, 2019 </B><BR>
    <B>(inception) to </B><BR>
    <B>December 31, 2019</B></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; vertical-align: bottom; padding-bottom: 1.5pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; vertical-align: bottom; padding-bottom: 1.5pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; vertical-align: bottom; padding-bottom: 1.5pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>For
    the Year </B><BR>
    <B>ended </B><BR>
    <B>December 31, 2019</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: white 1pt solid; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: white 1pt solid; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; padding-bottom: 0.5pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: white 1pt solid; padding-bottom: 0.5pt; text-align: right"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; padding-bottom: 0.5pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-bottom: black 1pt solid; padding-bottom: 1.5pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>For
    the Year </B><BR>
    <B>ended </B><BR>
    <B>December 31, 2019</B></FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; padding-bottom: 0.5pt"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; vertical-align: bottom; padding-bottom: 1.15pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>DraftKings</B></FONT><BR> <FONT STYLE="font-size: 8pt"><B>(Historical)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-bottom: 1.15pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="vertical-align: bottom; border-bottom: black 1pt solid; padding-bottom: 1.15pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>DEAC</B><BR>
    <B>(Historical)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-bottom: black 1pt solid; padding-bottom: 1.15pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>SBTech</B><BR>
    <B>(As Adjusted)</B><BR>
    <B>(Note 3)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-bottom: black 1pt solid; padding-bottom: 1.15pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>Accounting</B><BR>
    <B>Policies and</B><BR>
    <B>Reclassification</B><BR>
    <B>Adjustments</B><BR>
    <B>(Note 2)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-bottom: black 1pt solid; padding-bottom: 1.15pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>Pro
    Forma</B><BR>
    <B>Adjustments</B><BR>
    <B>(Note 4&thinsp;- PF)</B></FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; padding-bottom: 0.5pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-bottom: black 1pt solid; padding-bottom: 1.15pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>Purchase</B><BR>
    <B>Accounting</B><BR>
    <B>Adjustments</B><BR>
    <B>(Note 4&thinsp;- PPA)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: white 1pt solid; padding-bottom: 0.5pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>&#8203;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-bottom: black 1pt solid; padding-bottom: 1.15pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>Pro
    Forma<BR>
 Combined</B></FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 20%">Revenue</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 8%; text-align: right">323,410</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 8%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 8%; text-align: right">108,424</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 8%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 2%; text-align: left"><B>&nbsp;</B></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 8%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 2%; text-align: left"><B>&nbsp;</B></TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 8%; text-align: right">431,834</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">Cost of revenue</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">103,889</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">-</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">60,649</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">-</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">-</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt"><B>&nbsp;</B></TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">14,692</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>AA</B></FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">179,230</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Gross Profit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">219,521</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">47,775</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left"><B>&nbsp;</B></TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(14,692</TD><TD STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: left"><B>&nbsp;</B></TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">252,604</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Operating Expenses:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&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"><B>&nbsp;</B></TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><B>&nbsp;</B></TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">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">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,592</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">48</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>DD</B></FONT></TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><B>&nbsp;</B></TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">192,909</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">General and administrative</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">124,868</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,857</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,230</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(10,548</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>AA</B></FONT></TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">104</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>BB</B></FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">131,524</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&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">1,513</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>DD</B></FONT></TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><B>&nbsp;</B></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>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&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">500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>EE</B></FONT></TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><B>&nbsp;</B></TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">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">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20,408</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">82</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>DD</B></FONT></TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><B>&nbsp;</B></TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">76,419</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Research and development expenses</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">20,408</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">(20,408</TD><TD STYLE="text-align: left; padding-bottom: 1pt">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt"><B>&nbsp;</B></TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt"><B>&nbsp;</B></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Total Operating Expenses</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">366,066</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">1,857</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">41,230</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">-</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">(8,405</TD><TD STYLE="text-align: left; padding-bottom: 1pt">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt"><B>&nbsp;</B></TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">104</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt"><B>&nbsp;</B></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">400,852</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">(Loss) / Income from Operations</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">(146,545</TD><TD STYLE="text-align: left; padding-bottom: 1pt">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">(1,857</TD><TD STYLE="text-align: left; padding-bottom: 1pt">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">6,545</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">-</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">8,405</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt"><B>&nbsp;</B></TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">(14,796</TD><TD STYLE="text-align: left; padding-bottom: 1pt">)</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt"><B>&nbsp;</B></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">(148,248</TD><TD STYLE="text-align: left; padding-bottom: 1pt">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Interest income (expense)</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">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(164</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left"><B>&nbsp;</B></TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><B>&nbsp;</B></TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,184</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Other income - interest on Trust Account</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,111</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5,111</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>BB</B></FONT></TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><B>&nbsp;</B></TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</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">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">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left"><B>&nbsp;</B></TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><B>&nbsp;</B></TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Financial Income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">26</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(26</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left"><B>&nbsp;</B></TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><B>&nbsp;</B></TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</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">Financial Expenses</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">-</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">-</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">(190</TD><TD STYLE="text-align: left; padding-bottom: 1pt">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">190</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">-</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt"><B>&nbsp;</B></TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">-</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt"><B>&nbsp;</B></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">-</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">(Loss)/Income before Income Tax Expense</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">(142,197</TD><TD STYLE="text-align: left; padding-bottom: 1pt">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">3,254</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">6,381</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">-</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">3,294</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt"><B>&nbsp;</B></TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">(14,796</TD><TD STYLE="text-align: left; padding-bottom: 1pt">)</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt"><B>&nbsp;</B></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">(144,064</TD><TD STYLE="text-align: left; padding-bottom: 1pt">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Income Tax Expense/(Benefit)</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">944</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">796</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,002</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>CC</B></FONT></TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4,084</TD><TD STYLE="text-align: left">)</TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>CC</B></FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4,288</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Loss from equity method investment</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">479</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">-</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">-</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">-</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">-</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt"><B>&nbsp;</B></TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">-</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt"><B>&nbsp;</B></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">479</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">Net (Loss)/Income</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">(142,734</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">2,310</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">5,585</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">-</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">5,296</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 2.5pt"><B>&nbsp;</B></TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">(10,712</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">)</TD>
    <TD STYLE="text-align: left; padding-bottom: 2.5pt"><B>&nbsp;</B></TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">(140,255</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Earnings per Share</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&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"><B>&nbsp;</B></TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><B>&nbsp;</B></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>Weighted average Class A shares outstanding</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left"><B>&nbsp;</B></TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><B>&nbsp;</B></TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">335,917,094</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Loss per share (Basic and Diluted) attributable to Class A</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left"><B>&nbsp;</B></TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><B>&nbsp;</B></TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">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><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&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"><B>&nbsp;</B></TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><B>&nbsp;</B></TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.42</TD><TD STYLE="text-align: left">)</TD></TR>
</TABLE>

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


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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="a013"></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 a subsidiary of DEAC
and Old DK was accounted for as a reverse recapitalization in accordance with U.S. GAAP. Under this method of accounting, DEAC
was treated as the &ldquo;acquired&rdquo; company for financial reporting purposes. Accordingly, for accounting purposes, the
Reverse Recapitalization was treated as the equivalent of Old DK issuing stock for the net assets of DEAC, accompanied by a recapitalization.
The net assets of DEAC are stated at historical cost, with no goodwill or other intangible assets recorded. Operations prior to
the Reverse Recapitalization are those of Old DK.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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 Old DK was determined to be the accounting
acquirer in the SBTech Acquisition, the acquisition is considered a business combination under&nbsp;ASC 805, and was accounted
for using the acquisition method of accounting. DraftKings recorded 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 Old DK 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 and the unaudited pro forma condensed combined statement of operations for the year ended
December 31, 2019 have 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">&#9679;</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,
                                         which is incorporated by reference;</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">&#9679;</TD><TD>DraftKings&rsquo; audited consolidated balance
                                         sheet as of December 31, 2019 and the related notes for the period ended December 31,
                                         2019, which is incorporated by reference; 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">&#9679;</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,
                                         which is incorporated by reference.*</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" 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"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">DEAC&rsquo;s unaudited statement of operations for the period
between March 27, 2019 and December 31 2019 and the related notes, which is incorporated by reference;</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: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>DraftKings&rsquo; audited statement of operations
                                         for the twelve months ended December 31, 2019 and the related notes, which is incorporated
                                         by reference; 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">&#9679;</TD><TD>SBTech&rsquo;s audited statement of operations
                                         for the twelve months ended December 31, 2019 and the related notes, which is incorporated
                                         by reference.*</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 DraftKings 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>

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<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: 0.5in; text-align: left">*</TD><TD STYLE="text-align: justify">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="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in; text-indent: 0in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.35in">Therefore, it is likely that the actual
adjustments will differ from the pro forma adjustments and it is possible the difference may be material. DraftKings 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: 0.35in">&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, Old DK, and SBTech.</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="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: 0.5in; text-align: left"><B>2.</B></TD><TD STYLE="text-align: justify"><B>Accounting
                                         Policies and Reclassifications</B></TD>
</TR></TABLE>

<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, Old DK&rsquo;s and
SBTech&rsquo;s financial statement presentation. Management will perform a comprehensive review of DEAC&rsquo;s, Old DK&rsquo;s,
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 had 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>

<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: 0.5in; text-align: left"><B>3.</B></TD><TD STYLE="text-align: justify"><B>Adjustments
                                         to Historical SBTech Financial Information</B></TD>
</TR></TABLE>

<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 CELLSPACING="0" CELLPADDING="0" STYLE="margin-left: 0.5in; font: 10pt Times New Roman, Times, Serif; width: 90%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; width: 84%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 9%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 7%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">$
    / &euro;</FONT></TD></TR>
<TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">Period end exchange
    rate as of December 31, 2019</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">1.12</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">Average exchange rate for twelve months
    ended December 31, 2019</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">1.12</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, 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 Old
DK. 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>

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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">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: 90%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt">&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">As of<BR> December 31,<BR>
    2019</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&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">As of<BR> December 31,<BR>
    2019</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; text-align: center; border-bottom: Black 1pt solid">As of<BR> December 31,<BR>
    2019</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt">&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">IFRS<BR> SBTech<BR> (in EUR)</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; text-align: center; border-bottom: Black 1pt solid">Total<BR> Adjustments<BR>
    (in EUR)</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&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">US GAAP<BR> SBTech<BR> (in EUR)</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; text-align: center; border-bottom: Black 1pt solid">US GAAP<BR> SBTech<BR> (in USD)</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="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><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">&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="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><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 30%; text-align: left">Cash and cash equivalents</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&euro;</TD><TD STYLE="width: 10%; text-align: right">8,144</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&euro;</TD><TD STYLE="width: 10%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; text-align: center">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&euro;</TD><TD STYLE="width: 10%; text-align: right">8,144</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">9,143</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Trade receivables, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">24,745</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">24,745</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">27,781</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">Other current assets</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">3,258</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">61</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: center; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>A</B></FONT></TD><TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">3,319</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">3,726</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Total current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">36,147</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">61</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">36,208</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">40,650</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">NON-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><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">&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">Intangible assets, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">26,094</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">26,094</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">29,296</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">Right-of-use assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">25,779</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(25,779</TD><TD STYLE="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: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>B</B></FONT></TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Property, plant and equipment, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,930</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,930</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,148</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">Deferred tax assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">597</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(134</TD><TD STYLE="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: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>A</B></FONT></TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">463</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">520</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Other non-current assets</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">306</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">-</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: center; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>B</B></FONT></TD><TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">306</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">344</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&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">Total assets</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">98,853</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">(25,852</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="text-align: center; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">73,001</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">81,958</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">LIABILITIES AND EQUITY</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="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><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">&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">Trade payables</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,127</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,127</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,124</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">Lease liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,516</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,516</TD><TD STYLE="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: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>B</B></FONT></TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Other accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,176</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,176</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,547</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">Total 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">22,819</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">(3,516</TD><TD STYLE="font-weight: bold; text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="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">19,303</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">21,671</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">NON-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><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Lease liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">22,749</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(22,749</TD><TD STYLE="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: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>B</B></FONT></TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Accrued severance pay, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">408</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">408</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">458</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">Total 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">23,157</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">(22,749</TD><TD STYLE="font-weight: bold; text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="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">408</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">458</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">SHARHOLDERS&rsquo; EQUITY</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">&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>Share capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Actuarial reserve</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(139</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(139</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(156</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Retained earnings</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">51,956</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">413</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: center; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>B</B></FONT></TD><TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">52,369</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">58,795</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Equity attributable to owners of the parent</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">51,820</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">413</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">52,233</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">58,642</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">Non-controlling interest</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">1,057</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">-</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: center; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">1,057</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">1,187</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt">Total equity</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">52,877</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">413</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: center; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">53,290</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">59,829</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&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">TOTAL LIABILITIES AND EQUITY</TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left; border-bottom: Black 2.5pt double">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right; border-bottom: Black 2.5pt double">98,853</TD><TD STYLE="font-weight: bold; text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left; border-bottom: Black 2.5pt double">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right; border-bottom: Black 2.5pt double">(25,852</TD><TD STYLE="font-weight: bold; text-align: left; padding-bottom: 2.5pt">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="text-align: center; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left; border-bottom: Black 2.5pt double">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right; border-bottom: Black 2.5pt double">73,001</TD><TD STYLE="font-weight: bold; text-align: left; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left; border-bottom: Black 2.5pt double">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right; border-bottom: Black 2.5pt double">81,958</TD><TD STYLE="font-weight: bold; text-align: left; padding-bottom: 2.5pt">&nbsp;</TD></TR>
</TABLE>



<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">&nbsp;</P>


<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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt">&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">For the<BR> Year ended<BR>
    December 31,<BR> 2019</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&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">For the<BR> Year ended<BR>
    December 31,<BR> 2019</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; text-align: center; border-bottom: Black 1pt solid">For the<BR> Year ended<BR>
    December 31,<BR> 2019</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt">&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">IFRS<BR> SBTech<BR> (in EUR)</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; text-align: center; border-bottom: Black 1pt solid">Total<BR> Adjustments<BR>
    (in EUR)</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&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">US GAAP<BR> SBTech<BR> (in EUR)</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; text-align: center; border-bottom: Black 1pt solid">US GAAP<BR> SBTech<BR> (in USD)</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="width: 30%">Revenue</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&euro;</TD><TD STYLE="width: 10%; text-align: right">96,857</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&euro;</TD><TD STYLE="width: 10%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; text-align: center">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&euro;</TD><TD STYLE="width: 10%; text-align: right">96,857</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">108,424</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">Cost of revenue</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">54,173</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">6</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: center; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">54,179</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">60,649</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Gross Profit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">42,684</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: center">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">42,678</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">47,775</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Operating Expenses:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Selling and marketing expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,772</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,782</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,592</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">General and administrative expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,772</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">47</TD><TD STYLE="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: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>B</B></FONT></TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,819</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,230</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">Research and development expenses</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">18,103</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">128</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: center; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">18,231</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">20,408</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Total operating costs and expenses</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">36,647</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">185</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: center; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">36,832</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">41,230</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Operating income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,037</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(191</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,846</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,545</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Financial Income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">23</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">23</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">26</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">Financial Expenses</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">846</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">(676</TD><TD STYLE="text-align: left; padding-bottom: 1pt">)</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: center; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>B</B></FONT></TD><TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">170</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">190</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Profit before tax</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,214</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">485</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,699</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,381</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">Tax expenses</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">638</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">73</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: center; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">711</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">796</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Net Profit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">4,576</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">412</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: center; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">4,988</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">5,585</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
</TABLE>



<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"></TD><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" WIDTH="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">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 Old DK, 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>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: bold 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: 0.5in; text-align: left">4.</TD><TD STYLE="text-align: justify">Adjustments
                                         to Unaudited Pro Forma Condensed Combined Financial Information</TD>
</TR></TABLE>

<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 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, Old DK 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: 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" WIDTH="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>A.</B></TD><TD>Reflects the reclassification of $403.9 million of
                                         cash and cash equivalents held in the DEAC trust account that became available for transaction
                                         consideration, transaction expenses, redemption of public shares and the operating activities
                                         of DraftKings following the Business Combination. At Business Combination close, total amount
                                         in trust available for transaction consideration, net of cash used for redemptions, was
                                         $404.9.</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"></TD><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" WIDTH="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>C.</B></TD><TD>Represents 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>

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<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: 0.5in"><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
                                         was triggered, causing a conversion of the outstanding principal amount of these Notes
                                         and any unpaid accrued interest into equity securities at a specified price. The Convertible
                                         Notes were outstanding from December 2019 through April 2020. For purposes of this pro
                                         forma presentation, interest of $3.4 million 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;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="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>E.</B></TD><TD>Represents proceeds of $304.7 million from the issuance
                                         of 30.5 million shares in the Private Placement.</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: 0.5in"><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" WIDTH="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>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 converted 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" WIDTH="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>H.</B></TD><TD>Represents recapitalization of Old DK equity and issuance
                                         of 206.6 million of DraftKings Class A common stock to Old DK Equity holders 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" WIDTH="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>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" WIDTH="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>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" WIDTH="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>K.</B></TD><TD>Reflects redemptions of 8,928 DEAC public shares for
                                         $0.1 million at a redemption price of $10.10 per share based on a pro forma redemption
                                         date of December 31, 2019. As of the actual redemption date, the redemption price was
                                         $10.12 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" WIDTH="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>L.</B></TD><TD>Reflects the payment of $10.0 million in bonuses to
                                         management of Old DK upon closing of the transaction as redemptions were less than 10%
                                         of DEAC public 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"></TD><TD STYLE="width: 0.5in"><B>M.</B></TD><TD>Reflects the cash amount paid to Old DK Stockholders
                                         that were deemed to be non-accredited by Old DK, 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" WIDTH="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>N.</B></TD><TD>Reflects the settlement of $1.5 million of DEAC&rsquo;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" WIDTH="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>O.</B></TD><TD>Reflects additional cash of $44.5 million obtained
                                         by Old DK 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" WIDTH="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>P.</B></TD><TD>Reflects the cancellation of $11.0 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 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>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="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 393.0 million shares of DraftKings Class B common stock to Jason Robins valued at $8.0 million.
                                                                 In connection with issuance of the Class B shares, DraftKings agreed to indemnify Mr. Robins for any personal tax liabilities
                                                                 that may arise, which would result in DraftKings 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;</P>

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<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" WIDTH="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>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: 80%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">Estimated Consideration</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="width: 77%"><FONT STYLE="font-size: 10pt">Cash consideration<SUP>(1)</SUP></FONT></TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">208,956</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">Share consideration<SUP>(2)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">780,284</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">Other consideration<SUP>(3)</SUP></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">3,328</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">Total estimated consideration</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">992,568</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>

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<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>Includes the cash consideration, as adjusted for estimated
                                         excess Net Debt Amount and Working Capital Amount of $13.0 million as of December 31,
                                         2019. At the Closing, the Net Debt Amount and Working Capital Amount represented a decrease
                                         in total consideration of $11.0 million, resulting in cash consideration of $184.9.</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: 0.5in">(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 100%,
                                         100%, and 75% probability of reaching the specified share price targets of $12.50, $14.00,
                                         and $16.00, respectively. 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" WIDTH="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>Includes transaction costs incurred by SBTech to be borne
                                         by Old DK 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: 80%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">Estimated Goodwill</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="width: 77%; text-align: left">Cash and cash equivalents</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">9,143</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Trade receivables, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">27,781</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">Other current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,726</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">11,357</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">269,239</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Deferred tax assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">520</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">Other non-current assets</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">344</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 17.8pt">Total Assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">322,110</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">Trade payables</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,124</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Other accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,547</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">Other long-term liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,648</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Accrued severance pay, 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">458</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Total liabilities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">24,777</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Net assets acquired (a)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">297,333</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Estimated purchase consideration (b)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">992,568</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">Estimated goodwill (b) - (a)</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">695,235</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: 0.5in">&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; 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>

<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: 0.5in; text-align: left"><B>B.</B></TD><TD STYLE="text-align: justify">The
                                         table below indicates the estimated fair value of each of the identifiable intangible
                                         assets:</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: 0.5in">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="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">Preliminary<BR> Estimated<BR>
    Asset Fair Value</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 Average<BR> Useful
    Life (Years)</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center">(in thousands, except for useful life)</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 74%; text-align: left">Developed technology</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">134,515</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD><TD STYLE="width: 10%; text-align: center">10</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Customer Relationships</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">103,850</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">15</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">Trademarks and Trade Names</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">30,874</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">15</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Total</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">269,239</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -0.25in; padding-left: 0.25in">Less: Net intangible assets
    reported on SBTech&rsquo;s historical financial statements</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(29,087</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Pro forma adjustment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">240,152</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="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">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>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="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>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" WIDTH="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 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>

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<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" WIDTH="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>AA.</B></TD><TD>Reflects elimination of transaction-related costs
                                         incurred and recorded by DEAC and Old DK.</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: 0.5in"><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" WIDTH="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>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" WIDTH="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>DD.</B></TD><TD>Reflects the incremental stock-based compensation
                                         expense related to certain equity awards expected to continue vesting subsequent to 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: 0.5in"><B>EE.</B></TD><TD>Reflects additional compensation expense recorded
                                         as a result of the execution of employment agreements with certain members of the management
                                         team.</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" WIDTH="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>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" WIDTH="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>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" WIDTH="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>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>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: bold 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: 0.5in; text-align: left">5.</TD><TD STYLE="text-align: justify">Loss per
                                         Share</TD>
</TR></TABLE>

<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. For shares 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>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="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">For the Year ended December
    31, 2019</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">(in thousands except share and per share data)</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 87%; text-align: left">Pro forma net loss</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">(140,255</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Weighted average shares outstanding of Class A common stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">335,917,094</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt"><FONT STYLE="font-size: 10pt">Net loss per share (Basic
    and Diluted) attributable to Class A common stockholders&nbsp;(1)</FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.42</TD><TD STYLE="text-align: left">)</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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 to 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, DraftKings&rsquo; Class B shares
were issued to Jason Robins, such shares carry 10 votes per share and allow Jason Robins to have 90% of the voting power of the
capital stock of 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.</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">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="a014"></A>BUSINESS</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>The
following discussion reflects the business of DraftKings. &#8220;We,&#8221; &#8220;us&#8221; and &#8220;our&#8221; generally refer
to DraftKings Inc., a Nevada corporation (together with its subsidiaries, &#8220;DraftKings&#8221;), in the present tense or Old
DK on a historical basis, unless the context otherwise refers to SBTech (Global) Limited (together with its subsidiaries, &#8220;SBTech&#8221;).</I></FONT></FONT></P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">At
DraftKings, our mission is to make life more exciting by responsibly creating the world&#8217;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.</FONT></P>

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 &#8220;skin-in-the-game&#8221; sports fan&#8201;&#8212;&#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.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
vision underpins our position as a leader in today&#8217;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:&nbsp;</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">During the year ended December 31, 2019,
    we had 684,103 average monthly unique payers (&#8220;MUPs&#8221;) and revenue of $323 million, resulting in an average revenue
    per MUP (&#8220;ARPMUP&#8221;) 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 &#8220;<I>DraftKings&#8217; Management&#8217;s Discussion and
    Analysis of Financial Condition and Results of Operations.</I>&#8221;</FONT></TD></TR>
</TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 (&#8220;DFS&#8221;), 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 &#8220;budget&#8221; and to make decisions tied to a single day&#8217;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.&nbsp;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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;&#8212;&#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 &#8220;skin-in-the-game&#8221; sports fan.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Powering
our product offerings is a highly scalable platform that allows us to prioritize speed to market without sacrificing the integrity
of our products&#8217; performance. Over the past 18 months, we have leveraged the DraftKings&#8217; 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&#8217;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 May 1, 2020, our Sportsbook app and website are available
in Colorado, 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.</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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&#8217;s (&#8220;Eilers&#8221;) 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.</FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
intersection between the continued evolution of the distinct experiences we offer and our user-centric DNA is what sets DraftKings
apart.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
plan to expand our offerings to begin serving other operators within our industry. We will begin by migrating DraftKings&#8217;
own consumer offering onto SBTech&#8217;s proprietary sports betting platform over time, allowing us to become a fully vertically
integrated sports betting operator. We will also leverage our 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&#8217;s
most robust platform solutions to satisfy its customers&#8217; 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.</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">These
capabilities provide the foundation for what we believe to be a best-in-class enterprise offering whose reach will continue to
expand. Ultimately, we believe we are 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.</FONT></FONT></P>

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following is a timeline of key operational and business milestones for our businesses:</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>DraftKings</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>SBTech</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 8%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2007</FONT></TD>
    <TD STYLE="width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 43%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="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="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2012</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">DraftKings began its operations and offered
    its first DFS contest to the public for the Major League Baseball (&#8220;MLB&#8221;) season.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SBTech&#8217;s operator base had grown to six.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2013</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">MLB became the first major sports organization
    to invest in, and &nbsp;establish a relationship, with DraftKings.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SBTech&#8217;s operator base had grown to eight
    and just over 200 employees.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We launched the first mobile app in the DFS
    industry.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>

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

<P STYLE="margin: 0"></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 8%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2014</FONT></TD>
    <TD STYLE="width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 43%"><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 STYLE="width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 43%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SBTech&#8217;s operator base had grown to 11
    and just over 400 employees.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We signed a two-year deal to become the official
    DFS provider of the National Hockey League.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2015</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">21st Century Fox America, Inc. (&#8220;FOX&#8221;)
    became the first major media company to invest in us.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 8%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2016</FONT></TD>
    <TD STYLE="width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 43%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We acquired a leading provider
    of DFS Mixed Martial Arts contests, Kountermove, to bolster our user base in the burgeoning space of combat sports.</FONT></TD>
    <TD STYLE="width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="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 and management of remote
    gaming operators.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We explored a possible combination with a DFS
    competitor, but did not receive Federal Trade Commission approval.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</FONT></TD></TR>
</TABLE>


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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 8%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2017</FONT></TD>
    <TD STYLE="width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 43%"><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 STYLE="width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 43%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SBTech launched a sportsbook
    for the Czech Republic National Lottery, marking SBTech&#8217;s first major lottery partner.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SBTech&#8217;s sportsbook launched in the Spanish
    regulated market.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2018</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We launched the first online sportsbook in New
    Jersey.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><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="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We opened our first retail sportsbooks in Atlantic
    City, New Jersey (Resorts Casino and Hotel) and D&#8217;Iberville, Mississippi (Scarlet Pearl Casino Resort).</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><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&#8217;s Biloxi Casino as well as
        two Churchill Downs properties.</FONT></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><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>
</TABLE>

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

<P STYLE="margin: 0"></P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 8%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2019</FONT></TD>
    <TD STYLE="width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 43%"><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 STYLE="width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 43%"><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="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We announced a landmark partnership with the
    National Football League (&#8220;NFL&#8221;) which made us the Official Daily Fantasy Partner of the NFL.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><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&#8217;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="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We were named the Official Daily Fantasy Game
    of the PGA Tour.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our online sportsbook launched in Indiana, New
    Hampshire, Pennsylvania and West Virginia.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We launched retail sportsbooks in Iowa (Wild
    Rose) and New York (del Lago).</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&#9679;</FONT></TD>
    <TD><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="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We were selected by the state of New Hampshire
    as its exclusive sportsbook partner.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">DraftKings mobile/online Sportsbook launches
    in New Hampshire.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&#9679;</FONT></TD>
    <TD><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>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>


<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 8%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2020</FONT></TD>
    <TD STYLE="width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 43%"><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 STYLE="width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 43%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">DraftKings launched mobile/online Sportsbook
    in Iowa and Colorado and iGaming in Pennsylvania.</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">DraftKings completed its business combination
    with DEAC and SBTech and began trading on Nasdaq</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>

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

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

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

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

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

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">As
of December 31, 2019, DraftKings had 869 employees and SBTech had 1,266 employees. None of our employees are represented by a
labor organization or are a party to any collective bargaining arrangement.</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Our
Core Operating Principles</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">DraftKings
has been built on the foundation of four core principles:</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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;&#8212;&#8201;from
minute tweaks to our marketing programs to our product evaluation processes and our business development strategy&#8201;&#8212;&#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.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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 &#8220;Game Integrity and Ethics Team&#8221; that actively monitors for any
indication of activities that may violate current regulations governing us, our own terms of use or our &#8220;Community Guidelines.&#8221;
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.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>What
Makes Us Different</B></FONT></P>

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

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Mobile-First
Product Innovation</I></B>. From DraftKings&#8217; 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.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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 &#8220;one-platform&#8221; 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.</FONT></P>

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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Configurable back-end software and services
    that are flexible to new jurisdictional requirements.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Analytics framework that cuts across all of
    our user-facing offerings.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Technical infrastructure across data security,
    user privacy and compliance that can be leveraged to support various custom responsible gaming requirements.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A single, integrated sign-in and wallet platform
    across all of our product offerings.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A shared marketing technology stack with which
    we can create hyper-targeted cross-product offers and promotions for every type of user.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A data science engine driven by eight years&#8217;
    worth of user data that allows us to personalize many aspects of our products.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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&#8217; ability to compete more effectively.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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;&#8212;&#8201;such
as our seamless registration flow and a first-time user experience that educates our users without intimidating them&#8201;&#8212;&#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 &#8220;Refer-a-Friend&#8221; 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.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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;&#8212;&#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.&nbsp;</FONT></P>

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

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

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In 2018, we entered into multi-year arrangements
    with Resorts Casino and Hotel (&#8220;Resorts&#8221;, providing us access to the New Jersey market), with del Lago Resort
    and Casino (&#8220;del Lago&#8221;, providing us access to the New York market) and with Scarlet Pearl Casino Resort (&#8220;Scarlet
    Pearl&#8221;, providing us access to the Mississippi market).</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In 2019, we entered into multi-year arrangements
    with Penn National Gaming Inc. (&#8220;Penn National&#8221;, providing us access to the Florida, Indiana, Missouri, Ohio,
    Pennsylvania, Texas and West Virginia markets) and with Wild Rose Casino and Resort (&#8220;Wild Rose&#8221;, providing us
    with access to the Iowa market).</FONT></TD></TR>
</TABLE>
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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In 2020, we entered into an arrangement with
    Twin River Worldwide Holdings, Inc. (&#8220;Twin River&#8221;), for retail and online sportsbook services providing us access
    to the Colorado market. On May 1, 2020, we launched our online Sportsbook in Colorado.</FONT></TD></TR>
</TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
Resorts, del Lago, Wild Rose, Twin River 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.</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
Penn National agreement is a 10-year &#8220;national&#8221; 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&#8217;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.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition to our casino arrangements, DraftKings and SBTech have entered into the following arrangements with lotteries;</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In 2016, SBTech entered into an agreement with
    the Czech Republic National Lottery&#8201;&#8212;&#8201;its first major lottery partner. The SBTech &#8212; 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&#8217;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&#8217;s sports betting solution.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 &#8212;
    Danske Spil (&#8220;DS&#8221;) agreement is a multi-year (3 years) license agreement entered with DS for the use of SBTech&#8217;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&#8217;s sports betting solution.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 &#8212; Oregon
    State Lottery (&#8220;OSL&#8221;) agreement is a multi-year (5 years) license agreement entered with OSL for the use of SBTech&#8217;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.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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;&#8212;&#8201;Veikkaus agreement is a multi-year (4 years) license agreement entered into with
    Veikkaus for the use of SBTech&#8217;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&#8217;s solution during 2020. The SBTech&#8201;&#8212;&#8201;Svenska Spel agreement is a multi-year
    (4 years) license agreement entered into with Svenska Spel for the use of SBTech&#8217;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&#8217;s solution during 2020.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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&#8217; 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.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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&#8217;s platform in these jurisdictions.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SBTech&#8217;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&#8217; customers full control of their gaming to allow them to play responsibly.</FONT></P>

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

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

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

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

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

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

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

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

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"></P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Effectively
integrate with SBTech to form a vertically integrated operation</I></B>. 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&#8217;s
risk and trading platform will deliver efficiencies over time as we consolidate redundant capabilities. Additionally, we expect
that we will be able to serve other branded consumer operators in the United States and internationally&#8201;&#8212;&#8201;such
as online sportsbooks, retail sportsbooks and iGaming operators&#8201;&#8212;&#8201;with our proprietary sports betting and player-management
technology. SBTech will allow us to access jurisdictions and opportunities within the footprint of SBTech that would otherwise
not be available to us.&nbsp;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><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. We plan 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.</FONT></FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Our
Products and Economic Model</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Our
Revenue-Generating Product Offerings</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
revenues are predominantly generated through our business-to- consumer (&#8220;B2C&#8221;) offerings and business-to-business
(&#8220;B2B&#8221;) offerings. We have three main B2C product offerings&#8201;&#8212;&#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&#8217; 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. </FONT></FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Below
is a breakdown of how each of DraftKings&#8217; and SBTech&#8217;s offerings function, and their respective economic model:</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Daily
Fantasy Sports</I></FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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&#8217;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 (&#8220;guaranteed
contests&#8221;) and contests that will only pay out prizes if a minimum number of entrants have joined the contest (&#8220;non-guaranteed
contests&#8221;). 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.&nbsp;</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><IMG SRC="tm2018577-1_s1img003.jpg" ALT="">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Illustrative
DFS guaranteed contest</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 112.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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;&#8212;&#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.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Sports
betting involves a user placing a bet by wagering money on an event at some fixed odds (&#8220;proposition&#8221;) 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.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><IMG SRC="tm2018577-1_s1img004.jpg" ALT="">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Illustrative
sports bet</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 &#8220;hold.&#8221; 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 &#8220;skin&#8221;) 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.</FONT></P>

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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&#8217; 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.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><IMG SRC="tm2018577-1_s1img013.jpg" ALT="">&nbsp;</P>



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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>B2B
Revenue for Sportsbook and iGaming&nbsp;</I></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
now supply B2B sports betting and iGaming services globally for various DFS and gaming operators and government-run lotteries.
Currently our SBTech business generates revenue from operators by providing sports betting and iGaming content directly to operators
in exchange for a share of operators&#8217; 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.</FONT></FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition to providing for a share of gaming revenue, SBTech&#8217;s direct customer contracts are typically non-exclusive and
run for a term of 3-5 years (with automatic renewal terms). SBTech&#8217;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&#8217;s
software and typically run for a term of 3 years (with automatic renewal terms).</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Advertising
and Sponsorship</I></B></FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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;&#8212;&#8201;featuring partnerships with brand categories ranging from entertainment
to food to automotive&#8201;&#8212;&#8201;and that only show for contests with no-paying or low-paying users.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Each
advertising package is bespoke, and we offer each client a custom &#8220;menu&#8221; of advertising options, which include online
media (such as display, video and audio advertisements and page and &#8220;skin&#8221; 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&#8217;em and Bracket Games.</FONT></P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Promotional
Expense for DraftKings Daily Fantasy Sports, Sportsbook and iGaming</I></B></FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Cost
of Revenue</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 &#8220;gross revenue&#8221; 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.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Case
Study: New Jersey Sportsbook</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">To
better appreciate the mechanics of how DraftKings&#8217; 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 &#8220;Risk Factors&#8201;&#8212;&#8201;Risk Factors Relating to Our
Business and Industry&#8201;&#8212;&#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.&#8221;</I></FONT></FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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&#8217;s sports betting market at maturity to be greater than $500 million
in gross gaming revenue (&#8220;GGR&#8221;) 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 &#8220;<I>DraftKings&#8217;
Industry&#8201;&#8212;&#8201;Our Industry and Opportunity&#8201;&#8212;&#8201;North American Gaming Market.</I>&#8221; 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.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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&#8217; U.S. Online Casino Tracker for December 2019.&nbsp;</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Sportsbook
and iGaming in New Jersey had a pronounced impact on our business:</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By the end of 2019, we have recouped approximately
    90% of our first 12 month marketing spend.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">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 Colorado and Iowa in the first half of 2020, and recently launched iGaming in Pennsylvania.</FONT></FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>User
Acquisition and Retention&nbsp;</I></B></FONT></P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 &#8220;Refer-a-Friend&#8221; program, offering incentives such as free
entries into tournaments or free bets if the referred user ultimately subscribes to our product offerings.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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&#8217;
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&#8217; platforms. Lastly, the PGA Tour and DraftKings will collaborate on a variety of real-time product enhancements
via the PGA Tour&#8217;s proprietary data feed.</FONT></P>


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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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&#8217;s national, local and digital properties. With this relationship, FOX also made a strategic investment in the preferred
stock of DraftKings. See &#8220;<I>Certain Relationship and Related Party Transactions.</I>&#8221; 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.&nbsp;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>B2B
Business Marketing</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SBTech&#8217;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&#8217;s 2018 marketing costs. SBTech&#8217;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&#8217;s reputation and customer testimonials also assist in its marketing and business efforts.&nbsp;</FONT></P>

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Our
Technology and Product Development</B></FONT></P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT><IMG SRC="tm2018577-1_s1img05.jpg" ALT=""></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">At
a high level, DraftKings&#8217; 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.</FONT></FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
Sportsbook offering relies on a mix of proprietary and third-party software. The proprietary DraftKings&#8217; 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.</FONT></P>

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

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

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">DraftKings&#8217;
core product offerings are built on top of an integrated, proprietary account management platform, which we generally refer to
as, our &#8220;platform.&#8221; 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.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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&#8217;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&#8217; 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.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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. Our product
and engineering workforce consists of approximately 1,100 people.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Through
a combination of cash expenses and capitalized expenditures, DraftKings invested $61.0 million in products and technology, and
SBTech invested &#8364;31.1 million in research and development, for the year ended December 31, 2019.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
business 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.</FONT></FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">While
most of the intellectual property we use is created by us, we have obtained rights to use intellectual property of third parties
through licenses and service agreements with those third parties. Although we believe these licenses are sufficient for the operation
of the company, these licenses typically limit our use of the third parties&#8217; intellectual property to specific uses and
for specific time periods.&nbsp;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
protect our intellectual property rights by relying on federal, state and common law rights, as well as contractual restrictions.
We 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 also engage in monitoring the activities of third
parties with respect to potential infringing uses of our intellectual property by third parties.</FONT></FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
addition to these contractual arrangements, we 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 &#8220;DraftKings,&#8221; and the names of our services and applications, among others.</FONT></FONT></P>

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>In
Re: Daily Fantasy Sports Litigation (Multi-District Litigation)</I></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Between
late 2015 and early 2016, certain individuals who allegedly registered and competed in daily sports fantasy contests on our and
FanDuel&#8217;s websites, and their family members, filed numerous actions against us, FanDuel, and other related parties (the
 &#8220;DFS defendants&#8221;) 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.&nbsp;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
plaintiffs assert 27 claims arising under both state and federal law against the DFS defendants. The plaintiffs&#8217; 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&#8217; 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.&nbsp;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">On
November 27, 2019, the Court granted in part and denied in part the DFS defendants&#8217; motions to compel arbitration. The Court
granted the DFS defendants&#8217; motions to compel arbitration with respect to the (named) player plaintiffs and the (named)
cross-over plaintiffs. The Court denied the DFS defendants&#8217; motions to compel arbitration with respect to a small set of
plaintiffs who are family members of individuals who have DraftKings or FanDuel accounts (the &#8220;Family Member Plaintiffs&#8221;)
and who assert claims under various state laws regarding gambling. On March 9, 2019, the DFS defendants moved to dismiss the Family
Member Plaintiffs&#8217; claims and the claims brought by the one (additional) remaining plaintiff who asserts claims against
the DFS defendants as a concerned citizen of the State of Florida (the &#8220;concerned citizen claim&#8221;). On April 7, 2020,
an opposition to the motion to dismiss the concerned citizen claim was filed. On April 20, 2020, the Family Member Plaintiffs
filed their opposition to the DFS defendants&#8217; motion to dismiss, and on April 29, 2020, the Family Member Plaintiffs filed
a motion for leave to amend the first amended class action complaint.</FONT></FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;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
 &#8220;significant damages&#8221;, 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&#8217;s financial condition, although the outcome could be material
to the combined company&rsquo;s operating results for any particular period, depending, in part, upon the operating results for such
period.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>1,000
Mass Arbitration Demands Filed by One Law Firm</I></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
October 21, 2019, a law firm filed 1,000 &#8220;mass arbitrations&#8221; 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 &#8220;mass arbitrations&#8221;
against us. If these &#8220;mass arbitrations&#8221; 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.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
dispute the law firm&#8217;s ability to file &#8220;mass arbitrations&#8221; 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.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">After
the law firm filed the 1,000 &#8220;mass arbitrations,&#8221; the AAA informed us in writing that it would close their files on,
and decline to administer, the 1,000 &#8220;mass arbitrations&#8221; 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.&nbsp;</FONT></P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Attorney
General of Texas</I></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
January 19, 2016, the Texas Attorney General issued an opinion letter that &#8220;odds are favorable that a court would conclude
that participation in paid daily fantasy sports leagues constitutes illegal gambling&#8221; under Texas law. In response to the
opinion letter, we sued the Texas Attorney General on March 4, 2016 in Dallas County, Texas.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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&#8217; fees.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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&#8217; agreed non-suit without prejudice, thereby dismissing
the Dallas County lawsuit without prejudice.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
May 24, 2018, the Texas Attorney General answered the complaint filed in Travis County, Texas.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">FanDuel
filed a petition in intervention on August 24, 2018, seeking essentially the same relief as DraftKings seeks. On April 13, 2020,
the parties filed an agreed motion to extend the scheduling order, setting the case for a non-jury trial on April 20, 2021.</FONT></FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>CG
Technology Development, LLC; Interactive Games Limited; and Interactive Games LLC&nbsp;</I></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
April 7, 2016, CG Technology Development, LLC, Interactive Games Limited, and Interactive Games LLC (collectively, &#8220;CG&#8221;),
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 &#8220;166 patent&#8221;),
which is entitled &#8220;System and method for establishing a wager for a gaming application&#8221;; (2) U.S. Patent No. 6,899,628
(the &#8220;628 patent&#8221;), which is entitled &#8220;System and method for providing game event management to a user of a
gaming application&#8221;; (3) U.S. Patent No. 7,029,394 (the &#8220;394 patent&#8221;), which is entitled &#8220;System and method
for generating statistics for a user of a gaming application&#8221;; (4) U.S. Patent No. 7,534,169 (the &#8220;169 patent&#8221;),
which is entitled &#8220;System and method for wireless gaming system with user profiles&#8221;; (5) U.S. Patent No. 8,342,924
(the &#8220;924 patent&#8221;), which is entitled &#8220;System and method for providing enhanced services to a user of a gaming
application&#8221;; (6) U.S. Patent No. 8,641,511 (the &#8220;511 patent&#8221;), which is entitled &#8220;Real-time interactive
wagering on event outcomes&#8221;; (7) U.S. Patent No. 9,111,417 (the &#8220;417 patent&#8221;), which is entitled &#8220;System
and method for providing enhanced services to a user of a gaming application&#8221;; (8) U.S. Patent No. 9,306,952 (the &#8220;952
Patent&#8221;), which is entitled &#8220;System and method for wireless gaming with location determination&#8221;; (9) U.S. Patent
No. 9,355,518 (the &#8220;518 patent&#8221;), which is entitled &#8220;Gaming system with location determination&#8221;; and (10)
U.S. Patent No. RE39,818 (the &#8220;818 patent&#8221;), which is entitled &#8220;Personalized wireless video game system.&#8221;</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Between
March and June of 2017, we filed petitions with the Patent Trial and Appeal Board (&#8220;PTAB&#8221;) of the U.S. Patent and
Trademark Office challenging the validity of select claims of each of the three remaining asserted patents&#8201;&#8212;&#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&#8217;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 March 20, 2020, the court denied CG&#8217;s petition for <I>en banc
</I><U STYLE="text-decoration: none">rehearing for the appeal related to the &#8217;818 Patent</U>. On February 6, 2020, the Federal Circuit upheld the unpatentability
of the 518 patent.</FONT></FONT></P>

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Interactive
Games LLC</I></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
June 14, 2019, Interactive Games LLC (&#8220;IG&#8221;) 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
 &#8220;231 patent&#8221;), which is entitled &#8220;Multi-process communication regarding gaming information&#8221; and U.S. Patent
No. 8,974,302 (the &#8220;302 patent&#8221;), which is entitled &#8220;Multi-process communication regarding gaming information.&#8221;
That same Complaint alleges that our Sportsbook product offering infringes two additional patents: U.S. Patent No. 8,616,967 (the
 &#8220;967 patent&#8221;), which is entitled &#8220;System and method for convenience gaming&#8221; and U.S. Patent No. 9,430,901
(the &#8220;901 patent&#8221;), which is entitled &#8220;System and method for wireless gaming with location determination.&#8221;</FONT></P>

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">ensure that unsuitable individuals and organizations
    have no role in gaming operations;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">establish procedures designed to prevent cheating
    and fraudulent practices;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">establish and maintain anti-money laundering
    practices and procedures;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">establish and maintain responsible accounting
    practices and procedures;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">maintain effective controls over their financial
    practices, including establishing minimum procedures for internal fiscal affairs and the safeguarding of assets and revenues;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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

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

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">maintain systems for reliable record keeping;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">file periodic reports with gaming regulators;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">establish programs to promote responsible gaming;
    and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">enforce minimum age requirements.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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

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

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">adopt rules and regulations under the implementing
    statutes;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">interpret and enforce gaming laws and regulations;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">impose fines and penalties for violations;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">review the character and fitness of participants
    in gaming operations and make determinations regarding their suitability or qualification for licensure;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">grant licenses for participation in gaming operations;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">collect and review reports and information submitted
    by participants in gaming operations;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">establish and collect fees and taxes in jurisdictions
    where applicable.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Licensing
and Suitability Determinations</I></B></FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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&#8217;s sources of funding); (ii) the quality and security of the applicant&#8217;s
online real-money gaming platform, hardware and related software, including the platform&#8217;s ability to operate in compliance
with local regulation, as applicable; (iii) the applicant&#8217;s history; (iv) the applicant&#8217;s ability to operate its gaming
business in a socially responsible manner; and (v) in certain circumstances, the effect on competition.</FONT></P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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&#8217;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.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">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&#8217;s outstanding equity, with most jurisdictions
providing that &#8220;institutional investors&#8221; (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, the Charter provides that any of our capital stock owned or controlled by an unsuitable
person or its affiliates will be transferred to either DraftKings or one or more third-party transferees, in such number and class(es)/series
as determined by the Board 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 Board.</FONT></FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Product-Specific
Licensing&nbsp;</I></B></FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">DraftKings&#8217;
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.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
also maintain licenses in Great Britain, Malta and Australia.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
Great Britain, online gaming and sports betting is subject to the Gambling Act 2005 (the &#8220;GA2005&#8221;), 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.</FONT></P>

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

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

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

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

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
currently operate our online sports betting product via the DraftKings Sportsbook app in Colorado, 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 Colorado Limited Gaming Control Commission, 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.</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
May 14, 2018, the U.S. Supreme Court issued an opinion determining that PASPA was unconstitutional. PASPA prohibited a state from
 &#8220;authorizing by law&#8221; 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 &#8220;<I>Risk Factors&#8201;&#8212;&#8201;Risk Factors Relating to our Business
and Industry &#8212;&#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.</I>&#8221;</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
currently operate our iGaming platform in New Jersey, pursuant to a transactional waiver granted by the New Jersey Division of
Gaming Enforcement, and in Pennsylvania, pursuant to a license granted by the Pennsylvania Gaming Control Board. We are pursuing
a license in West Virginia.</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 &#8220;UIGEA&#8221;),
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 &#8220;Wire
Act&#8221;) 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.&nbsp;</FONT></P>

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

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>SBTech</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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&#8217;s platform in these jurisdictions.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition to our licensing regime for our offerings, we also take significant measures to protect users&#8217; privacy and data.
Our programs consist of the following:</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Data
Protection and Privacy</I></B></FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Compliance</I></B></FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Additionally,
we employ various methods and tools across our operations such as geolocation blocking, which restricts access based upon the
user&#8217;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.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SBTech&#8217;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&#8217; customers full control of their gaming to allow them to play responsibly.</FONT></P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"></P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Responsible
and Safer Gaming</I></B></FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
December 2019, we joined the National Council on Problem Gambling (&#8220;NCPG&#8221;) 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.</FONT></P>

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

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are also members of the Sports Wagering Integrity Monitoring Association and the American Gaming Association.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase"><B><A NAME="a015"></A>DRAFTKINGS&#8217;
INDUSTRY</B></FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
are a leader in digital sports entertainment and gaming in the United States, with over 4.3 million cumulative unique paid users.
Old DK&#8217;s total revenue grew 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.</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Our
Industry and Opportunity</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
operate within the global entertainment and gaming industries, which are comprised of diverse products and offerings that compete
for consumers&#8217; 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 (&#8220;H2&#8221;), is estimated
to be greater than $2.5 trillion, of which approximately one-third is derived from the United States.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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&#8217;s growth for the foreseeable future. According
to Deloitte&#8217;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.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Global
Gaming Industry</I></B></FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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&#8217;s growth of 2% per annum during that same period. H2 expects this trend to continue over
the next five years. Online gaming&#8217;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:</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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).</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 &#8220;High
Income&#8221; 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 &#8220;<I>&#8212; Our Industry and Opportunity&#8201;&#8212;&#8201;North
American Gaming Industry&#8201;&#8212;&#8201;U.S. Sports Betting&#8221; and &#8220;&#8212; Our Industry and Opportunity&#8201;&#8212;&#8201;North
American Gaming Industry&#8201;&#8212;&#8201;U.S. iGaming</I>&#8221; below.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;<B><I>North
American Gaming Industry</I></B>&#8199;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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.&#8217;s
gross gaming revenue comes from online betting compared to approximately 3% in the United States.</FONT></P>


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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>U.S.
Sports Betting</I></FONT></P>

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

<P STYLE="text-align: left; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 39% 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.&nbsp;</FONT></P>



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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0; margin-left: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>U.S.
Regulatory Overview</I></FONT></P>

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 90%; border-collapse: collapse">
<TR STYLE="background-color: #AAE247">
    <TD STYLE="white-space: nowrap; width: 28%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: white"><B>State</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; white-space: nowrap; width: 18%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: white"><B>% of U.S. Population</B></FONT></TD>
    <TD STYLE="white-space: nowrap; width: 18%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: white"><B>Legalized<SUP>(1)</SUP></B></FONT></TD>
    <TD STYLE="white-space: nowrap; width: 18%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: white"><B>Online<SUP>(2)</SUP></B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; white-space: nowrap; width: 18%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: white"><B>Online
    Live or<BR>
    Pending Launch<SUP>(3)</SUP></B></FONT></TD></TR>
<TR>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Arkansas</FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0.9 %</FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Green"><B>&#10003;</B></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Red"><B>x</B></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>-</B></FONT></TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Colorado</FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.7 %</FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Green"><B>&#10003;</B></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Green"><B>&#10003;</B></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Green"><B>&#10003;</B></FONT></TD></TR>
<TR>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Delaware</FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0.3 %</FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Green"><B>&#10003;</B></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Red"><B>x</B></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>-</B></FONT></TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Illinois</FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.9 %</FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Green"><B>&#10003;</B></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Green"><B>&#10003;</B></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: #FFCC00"><B>&#10003;</B></FONT></TD></TR>
<TR>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Indiana</FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.0 %</FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Green"><B>&#10003;</B></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Green"><B>&#10003;</B></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Green"><B>&#10003;</B></FONT></TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Iowa</FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.0 %</FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Green"><B>&#10003;</B></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Green"><B>&#10003;</B></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Green"><B>&#10003;</B></FONT></TD></TR>
<TR>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Michigan</FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.1 %</FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Green"><B>&#10003;</B></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Green"><B>&#10003;</B></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: #FFCC00"><B>&#10003;</B></FONT></TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mississippi</FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0.9 %</FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Green"><B>&#10003;</B></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Red"><B>x</B></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>-</B></FONT></TD></TR>
<TR>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Montana</FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0.3 %</FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Green"><B>&#10003;</B></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Red"><B>x</B></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>-</B></FONT></TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Nevada</FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0.9 %</FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Green"><B>&#10003;</B></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Green"><B>&#10003;</B></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Green"><B>&#10003;</B></FONT></TD></TR>
<TR>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">New Hampshire</FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0.4 %</FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Green"><B>&#10003;</B></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Green"><B>&#10003;</B></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Green"><B>&#10003;</B></FONT></TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">New Jersey</FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.7 %</FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Green"><B>&#10003;</B></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Green"><B>&#10003;</B></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Green"><B>&#10003;</B></FONT></TD></TR>
<TR>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">New Mexico<SUP>(4)</SUP></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0.6 %</FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Green"><B>&#10003;</B></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Red"><B>x</B></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>-</B></FONT></TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">New York</FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6.0 %</FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Green"><B>&#10003;</B></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Red"><B>x</B></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>-</B></FONT></TD></TR>
<TR>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">North Carolina</FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.2 %</FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Green"><B>&#10003;</B></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Red"><B>x</B></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>-</B></FONT></TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Oregon</FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.3 %</FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Green"><B>&#10003;</B></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Green"><B>&#10003;</B></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Green"><B>&#10003;</B></FONT></TD></TR>
<TR>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pennsylvania</FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.9 %</FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Green"><B>&#10003;</B></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Green"><B>&#10003;</B></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Green"><B>&#10003;</B></FONT></TD></TR>
<TR>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Rhode Island</FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0.3 %</FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Green"><B>&#10003;</B></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Green"><B>&#10003;</B></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Green"><B>&#10003;</B></FONT></TD></TR>
<TR>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Tennessee<SUP>(5)</SUP></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.1 %</FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Green"><B>&#10003;</B></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Green"><B>&#10003;</B></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: #FFCC00"><B>&#10003;</B></FONT></TD></TR>
<TR>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Washington<SUP>(4)</SUP></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.3 %</FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Green"><B>&#10003;</B></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Red"><B>x</B></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>-</B></FONT></TD></TR>
<TR>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Washington, DC</FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0.2 %</FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Green"><B>&#10003;</B></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Green"><B>&#10003;</B></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: #FFCC00"><B>&#10003;</B></FONT></TD></TR>
<TR>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">West Virginia</FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0.6 %</FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Green"><B>&#10003;</B></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Green"><B>&#10003;</B></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="color: Green"><B>&#10003;</B></FONT></TD></TR>
<TR STYLE="background-color: #AAE247">
    <TD STYLE="white-space: nowrap; border-top: black 1pt solid; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>% of U.S. Population </B></FONT></TD>
    <TD STYLE="white-space: nowrap; border-top: black 1pt solid; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; border-top: black 1pt solid; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>39
    %</B></FONT></TD>
    <TD STYLE="white-space: nowrap; border-top: black 1pt solid; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>24
    %</B></FONT></TD>
    <TD STYLE="white-space: nowrap; border-top: black 1pt solid; border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>15
    %</B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0; margin-left: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Source:
</I>&#8220;U.S. sports betting tracker&#8221; from Gambling Compliance; &#8220;Where is sports betting legal in the U.S.?&#8221;
from Legal Sports Report, U.S. Census Data as of July 2018.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 22.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 30px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 30px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Indicates states that have legalized sports
    betting in some form.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 30px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 30px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Indicates states with online sportsbooks.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 30px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 30px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Green check indicates states with operational
    online sports betting, while yellow check indicates states that are still pending launch.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 30px">&nbsp;</TD>
    <TD STYLE="width: 30px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(4)</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In New Mexico and Washington, sports betting
    is limited to provision by Native American tribes.</FONT></TD></TR>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 30px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 30px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(5)</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Tennessee is the only state without retail sportsbooks.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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;&#8212;&#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.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition to regulatory momentum, we believe that industry growth will be spurred by multiple parties having economic interests
in the industry&#8217;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&#8217;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.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>U.S.
Online Sports Betting: Estimating the Total Addressable Industry Size</I></FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Estimated
U.S. Online Sports Betting GGR at Maturity</I></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><IMG SRC="tm2018577-1_s1img07.jpg" ALT="">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><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.</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 36px"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(1)</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Implies industry size based on New Jersey&#8217;s
    percentage of the U.S. population. 2023E NJ GGR assumes H1&#8217;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.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 36px"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(2)</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 36px"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(3)</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>


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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">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 our B2C and B2B businesses.</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>U.S.
iGaming</I></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Of
the ten 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.</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">At
the moment, iGaming has less regulatory momentum than sports betting; however, New Jersey presents a data point for iGaming&#8217;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.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">For
further details on the New Jersey iGaming industry, refer to the New Jersey case study in <I>&#8220;Business &#8212;&#8201;Our
Products and Economic Model&#8201;&#8212;&#8201;Case Study: New Jersey Sportsbook.&#8221;</I></FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Estimated
U.S. iGaming GGR Implied by New Jersey</I></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><IMG SRC="tm2018577-1_s1img08.jpg" ALT="">&nbsp;</P>

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 36px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">GGR for nine months ended September 30, 2019
    is annualized then grown one year forward at the historical CAGR of 25% (&#8216;14-&#8217;18A).</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Daily
Fantasy Sports</I></FONT></P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Given
that we operate 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&#8217; 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.</FONT></FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
the B2B space, our competitors for sports betting and iGaming include Bet.Works, Gaming Innovation Group (GiG), GVC Holdings,
International Gaming Technology (IGT), Kambi, Playtech and Scientific Games. We compete on the quality and breadth of our technology
solutions and support services.</FONT></FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase"><B><A NAME="a016"></A>DRAFTKINGS&#8217;
MANAGEMENT&#8217;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>The
following discussion and analysis of the financial condition and results of operations of DraftKings Inc. 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 &#8220;Business&#8221; and our pro forma financial information as of and
for the year ended December 31, 2019. See &#8220;Unaudited Pro Forma Condensed Combined Financial Information.&#8221; 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 &#8220;Risk Factors&#8221; and &#8220;Cautionary Statement
Regarding Forward-Looking Statements.&#8221; Certain amounts may not foot due to rounding. For the purposes of this section, &#8220;we,&#8221;
 &#8220;us,&#8221; &#8220;our&#8221; and &#8220;DraftKings&#8221; refers to DraftKings Inc., a Delaware corporation, prior to the
Closing and DraftKings Inc., a Nevada corporation, following the Closing.</I></FONT></FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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&#8217;s favorite real-money games and betting experiences.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
goal is to revolutionize digital sports entertainment at the intersection of technology and entertainment. We have established
a following among &#8220;skin-in-the-game&#8221; 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.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Over
the past eight years, we have achieved sustained paid user growth and several key milestones, as indicated in the chart below.
See &#8220;<I>Business.</I>&#8221;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><IMG SRC="tm2018577-1_s1img09.jpg" ALT="">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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
 &#8220;skin-in-the-game&#8221; experience.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
following table sets forth a summary of our financial results for the periods indicated:</FONT></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>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Year 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="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="font-weight: bold; padding-bottom: 1pt">&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><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">2017</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">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="font-weight: bold; text-align: center">(in thousands)</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 61%">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">226,227</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">191,844</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net Loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(142,734</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(76,220</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(75,556</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Adjusted EBITDA (1)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(98,640</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(58,850</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(48,884</TD><TD STYLE="text-align: left">)</TD></TR>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></TD>
    <TD STYLE="width: 36px"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(1)</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Adjusted EBITDA is a non-GAAP financial measure.
    See &#8220;<I>&#8212; Non-GAAP Information</I>&#8221; 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.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 &#8220;<I>&#8212; Quarterly Performance Trend
and Seasonality.</I>&#8221;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">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 &#8220;skin-in-the-game&#8221; 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&#8217; 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&#8217;s Sports Wagering Revenue Reports from January 2020 and greater than 10% according to Eilers&#8217;
U.S. Online Casino Tracker from December 2019. We have since launched our online Sportsbook in Colorado, Indiana, Iowa, New Hampshire,
Pennsylvania and West Virginia, and iGaming in Pennsylvania.</FONT></FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 &#8220;<I>Cautionary Statement Regarding Forward-Looking Statements</I>&#8221;.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">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 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&#8217;s technology and know-how.</FONT></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Impact
of COVID-19</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
novel coronavirus is having a significant impact on most businesses, including ours. The direct impact on the business of DraftKings
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.</FONT></FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">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&#8217; 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, we
are managing the variable portion of our cost structure 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, our liquidity outlook has not materially changed. Furthermore,
as detailed below in &#8220;<I>Liquidity and Capital Resources</I>,&#8221; 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.</FONT></FONT></P>

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


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Assuming
sports return this year (even without audiences), we do not expect a long-term financial impact on our financial condition and
results of operation. However, as noted in &#8220;<I>Risk Factors &#8212; Risk Factors Relating to Our Business and Industry &#8212;
Reductions in discretionary consumer spending could have an adverse effect on our business, financial condition, results of operations
and prospects</I>,&#8221; 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.</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Finally,
we 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.</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Our
Business Model</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 &#8220;platform&#8221;). 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.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
business model is based on the following key factors and strategies:</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Monetizing
our Platform</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
monetize our platform through the following principal offerings:</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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 &#8220;skin-in-the-game&#8221; 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.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Sportsbook</I>. To further enhance the &#8220;skin-in-the-game&#8221;
    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 &#8220;hold&#8221; as users play against the house (us).</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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 &#8220;hold&#8221;
    as users play against the house (us).</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Growing
our User Base</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><I>Monthly
Unique Payers (&#8220;MUPs&#8221;)</I>. The number of unique paid users (&#8220;payers&#8221;) 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:</FONT></P>

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


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><IMG SRC="tm2018577-1_s1img010.jpg" ALT="">&nbsp;</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
define MUPs as the number of unique paid users (&#8220;payers&#8221;) 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.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
 &#8220;unique paid user&#8221; or &#8220;unique payer&#8221; 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.&nbsp;</FONT></P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Average
Revenue per MUP (&#8220;ARPMUP&#8221;)</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:</FONT></P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><IMG SRC="tm2018577-1_s1img011.jpg" ALT=""></FONT><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
use ARPMUP to analyze comparative revenue growth and measure customer monetization and engagement trends.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>The
Business Combination</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Under
the terms of the BCA, Merger Sub merged with and into Old DK (the &#8220;DK Merger&#8221;), and Old DK survived the DK Merger
as a wholly-owned subsidiary of DraftKings. Concurrently with the DK Merger, DraftKings acquired all of the issued and outstanding
share capital of SBTech (the &#8220;SBTech Acquisition&#8221;). Immediately prior to the DK Merger and the SBTech Acquisition,
DEAC merged with and into DEAC NV Merger Corp., a Nevada corporation, and changed its name to DraftKings Inc. In consideration
for the DK Merger and the SBTech Acquisition, stockholders of Old DK received shares of common stock of DraftKings, and SBTech&#8217;s
shareholders received a combination of cash and shares of common stock of DraftKings. </FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Business Combination </FONT><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">was
consummated on April 23, 2020. As the accounting acquirer of SBTech, we have preliminarily allocated the estimated purchase price
of approximately $993 million (reflecting certain estimated purchase price adjustments and seller costs to be borne by DraftKings
pursuant to the BCA) to SBTech&#8217;s assets and liabilities in the pro forma balance sheet included elsewhere in this prospectus.
This results in, among other adjustments, pro forma increases of approximately $11 million in property, plant and equipment, $269
million in amortizable intangible assets and $695 million in goodwill, compared to Old DK&#8217;s balance sheet as of December
31, 2019. The fair value measurement period for the SBTech Acquisition remains open for up to 12 months after 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. We plan to integrate SBTech&#8217;s platform, services, assets and know-how with our
operations over time, which we expect to result in integration-related costs as well as substantial synergies and provide us with
important competitive advantages. Expected synergies include implementation of SBTech&#8217;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
may not be comparable to Old DK&#8217;s or SBTech&#8217;s historical financial statements or the pro forma financial information
included elsewhere in this prospectus.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">DraftKings
is the predecessor of the combined business, and, as the parent company of the combined business, has continued as the SEC registrant,
meaning that DraftKings&#8217; financial statements for previous periods will be disclosed in the registrant&#8217;s future periodic
reports filed with the SEC. The DK Merger was accounted for as a reverse recapitalization, with no goodwill or other intangible
assets recorded, in accordance with U.S. GAAP. SBTech was 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 Old DK&#8217;s balance sheet at December 31, 2019) of $516 million.
This pro forma cash amounts is net of&#8201; (x) approximately $212 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 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&#8217;s initial public offering, but excluding certain seller costs to be paid by DraftKings)
and (z) other transaction-related costs (including bonuses, the payment of certain transaction-related and other payables of DEAC).
A portion of the transaction costs have been 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 second quarter of 2020 (i.e., merger-related
costs). The pro forma cash amounts include cash from (i) DEAC&#8217;s trust account, (ii) $40.0 million in gross proceeds from
our issuance of Convertible Notes (as defined in &#8220;&#8212; Liquidity and Capital Resources&#8221;) 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
 &#8220;<I>Unaudited Pro Forma Condensed Combined Financial Information.</I>&#8221;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">As
a consequence of the Business Combination, DraftKings became the successor to an SEC-registered and Nasdaq-listed company. DraftKings
will need 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&#8217; and officers&#8217;
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.</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Non-GAAP
Information</B></FONT></P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
include this non-GAAP financial measure because it is used by management to evaluate DraftKings&#8217; 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).</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
table below presents our Adjusted EBITDA reconciled to our net loss, the closest U.S. GAAP measure, for the periods indicated:</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Year 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">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="font-weight: bold; text-align: center">(in thousands)</TD><TD STYLE="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">Adjusted for:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Depreciation and amortization</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,636</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,499</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,301</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="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">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(666</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,541</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">Income tax expense</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: White">
    <TD STYLE="text-align: left">Stock-based compensation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">17,613</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,210</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,500</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">Transaction-related costs (1)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,472</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">10,697</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Litigation, settlement and related costs (2)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,695</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,222</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,754</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">Other non-recurring and special project costs (3)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,489</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">1,062</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Non-operating costs (4)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(2,521</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">607</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">Adjusted EBITDA</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">(98,640</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(58,850</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(48,884</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
</TABLE>

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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 36px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 36px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Includes primarily litigation settlement costs,
    and related external legal costs, mainly in connection with regulatory investigations and settlements.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 36px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 36px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(4)</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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&#8217;s losses and, in 2017, adjustments
    to the fair value of contingent consideration and other non-cash effects included in the &#8220;other non-operating costs&#8221;
    line-item of our income statements.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Key
Factors Affecting Our Results</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
financial position and results of operations depend to a significant extent on the following factors:</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Industry
Opportunity and Competitive Landscape</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
operate within the global entertainment and gaming industry, which is comprised of diverse products and offerings that compete
for consumers&#8217; 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 &#8220;<I>DraftKings&#8217; Industry.</I>&#8221; We believe
our industry-leading product offerings, strong technology platform, eight years of U.S. online and mobile gaming experience, established
brand and 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.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">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 Colorado, Indiana, Iowa, New Hampshire, Pennsylvania and West Virginia, and believe
we are the market leader in Indiana and West Virginia as of January 2020.</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Legalization,
Regulation and Taxation</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
are the national leader in daily fantasy sports and a top mobile-gaming operator in New Jersey according to Eilers&#8217; 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
38.7% of the U.S population, have legalized sports betting in some form. Of these 22 legal jurisdictions, 14 have legalized online
sports betting, and make up 24.1% of the U.S. population. Ten of these 14 jurisdictions are live and four are pending launch.
DraftKings operates in eight of these ten jurisdictions. Mobile sports wagering bills are currently being considered in 18 states.</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">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 allows
us to become a partner of choice to power state-run sportsbooks, as exemplified by SBTech&#8217;s recent agreement with the Oregon
State Lottery.</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 &#8220;<I>Risk Factors&#8201;&#8212;&#8201;Risk Factors Relating to Our Business and Industry&#8201;&#8212;&#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.</I>&#8221;</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Ability
to Acquire, Retain and Monetize Users</I></B></FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Managing
Betting Risk</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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&#8217;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.&nbsp;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Key
Components of Revenue and Expenses</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Revenue</I></B></FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 &#8220;handle&#8221;),
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.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
revenue is currently concentrated in the United States. See Note 17 to DraftKings&#8217; audited consolidated financial statements,
included elsewhere in this prospectus.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Costs
and Expenses</I></B></FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
incur payment processing costs on user deposits and occasionally chargebacks as a result of user complaints (chargebacks have
not been material to date).</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Platform
costs relate mainly to third-party integrated platform services, such as Kambi&#8217;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.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 (&#8220;market access&#8221;). 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.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
consider our sales and marketing spend and promotional offers (which is contra revenue and is described under &#8220;<I>&#8212;
Key Components of Revenue and Expenses &#8212; Revenue</I>&#8221; 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.</FONT></P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>General
and Administrative</I>. General and administrative expenses (&#8220;G&amp;A&#8221;) 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
 &#8220;<I>&#8212; The Business Combination</I>&#8221; above), we expect our G&amp;A spend to further stabilize in the near term.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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&#8217; audited
consolidated financial statements included elsewhere in this prospectus and <I>&#8220;&#8212; Critical Accounting Policies&#8201;&#8212;&#8201;Income
Taxes.&#8221;</I></FONT></P>

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Results
of Operations</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Comparison
of the Years Ended December 31, 2019, 2018 and 2017</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table sets forth a summary of our consolidated results of operations for the years indicated, and the changes between
periods.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="10" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Year
    ended December 31,</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>2018
    to 2019 % </B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>2017
    to 2018 % </B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt; text-align: center"><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 STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>2019</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt; text-align: center"><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 STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>2018</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt; text-align: center"><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 STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>2017</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Change</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Change</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="10" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(in
    thousands)</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 35%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Revenue</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">323,410</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">226,277</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">191,844</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">42.9</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">17.9</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cost of revenue</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">103,889</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">48,689</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">31,750</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">113.4</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">53.4</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Sales and marketing</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">185,269</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">145,580</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">156,632</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">27.3</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-7.1</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Product and technology</FONT></TD>
    <TD STYLE="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 STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&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">55,929</FONT></TD>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="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 STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&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">32,885</FONT></TD>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="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 STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&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">20,212</FONT></TD>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="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 STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&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">70.1</FONT></TD>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD>
    <TD STYLE="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 STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&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">62.7</FONT></TD>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">General and administrative</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">124,868</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">75,904</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">56,448</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">64.5%&#8203;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">34.5</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Loss from operations</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(146,545</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(76,781</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(73,198</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">90.9</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.9</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Interest income (expense), net</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,348</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">666</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1,541</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">102.4</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">n.m.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Gain on initial equity method investment</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3,000</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">n.m.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">n.m.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other income (expense),
    net</FONT></TD>
    <TD STYLE="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 STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&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">&#8212;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="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 STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&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">&#8212;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="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 STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&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">(607</FONT></TD>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD>
    <TD STYLE="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 STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&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">n.m.</FONT></TD>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="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 STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&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">n.m.</FONT></TD>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Loss before income taxes expense</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(142,197</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(76,115</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(75,346</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">86.8</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.0</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Income tax expense</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">58</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">105</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">210</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-44.8</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-50.0</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Loss from equity
    method investment</FONT></TD>
    <TD STYLE="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 STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&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">479</FONT></TD>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="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 STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&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">&#8212;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="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 STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&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">&#8212;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="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 STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&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">n.m.</FONT></TD>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="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 STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&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">n.m.</FONT></TD>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net loss</FONT></TD>
    <TD STYLE="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 STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="border-bottom: black 2.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(142,734</FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD>
    <TD STYLE="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 STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="border-bottom: black 2.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(76,220</FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 2.5pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="border-bottom: black 2.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(75,556</FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD>
    <TD STYLE="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 STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&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: 10pt">87.3</FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD>
    <TD STYLE="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 STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&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: 10pt">0.9</FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">n.m.
= not meaningful.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>2019
Compared to 2018</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><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.</FONT></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>2018
Compared to 2017</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Quarterly
Performance Trend and Seasonality</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><IMG SRC="tmm2018577d1_s1img012.jpg" ALT=""></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in">&nbsp;</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 traditionally
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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Liquidity
and Capital Resources</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 approximately $592 million at December 31, 2019. 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 obtained 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.</FONT></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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Debt</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Credit
Facility</I>. We have a revolving credit facility with Pacific Western Bank with a current limit of $50.0 million. 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; however,
as noted below, in March 2020 we drew down $44.5 million under the revolving credit facility and repaid the outstanding amount
in April 2020.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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. In March 2020 we drew down $44.5 million under the 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. We repaid the drawn amount in full in April 2020 and $45.5 million was available under our revolving credit
facility at the date of this prospectus.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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. Following our Business Combination, Pacific Western
delivered a notice of exercise and we delivered 59,433 shares of our Class A common stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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 converted into new shares of our Class A common stock upon the consummation of the Business Combination.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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 accrued on the
outstanding amount of the Convertible Notes at a rate of 10% per annum on a capitalized, pay-in-kind basis and is added to the
outstanding principal amount of each Convertible Note on each anniversary of the date of its issuance or the earlier date of maturity
or conversion. The Convertible Notes may only be prepaid with the consent of the holders of a majority of the then-outstanding
principal amount.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Convertible Notes automatically converted 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, and subsequently converted into shares of our Class A common stock
on a one-for-one basis.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Cash
Flows</I></B></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">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table summarizes our cash flows for the periods indicated:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="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="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: 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">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: bold 10pt Times New Roman, Times, Serif">&#8203;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">(in thousands)</TD><TD STYLE="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: 61%; font: 10pt Times New Roman, Times, Serif; text-align: left">Net cash used by operating activities</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">$</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">(78,880</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">(45,579</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">)</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">$</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">(88,437</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Net cash used in investing activities</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">(42,271</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">(26,672</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">(7,715</TD><TD STYLE="font: 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: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Net cash provided by financing activities</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">79,776</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">140,892</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">118,531</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: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Net increase (decrease) in cash</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">(41,375</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">68,641</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">22,379</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; padding-bottom: 1pt">Cash at beginning of period</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">117,908</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">49,267</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">26,888</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: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">Cash at end of period</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">76,533</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">117,908</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">49,267</TD><TD STYLE="padding-bottom: 2.5pt; 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; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Contractual
Obligations, Commitments and Contingencies</B></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">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table and the information that follows summarizes our contractual obligations as of December 31, 2019.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="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">Total</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">Less than<BR> 1 year</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">1-3 Years</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">3-5 Years</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">More than<BR> 5 Years</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: bold 10pt Times New Roman, Times, Serif">&#8203;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="18" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">(in thousands)</TD><TD STYLE="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: 35%; font: 10pt Times New Roman, Times, Serif; text-align: left">Operating lease obligations(1)</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">$</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">66,028</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">10,067</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">$</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">16,674</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">15,602</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">$</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">23,685</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">Vendors and licenses(2)</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">185,739</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">74,390</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">88,610</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">18,639</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">4,100</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; padding-bottom: 1pt">Debt obligations(3)</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">86,873</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">6,750</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">80,123</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">-</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">-</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: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">Total</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">338,640</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">91,207</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">185,407</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">34,241</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">27,785</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0px; font: 10pt Times New Roman, Times, Serif"></TD>
    <TD STYLE="width: 36px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Includes
    operating leases of corporate office facilities, including our headquarters in Boston, Massachusetts, the lease for which
    expires in 2029.</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0px; font: 10pt Times New Roman, Times, Serif"></TD>
    <TD STYLE="width: 36px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 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 were required to pay a total of approximately $13.9 million in success
    fees to certain vendors. These success fees are classified as current obligations.</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0px; font: 10pt Times New Roman, Times, Serif"></TD>
    <TD STYLE="width: 36px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Includes
    the ArrowMark Notes, Convertible Notes and amounts outstanding under our revolving credit facility. See &ldquo;<I>&mdash;
    Liquidity and Capital Resources&thinsp;&mdash;&thinsp;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 converted into shares of DEAC Class A common stock (and then into Class A common stock
    of DraftKings). As discussed above, the ArrowMark Notes were canceled and exchanged into shares of our preferred stock in
    March 2020 and our Convertible Notes were converted into shares of our Class A common stock upon the consummation of the Business
    Combination, and these transactions are not included in the table.</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Off-Balance
Sheet Commitments and Arrangements</B></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">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Critical
Accounting Policies</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Revenue
Recognition</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Internally
Developed Software Costs</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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&thinsp;&thinsp;&mdash;&thinsp;&thinsp;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.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Loss
Contingencies</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Business
Combinations</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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&thinsp; (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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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. 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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Income
Taxes</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Stock-based
Compensation</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
management and board of directors 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 of directors included the following:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif">&#9679;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our
    financial performance, capital structure and stage of development;</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif">&#9679;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our
    management team and business strategy;</FONT></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">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif">&#9679;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">external
    market conditions affecting our industry, including competition and regulatory landscape;</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif">&#9679;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our
    financial position and forecasted operating results;</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif">&#9679;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
    lack of an active public or private market for our common stock;</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif">&#9679;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
    likelihood of achieving a liquidity event, such as a sale of DraftKings or an initial public offering of our common stock;
    and</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif">&#9679;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">market
    performance analyses, including with respect to stock price valuation, of similar companies in our industry.</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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. Following the Business
Combination, the fair value of our Class A common stock is now determined based on the quoted market price on Nasdaq.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Recently
Adopted and Issued Accounting Pronouncements</B></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">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Recently
issued and adopted accounting pronouncements are described in Note 2 to DraftKings&rsquo; audited consolidated financial statements
included elsewhere in this prospectus.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Emerging
Growth Company Accounting Election</B></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">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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. We expect to remain an emerging growth company at least through the end of the 2020 fiscal year and we expect to continue
to take advantage of the benefits of the extended transition period. This may make it difficult or impossible to compare our 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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Quantitative
and Qualitative Disclosures About Market Risk</B></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">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase"><B><A NAME="a017"></A>SBT&rsquo;S
MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>The
following discussion and analysis of the financial condition and results of operations of SBTech (Global) Limited 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&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. For the purposes of this section, &ldquo;we,&rdquo; &ldquo;us,&rdquo; &ldquo;our&rdquo; and &ldquo;SBTech&rdquo;
refer SBTech (Global) Limited prior to the Closing.</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Overview</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
a result of the Business Combination, DraftKings will be able to provide a vertically integrated Sportsbook offering and can 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 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&mdash;
The Business Combination</I>.&rdquo;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table sets forth a summary of SBTech&rsquo;s financial results for the periods indicated:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="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="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: 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">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: bold 10pt Times New Roman, Times, Serif">&#8203;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">(&euro; in thousands)</TD><TD STYLE="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: 61%; font: 10pt Times New Roman, Times, Serif">Revenue</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">&euro;</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">96,857</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">&euro;</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">94,147</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">&euro;</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">66,087</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">Gross profit</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">42,684</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">49,060</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">34,243</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">Net profit after tax</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&euro;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">4,576</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">&euro;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">26,779</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">&euro;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">16,290</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; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Impact
of COVID-19</B></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">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
novel coronavirus is having a significant impact on most businesses, including ours. The direct impact on our business 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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
this period, we are managing the variable portion of our 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.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Assuming
sports return this year (even without audiences), we do not expect a long-term financial impact on their financial condition and
results of operation.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Finally,
we have business continuity programs in place to ensure that employees are safe and that the businesses continue to function while
employees are working remotely. We have been closely monitoring the new working environment for our employees and have not experienced
any adverse impact on its ability to continue to operate its business. We have established training and are continually monitoring
its remote working practices to increase productivity.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Presentation
of Financial Information</B></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">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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&thinsp;
 &euro;20.8 million, and has accrued, in 2019, related interest expense on the lease liability of&thinsp; &euro;0.7 million and
depreciation expense on the right-of-use asset of&thinsp; &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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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>&mdash;&thinsp;Quantitative and Qualitative Disclosures About Market
Risk&thinsp;&mdash;&thinsp;Foreign Currency Exchange Rate Risk</I>.&rdquo; Going forward, SBTech&rsquo;s results will be reported
as part of 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&thinsp;&mdash; Key Factors Affecting
Our Results.</I>&rdquo;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Key
Components of Revenue and Expenses</B></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">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Revenue</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Costs
and Expenses</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT 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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Results
of Operations</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Comparison
of the Years Ended December 31, 2019, 2018 and 2017</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table sets forth a summary of SBTech&rsquo;s consolidated results of operations for the years indicated, and the changes
between periods.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 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 31,</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">2018&thinsp;-&thinsp;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">2017&thinsp;-&thinsp;2018</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: 10pt Times New Roman, Times, Serif; text-align: center">&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><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">% Change</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">% Change</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: 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">(&euro; in thousands)</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 35%; font: bold 10pt Times New Roman, Times, Serif">Revenue</TD><TD STYLE="width: 1%; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&euro;</TD><TD STYLE="width: 10%; font: bold 10pt Times New Roman, Times, Serif; text-align: right">96,857</TD><TD STYLE="width: 1%; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&euro;</TD><TD STYLE="width: 10%; font: bold 10pt Times New Roman, Times, Serif; text-align: right">94,147</TD><TD STYLE="width: 1%; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&euro;</TD><TD STYLE="width: 10%; font: bold 10pt Times New Roman, Times, Serif; text-align: right">66,087</TD><TD STYLE="width: 1%; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: bold 10pt Times New Roman, Times, Serif; text-align: right">2.9</TD><TD STYLE="width: 1%; font: bold 10pt Times New Roman, Times, Serif; text-align: left">%</TD><TD STYLE="width: 1%; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: bold 10pt Times New Roman, Times, Serif; text-align: right">42.5</TD><TD STYLE="width: 1%; font: bold 10pt Times New Roman, Times, Serif; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">Cost of revenue</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">54,173</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">45,087</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">31,844</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">20.2</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">41.6</TD><TD STYLE="padding-bottom: 1pt; font: 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: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Gross profit</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">42,684</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">49,060</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">34,243</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">-13.0</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left">%</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">43.3</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Operating expenses:</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">&#8203;</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">&#8203;</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">&#8203;</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">&#8203;</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">&#8203;</FONT></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">Research and development expenses</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">18,103</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">10,115</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">8,693</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">79.0</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">16.4</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: 10pt Times New Roman, Times, Serif; text-align: left">Selling and marketing expenses</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">6,772</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">3,722</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">2,964</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">81.9</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">25.6</TD><TD STYLE="font: 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: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">General and administrative expenses</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">11,772</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">7,636</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">5,892</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">54.2</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">29.6</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">%</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">Profit from operations</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">6,037</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">27,587</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">16,694</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">-78.1</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left">%</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">65.3</TD><TD STYLE="padding-bottom: 1pt; font: bold 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: 10pt Times New Roman, Times, Serif; text-align: left">Financial income</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">23</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">97</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">37</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">-76.3</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">162.2</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: 10pt Times New Roman, Times, Serif; text-align: left">Financial expense</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">846</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">340</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">177</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">148.8</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">92.1</TD><TD STYLE="font: 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: bold 10pt Times New Roman, Times, Serif; text-align: left">Profit before tax</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">5,214</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">27,344</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">16,554</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">-80.9</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">%</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">65.2</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Tax expenses</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">638</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">565</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">264</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">12.9</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">114.0</TD><TD STYLE="padding-bottom: 1pt; font: 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: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt">Net profit</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&euro;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right">4,576</TD><TD STYLE="padding-bottom: 2.5pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&euro;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right">26,779</TD><TD STYLE="padding-bottom: 2.5pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&euro;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right">16,290</TD><TD STYLE="padding-bottom: 2.5pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right">-82.9</TD><TD STYLE="padding-bottom: 2.5pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left">%</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right">64.4</TD><TD STYLE="padding-bottom: 2.5pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left">%</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;<B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B></B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>2019
Compared to 2018</I></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">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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&thinsp; &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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>2018
Compared to 2017</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Liquidity
and Capital Resources</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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. 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</I>&rdquo; and &ldquo;<I>DraftKings&rsquo; Management&rsquo;s Discussion and Analysis
of Financial Condition and Results of Operations</I>.&rdquo;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Cash
Flows</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table summarizes SBTech&rsquo;s cash flows for the periods indicated:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="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="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: 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">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: bold 10pt Times New Roman, Times, Serif">&#8203;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">(&euro; in thousands)</TD><TD STYLE="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: 61%; font: 10pt Times New Roman, Times, Serif; text-align: left">Net cash provided by operating activities</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">&euro;</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">19,525</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">&euro;</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">30,949</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">&euro;</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">18,260</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">Net cash used in investing activities</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">(18,399</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">(17,384</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">(14,307</TD><TD STYLE="font: 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: 10pt Times New Roman, Times, Serif; text-align: left">Net cash provided by (used in) financing activities</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">(13,537</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">(1,184</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">190</TD><TD STYLE="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; padding-bottom: 1pt">Effects of exchange rate changes</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">(176</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">(104</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">(6</TD><TD STYLE="padding-bottom: 1pt; font: 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: 10pt Times New Roman, Times, Serif; text-align: left">Net increase (decrease) in cash and cash equivalents</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">(12,587</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">12,277</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">4,137</TD><TD STYLE="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; padding-bottom: 1pt">Cash, cash equivalents at beginning of period</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">20,731</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">8,454</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">4,317</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: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt">Cash, cash equivalents at end of period</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">&euro;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">8,144</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</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">&euro;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">20,731</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</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">&euro;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">8,454</TD><TD STYLE="padding-bottom: 2.5pt; 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; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net
cash used in financing activities in 2018 was &euro;1.2 million, compared to net cash flow provided by financing activities of&thinsp;
 &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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Contractual
Obligations</B></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">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table and the information that follows summarizes SBTech&rsquo;s contractual obligations as of December 31, 2019:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">&#8203;</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">Total</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">Less than<BR> 1 year</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">1&thinsp;-&thinsp;3 Years</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">3&thinsp;-&thinsp;5 Years</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">More than<BR> 5 Years</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: bold 10pt Times New Roman, Times, Serif; text-align: left">&#8203;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="18" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">(&euro; in thousands)</TD><TD STYLE="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: 34%; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Lease obligations(1)</FONT></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">&euro;</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">26,265</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">&euro;</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">3,516</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">&euro;</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">7,103</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">&euro;</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">5,813</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">&euro;</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">9,833</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
</TABLE>


<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 0px; font: 10pt Times New Roman, Times, Serif"></TD>
    <TD STYLE="width: 36px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
    includes the total amount of lease liabilities recorded under IFRS 16.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 addition, SBTech entered into an agreement with a legal advisor by which SBTech agreed to pay for fees based on
time involved in the engagement and internal time charges.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Off-Balance
Sheet Commitments and Arrangements</B></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">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Critical
Accounting Policies</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Capitalization
and Amortization of Development Costs</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Quantitative
and Qualitative Disclosures About Market Risk</B></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">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SBTech
has in the past, and 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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Foreign
Currency Exchange Rate Risk</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase"><B><A NAME="a018"></A>MANAGEMENT</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Board
of Directors and Management </B></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">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Board
of Directors</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
business and affairs are managed by or under the direction of our Board. The Stockholders Agreement provides for the initial director
designation rights of DEAC, DraftKings and SBT. See &ldquo;&mdash;<I>&thinsp;Stockholders Agreement</I>&rdquo; for more information.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
table below lists the persons who currently serve on our Board, along with each director&rsquo;s age as of the Closing of the
Business Combination, and any other position that such director holds with DraftKings.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 80%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <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>Name</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"><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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Position
    </B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"><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: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Age</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: left; width: 47%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Jason
    D. Robins</FONT></TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 39%; text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief
    Executive Officer and<BR>
    Chairman of the Board</FONT></TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 11%; text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">39</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; font: 10pt Times New Roman, Times, Serif; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Harry
    Evans Sloan</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="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Vice
    Chairman of the Board</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">70</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; font: 10pt Times New Roman, Times, Serif; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Michael
    Gavin Isaacs</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="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">55</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; font: 10pt Times New Roman, Times, Serif; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Matthew
    Kalish</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="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">President,
    DraftKings<BR>
    North America, Director</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">38</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; font: 10pt Times New Roman, Times, Serif; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Woodrow
    H. Levin</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="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">41</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; font: 10pt Times New Roman, Times, Serif; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Paul
    Liberman</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="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">President,
    Global Technology<BR>
    and Product, Director</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">36</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; font: 10pt Times New Roman, Times, Serif; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Shalom
    Meckenzie</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="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">43</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; font: 10pt Times New Roman, Times, Serif; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Ryan
    R. Moore</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="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">46</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; font: 10pt Times New Roman, Times, Serif; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Steven
    J. Murray</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="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">51</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; font: 10pt Times New Roman, Times, Serif; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Hany
    M. Nada</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="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">51</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; font: 10pt Times New Roman, Times, Serif; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Richard
    Rosenblatt</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="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">51</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">John
    S. Salter</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="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">42</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Marni
    M. Walden</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="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">53</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following is a brief biography of each non-executive director of our Board.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Michael
Gavin (Gavin) Isaacs</I></B> is 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 as the non-executive Chairman of the board of directors, he assisted in SBTech&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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
believe Mr. Isaacs is qualified to serve on our Board 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.</FONT></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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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&thinsp;-&thinsp;Office of the CTO at International Game Technology, Inc., which manufactured and distributed slot machines
and other gaming technology. Mr. Levin served as a member of the board of directors of Old DK (since December 2013) and currently
serves as a member of the board of directors 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.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
believe Mr. Levin is qualified to serve on our Board due, among other things, to his extensive experience and knowledge as an
executive for technology companies, and his service as a member of Old DK&rsquo;s board.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
believe Mr. Meckenzie is qualified to serve on our Board 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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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 served as a member of the board of directors for Old DK 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.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
believe Mr. Moore is qualified to serve on our Board 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 Old DK and numerous
other companies.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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 previously served as a member of the board of directors
of Old DK (since August 2016). Mr. Murray received his B.S. in Accounting from Boston College in 1990.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
believe Mr. Murray is qualified to serve on our Board due, among other things, to his experience as a member of the board of directors
of both public and private companies, including Old DK, and expertise in fundraising, management of high-growth companies and
all levels of corporate governance.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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 previously served as a member of the board of directors of Old DK (since December 2013), and 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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
believe Mr. Nada is qualified to serve on our Board 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 Old DK&rsquo;s board.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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, as a member of the board of directors
of Imagine Films Entertainment LLC (since April 2016), a film and television production company, and previously served as a member
of the board of directors of Old DK (since January 2018). 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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
believe Mr. Rosenblatt is qualified to serve on our Board 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 Old DK&rsquo;s board.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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 served as a member
of the board of directors of Old DK (since August 2014). Mr. Salter received his B.A. from Stanford University.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
believe Mr. Salter is qualified to serve on our Board 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 Old DK and others in the gaming industry.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
believe Mr. Sloan is qualified to serve on our Board 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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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 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 also served as a member of the board of directors
of Old DK (since October 2018). Ms. Walden attended California State University, Chico, where she majored in English and minored
in Communications.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
believe Ms. Walden is qualified to serve on our Board 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 Old DK and numerous other public and private companies.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Management</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following persons serve as our executive officers:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <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>Name</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"><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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Position
    </B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"><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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Age</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt; 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="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 47%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Jason
    D. Robins</FONT></TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 40%; text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief
    Executive Officer and Chairman of the Board</FONT></TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 10%; text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">39</FONT></TD>
    <TD STYLE="width: 1%; 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="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Matthew
    Kalish</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="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">President,
    DraftKings North America, Director</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">38</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="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Paul
    Liberman</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="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">President,
    Global Technology and Product, Director</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">36</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="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">R.
    Stanton Dodge</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="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief
    Legal Officer and Secretary</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="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">52</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="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Jason
    K. Park</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="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief
    Financial Officer</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">43</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>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following is a brief biography of each of our executive officers.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Jason
D. Robins</I></B> is our Chief Executive Officer and Chairman of the Board. 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.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
believe Mr. Robins is qualified to serve on our Board due, among other things, to the perspective and experience he brings as
our Chief Executive Officer and as a co-founder.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.75in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Matthew
Kalish</I></B> is our President, DraftKings North America, and a director. 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.
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.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
believe Mr. Kalish is qualified to serve on our Board due, among other things, to the perspective and experience he brings as
our President, DraftKings North America and as a co-founder.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Paul
Liberman</I></B> is our President, Global Technology and Product, and a director. 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 becoming 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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
believe Mr. Liberman is qualified to serve on our Board due, among other things, to the perspective and experience he brings as
our President, Global Technology and Product and as a co-founder.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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 Colorado 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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Stockholders
Agreement &ndash; Corporate Governance</B></FONT></P>

<P STYLE="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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
the Closing Date, in connection with consummation of the Business Combination, DraftKings entered into a Stockholders Agreement
(the &ldquo;Stockholders Agreement&rdquo;) with certain initial shareholders and independent directors of DEAC (the &ldquo;DEAC
Stockholder Group&rdquo;), certain stockholders of Old DK (the &ldquo;DK Stockholder Group&rdquo;) and the SBT Sellers (the &ldquo;SBT
Stockholder Group&rdquo; and, together with the DEAC Stockholder Group and the DK Stockholder Group, the &ldquo;Stockholder Parties&rdquo;),
pursuant to which, among other things, that, our Board will initially be as set forth below:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif">&#9679;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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 DraftKings and at least five directors who qualify as &ldquo;independent&rdquo; directors
    under The Nasdaq Stock Market listing rules.</FONT></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">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif">&#9679;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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.</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif">&#9679;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><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). </FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif">&#9679;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 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 DraftKings Class A common stock.</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif">&#9679;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Additionally,
as of immediately following the Company&rsquo;s 2021 annual meeting of stockholders (the &ldquo;2021 Annual Meeting&rdquo;), the
total number of directors constituting the Board will be reduced to eleven. The nominating and corporate governance committee
of the board of directors will recommend to the Company&rsquo;s board of directors eleven candidates for election to the Company&rsquo;s
board of directors at the 2021 Annual Meeting, of which no more than eight will be any of the ten directors initially nominated
to serve on the board of directors by the DK Stockholder Group. See &ldquo;<I>Certain Relationships and Related Party Transactions
 &mdash; DraftKings &mdash; Stockholders Agreement</I>&rdquo; for additional information.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Board
Composition</B></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">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Committees
of our Board of Directors</I></B></FONT></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; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
Board has the following board committees:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif">&#9679;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">audit
    committee;</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif">&#9679;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">compensation
    committee;</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif">&#9679;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">nominating
    and corporate governance committee; and</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif">&#9679;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">compliance
    committee.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Audit
Committee</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
audit committee oversees our corporate accounting and financial reporting process. Among other matters, the audit committee:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif">&#9679;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">appoints
    our independent registered public accounting firm;</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif">&#9679;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">evaluates
    the independent registered public accounting firm&rsquo;s qualifications, independence and performance;</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif">&#9679;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">determines
    the engagement of the independent registered public accounting firm;</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif">&#9679;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reviews
    and approves the scope of the annual audit and the audit fee;</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif">&#9679;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">discusses
    with management and the independent registered public accounting firm the results of the annual audit and the review of our
    quarterly financial statements;</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif">&#9679;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">approves
    the retention of the independent registered public accounting firm to perform any proposed permissible non-audit services;</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif">&#9679;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">monitors
    the rotation of partners of the independent registered public accounting firm on our engagement team in accordance with requirements
    established by the SEC;</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif">&#9679;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">is
    responsible for reviewing our financial statements and our management&rsquo;s discussion and analysis of financial condition
    and results of operations to be included in our annual and quarterly reports to be filed with the SEC;</FONT></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">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif">&#9679;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">review
    our critical accounting policies and estimates; and</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif">&#9679;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">review
    the audit committee charter and the committee&rsquo;s performance at least annually.</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
audit committee consists of 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 are independent directors as defined under the applicable rules and regulations
of the SEC and The Nasdaq Stock Market with respect to audit committee membership. The Board has also determined 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 has adopted a written charter for the audit committee, which is available on our corporate website at www.draftkings.com.
The information on our website is not part of this prospectus.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Compensation
Committee</I></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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
compensation committee reviews and recommends policies relating to compensation and benefits of our officers and employees. Among
other matters, the compensation committee:</FONT></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%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif">&#9679;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reviews
    and recommends corporate goals and objectives relevant to compensation of our chief executive officer and other executive
    officers;</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif">&#9679;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">determines
    the compensation of our chief executive officer and recommends the compensation of the other executive officers to the Board;</FONT></TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 48px">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 24px">&#9679;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">recommends
    to our board of directors the issuance of stock options and other awards under our stock plans; and</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif">&#9679;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reviews
    and evaluates, at least annually, the performance of the compensation committee and its members, including compliance by the
    compensation committee with its charter.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
compensation committee consists of 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, we are not required to have a compensation committee
composed entirely of independent directors; however, we have elected to comply with this requirement and each of the members of
our compensation committee is independent as defined in The Nasdaq Stock Market listing standards, and each is a &ldquo;non-employee
director&rdquo; as defined in Rule 16b-3 promulgated under the Exchange Act and an &ldquo;outside director&rdquo; as that term
is defined in Section 162(m) of the Code (&ldquo;Section 162(m)&rdquo;). Our Board has adopted a written charter for the compensation
committee, which is available on our corporate website at www.draftkings.com. The information on our website is not part of this
prospectus.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Nominating
and Corporate Governance Committee</I></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">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
nominating and corporate governance committee is responsible for making recommendations to our Board regarding candidates for
directorships and the size and composition of our Board. In addition, the nominating and corporate governance committee is responsible
for overseeing our corporate governance policies and reporting and making recommendations to our Board concerning governance matters.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
nominating and corporate governance committee consists of 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, we are
not required to have a nominating and corporate governance committee composed entirely of independent directors; however, we have
elected to comply with this requirement and each of the members of the nominating and corporate governance committee is an independent
director as defined in The Nasdaq Stock Market listing standards. Our Board has adopted a written charter for the nominating and
corporate governance committee, which is available on our corporate website at www.draftkings.com. The information on our website
is not part of this prospectus.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Compliance
Committee</I></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">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
compliance committee oversees our non-financial compliance matters. Among other matters, the compliance committee:</FONT></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%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif">&#9679;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">identifies,
    reviews and analyzes laws and regulations applicable to us;</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif">&#9679;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">recommends
    to the Board, and monitors the implementation of, compliance programs, policies and procedures that comply with local, state
    and federal laws, regulations and guidelines;</FONT></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">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif">&#9679;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reviews
    significant compliance risk areas identified by management;</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif">&#9679;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">discusses
    periodically with management the adequacy and effectiveness of policies and procedures to assess, monitor, and manage non-financial
    compliance business risk and compliance programs;</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif">&#9679;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">monitors
    compliance with, authorize waivers of, investigate alleged breaches of and enforce our non-financial compliance programs;
    and</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 48px; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif">&#9679;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reviews
    our procedures for the receipt, retention and treatment of complaints received regarding non-financial compliance matters.</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
compliance committee consists of Messrs. Isaacs, Liberman and Salter and Ms. Walden, with Mr. Salter serving as the chair of the
committee. Our Board has adopted a written charter for the compliance committee, which is available on our corporate website at
www.draftkings.com. The information on our website is not part of this prospectus.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Director
Independence; Controlled Company Exemption</B></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">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr.
Robins is the beneficial owner of all the outstanding shares of our Class B common stock and controls the voting power of our
outstanding capital stock, as a result of which Mr. Robins has the power to elect a majority of our 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 are not 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.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to The Nasdaq Stock Market listing standards, as a controlled company, we are not 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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
Board consists of 13 directors, of whom Messrs. Isaacs, Levin, Moore, Murray, Nada, Rosenblatt, Salter and Sloan and Ms. Walden
are &ldquo;independent directors,&rdquo; as defined in The Nasdaq Stock Market listing standards and applicable SEC rules.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Compensation
Committee Interlocks and Insider Participation</B></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">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
compensation committee consists of Messrs. Levin, Moore, Nada and Rosenblatt. None of the members of the compensation committee
has at any time been an officer or employee of DraftKings. None of our executive officers currently serves, or in the past fiscal
year has served, as a member of the board of directors or compensation committee (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 our compensation committee or board of directors.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Code
of Business Conduct and Ethics</B></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">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have adopted a code of business conduct and ethics that applies to all of our employees, officers and directors, including those
officers responsible for financial reporting. The code of business conduct and ethics is available on our website at www.draftkings.com.
To the extent required by law, we expect to disclose any amendments to the code, or any waivers of its requirements, on our website.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Limitation
on Liability and Indemnification Matters</B></FONT></P>

<P STYLE="font: 11pt 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: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
amended and restated articles of incorporation contain provisions that limit the liability of our directors for damages to the
fullest extent permitted by Nevada law. Consequently, none of our directors will be personally liable to us or our stockholders
for damages as a result of an act or failure to act in his or her capacity as a director, unless:</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 60px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 30px; font-size: 11pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font-size: 11pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 60px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 30px; font-size: 11pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font-size: 11pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have entered into indemnification agreements with each of our directors and executive officers. Each indemnification agreement
provides for indemnification and advancements by DraftKings of certain expenses and costs relating to claims, suits or proceedings
arising from his or her service to DraftKings or, at our request, service to other entities, as officers or directors to the maximum
extent permitted by applicable law.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers or persons
controlling the registrant pursuant to the foregoing provisions, the registrant has been informed that in the opinion of the
Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is therefore
unenforceable.&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="a019"></A>EXECUTIVE
COMPENSATION</B></FONT></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>Introduction</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 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 CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px; font-size: 12pt">&#9679;</TD>
    <TD STYLE="font-size: 12pt"><FONT STYLE="font-size: 10pt">Jason Robins, Chief Executive Officer &amp; Co-Founder</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px; font-size: 12pt">&#9679;</TD>
    <TD STYLE="font-size: 12pt"><FONT STYLE="font-size: 10pt">Jason Park, Chief Financial Officer</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px; font-size: 12pt">&#9679;</TD>
    <TD STYLE="font-size: 12pt"><FONT STYLE="font-size: 10pt">Paul Liberman, President, Global Technology and Product &amp; Co-Founder</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">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; 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>&thinsp;-&thinsp;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 0pt 0.5in">&nbsp;</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.&nbsp;&nbsp;</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>Sign-on Cash Bonus</B>&thinsp;-&thinsp;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 DraftKings. 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>&thinsp;-&thinsp;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>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px; font-size: 12pt">&#9679;</TD>
    <TD STYLE="font-size: 12pt"><FONT STYLE="font-size: 10pt"><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></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">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px; font-size: 12pt">&#9679;</TD>
    <TD STYLE="font-size: 12pt"><FONT STYLE="font-size: 10pt"><I>Time-Vested Stock Options</I>&thinsp;-&thinsp;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.</FONT></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">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px; font-size: 12pt">&#9679;</TD>
    <TD STYLE="font-size: 12pt"><FONT STYLE="font-size: 10pt"><I>Long-Term Performance Incentive Plan (LTIP)</I>&thinsp;-&thinsp;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.</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>Summary Compensation Table </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>Name
    and Position &#8203;</B></FONT></TD>
    <TD STYLE="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; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>Fiscal</B><BR>
    <B>Year</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</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: 8pt"><B>Salary</B><BR>
    <B>($)</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>Bonus</B><BR>
    <B>($) (1)</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</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: 8pt"><B>Option</B><BR>
    <B>Awards</B><BR>
    <B>($) (2)</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>Non-Equity</B><BR>
    <B>Incentive Plan</B><BR>
    <B>Compensation</B><BR>
    <B>($) (3)</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</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: 8pt"><B>All
    Other</B><BR>
    <B>Compensation</B><BR>
    <B>($) (4)</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><B>Total</B><BR>
    <B>($)</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 24%"><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="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 8%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">2019</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">$</FONT></TD>
    <TD STYLE="width: 8%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">400,000</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">$</FONT></TD>
    <TD STYLE="width: 8%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">-</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">$</FONT></TD>
    <TD STYLE="width: 8%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">3,239,689</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">$</FONT></TD>
    <TD STYLE="width: 8%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">800,000</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">$</FONT></TD>
    <TD STYLE="width: 8%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">-</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">$</FONT></TD>
    <TD STYLE="width: 8%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">4,439,689</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&#8203;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">2018</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">400,000</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">-</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">12,847,259</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">500,000</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">9,250</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">13,756,509</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">Jason Park <BR>
    <I>Chief Financial Officer</I>&#8203;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">2019</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">201,923</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">250,000</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">2,326,845</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">325,260</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">14,279</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">3,118,307</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">Paul Liberman <BR>
    <I>President, Global&#8203;</I></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">2019</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">300,000</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">-</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">1,350,348</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">480,000</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">9,600</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">2,139,948</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt"><I>Technology &amp; Product</I></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">2018</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">300,000</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">-</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">2,817,791</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">300,000</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">10,588</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 8pt">3,428,379</FONT></TD>
    <TD><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; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px">&nbsp;</TD>
    <TD STYLE="width: 36px"><FONT STYLE="font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="text-align: left; vertical-align: bottom"><FONT STYLE="font-size: 10pt">The amount in this column represents
    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.</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px">&nbsp;</TD>
    <TD STYLE="width: 36px"><FONT STYLE="font-size: 10pt">(2)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">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:</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid"><FONT STYLE="font-size: 10pt"><B>Name</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Time-Vested</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>Options</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>($)</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>PSP</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>Options</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>($)</B></FONT></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"><FONT STYLE="font-size: 10pt"><B>LTIP</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>Performance</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>Options</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>($)</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 61%"><FONT STYLE="font-size: 10pt">Jason Robins</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 10pt">2,242,186</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 10pt">997,503</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-size: 10pt">Jason Park</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1,163,753</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1,163,092</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-size: 10pt">Paul Liberman</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">601,848</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">535,500</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">213,000</FONT></TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px">&nbsp;</TD>
    <TD STYLE="width: 36px"><FONT STYLE="font-size: 10pt">(3)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Reflects payments to the Named Executive Officers in accordance with our annual bonus plan.</FONT></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">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px">&nbsp;</TD>
    <TD STYLE="width: 36px"><FONT STYLE="font-size: 10pt">(4)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">For Mr. Park, represents the payment of legal fees incurred by Mr. Park in connection with the negotiation of his employment agreement of&thinsp;$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&thinsp;$8,400.</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>Benefits and Perquisites</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; 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: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Outstanding Equity Awards at 2019 Year End</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 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>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 32%; border-bottom: black 1pt solid"><FONT STYLE="font-size: 10pt"><B>Name</B></FONT></TD>
    <TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 8%; border-bottom: black 1pt solid; padding-right: 3pt; padding-left: 3pt; text-align: center"><FONT STYLE="font-size: 10pt"><B>Grant Date </B></FONT></TD>
    <TD STYLE="width: 1%; padding-bottom: 1pt; text-align: right">&nbsp;</TD>
    <TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</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; padding-right: 3pt; padding-left: 3pt; text-align: center"><FONT STYLE="font-size: 10pt"><B>Number of</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>Securities</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>Underlying</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>Unexercised</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>Options</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>Exercisable</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>(#) </B></FONT></TD>
    <TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 10%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Number of</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>Securities</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>Underlying</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>Unexercised</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>Options</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>Unexercisable</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>(#)</B></FONT></TD>
    <TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 10%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Equity Incentive</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>Plan Awards:</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>Number of</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>Securities</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>Underlying</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>Unexercised</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>Unearned</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>Options</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>(#)</B></FONT></TD>
    <TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 10%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Option</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>Exercise</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>Price</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>($)</B></FONT></TD>
    <TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 10%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Option</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>Expiration</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>Date</B></FONT></TD>
    <TD STYLE="width: 1%; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-size: 10pt"><B>Jason Robins</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">7/12/2013</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(1</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">2,000,000</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8213;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8213;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">0.09</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">7/12/2023</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">9/22/2014</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(1</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">400,000</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8213;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8213;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">0.22</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">9/22/2024</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">2/18/2015</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(1</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1,671,032</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8213;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8213;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">0.22</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">2/18/2025</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">8/27/2015</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(1</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">835,358</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8213;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8213;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">0.22</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">8/27/2025</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">3/24/2016</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(1</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4,446,707</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">296,448</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8213;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">0.22</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">3/24/2026</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">5/3/2017</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(1</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1,734,554</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">788,435</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8213;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1.35</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">5/3/2027</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4/18/2018</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(2</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">963,713</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1,606,189</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8213;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1.16</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4/18/2028</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4/18/2018</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(3</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1,307,645</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8213;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8213;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1.16</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4/18/2028</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">5/3/2018</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(4</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8213;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8213;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">21,376,180</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1.16</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">5/3/2028</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">6/4/2019</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(2</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">395,834</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">2,770,841</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8213;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1.66</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">6/4/2029</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">6/4/2019</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(3</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8213;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8213;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1,583,338</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1.66</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">6/4/2029</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt"><B>Jason Park</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">6/4/2019</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(1</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8213;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1,500,000</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8213;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1.66</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">6/4/2029</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">6/4/2019</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(4</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8213;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8213;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1,500,000</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1.66</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">6/4/2029</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">8/15/2019</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(1</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8213;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">138,158</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8213;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1.67</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">8/15/2029</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">8/15/2019</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(4</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8213;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8213;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">138,518</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1.67</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">8/15/2029</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-size: 10pt"><B>Paul Liberman</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">7/12/2013</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(1</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">2,415,000</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8213;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8213;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">0.09</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">7/12/2023</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">9/22/2014</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(1</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">302,160</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8213;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8213;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">0.22</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">9/22/2024</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">2/18/2015</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(1</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">835,516</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8213;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8213;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">0.22</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">2/18/2025</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">8/27/2015</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(1</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">578,077</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8213;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8213;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">0.22</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">8/27/2025</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">3/24/2016</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(1</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">2,223,353</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">148,224</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8213;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">0.22</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">3/24/2026</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">5/3/2017</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(1</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">722,730</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">328,515</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8213;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1.35</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">5/3/2027</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4/18/2018</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(2</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">392,294</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">653,822</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8213;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1.16</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4/18/2028</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4/18/2018</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(3</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">256,298</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8213;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8213;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1.16</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4/18/2028</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">5/3/2018</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(4</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8213;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8213;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4,275,236</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1.16</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">5/3/2028</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">6/4/2019</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(4</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8213;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8213;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">300,000</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1.66</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">6/4/2029</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">6/4/2019</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(3</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8213;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8213;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">850,000</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1.66</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">6/4/2029</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">6/4/2019</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(2</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">106,250</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">743,750</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8213;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1.66</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">6/4/2029</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">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 36px"><FONT STYLE="font-size: 10pt">(1)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">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.</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 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>


<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 36px"><FONT STYLE="font-size: 10pt">(2)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Represent Time-Vested Options as described in the narrative disclosure above.</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 36px"><FONT STYLE="font-size: 10pt">(3)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Represent PSP Options as described in the narrative disclosure above.</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 36px"><FONT STYLE="font-size: 10pt">(4)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Represent LTIP Performance Options as described in the narrative disclosure above.</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>Potential Payments Upon Termination or Change of Control</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 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>

<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: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Employment Agreements and Transaction Awards</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 connection with the Business Combination,
DraftKings entered into an employment agreement with Jason Robins and Paul Liberman. The employment agreement with Mr. Robins provides
a base salary of $650,000, subject to annual review and increase from time to time, and an annual target bonus opportunity of 150%
of base salary. The employment agreement with Mr. Liberman provides for a base salary of $425,000, subject to annual review and
increase from time to time, and an annual target bonus of 125%. The executives will be eligible to participate in benefits programs
offered to employees and executives generally subject to satisfying eligibility requirements. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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 of Messrs. Robins and Liberman is
entitled to an annual equity incentive award, which will be granted within the first three months of each fiscal year (or the first
seven months for fiscal year 2020), with a minimum annual target value of $6,500,000 for Mr. Robins and $3,500,000 for Mr. Liberman.
Half of the equity incentive award granted each year will consist of time-based restricted stock units, with vesting not less favorable
than quarterly vesting over four years, and half will consist of performance-based restricted stock units, with a minimum vesting
period of two years and a maximum opportunity equal to at least 300% of target. Upon a termination of employment without &ldquo;cause&rdquo;
or for &ldquo;good reason&rdquo; (as those terms are defined in the employment agreements) within 18 months after, or three months
before, a &ldquo;change in control&rdquo; (as defined in the employment agreements), each executive will receive cash severance
equal to two times the sum of his salary and target bonus, payable 60 days after termination, and continued benefits for 24 months.
Additionally, equity awards will vest, with performance-based awards vesting at the target level. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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 a termination of employment without
cause or for good reason that is not within 18 months after, and not three months before, a change in control, each executive will
receive cash severance equal to two times his salary, payable 60 days after termination, a pro rata bonus for the year of termination
based on actual performance and continued benefits for 24 months. Additionally, equity awards will vest pro rata, based on actual
performance for performance-based awards. Upon termination due to death or disability, equity awards will vest, based on actual
performance for performance-based awards, and options will be exercisable for 12 months. Severance and termination benefits payable
pursuant to the employment agreements generally are subject to the executive&rsquo;s execution of a release of claims and compliance
with post-closing covenants including non-competition and non-solicitation covenants that continue for 12 months following a termination
of employment other than, in the case of the noncompetition covenant, a termination without cause or layoff as set forth in the
Massachusetts Noncompetition Agreement 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"></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 description of the employment
agreements with each of Messrs. Robins and Liberman does not purport to be complete and is qualified in its entirety by the terms
and conditions of the employment agreements, which are attached to the registration statement of which this prospectus is a part.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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 Business Combination,
DraftKings awarded transaction bonus opportunities to each of the Named Executive Officers, which are payable in cash shortly following
the completion of the Business Combination subject to continued employment. The amount of each transaction bonus was determined
based on the level of redemptions, with maximum bonus opportunities earned if redemptions were no greater than 10%. The maximum
bonus opportunity was achieved and as a result Mr. Robins is entitled to $3,000,000, Mr. Liberman is entitled to $1,500,000, and
Mr. Park is entitled to $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;<I>Stock Option Awards&thinsp;&mdash;&thinsp;Long-Term
Performance Incentive Plan (LTIP)</I>&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 were converted into restricted stock units
settled in shares of DraftKings Class A common stock subject to vesting.&nbsp;&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; text-indent: 0.5in">Shares of Class B common stock were issued
to Mr. Robins in connection with the Business Combination, which carry 10 votes per share and allow Mr. Robins to have approximately
90% of the voting power of the capital stock of DraftKings on a fully-diluted basis. The terms of the shares of Class B common
Stock are described in more detail under &ldquo;<I>Description of Securities &mdash;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: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Former Director Compensation Program</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 board of directors of Old DK set
non-employee director compensation which were 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 Old DK was 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 CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">A stock option award with a value of&thinsp;$400,000 (based on Old DK 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;</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">An annual stock option award with a value of&thinsp;$200,000 (based on Old DK 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</FONT></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">&nbsp;</P>


<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">An annual stock option award with a value of&thinsp;$5,000 (based on Old DK 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.</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">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: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Director Compensation Table</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 following table provides information
concerning the compensation of each non-employee director who served on DraftKings&rsquo; board of directors in 2019. DraftKings
employees did not receive compensation for serving as directors. Accordingly, Messrs. Robins and Liberman did 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 CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid"><FONT STYLE="font-size: 9pt"><B>Name</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 9pt"><B>Fees Earned or</B></FONT><BR>
<FONT STYLE="font-size: 9pt"><B>Paid in Cash</B></FONT><BR>
<FONT STYLE="font-size: 9pt"><B>($)</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 9pt"><B>Stock Awards</B></FONT><BR>
<FONT STYLE="font-size: 9pt"><B>($)</B></FONT></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"><FONT STYLE="font-size: 9pt"><B>Option Awards</B></FONT><BR>
<FONT STYLE="font-size: 9pt"><B>($)(1)</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 9pt"><B>All Other</B></FONT><BR>
<FONT STYLE="font-size: 9pt"><B>Compensation</B></FONT><BR>
<FONT STYLE="font-size: 9pt"><B>($)</B></FONT></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"><FONT STYLE="font-size: 9pt"><B>Total</B></FONT><BR>
<FONT STYLE="font-size: 9pt"><B>($)</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 40%"><FONT STYLE="font-size: 9pt">Woodrow Levin</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-size: 9pt">0</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-size: 9pt">0</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-size: 9pt">92,404</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-size: 9pt">0</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-size: 9pt">92,404</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-size: 9pt">Ryan Moore(2)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">0</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">0</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">0</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">0</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">0</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-size: 9pt">Steven Murray</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">0</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">0</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">0</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">0</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">0</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-size: 9pt">Hany Nada</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">0</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">0</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">0</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">0</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">0</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-size: 9pt">Richard Rosenblatt</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">0</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">0</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">90,205</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">0</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">90,205</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-size: 9pt">Marni Walden</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">0</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">0</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">80,589</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">0</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">80,589</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-size: 9pt">John Salter(2)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">0</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">0</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">0</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">0</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 9pt">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 9pt">0</FONT></TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px">&nbsp;</TD>
    <TD STYLE="width: 36px"><FONT STYLE="font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">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.</FONT></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">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px">&nbsp;</TD>
    <TD STYLE="width: 36px"><FONT STYLE="font-size: 10pt">(2)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">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. 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.</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"><B>Director Compensation Program</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 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 provides 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 CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">An annual cash retainer of $45,000;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">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 each of the nominating and corporate governance committee
    and the compliance committee;</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">An annual cash retainer of $10,000 for members of the audit committee, $7,500 for members
    of the compensation committee, $5,000 for members of the nominating and corporate governance committee and $5,000 for members
    of the compliance committee;</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">An equity retainer with a value of $200,000 payable in the form of stock options or restricted
    stock units, granted upon initial election to the Board and then each year at the annual shareholders meeting that vests at
    the sooner of the following annual shareholders meeting or the one-year anniversary of the grant; and</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">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.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>
<P STYLE="margin-top: 0; margin-bottom: 0"></P>

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<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">All cash retainers will be payable quarterly
in arrears; provided that the retainers will be delivered in equity until DraftKings is profitable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B>Incentive Award Plan</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-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left; text-indent: 0.5in">In connection with the Business Combination,
the Board approved and adopted the DraftKings Inc. 2020 Incentive Award Plan (the &ldquo;Incentive Plan&rdquo;), under which we
are 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 Incentive Plan is filed as an exhibit to the registration statement of which this
prospectus is a part.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B><I>Material Terms of the Incentive Plan</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: 0.5in; text-align: left">The material terms of the Incentive Plan
are summarized below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left"><I>Administration</I>. The compensation
committee of our board of directors administers the Incentive Plan. The compensation committee generally has 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 Incentive Plan and to adopt, alter and repeal rules, guidelines and practices relating
to the Incentive Plan. The compensation committee has full discretion to administer and interpret the Incentive Plan and to make
any other determination and take any other action that it deems necessary or desirable for the administration of the Incentive
Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left"><I>Eligibility</I>. Employees, directors,
officers, advisors or consultants and prospective employees, directors, officers, advisors or consultants of DraftKings or its
affiliates are eligible to participate in the Incentive Plan. Approximately 2,200 employees, consultants and service providers
and all of our eight non-executive officer directors are eligible to participate in the Incentive Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left"><I>Number of Shares Authorized</I>. The
Incentive Plan provides for an aggregate of 52,870,000 shares of 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 Incentive 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 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 Incentive 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 Class A common stock underlying awards under the Incentive
Plan that are forfeited, canceled, expire unexercised or are settled in cash will be available again for new awards under the Incentive
Plan. The Incentive Plan also permits the compensation committee to deliver an aggregate of 52,870,000 shares of Class B common
stock to employees, directors, consultants or advisors who are eligible to hold Class B common stock under the Charter; provided,
that the total number of shares of Class B common stock that will be reserved, and that may be issued, under the Incentive Plan
will automatically increase on the first trading day of each calendar year, beginning with calendar year 2021, by a number of shares
of Class B common stock equal to five percent (5%) of the total outstanding shares of 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 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 Class A common stock and Class B common stock reserved
for issuance under the Incentive Plan, the number of shares of Class A common stock and Class B common stock covered by awards
then outstanding under the Incentive Plan, the limitations on awards under the Incentive 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; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">The Incentive Plan has a term of 10 years
from April 23, 2020, and no further awards may be granted under the Incentive 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"></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-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left; text-indent: 0.5in"><I>Options</I>. The compensation committee
is authorized to grant options to purchase shares of 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 Incentive 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 Incentive Plan is 52,870,000 Common Shares. In general, the exercise price per share
of Class A common stock for each option granted under the Incentive 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 Incentive 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; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left"><I>Stock Appreciation Rights</I>. The
compensation committee is authorized to award SARs under the Incentive 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 Class A common stock or any combination of cash and shares of 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 Incentive 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; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left"><I>Restricted Stock</I>. The compensation
committee is authorized to award restricted stock under the Incentive 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 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 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; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left"><I>Restricted Stock Unit Awards</I>.
The compensation committee is authorized to award restricted stock unit awards under the Incentive 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 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 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 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; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left"><I>Stock Bonus Awards</I>. The compensation
committee is authorized to grant awards of unrestricted shares of Class A common stock, shares of Class B common stock or other
awards denominated in shares of Class A common stock or Class B common stock, either alone or in tandem with other awards, under
the Incentive 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"></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-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left; text-indent: 0.5in"><I>Performance Compensation Awards</I>.
The compensation committee is authorized to grant any award, including in the form of cash, under the Incentive 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>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">Net earnings or net income (before or after taxes);</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">basic or diluted earnings per share (before or after taxes);</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">revenue or revenue growth (measured on a net or gross basis);</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">gross profit or gross profit growth;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">operating profit (before or after taxes);</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">return measures (including, but not limited to, return on assets, capital, invested capital, equity or sales);</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">cash flow (including, but not limited to, operating cash flow, free cash flow, net cash provided by operations and cash flow return on capital);</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">financing and other capital-raising transactions (including, but not limited to, sales of equity or debt securities);</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">earnings before or after taxes, interest, depreciation, and/or amortization;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">gross or operating margins;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">productivity ratios;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">share price (including, but not limited to, growth measures and total shareholder return);</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">expense targets;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">margins;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">productivity and operating efficiencies;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">measures of customer satisfaction;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">customer growth;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">working capital targets;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">measures of economic value added;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">inventory control;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">enterprise value;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">sales;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">debt levels and net debt;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">combined ratio;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">timely launch of new facilities;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">client retention;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">employee retention;</FONT></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">&nbsp;</P>


<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">timely completion of new product rollouts;</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">cost targets;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">reductions and savings;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">productivity and efficiencies;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">strategic partnerships or transactions;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">measures of personal targets, goals or completion of projects; or</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">any combination of the foregoing.</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">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; text-align: left"><I>Amendment and Termination</I>. In
general, our Board may amend, suspend or terminate the Incentive Plan at any time. However, shareholder approval to amend the Incentive
Plan may be necessary if the law or the Incentive 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; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left"><I>Change in Control</I>. In the event
of a &ldquo;Change in Control&rdquo; (as defined in the Incentive Plan), the compensation committee may adjust the number of shares
of Class A common stock or other securities of (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 our shareholders 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; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B><I>Israeli Sub-Plan</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: 0.5in; text-align: left">DraftKings has adopted an Israeli Sub-Plan
to the Incentive Plan in order to enable the grant of awards to employees and directors of DraftKings&rsquo; Israeli subsidiaries
and affiliates that are intended to qualify, subject to compliance with certain terms and conditions, for beneficial treatment
for Israeli tax purposes. DraftKings currently intends to grant Awards pursuant to Section 102 of the Israeli Income Tax Ordinance
[New Version]&thinsp;-&thinsp;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; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left"><I>Effectiveness</I>. Prior to granting
Trustee 102 Awards, DraftKings 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 Incentive 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; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left"><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 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 DraftKings, 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 DraftKings as required under the Israeli Ordinance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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>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.&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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="a020"></A>DESCRIPTION
OF SECURITIES</B></FONT></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; text-align: left"><I>The following summary of the material
terms of our securities is not intended to be a complete summary of the rights and preferences of such securities. The full text
of our Charter and amended and restated bylaws are included as exhibits to the registration statement of which this prospectus
is a part. You are encouraged to read the applicable provisions of Nevada law, our Charter and amended and restated bylaws in their
entirety for a complete description of the rights and preferences of our securities. See &ldquo;Where You Can Find More Information.&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"><B>Authorized and Outstanding Capital Stock</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-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left; text-indent: 0.5in">The Charter authorizes the issuance of
2,100,000,000 shares, of which 900,000,000 shares are shares of Class A common stock, par value $0.0001 per share, 900,000,000
shares are shares of Class B common stock, par value $0.0001 per share, and 300,000,000 shares are 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 May 4, 2020, our issued and outstanding
s<FONT STYLE="background-color: white">hare capital consisted of: (i) 312,504,813 shares
of Class&nbsp;A common stock, held of record by approximately 382 holders,
(ii)&nbsp;no shares of preferred stock and (iii) 19,846,758 warrants, consisting of
13,333,323 public warrants, 3,333,332 private placement warrants, 3,000,000 PIPE Warrants
and 180,103 Old DK Warrants, held of record by approximately 380 warrant holders.
Such numbers do not include DTC participants or beneficial owners holding shares through nominee names.</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"><B>Common Stock</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 0pt 0.5in"><B><I>Class A Common Stock</I></B></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; text-indent: 0.5in"><I>Voting Rights</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-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left; text-indent: 0.5in">Holders of Class A common stock are entitled
to cast one vote per share of Class A common stock. Generally, holders of all classes of common stock vote together as a single
class, and an action is approved by 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 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: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Dividend Rights</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; text-align: left">Holders of 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 Board 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 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: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Liquidation, Dissolution and Winding
Up</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-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left; text-indent: 0.5in">On the liquidation, dissolution, distribution
of assets or winding up of DraftKings, each holder of Class A common stock will be entitled, pro rata on a per share basis, to
all assets of 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 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"><I>Other Matters</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-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left; text-indent: 0.5in">No shares of 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 Class A common stock do not have subscription, redemption or conversion rights. All
the outstanding shares of Class A common stock are 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: 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 0pt 0.5in"><B><I>Class B Common Stock</I></B></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; text-indent: 0.5in"><I>Issuance of Class B common stock with
Common Units</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-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left; text-indent: 0.5in">Shares of 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: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Voting Rights</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-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left; text-indent: 0.5in">Holders of Class B common stock are entitled
to cast 10 votes per share of Class B common stock. Generally, holders of all classes of common stock vote together as a single
class, and an action is approved by 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 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: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Dividend Rights</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-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left; text-indent: 0.5in">Holders of Class B common stock will
not participate in any dividend declared by the 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"><I>Liquidation Rights</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-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left; text-indent: 0.5in">On the liquidation, dissolution, distribution
of assets or winding up of DraftKings, holders of Class B common stock will not be entitled to receive any distribution of DraftKings
assets of whatever kind available until distribution has first been made to all holders of Class A common stock. Notwithstanding
this, due to the liquidation rights of holders of Class A common stock described above in which all assets of DraftKings of whatever
kind available will be distributed to holders of Class A common stock, no assets of DraftKings will be available for liquidating
distributions in respect of 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: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Transfers</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-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left; text-indent: 0.5in">Pursuant to the Charter, holders of 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: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Mandatory Cancellation</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-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left; text-indent: 0.5in">Each share of 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 Charter) and (2) subject
to cancelation by 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&thinsp;(i) Mr. Robins&rsquo; employment as Chief Executive Officer
of 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 DraftKings and (b) either (i) Mr. Robins no longer
serves as a member of the board of directors of DraftKings or (ii) Mr. Robins&rsquo; service to DraftKings is not his primary business
occupation. In the event that Mr. Robins is reinstated as the Chief Executive Officer of DraftKings or is reelected or reappointed
to serve as a member of the board of directors of 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; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Other Matters</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-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left; text-indent: 0.5in">No shares of Class B common stock are
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 Class B common stock do not have subscription, redemption or conversion rights. All outstanding
shares of Class B common stock are 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: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Preferred Stock</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-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left; text-indent: 0.5in">Our amended and restated articles of
incorporation provide that the Board 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 our assets, which
rights may be greater than the rights of the holders of the common stock. There are no shares of preferred stock outstanding.</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-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left; text-indent: 0.5in">The purpose of authorizing the Board
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 our outstanding
voting stock. Additionally, the issuance of preferred stock may adversely affect the holders of 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 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"><B>Unvested Stock Options</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-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left; text-indent: 0.5in">As of the Closing, Old DK had unvested
outstanding options and restricted stock units which converted to (i) 32,648,113 options to purchase shares of Class A Common Stock
and (ii) the right to receive earnout shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left; text-indent: 0.5in">As of the Closing, SBTech had unvested
outstanding options which converted to 173,739 options to purchase shares of 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"><B>Warrants</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 0pt 0.5in"><B><I>Public Stockholders&rsquo; Warrants</I></B></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-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left; text-indent: 0.5in">There are currently outstanding an aggregate
of 19,666,655 DEAC warrants, which entitle the holder to acquire Class A common stock. Each whole warrant will entitle the registered
holder to purchase one share of Class A common stock at a price of&thinsp;$11.50 per share, subject to adjustment as discussed
below, beginning 30 days after the Closing (which for the avoidance of doubt is May 23, 2020). A holder may exercise its warrants
only for a whole number of shares of 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 on April
23, 2025, 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 0pt 0.5in"><B><I>Redemption of Warrants for Cash&nbsp;&nbsp;</I></B></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-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left; text-indent: 0.5in">Once the warrants become exercisable,
we may call the warrants for redemption for cash:&nbsp;</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: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">in whole and not in part; at a price of&thinsp;$0.01 per warrant;</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">upon not less than 30 days&rsquo; prior written notice of redemption (the &ldquo;30-day redemption period&rdquo;) to each warrant holder; and</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">if, and only if, the closing price of the 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 we send the notice of redemption to the warrant
    holders.</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-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left; text-indent: 0.5in">If and when the warrants become redeemable
by DraftKings for cash, we may exercise our 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-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left; 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 we issue 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 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: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B><I>Redemption of warrants for shares of Class A
common stock</I></B></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-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left; text-indent: 0.5in">Commencing 90 days after the warrants
become exercisable, we may redeem the outstanding DEAC warrants for shares of Class A common stock:</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"></P>

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<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: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">in whole and not in part (including public warrants, private placement warrants and PIPE
    Warrants);</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">at a price equal to a number of shares of the 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 the Class A common stock,
    except as otherwise described below;</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">upon a minimum of 30 days&rsquo; prior written notice of redemption;</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">if, and only if, the last reported sale price of the 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 we send the notice of redemption to the warrant holders;</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">if, and only if, the private placement warrants and PIPE Warrants are also concurrently
    exchanged at the same price (equal to a number of shares of the Class A common stock) as the outstanding public warrants,
    as described above; and</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">if, and only if, there is an effective registration statement covering the shares of
    the 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.</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-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left; text-indent: 0.5in">The numbers in the table below represent
the &ldquo;redemption prices,&rdquo; or the number of shares of the 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 the 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">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 CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 7pt"><B>&#8203;</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="34" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 7pt"><B>Fair Market
    Value of Class A Common Stock</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="width: 28%; border-bottom: black 1pt solid"><FONT STYLE="font-size: 7pt"><B>Redemption Date</B></FONT><BR>
    <FONT STYLE="font-size: 7pt"><B>(period to expiration of warrants)</B></FONT></TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 7pt"><B>$</B></FONT></TD>
    <TD STYLE="width: 5%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 7pt"><B>10.00</B></FONT></TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 7pt"><B>$</B></FONT></TD>
    <TD STYLE="width: 5%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 7pt"><B>11.00</B></FONT></TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 7pt"><B>$</B></FONT></TD>
    <TD STYLE="width: 5%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 7pt"><B>12.00</B></FONT></TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 7pt"><B>$</B></FONT></TD>
    <TD STYLE="width: 5%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 7pt"><B>13.00</B></FONT></TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 7pt"><B>$</B></FONT></TD>
    <TD STYLE="width: 5%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 7pt"><B>14.00</B></FONT></TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 7pt"><B>$</B></FONT></TD>
    <TD STYLE="width: 5%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 7pt"><B>15.00</B></FONT></TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 7pt"><B>$</B></FONT></TD>
    <TD STYLE="width: 5%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 7pt"><B>16.00</B></FONT></TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 7pt"><B>$</B></FONT></TD>
    <TD STYLE="width: 5%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 7pt"><B>17.00</B></FONT></TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 7pt"><B>$</B></FONT></TD>
    <TD STYLE="width: 5%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 7pt"><B>18.00</B></FONT></TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-size: 7pt">57 months</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.257</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.277</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.294</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.310</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.324</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.337</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.348</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.358</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.365</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-size: 7pt">54 months</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.252</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.272</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.291</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.307</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.322</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.335</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.347</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.357</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.365</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-size: 7pt">51 months</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.246</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.268</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.287</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.304</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.320</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.333</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.346</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.357</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.365</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-size: 7pt">48 months</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.241</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.263</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.283</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.301</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.317</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.332</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.344</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.356</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.365</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-size: 7pt">45 months</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.235</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.258</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.279</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.298</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.315</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.330</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.343</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.356</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.365</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-size: 7pt">42 months</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.228</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.252</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.274</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.294</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.312</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.328</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.342</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.355</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.364</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-size: 7pt">39 months</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.221</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.246</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.269</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.290</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.309</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.325</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.340</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.354</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.364</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-size: 7pt">36 months</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.213</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.239</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.263</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.285</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.305</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.323</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.339</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.353</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.364</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-size: 7pt">33 months</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.205</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.232</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.257</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.280</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.301</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.320</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.337</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.352</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.364</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-size: 7pt">30 months</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.196</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.224</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.250</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.274</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.297</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.316</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.335</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.351</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.364</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-size: 7pt">27 months</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.185</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.214</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.242</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.268</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.291</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.313</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.332</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.350</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.364</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-size: 7pt">24 months</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.173</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.204</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.233</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.260</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.285</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.308</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.329</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.348</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.364</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-size: 7pt">21 months</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.161</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.193</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.223</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.252</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.279</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.304</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.326</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.347</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.364</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-size: 7pt">18 months</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.146</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.179</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.211</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.242</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.271</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.298</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.322</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.345</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.363</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-size: 7pt">15 months</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.130</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.164</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.197</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.230</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.262</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.291</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.317</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.342</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.363</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-size: 7pt">12 months</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.111</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.146</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.181</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.216</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.250</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.282</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.312</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.339</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.363</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-size: 7pt">9 months</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.090</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.125</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.162</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.199</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.237</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.272</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.305</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.336</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.362</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-size: 7pt">6 months</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.065</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.099</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.137</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.178</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.219</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.259</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.296</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.331</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.362</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-size: 7pt">3 months</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.034</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.065</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.104</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.150</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.197</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.243</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.286</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.326</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.361</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-size: 7pt">0 months</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.042</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.115</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.179</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.233</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.281</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.323</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt">0.361</FONT></TD>
    <TD>&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; text-align: left">The &ldquo;fair market value&rdquo; of
Class A common stock means the average last reported sale price of 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; text-align: left">&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; text-align: left">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 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 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, we 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 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,
we may choose to, pursuant to this redemption feature, redeem the warrants at a &ldquo;redemption price&rdquo; of 0.298 shares
of Class A common stock for each whole warrant. Finally, as reflected in the table above, we 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 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; text-align: left">Any public warrants held by our 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 our
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; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">We can redeem the warrants when the shares
of Class A common stock are trading at a price starting at $10.00, which is below the exercise price of&thinsp;&thinsp;$11.50.
As a result, if we choose to redeem the warrants when the shares of 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 Class A common stock than they would
have received if they had chosen to wait to exercise their warrants for shares of Class A common stock if and when such shares
of Class A common stock were trading at a price higher than the exercise price of&thinsp;$11.50.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">No fractional shares of 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,
we will round down to the nearest whole number of the number of shares of 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: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B><I>Redemption Procedures and Cashless Exercise</I></B></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; text-indent: 0.5in; text-align: left">If we call the DEAC warrants for redemption
as described above, 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 Class A common stock equal to the quotient obtained
by dividing (x) the product of the number of shares of Class A common stock underlying the warrants, multiplied by the excess of
the &ldquo;fair market value&rdquo; of the shares of 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 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 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 our 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 PIPE Warrants and their permitted
transferees would be entitled to exercise their private placement warrants or PIPE 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; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">A holder of a DEAC warrant may notify
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 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; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">If the number of outstanding shares of
Class A common stock is increased by a share capitalization payable in shares of 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 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 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&thinsp;&thinsp;(i) the number of shares of 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 Class A common stock) and
(ii) the quotient of&thinsp; (x) the price per share of 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 Class A common
stock, in determining the price payable for 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 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 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; text-align: left">In addition, if we, at any time while
the DEAC warrants are outstanding and unexpired, pay a dividend or makes a distribution in cash, securities or other assets to
the holders of Class A common stock on account of such 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
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 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; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">If the number of outstanding shares of
Class A common stock is decreased by a consolidation, combination, reverse share split or reclassification of 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 Class A common stock issuable on exercise of each DEAC warrant will be decreased in proportion
to such decrease in outstanding shares of Class A common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">Whenever the number of shares of Class
A common stock purchasable upon the exercise of the DEAC 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 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 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; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">In case of any reclassification or reorganization
of the outstanding Class A common stock (other than those described above or that solely affects the par value of such 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 DraftKings is the continuing corporation and that does not result in any reclassification or reorganization
of outstanding 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 DraftKings is dissolved, the holders
of the DEAC 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 Class A common stock immediately theretofore purchasable and receivable upon the exercise of
the rights represented thereby, the kind and amount of shares of 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 Class A common stock in such a transaction is
payable in the form of 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; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">The DEAC warrants are issued in registered
form under a warrant agreement between Continental, as warrant agent, and DEAC, which was assigned pursuant to the Assignment and
Assumption Agreement, dated April 23, 2020, by and among DraftKings Inc., DEAC, Continental Stock Transfer &amp; Trust Company,
Computershare Trust Company, N.A. and Computershare Inc. The warrant agreement provides that the terms of the DEAC 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 is filed as an exhibit to this registration statement
of which the prospectus is a part, for a complete description of the terms and conditions applicable to the DEAC 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"><B><I>Exercise of DEAC 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; text-align: left">The DEAC 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 Class A common stock. After the issuance of 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&nbsp;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-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left; 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,
we will, upon exercise, round down to the nearest whole number the number of shares of 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: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B><I>Private Placement Warrants</I></B></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-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left; text-indent: 0.5in">The private placement warrants (including
the 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, which, for the avoidance of doubt is May 23, 2020, except in limited circumstances, and
they will not be redeemable by 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 the public warrants, including that they may be redeemed for shares of 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 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; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">The private placement 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 warrants in which our Board has elected to require all holders of the warrants who exercise their warrants to do so on a cashless
basis. In such event, such holders of exercised warrants would pay the exercise price by surrendering their warrants for that number
of shares of our Class A common stock equal to the quotient obtained by dividing (x) the product of the number of shares of our
Class A common stock underlying the warrants, multiplied by the excess of the &ldquo;fair market value&rdquo; of the shares of
our 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 our 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 our 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; text-indent: 0.5in; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B>Exclusive Forum</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: 0.5in; text-align: left">The Charter provides that, to the fullest
extent permitted by law, unless we otherwise consent 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 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 DraftKings
to DraftKings or its stockholders, any action asserting a claim arising pursuant to any provision of NRS Chapters 78 or 92A, our
amended and restated articles of incorporation or the bylaws, any action to interpret, apply, enforce or determine the validity
of our amended and restated articles of incorporation or 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; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B>Anti-Takeover Effects of Provisions of the Amended and
Restated Articles of Incorporation, the Amended and Restated Bylaws and Applicable Law</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: 0.5in; text-align: left">Certain provisions of our amended and
restated articles of incorporation, amended and restated bylaws and laws of the State of Nevada, where 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 our common stock. We believe that the benefits of increased protection give
us the potential ability to negotiate with the proponent of an unsolicited proposal to acquire or restructure 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: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B><I>Authorized but Unissued Shares</I></B></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-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left; text-indent: 0.5in">The authorized but unissued shares of
Class A common stock, Class 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 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: 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 0pt 0.5in"><B><I>Dual Class Stock</I></B></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-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left; text-indent: 0.5in">As described above in &ldquo;<I>&mdash;
DraftKings Common Stock&thinsp;&mdash;&thinsp;Class A Common Stock&thinsp;&mdash;&thinsp;Voting Rights</I>&rdquo; and &ldquo;<I>&mdash;
DraftKings Common Stock&thinsp;&mdash;&thinsp;Class B Common Stock&thinsp;&mdash;&thinsp;Voting Rights,</I>&rdquo; our amended
and restated articles of incorporation provide for a dual class common stock structure, which provides 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 Class A common stock, including the election of directors and significant corporate transactions, such as
a merger or other sale of DraftKings or its 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 0pt 0.5in"><B><I>Number of Directors</I></B></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-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left; text-indent: 0.5in">Our 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 Board or, from and after the time that Mr. Robins beneficially owns less than a majority of the voting power of our outstanding
capital stock, may be modified by the affirmative vote of at least two-thirds of the voting power of our outstanding capital stock.
The number of directors is currently 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: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B><I>Requirements for Advance Notification of Stockholder
Meetings, Nominations and Proposals</I></B></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-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left; text-indent: 0.5in">The bylaws 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 or a committee of the Board. In order for any matter to be &ldquo;properly brought&rdquo; before
a meeting, a stockholder has to comply with advance notice requirements and provide DraftKings with certain information. Generally,
to be timely, a stockholder&rsquo;s notice must be received at 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 bylaws
also specify requirements as to the form and content of a stockholder&rsquo;s notice. The bylaws 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: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B><I>Limitations on Stockholder Action by Written
Consent</I></B></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-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left; 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.
Our amended and restated articles of incorporation provide 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 our capital stock. Once Mr. Robins
no longer beneficially owns a majority of the voting power of the then-outstanding shares of our capital stock, all stockholder
actions must be taken at a meeting of our stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B><I>Amendment of Amended and Restated Articles of
Incorporation or Bylaws</I></B></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-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left; 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. Our amended and restated
articles of incorporation provide that, except as otherwise provided by applicable law, amendments to the Charter must be approved
by (1) a majority of the combined voting power of all shares of our 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 our capital stock
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. Our amended and restated articles of incorporation and bylaws provide that the amended
and restated bylaws may be amended or repealed by either the affirmative vote of a majority of the Board or by the affirmative
vote of stockholders representing a majority of the voting power of all of the then-outstanding shares of our capital stock entitled
to vote, while Mr. Robins beneficially owns shares representing at least a majority of the voting power of our capital stock, or,
thereafter, by the affirmative vote of stockholders representing at least two-thirds or more of the voting power of our capital
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 0pt 0.5in"><B><I>Business Combinations</I></B></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; 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 CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">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</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD><FONT STYLE="font-size: 10pt">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.</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">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-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left; text-indent: 0.5in">We have opted out of these provisions
in our amended and restated articles of incorporation until Mr. Robins ceases to beneficially own shares of our common stock representing
at least 15% of our outstanding voting 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 0pt 0.5in"><B><I>Control Share Acquisitions</I></B></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; 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; 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; text-align: left">We have opted out of these provisions
in our amended and restated articles of incorporation until Mr. Robins ceases to beneficially own shares of our common stock representing
at least 15% of our outstanding voting stock. After such time, we may opt out of the &ldquo;control share&rdquo; statute by amending
our 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: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Limitations on Liability and Indemnification of Officers
and Directors</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-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left; text-indent: 0.5in">Our amended and restated articles of
incorporation eliminate the liability of our officers and directors to the fullest extent permitted by Nevada law. Nevada law provides
that our directors and officers will not be individually liable to us, our stockholders or our 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-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left; text-indent: 0.5in">Our amended and restated articles of
incorporation and bylaws also provide for indemnification for our directors and officers to the fullest extent permitted by Nevada
law. We have entered into indemnification agreements with each of our directors that are, in some cases, broader than the specific
indemnification provisions contained under Nevada law. The effect of these provisions is to restrict our rights and the rights
of our 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; text-align: left">We are also expressly authorized to carry
directors&rsquo; and officers&rsquo; insurance to protect our 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; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">The limitation of liability and indemnification
provisions under Nevada law and in our 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 DraftKings and our stockholders. However, these provisions do not limit or eliminate our 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, we 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; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: left">The foregoing provisions of our 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 our board of directors and in the policies formulated by our 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 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 our shares
and, as a consequence, they also may inhibit fluctuations in the market price 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 our 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; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Corporate Opportunities</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-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left; text-indent: 0.5in">In anticipation that Mr. Robins may engage
in activities or lines of business similar to those in which we engage, our amended and restated articles of incorporation provide
for, to the fullest extent permitted under Nevada law, the renouncement by DraftKings of all interest and expectancy that 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 DraftKings (or any affiliate thereof),
other than an employee of DraftKings or any of its subsidiaries. Specifically, no holder of shares of common stock, nor any non-employee
director, of DraftKings has any duty to refrain from engaging in the same or similar business activities or lines of business that
DraftKings does or otherwise competing with DraftKings. In the event that any holder of shares of common stock of DraftKings or
any director that is not an employee of DraftKings or its subsidiaries acquires knowledge of a potential transaction or matter
which may be a corporate opportunity for itself and DraftKings, that person will not have any duty to communicate or offer such
corporate opportunity to 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"></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-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left; 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 DraftKings or its
subsidiaries unless (a) DraftKings and its subsidiaries would be permitted to undertake such transaction or opportunity in accordance
with the DraftKings amended and restated articles of incorporation, (b) 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 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: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Redemption Rights and Transfer Restrictions with Respect
to Capital Stock Held by Unsuitable Persons and Their Affiliates</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-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left; text-indent: 0.5in">The Charter provides that any common
stock or any other equity securities of DraftKings, or securities exchangeable or exercisable for, or convertible into, such other
equity securities of 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 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 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 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 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, 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&thinsp; (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 DraftKings or any affiliated company or 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 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 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 Charter to either DraftKings or one
or more third-party transferees (as described in the Charter) and in such number and class(es)/series as determined by the 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-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left; 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 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 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 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 DraftKings or any affiliated
company, or 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 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 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 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-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left; text-indent: 0.5in">Following (x) the determination of unsuitability
by the Board and (y) if applicable, an arbitrator determining that such determinations were made in good faith by the Board, 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 Board for the purchase
price set forth in the transfer notice, which will be determined in accordance with the 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 Board 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"></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">At the closing of a sale and transfer
other than an Alternate Private Transaction, (i) 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 DraftKings, or a combination of both in the
case of 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 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 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 Charter provides that, in the case
of a sale and transfer to 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; text-indent: 0.5in">&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, 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 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: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Stockholders&rsquo; Derivative Actions</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-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left; text-indent: 0.5in">Under Nevada law, any of our stockholders
may bring an action in our name to procure a judgment in our favor, also known as a derivative action, provided that the stockholder
bringing the action was a holder of our 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: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Transfer Agent and Registrar</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; text-align: left">The transfer agent for our capital stock
and warrants is Computershare Trust Company, N.A.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>


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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a021"></A>SECURITIES ACT RESTRICTIONS ON RESALE
OF SECURITIES </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>Rule 144 </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: left; text-indent: 0.5in">Pursuant to Rule 144 under the Securities
Act (&ldquo;Rule 144&rdquo;), a person who has beneficially owned restricted shares of our common stock or our warrants for at
least six months would be entitled to sell their securities provided that (1)&nbsp;such person is not deemed to have been an affiliate
of us at the time of, or at any time during the three months preceding, a sale and (2)&nbsp;we are subject to the Exchange Act
periodic reporting requirements for at least three months before the sale and have filed all required reports under Section&nbsp;13
or 15(d) of the Exchange Act during the 12 months (or such shorter period as we were required to file reports) preceding the sale.</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-align: left; text-indent: 0.5in">Persons who have beneficially owned
restricted shares of our common stock or our warrants for at least six months but who are affiliates of us at the time of, or
at any time during the three months preceding, a sale, would be subject to additional restrictions, by which such person would
be entitled to sell within any three-month period only a number of securities that does not exceed the greater of:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&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"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">1% of the total number
of shares of our common stock then outstanding; or</FONT></TD>
</TR></TABLE>
<P STYLE="text-align: left; 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="text-align: left; width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">the average weekly reported
trading volume of our common stock during the four calendar weeks preceding the filing of a notice on Form 144 with respect to
the sale.</FONT></TD>
</TR></TABLE>
<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-align: left; text-indent: 0.5in">Sales by our affiliates under Rule
144 are also limited by manner of sale provisions and notice requirements and to the availability of current public information
about us.</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 0pt 0.5in"><B><I>Restrictions on the Use of Rule 144 by Shell Companies
or Former Shell Companies </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-align: left; text-indent: 0.5in">Rule 144 is generally not available
for the resale of securities initially issued by shell companies or issuers that have been at any time previously a shell company.
However, Rule 144 also includes an important exception to this prohibition if the following conditions are met:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&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"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">the issuer of the securities
that was formerly a shell company has ceased to be a shell company;</FONT></TD>
</TR></TABLE>
<P STYLE="text-align: left; 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="text-align: left; width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">the issuer of the securities
is subject to the reporting requirements of Section&nbsp;13 or 15(d) of the Exchange Act;</FONT></TD>
</TR></TABLE>
<P STYLE="text-align: left; 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="text-align: left; width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">the issuer of the securities
has filed all Exchange Act reports and material required to be filed, as applicable, during the preceding 12 months (or such shorter
period that the issuer was required to file such reports and materials), other than Form 8-K reports; and</FONT></TD>
</TR></TABLE>
<P STYLE="text-align: left; 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="text-align: left; width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">at least one year has
elapsed from the time that the issuer filed current Form 10 type information with the SEC reflecting its status as an entity that
is not a shell company.</FONT></TD>
</TR></TABLE>
<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-align: left; text-indent: 0.5in">As of May 4, 2020, we had 312,504,813
shares of Class&nbsp;A common stock outstanding. Of these shares, 40,000,000 shares sold in our initial public offering and
41,725,831 shares registered for resale by the PIPE Investors and former holders of the Convertible Notes, are freely
tradable without restriction or further registration under the Securities Act.&nbsp;All of the 3,659,241 shares of Class A
common stock owned by the DEAC Stockholder Group are restricted securities under Rule 144, in that they were issued in
private transactions not involving a public offering. All of the 227,069,236 shares of Class A common stock we issued to
stockholders of Old DK and the SBT Stockholder Group as part of the merger consideration pursuant to the BCA are also
restricted securities for purposes of Rule 144. The registration statement of which this prospectus is a part registers for
resale the Stock Consideration Shares and shares held by the DEAC Stockholder Group for the identified Selling Securityholders,
and we are obligated to maintain the effectiveness of such registration statement in accordance with the terms and conditions
of the Stockholders Agreement.</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-align: left; text-indent: 0.5in">As of the date of this registration
statement, there are approximately 19,846,758 warrants outstanding, consisting of (i)&nbsp;13,333,323 public warrants originally
sold as part of the units issued in DEAC&rsquo;s initial public offering, (ii)&nbsp;3,333,332 private placement warrants that
were sold by DEAC to the Sponsor in a private sale prior to the initial public offering, (iii) 3,000,000 PIPE Warrants and (iv)
180,103 Old DK Warrants. Each DEAC warrant is exercisable for one share of our Class&nbsp;A common stock, in accordance with the
terms of the warrant agreement governing the DEAC warrants. Each Old DK Warrant represents the rights to acquire shares of our
Class A common stock that the holder would have received in the DK Merger if such warrantholder had exercised it rights immediately
prior to the DK Merger. The public warrants and the PIPE Warrants are freely tradable. In addition, we have filed the registration
statement of which this prospectus is a part under the Securities Act covering the 3,420,273 shares of our Class&nbsp;A common
stock that may be issued upon exercise of the private placement warrants and Old DK Warrants and resales by the Selling Securityholders
of the private placement warrants and the Old DK Warrants, and we are obligated to maintain the effectiveness of such registration
statement in accordance with the terms and conditions of the Stockholders Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&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; text-align: left; text-indent: 0.5in">While we were formed as a shell company,
since the completion of the Business Combination we are no longer a shell company, and so, once the conditions set forth in the
exceptions listed above are satisfied, Rule 144 will become available for the resale of the above noted restricted securities.</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"><B>Lock-up Agreements </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: left; text-indent: 0.5in">With certain limited exceptions, (i)
no member of the DK Stockholder Group or the SBT Stockholder Group or any other Selling Securityholder is permitted to transfer
any shares of common stock beneficially owned or owned of record by such stockholder for a period of 180 days from the Closing;
(ii) no member of the DEAC Stockholder Group is permitted to transfer any shares of common stock beneficially owned or owned of
record by such stockholder until the earliest of (A) one year from the Closing, (B) the last consecutive trading day where the
volume weighted average share price equals or exceeds $15.00 per share for at least 20 out of 30 consecutive trading days, commencing
not earlier than 180 days after the Closing or (C) at the time DraftKings consummates a transaction after the transactions which
results in the stockholders having the right to exchange their shares of common stock for cash, securities or other property;
and (iii) Mr. Robins is not permitted to transfer any shares of common stock beneficially owned or owned of record until two years
after the Closing.</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-align: left; text-indent: 0.5in">Pursuant to the BCA, to secure his
indemnification obligations, 3,496,056 of Mr. Meckenzie&rsquo;s shares of Class A common stock (&ldquo;Lockup Shares&rdquo;) and
1,553,803 of Mr. Meckenzie&rsquo;s shares of Class A common stock (&ldquo;Supplemental Lockup Shares&rdquo;) may not, without
our consent, be directly or indirectly offered, sold, hedged, pledged or otherwise transferred or disposed of, or included in
any swap or other transaction that transfers, in whole or in part, directly or indirectly, the economic consequence of ownership
of any Lockup Shares or Supplemental Lockup Shares, subject to certain exceptions as set forth in the BCA, until the date that
is five years following the Closing Date for the Lockup Shares or two years following the Closing Date for the Supplemental Lockup
Shares, unless such shares are earlier released in accordance with the provisions of the BCA.</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"><B>Form&nbsp;S-8 Registration Statement </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: left; text-indent: 0.5in">We intend to file one or more registration
statements on Form&nbsp;S-8 under the Securities Act to register the shares of Class&nbsp;A common stock issued or issuable under
our Incentive Plan and our ESPP. Any such Form&nbsp;S-8 registration statement will become effective automatically upon filing.
We expect that the initial registration statement on Form&nbsp;S-8 will cover shares of Class&nbsp;A common stock underlying the
ESPP and the Incentive Plan. Once these shares are registered, they can be sold in the public market upon issuance, subject to
Rule&nbsp;144 limitations applicable to affiliates and vesting restrictions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&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; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="a022"></A>BENEFICIAL
OWNERSHIP OF SECURITIES</B></FONT></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; text-indent: 0.5in">The following table
sets forth information known to the Company regarding the beneficial ownership of Company common stock as of the Closing Date
by:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px; text-align: left">&#9679;</TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">each person known to the Company to be the beneficial owner
    of more than 5% of outstanding Company common stock; </FONT></TD></TR>
</TABLE>
<P STYLE="text-align: left; margin-top: 0; margin-bottom: 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="text-align: left; width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px; text-align: left">&#9679;</TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">each of the Company&rsquo;s executive officers and directors;
    and </FONT></TD></TR>
</TABLE>
<P STYLE="text-align: left; margin-top: 0; margin-bottom: 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="text-align: left; width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px; text-align: left">&#9679;</TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">all executive officers and directors of the Company as a
    group. </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; 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. Company stock issuable upon exercise of options and warrants currently exercisable
within 60 days are deemed outstanding solely for purposes of calculating the percentage of total voting power of the beneficial
owner thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">The beneficial
ownership of Company common stock is based on 312,445,380 shares of Class A common stock and 393,013,951 shares of Class B common
stock issued and outstanding as of the Closing and does not include the 6,000,000 earnout shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">Unless otherwise
indicated, the Company believes that each person named in the table below has sole voting and investment power with respect to
all shares of Company common stock beneficially owned by them.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; 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>
    <TD STYLE="vertical-align: bottom; width: 43%; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt"><B>Name and&nbsp;Address&nbsp;of&nbsp;Beneficial&nbsp;Owner</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 12%; border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Number&nbsp;of&nbsp;Shares
    of Class A Common Stock</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 8%; border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>%</B></FONT></TD>
    <TD STYLE="vertical-align: top; width: 2%; text-align: left">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 12%; border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Number&nbsp;of&nbsp;Shares
    of Class B Common Stock</B></FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 8%; border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>%</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 2%; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 8%; border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>%
    of Total Voting Power</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 2%; text-align: center">&nbsp;</TD></TR>
<TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><FONT STYLE="font-size: 10pt"><B><I>Current Directors
    and Executive Officers </I></B></FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><FONT STYLE="font-size: 10pt">Jason Robins (1)(2)(3)</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">8,453,094</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">2.6</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: left"><FONT STYLE="font-size: 10pt">%</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">393,013,951</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">100</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">%</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">92.7</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">%</FONT></TD></TR>
<TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><FONT STYLE="font-size: 10pt">Matthew Kalish (1)(3)(4)</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">4,017,566</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">1.3</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: left"><FONT STYLE="font-size: 10pt">%</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><FONT STYLE="font-size: 10pt">Paul Liberman (1)(3)(5)</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">4,661,765</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">1.5</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: left"><FONT STYLE="font-size: 10pt">%</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><FONT STYLE="font-size: 10pt">M. Gavin Isaacs (6)(7)</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">479,285</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><FONT STYLE="font-size: 10pt">Woodrow Levin (1)(3)(8)</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">415,374</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><FONT STYLE="font-size: 10pt">Shalom Meckenzie
    (6)</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">34,628,397</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">11.1</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: left"><FONT STYLE="font-size: 10pt">%</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><FONT STYLE="font-size: 10pt">Ryan R. Moore (1)(3)(9)</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">10,825,097</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">3.5</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: left"><FONT STYLE="font-size: 10pt">%</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><FONT STYLE="font-size: 10pt">Steven J. Murray
    (1)(3)(10)</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">7,767,580</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">2.5</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: left"><FONT STYLE="font-size: 10pt">%</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><FONT STYLE="font-size: 10pt">Hany M. Nada (1)(3)(11)</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">7,211,006</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">2.3</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: left"><FONT STYLE="font-size: 10pt">%</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><FONT STYLE="font-size: 10pt">Richard Rosenblatt
    (1)(12)</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">224,428</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><FONT STYLE="font-size: 10pt">John S. Salter (1)(3)(13)</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">24,983,757</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">8.0</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: left"><FONT STYLE="font-size: 10pt">%</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><FONT STYLE="font-size: 10pt">Harry E. Sloan (14)</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">2,718,717</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: left">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><FONT STYLE="font-size: 10pt">Marni M. Walden (1)(15)</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">89,878</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><FONT STYLE="font-size: 10pt">R. Stanton Dodge
    (1)(16)</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">1,734,232</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><FONT STYLE="font-size: 10pt">Jason Park (1)(17)</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">253,151</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><FONT STYLE="font-size: 10pt"><B>All Directors
    and Executive Officers as a Group (15 Individuals)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt"><B>108,463,325</B></FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt"><B>32.9</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: left"><FONT STYLE="font-size: 10pt"><B>%</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt"><B>393,013,951</B></FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt"><B>100</B></FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt"><B>%</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt"><B>94.8</B></FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt"><B>%</B></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><FONT STYLE="font-size: 10pt"><B><I>Five Percent
    Holders</I></B></FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><FONT STYLE="font-size: 10pt">Shalom Meckenzie
    (6)</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">34,628,397</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">11.1</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: left"><FONT STYLE="font-size: 10pt">%</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><FONT STYLE="font-size: 10pt">RPII DK LLC (3)(18)</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">24,983,757</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">8.0</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: left"><FONT STYLE="font-size: 10pt">%</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt"><FONT STYLE="font-size: 10pt">TFCF Sports Enterprises,
    LLC (19)</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">18,546,667</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">5.9</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: left"><FONT STYLE="font-size: 10pt">%</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 49pt 0pt 25.8pt; text-indent: -19.95pt; color: #231F20">&nbsp;</P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">*</TD><TD STYLE="text-align: left">Less than one percent.</TD>
</TR></TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: left; width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">(1)</TD><TD STYLE="text-align: left">The
                                         business address of each of these shareholders is 222 Berkeley Street, 5<SUP>th</SUP>
                                         Floor, Boston, MA 02116.</TD>
</TR></TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: left; width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">(2)</TD><TD STYLE="text-align: left">Includes
                                         1,314,329 shares of Class A common stock and 7,004,943 vested options exercisable for
                                         shares of Class A common stock beneficially owned by Mr. Robins, Jason Robins Revocable
                                         Trust u/d/t January 8, 2014, Robins Family Trust, Jason Robins 2020 Trust and/or Robins
                                         Grantor Retained Annuity Trust of 2020, for which Mr. Robins has sole investment and
                                         voting power. Also includes 125,752 shares underlying unvested options to purchase shares
                                         of Class A common stock that will vest within 60 days of the Closing Date.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 48.95pt 0pt 25.9pt; text-indent: -20.15pt; color: #231F20">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 48.95pt 0pt 25.9pt; color: #231F20">&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; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">(3)</TD><TD STYLE="text-align: left">Includes
                                         such holder&rsquo;s pro rata portion of Class A common stock underlying the private placement
                                         warrants transferred from Eagle Equity Partners and Harry Sloan to equityholders of Old
                                         DK that will become exercisable on May 23, 2020 as follows: 8,070 shares to Mr. Robins
                                         and entities affiliated with him; 7,174 shares to Mr. Kalish and entities affiliated
                                         with him; 6,792 shares to Mr. Liberman and entities affiliated with him; 1,983 shares
                                         to Mr. Levin and entities affiliated with him; 63,450 shares to Mr. Moore through entities
                                         affiliated with him; 47,317 to Mr. Murray through an entity affiliated with him; 43,926
                                         shares to Mr. Nada through an entity affiliated with him; 152,190 shares to RPII DK LLC,
                                         for which Mr. Salter shares investment and voting power; and 112,978 shares to TFCF Sports
                                         Enterprises, LLC.</TD>
</TR></TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: left; width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">(4)</TD><TD STYLE="text-align: left">Includes
                                         1,170,446 shares of Class A common stock and 2,797,926 vested options exercisable for
                                         shares of Class A common stock beneficially owned by Mr. Kalish, Kalish Family 2020 Irrevocable
                                         Trusts and Matthew P. Kalish 2020 Trust, for which Mr. Kalish has sole investment and
                                         voting power. Also includes 42,020 shares underlying unvested options to purchase shares
                                         of Class A common stock that will vest within 60 days of the Closing Date.</TD>
</TR></TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: left; width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">(5)</TD><TD STYLE="text-align: left">Includes
                                         1,108,132 shares of Class A common stock and 3,504,821 vested options exercisable for
                                         shares of Class A common stock beneficially owned by Mr. Liberman, Paul Liberman 2015
                                         Revocable Trust dated May 12, 2015, Paul Liberman 2020 Trust and Liberman Grantor Retained
                                         Annuity Trust of 2020, for which Mr. Liberman has sole investment and voting power. Also
                                         includes 42,020 shares underlying unvested options to purchase shares of Class A common
                                         stock that will vest within 60 days of the Closing Date.</TD>
</TR></TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: left; width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">(6)</TD><TD STYLE="text-align: left">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>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: left; width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">(7)</TD><TD STYLE="text-align: left">Represents
                                         vested options exercisable for shares of Class A common stock.</TD>
</TR></TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: left; width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">(8)</TD><TD STYLE="text-align: left">Includes
                                         323,480 shares of Class A common stock and 82,802 vested options exercisable for shares
                                         of Class A common stock beneficially owned by Mr. Levin, Levin Family 2015 Irrevocable
                                         Trust and OneSixRed LLC, for which Mr. Levin has sole investment and voting power. Also
                                         includes 7,109 shares underlying unvested options to purchase shares of Class A common
                                         stock that will vest within 60 days of the Closing Date.</TD>
</TR></TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: left; width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">(9)</TD><TD STYLE="text-align: left">Represents
                                         shares of Class A common stock held by Accomplice Fund I, L.P., Accomplice Fund II, L.P.,
                                         Accomplice Management Holdings, LLC, Accomplice DK Investors, LLC, Atlas Venture Fund
                                         VIII, L.P. and Accomplice DK Investors, for which Mr. Moore shares investment and voting
                                         control. Mr. Moore disclaims beneficial ownership of all shares except to the extent
                                         of his pecuniary interest, if any, therein.</TD>
</TR></TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: left; width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">(10)</TD><TD STYLE="text-align: left">Represents
                                         shares of Class A common stock held by Revolution Growth III, LP. Mr. Murray is the operating
                                         manager of the ultimate general partner of Revolution Growth III, LP and may be deemed
                                         to have voting and dispositive power with respect to the securities held by Revolution
                                         Growth III, LP. Mr. Murray disclaims beneficial ownership of such securities except to
                                         the extent of his pecuniary interest therein.</TD>
</TR></TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: left; width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">(11)</TD><TD STYLE="text-align: left">Represents
                                         shares of Class A common stock held by ACME SPV DK, LLC, for which Mr. Nada shares investment
                                         and voting control.</TD>
</TR></TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: left; width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">(12)</TD><TD STYLE="text-align: left">Represents
                                         220,610 vested options exercisable for shares of Class A common stock and 3,816 shares
                                         underlying unvested options to purchase shares of Class A common stock that will vest
                                         within 60 days of the Closing Date.</TD>
</TR></TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: left; width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">(13)</TD><TD STYLE="text-align: left">Represents
                                         shares of Class A common stock held by RPII DK LLC, for which Mr. Salter shares investment
                                         and voting control.</TD>
</TR></TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: left; width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">(14)</TD><TD STYLE="text-align: left">Mr. Sloan&rsquo;s business address is 2121 Avenue of the Stars, Suite 2300, Los Angeles, CA
                                                                                                      90067. Amount includes 1,789,618 shares of Class A common stock and 929,099 shares underlying private placement warrants and
                                                                                                      excludes 2,608,065 earnout shares which were placed in escrow at the Closing pursuant to the terms of the Earnout Escrow
                                                                                                      Agreement.</TD>
</TR></TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: left; width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">(15)</TD><TD STYLE="text-align: left">Represents
                                         81,001 vested options exercisable for shares of Class A common stock and 8,877 shares
                                         underlying unvested options to purchase Class A common stock that will vest within 60
                                         days of the Closing Date.</TD>
</TR></TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: left; width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">(16)</TD><TD STYLE="text-align: left">Includes
                                         1,609,781 vested options exercisable for shares of Class A common stock and 124,451 shares
                                         underlying unvested options to purchase Class A common stock that will vest within 60
                                         days of the Closing Date.</TD>
</TR></TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: left; width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">(17)</TD><TD STYLE="text-align: left">Includes
                                         108,329 vested options exercisable for shares of Class A common stock and 144,822 shares
                                         underlying unvested options to purchase Class A common stock that will vest within 60
                                         days of the Closing Date.</TD>
</TR></TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: left; width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">(18)</TD><TD STYLE="text-align: left">The
                                         business address of RPII DK LLC is 65 East 55th Street, 24th Floor, New York, NY 10022.</TD>
</TR></TABLE>

<P STYLE="text-align: left; font: 10pt Times New Roman, Times, Serif; margin: 0pt 48.95pt 0pt 25.9pt; text-indent: -20.15pt"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: left; width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">(19)</TD><TD STYLE="text-align: left">The
                                         business address of TFCF Sports Enterprises, LLC is 1211 Avenue of the Americas, New
                                         York, NY 10036.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 48.95pt 0pt 25.9pt; text-indent: -20.15pt">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 48.95pt 0pt 25.9pt">&nbsp;</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="a023"></A>SELLING
SECURITYHOLDERS</B></FONT></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
by the Selling Securityholders from time to time of up to 235,051,419 shares of Class A common stock (including 3,299,603 shares of Class A common stock that may
be issued upon exercise of the private placement warrants and 120,670 shares of Class A common stock that may be issued upon exercise
of the Old DK Warrants) and 3,299,603 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 beneficially owned, 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. We have based percentage ownership on 312,504,813 shares of
Class A common stock outstanding as of May 4, 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 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">We cannot advise you as to whether the Selling Securityholders
will in fact sell any or all of such Class A common stock or warrants. In addition, the Selling Securityholders may sell, transfer
or otherwise dispose of, at any time and from time to time, the Class A common stock and warrants in transactions exempt from the
registration requirements of the Securities Act after the date of this prospectus. For purposes of this table, we have assumed
that the Selling Securityholders will have sold all of the securities covered by this prospectus upon the completion of the 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">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;<I>Plan of Distribution.</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-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Selling Securityholders</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: bold 10pt Times New Roman, Times, Serif; text-align: left">Selling Securityholder</TD><TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="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">&nbsp;</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Shares of Class A Common</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Stock Beneficially Owned</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Prior to Offering</B></P></TD><TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Private Placement Warrants Beneficially Owned Prior to Offering</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Shares of Class A Common Stock Offered</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Private Placement Warrants Offered</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Shares of Class A Common Stock Beneficially Owned After the Offered Shares are Sold</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">%</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Private Placement Warrants Beneficially Owned After the Offered Private Placement Warrants are Sold</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">%</TD><TD STYLE="text-align: center; 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: 20%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Shalom Meckenzie<SUP>(1)</SUP></FONT></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: 8%; font: 10pt Times New Roman, Times, Serif; text-align: right">34,628,397</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: 8%; font: 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</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: 8%; font: 10pt Times New Roman, Times, Serif; text-align: right">35,240,397</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: 8%; font: 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</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: 8%; font: 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</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: 4%; font: 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</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: 8%; font: 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</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: 4%; font: 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">RPII DK LLC<SUP>(2)</SUP></FONT></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">24,983,757</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">152,190</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">24,983,757</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">152,190</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">TFCF Sports Enterprises, LLC<SUP>(3)</SUP></FONT></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">18,546,667</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">112,978</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">18,546,667</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">112,978</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</TD><TD STYLE="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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certain funds and accounts of Redpoint<SUP>(4)</SUP></FONT></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">12,159,464</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">74,070</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">12,159,464</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">74,070</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certain funds and accounts of Wellington<SUP>(5)</SUP></FONT></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">12,068,248</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">73,516</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">12,068,248</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">73,516</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</TD><TD STYLE="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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certain funds and accounts of Atlas<SUP>(6)</SUP></FONT></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">10,825,097</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">63,450</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">10,825,097</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">63,450</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certain funds and accounts of Eldridge<SUP>(7)</SUP></FONT></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">10,557,775</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">64,313</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">10,557,775</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">64,313</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</TD><TD STYLE="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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">DK Investment Holdings L.P. <SUP>(8)</SUP></FONT></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">8,509,190</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">51,834</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">8,509,190</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">51,834</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Jason Robins<SUP>(9)</SUP></FONT></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">8,453,094</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">8,070</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">1,322,399</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">8,070</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">7,130,695</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">2.2</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">&mdash;</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">&mdash;</TD><TD STYLE="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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Revolution Growth III, LP<SUP>(10)</SUP></FONT></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">7,767,580</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">47,317</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">7,767,580</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">47,317</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certain funds and accounts of DST/Apoletto<SUP>(11)</SUP></FONT></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">7,369,148</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">44,890</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">7,369,148</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">44,890</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</TD><TD STYLE="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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">ACME SPV DK, LLC<SUP>(12)</SUP></FONT></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">7,211,006</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">43,926</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">7,211,006</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">43,926</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certain funds and accounts of Franklin Advisers, Inc.<SUP>(13)</SUP></FONT></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">7,200,599</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">43,863</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">7,200,599</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">43,863</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</TD><TD STYLE="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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Paul Liberman<SUP>(14)</SUP></FONT></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">4,661,765</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">6,792</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">1,114,924</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">6,792</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">3,546,841</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">1.1</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">&mdash;</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">&mdash;</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Matthew Kalish<SUP>(15)</SUP></FONT></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">4,017,566</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">7,174</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">1,177,620</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">7,174</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">2,839,946</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">*</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">&mdash;</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">&mdash;</TD><TD STYLE="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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certain funds and accounts of Moussefixe L.P.<SUP>(16)</SUP></FONT></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">3,590,140</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">21,869</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">3,590,140</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">21,869</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Randolph John Anderson<SUP>(17)</SUP></FONT></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">3,564,688</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">&mdash;</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">3,627,688</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</TD><TD STYLE="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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certain funds and accounts of Kraft<SUP>(18)</SUP></FONT></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">3,532,953</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">20,785</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">3,532,953</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">20,785</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certain funds and accounts of Park West<SUP>(19)</SUP></FONT></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">3,488,792</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">21,252</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">3,488,792</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">21,252</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</TD><TD STYLE="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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certain funds and accounts of ArrowMark<SUP>(20)</SUP></FONT></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">3,388,085</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">20,638</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">3,388,085</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">20,638</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certain funds and accounts of Top Tier<SUP>(21)</SUP></FONT></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">2,930,183</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">17,849</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">2,930,183</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">17,849</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</TD><TD STYLE="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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certain funds and accounts of Quantum<SUP>(22)</SUP></FONT></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">2,836,396</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">17,278</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">2,836,396</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">17,278</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certain funds and accounts of MVP<SUP>(23)</SUP></FONT></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">2,731,917</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">16,641</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">2,731,917</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">16,641</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</TD><TD STYLE="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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Eagle Equity Partners, LLC <SUP>(24)</SUP></FONT></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">2,718,723</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">929,100</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">5,390,658</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">929,100</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

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<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; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; width: 20%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Harry E. Sloan <SUP>(25)</SUP></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; width: 8%">2,718,717</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; width: 8%">929,099</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; width: 8%">5,326,782</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; width: 8%">929,099</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; width: 8%">&mdash;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; width: 4%">&mdash;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; width: 8%">&mdash;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; width: 4%">&mdash;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; width: 1%">&nbsp;</TD></TR>
<TR STYLE="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">J. Gleek Properties Ltd.<SUP>(26)</SUP></FONT></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">2,546,206</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">&mdash;</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">2,591,206</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Schechter Private Capital Fund1, LLC - GTP Series J<SUP>(27)</SUP></FONT></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">2,163,050</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">13,176</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">2,163,050</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">13,176</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</TD><TD STYLE="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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certain funds and accounts of ClipperBay and Co (HG22) f/b/o SmallCap World Fund, Inc.<SUP>(28)</SUP></FONT></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">1,998,099</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">12,172</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">1,998,099</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">12,172</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Carmenta Opportunities 2020, L.P. <SUP>(29)</SUP></FONT></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">1,706,467</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">10,395</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">1,706,467</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">10,395</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</TD><TD STYLE="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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Madison Square Garden Investments, LLC<SUP>(30)</SUP></FONT></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">1,473,283</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">8,975</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">1,473,283</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">8,975</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certain funds and accounts of UIT<SUP>(31)</SUP></FONT></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">1,254,612</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">7,643</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">1,254,612</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">7,643</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</TD><TD STYLE="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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Boston Seed Capital II, L.P.<SUP>(32)</SUP></FONT></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">1,198,349</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">7,300</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">1,198,349</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">7,300</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Carnegie GM Partners LLC<SUP>(33)</SUP></FONT></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">1,050,263</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">6,398</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">1,050,263</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">6,398</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</TD><TD STYLE="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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">BDS Venture Fund<SUP>(34)</SUP></FONT></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">866,969</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">5,281</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">866,969</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">5,281</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Wildcat Opportunistic DraftKings Fund, LP<SUP>(35)</SUP></FONT></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">863,973</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">5,263</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">863,973</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">5,263</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</TD><TD STYLE="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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Ashley Kalish<SUP>(36)</SUP></FONT></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">840,895</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">5,122</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">840,895</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">5,122</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Title 19 DK<SUP>(37)</SUP></FONT></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">806,093</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">4,910</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">806,093</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">4,910</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</TD><TD STYLE="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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certain funds and accounts of Boies Schiller Flexner LLP<SUP>(38)</SUP></FONT></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">796,364</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">4,851</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">796,364</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">4,851</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">GGV Capital Select L.P.<SUP>(39)</SUP></FONT></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">778,928</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">4,745</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">778,928</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">4,745</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</TD><TD STYLE="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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Hub Angel Investment Group, Fund IV<SUP>(40)</SUP></FONT></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">714,998</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">4,355</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">714,998</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">4,355</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Brandywine Private Equity Partners (2016), LP<SUP>(41)</SUP></FONT></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">680,735</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">4,147</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">680,735</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">4,147</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</TD><TD STYLE="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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Veralda<SUP>(42)</SUP></FONT></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">627,981</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">3,825</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">627,981</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">3,825</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Jordan
    Mendell<SUP>(43)</SUP></FONT></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">611,993</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">352</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">57,815</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">352</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">554,178</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">*</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">&mdash;</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">&mdash;</TD><TD STYLE="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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Kombo Growth Fund I, LLC<SUP>(44)</SUP></FONT></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">581,928</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">3,545</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">581,928</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">3,545</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SP Investment Associates, L.P. <SUP>(45)</SUP></FONT></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">569,230</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">3,468</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">569,230</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">3,468</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</TD><TD STYLE="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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">EquityZen<SUP>(46)</SUP></FONT></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">549,878</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">3,350</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">549,878</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">3,350</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">NHL Enterprises, LP<SUP>(47)</SUP></FONT></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">487,169</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">2,968</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">487,169</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">2,968</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</TD><TD STYLE="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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">MJE Personal Gift Trust A<SUP>(48)</SUP></FONT></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">485,880</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">2,960</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">485,880</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">2,960</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Las Olas Private Equity VII, LP<SUP>(49)</SUP></FONT></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">453,823</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">2,764</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">453,823</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">2,764</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</TD><TD STYLE="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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Woodrow H. Levin<SUP>(50)</SUP></FONT></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">415,374</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">1,983</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">325,463</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">1,983</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">89,911</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">*</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">&mdash;</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">&mdash;</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Smash Ventures Tackle SPV LLC<SUP>(51)</SUP></FONT></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">397,012</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">2,418</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">397,012</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">2,418</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</TD><TD STYLE="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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">PBE Investments, Ltd<SUP>(52)</SUP></FONT></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">348,879</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">2,125</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">348,879</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">2,125</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Gregory Brian Karamitis<SUP>(53)</SUP></FONT></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">347,261</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">477</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">78,275</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">477</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">268,986</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">*</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">&mdash;</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">&mdash;</TD><TD STYLE="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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Travis Dunn<SUP>(54)</SUP></FONT></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">332,770</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">57</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">9,403</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">57</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">323,367</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">*</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">&mdash;</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">&mdash;</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Brookwood Partners L.P.<SUP>(55)</SUP></FONT></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">291,072</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">1,773</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">291,072</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">1,773</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</TD><TD STYLE="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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Data Point Capital L.P.<SUP>(56)</SUP></FONT></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">279,103</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">1,700</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">279,103</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">1,700</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Stephanie Sherman<SUP>(57)</SUP></FONT></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">276,835</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">623</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">102,291</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">623</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">174,544</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">*</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">&mdash;</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">&mdash;</TD><TD STYLE="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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Benvolio Ventures LLC &ndash; Series Draft Kings<SUP>(58)</SUP></FONT></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">263,998</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">1,608</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">263,998</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">1,608</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
</TABLE>

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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; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; width: 20%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">World Wrestling Entertainment, Inc.<SUP>(59)</SUP></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; width: 8%">263,546</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; width: 8%">1,605</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; width: 8%">263,546</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; width: 8%">1,605</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; width: 8%">&mdash;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; width: 4%">&mdash;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; width: 8%">&mdash;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; width: 4%">&mdash;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; width: 1%">&nbsp;</TD></TR>
<TR STYLE="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">AngelList-Dngs-Fund <SUP>(60)</SUP></FONT></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">244,968</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">1,492</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">244,968</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">1,492</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Edward
    Zaleski<SUP>(61)</SUP></FONT></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">234,654</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">52</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">8,539</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">52</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">226,115</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">*</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">&mdash;</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">&mdash;</TD><TD STYLE="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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Jeffrey Haas<SUP>(62)</SUP></FONT></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">221,794</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">1,272</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">208,892</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">1,272</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">12,902</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">*</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">&mdash;</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">&mdash;</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">TPI DraftKings Investment I, LLC<SUP>(63)</SUP></FONT></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">217,365</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">1,324</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">217,365</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">1,324</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</TD><TD STYLE="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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Legends Hospitality, LLC<SUP>(64)</SUP></FONT></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">194,867</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">1,187</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">194,867</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">1,187</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Janet Holian<SUP>(65)</SUP></FONT></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">194,358</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">1,184</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">194,358</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">1,184</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</TD><TD STYLE="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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Fort Point Fund DK, LLC<SUP>(66)</SUP></FONT></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">186,529</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">1,136</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">186,529</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">1,136</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Jonathan Aguiar<SUP>(67)</SUP></FONT></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">184,001</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">780</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">128,086</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">780</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">55,915</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">*</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">&mdash;</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">&mdash;</TD><TD STYLE="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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Agman Investments LLC<SUP>(68)</SUP></FONT></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">165,020</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">1,005</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">165,020</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">1,005</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Joshua Kazam <SUP>(69)</SUP></FONT></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">153,333</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">133,333</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">153,333</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">133,333</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</TD><TD STYLE="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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Fredric Rosen <SUP>(70)</SUP></FONT></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">153,333</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">133,333</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">153,333</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">133,333</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Scott Salsbury<SUP>(71)</SUP></FONT></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">143,523</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">116</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">19,014</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">116</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">124,509</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">*</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">&mdash;</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">&mdash;</TD><TD STYLE="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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Benjamin F. Stein<SUP>(72)</SUP></FONT></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">138,099</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">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">138,099</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">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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Edward Silva<SUP>(73)</SUP></FONT></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">134,577</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">542</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">88,949</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">542</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">45,628</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">*</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">&mdash;</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">&mdash;</TD><TD STYLE="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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Timothy J. McSweeney 2006 Trust<SUP>(74)</SUP></FONT></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">132,016</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">804</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">132,016</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">804</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Vaccarella<SUP>(75)</SUP></FONT></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">128,606</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">783</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">128,606</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">783</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</TD><TD STYLE="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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Disruptive Ventures, LLC<SUP>(76)</SUP></FONT></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">124,529</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">759</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">124,529</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">759</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Angel Street Capital, LLC<SUP>(77)</SUP></FONT></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">117,016</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">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">117,016</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">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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</TD><TD STYLE="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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Timothy John Parilla<SUP>(78)</SUP></FONT></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">114,772</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">69</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">11,341</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">69</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">103,431</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">*</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">&mdash;</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">&mdash;</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SperWood, LLC<SUP>(79)</SUP></FONT></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">113,801</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">693</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">113,801</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">693</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</TD><TD STYLE="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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Joshua Weiss<SUP>(80)</SUP></FONT></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">112,500</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">685</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">112,500</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">685</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">JNI Investments, LLC<SUP>(81)</SUP></FONT></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">102,329</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">623</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">102,329</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">623</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</TD><TD STYLE="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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">ACP Venture Capital Fund II LLC<SUP>(82)</SUP></FONT></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">100,416</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">612</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">100,416</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">612</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Andrew W. Jonas<SUP>(83)</SUP></FONT></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">99,872</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">396</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">64,933</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">396</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">34,939</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">*</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">&mdash;</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">&mdash;</TD><TD STYLE="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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">James M. Scarpellini<SUP>(84)</SUP></FONT></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">95,510</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">34</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">5,559</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">34</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">89,951</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">*</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">&mdash;</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">&mdash;</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Elaine Milardo <SUP>(85)</SUP></FONT></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">94,457</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">109</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">17,901</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">109</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">76,556</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">*</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">&mdash;</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">&mdash;</TD><TD STYLE="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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Stephen &amp; Mary Ann Phillips<SUP>(86)</SUP></FONT></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">93,437</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">569</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">93,437</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">569</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Scott M. Delman<SUP>(87)</SUP></FONT></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">86,666</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">66,666</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">86,666</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">66,666</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</TD><TD STYLE="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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">PPR Investors, LLC<SUP>(88)</SUP></FONT></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">85,088</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">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">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">85,088</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">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">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</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">Scott Ross<SUP>(89)</SUP></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">20,000</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">&mdash;</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">20,000</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</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">&mdash;</TD><TD STYLE="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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Additional Selling Securityholders<SUP>(90)</SUP></FONT></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">3,036,529</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">16,745</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">2,779,434</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">16,745</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">257,092</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">*</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">&mdash;</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">&mdash;</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; text-align: left">&nbsp;</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">* Less than one percent.</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"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;<SUP>(1)</SUP> Comprised of 34,628,397
shares of Class A common stock held by Shalom Meckenzie, of which 3,496,056 shares are Lockup Shares and 1,553,803 shares are
Supplemental Lockup Shares, all such terms as defined in the Business Combination Agreement and subject to the provisions set
forth in the Business Combination Agreement and relating thereto. &ldquo;Shares of Class A Common Stock Offered&rdquo; includes
612,000 earnout shares issued to the Selling Securityholder pursuant to the terms of the Earnout Escrow Agreement. The address
of Shalom Meckenzie is 27 Hagderot St, Savion 5652627, Israel. Shalom Meckenzie is a director of DraftKings and a party to the
Stockholders Agreement.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><SUP>(2)</SUP> Comprised of 24,831,567 shares
of Class A common stock and 152,190 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by RPII DK LLC. John S. Salter, Jeffrey A. Sine, Joseph Ravitch, Brandon Gardner
and Deborah Mei, members of the Investment Committee of Raine Partners II LP, the managing member of RP II DK LLC, are considered
beneficial owners of the securities of the Selling Securityholder. Each Control Person wishes to disclaim beneficial ownership
except to the extent of his or her pecuniary interest therein. The address of RPII DK LLC is c/o Raine Capital LLC, 65 East 55th
St, 24th Floor, New York, NY 10022. John Salter is a director of DraftKings and Raine Securities LLC has served as a financial
advisor and placement agent to Old DK. The Selling Securityholder is a party to the Stockholders Agreement.</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"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><SUP>(3)</SUP> Comprised of 18,433,689 shares
of Class A common stock and 112,978 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by TFCF Sports Enterprises, LLC. Michael Heimbach is the manager of TFCF Sports
Enterprises, LLC. The address of TFCF Sports Enterprises, LLC is 575 Birch St., Floor 1, Office 188, Bristol, CT 06010. The Selling
Securityholder is a party to the Stockholders Agreement.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><SUP>(4)</SUP> Comprised of (i) 362,560
shares of Class A common stock and 2,222 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Redpoint Omega Associates II, LLC and (ii) 11,722,834 shares of Class A common
stock and 71,848 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants that are
exercisable within 30 days held by Redpoint Omega II, L.P. The shares held directly by Redpoint Omega Associates II LLC (&ldquo;Redpoint
Omega Associates II&rdquo;) are controlled by the managers of Redpoint Omega Associates II. W. Allen Beasley, Jeffrey D. Brody,
Satish Dharmaraj, R. Thomas Dyal, Timothy M. Haley, Christopher B. Moore, Scott C. Raney, John L. Walecka and Geoffrey Y. Yang
are the managers of Redpoint Omega Associates II and have voting rights and dispositive rights with respect to the shares held
directly by Redpoint Omega Associates II. Each of these individuals disclaims beneficial ownership of the shares held by Redpoint
Omega Associates II except to the extent of their respective individual pecuniary interest therein. The shares held directly by
Redpoint Omega II, L.P. (&ldquo;Redpoint Omega II&rdquo;) are indirectly held by Redpoint Omega II, LLC, the general partner of
Redpoint Omega II. W. Allen Beasley, Jeffrey D. Brody, Satish Dharmaraj, R. Thomas Dyal, Timothy M. Haley, Christopher B. Moore,
Scott C. Raney, John L. Walecka and Geoffrey Y. Yang are the managing directors of Redpoint Omega II, LLC and hold the voting rights
and dispositive rights with respect to the shares held directly by Redpoint Omega II. Each of these individuals disclaims beneficial
ownership of the shares held by Redpoint Omega II except to the extent of their respective individual pecuniary interest therein.
The address of Redpoint Omega Associates II, LLC and Redpoint Omega II, L.P. is 3000 Sand Hill Rd, Building 4, Suite 230, Menlo
Park, CA 94025. The Selling Securityholder is a party to the Stockholders Agreement.</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"><SUP>(5)</SUP> Comprised of (i) 99,631 shares
of Class A Common Stock and 611 shares of Class A Common Stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by Aurora &amp; Co., as nominee for MassMutual Select Small Cap Growth Equity Fund, (ii)
27,903 shares of Class A Common Stock and 171 shares of Class A Common Stock issuable upon exercise of an equal number of private
placement warrants that are exercisable within 30 days held by Aurora &amp; Co., as nominee for MML Small Cap Growth Equity Fund,
(iii) 115,670 shares of Class A Common Stock and 709 shares of Class A Common Stock issuable upon exercise of an equal number of
private placement warrants that are exercisable within 30 days held by Beachcraft &amp; Co., as nominee for John Hancock Variable
Insurance Trust Small Cap Stock Trust, (iv) 19,185 shares of Class A Common Stock and 118 shares of Class A Common Stock issuable
upon exercise of an equal number of private placement warrants that are exercisable within 30 days held by Hare &amp; Co LLC, as
nominee for Eversource Retirement Plan Master Trust, (v) 19,194 shares of Class A Common Stock and 118 shares of Class A Common
Stock issuable upon exercise of an equal number of private placement warrants that are exercisable within 30 days held by Hare
 &amp; Co., as nominee for Global Multi-Strategy Fund, (vi) 321,716 shares of Class A Common Stock and 1,972 shares of Class A Common
Stock issuable upon exercise of an equal number of private placement warrants that are exercisable within 30 days held by Italianbitt
 &amp; Co., as nominee for Hartford Small Company HLS Fund, (vii) 181,918 shares of Class A Common Stock and 1,115 shares of Class
A Common Stock issuable upon exercise of an equal number of private placement warrants that are exercisable within 30 days held
by Italianboat &amp; Co., as nominee for Hartford Capital Appreciation HLS Fund, (viii) 1,999,613 shares of Class A Common Stock
and 12,255 shares of Class A Common Stock issuable upon exercise of an equal number of private placement warrants that are exercisable
within 30 days held by Italianbridge &amp; Co., as nominee for The Hartford Capital Appreciation Fund, (ix) 71,454 shares of Class
A Common Stock and 438 shares of Class A Common Stock issuable upon exercise of an equal number of private placement warrants that
are exercisable within 30 days held by Italiancoal &amp; Co., as nominee for Hartford International Equity Fund, (x) 550,456 shares
of Class A Common Stock and 3,374 shares of Class A Common Stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Italiandinghy &amp; Co., as nominee for Hartford Growth Opportunities HLS
Fund, (xi) 5,465,308 shares of Class A Common Stock and 33,496 shares of Class A Common Stock issuable upon exercise of an equal
number of private placement warrants that are exercisable within 30 days held by Italianflare &amp; Co., as nominee for Hadley
Harbor Master Investors (Cayman) L.P., (xii) 205,205 shares of Class A Common Stock and 1,258 shares of Class A Common Stock issuable
upon exercise of an equal number of private placement warrants that are exercisable within 30 days held by Italianrope &amp; Co.,
as nominee for The Hartford Small Company Fund, (xiii) 1,718,014 shares of Class A Common Stock and 10,530 shares of Class A Common
Stock issuable upon exercise of an equal number of private placement warrants that are exercisable within 30 days held by Italiansilver
 &amp; Co., as nominee for The Hartford Growth Opportunities Fund, (xiv) 811,475 shares of Class A Common Stock and 4,973 shares
of Class A Common Stock issuable upon exercise of an equal number of private placement warrants that are exercisable within 30
days held by Snailreef &amp; Co., as nominee for Mid Cap Stock Fund, (xv) 13,680 shares of Class A Common Stock and 84 shares of
Class A Common Stock issuable upon exercise of an equal number of private placement warrants that are exercisable within 30 days
held by Stormbeach &amp; Co., as nominee for John Hancock Pension Plan and (xvi) 374,310 shares of Class A Common Stock and 2,294
shares of Class A Common Stock issuable upon exercise of an equal number of private placement warrants that are exercisable within
30 days held by Tunaship &amp; Co., as nominee for Mid Cap Stock Trust. The address of Aurora &amp; Co., as nominee for MassMutual
Select Small Cap Growth Equity Fund, Aurora &amp; Co., as nominee for MML Small Cap Growth Equity Fund, Beachcraft &amp; Co., as
nominee for John Hancock Variable Insurance Trust Small Cap Stock Trust, Hare &amp; Co LLC, as nominee for Eversource Retirement
Plan Master Trust, Hare &amp; Co., as nominee for Global Multi-Strategy Fund, Italianbitt &amp; Co., as nominee for Hartford Small
Company HLS Fund, Italianboat &amp; Co., as nominee for Hartford Capital Appreciation HLS Fund, Italianbridge &amp; Co., as nominee
for The Hartford Capital Appreciation Fund, Italiancoal &amp; Co., as nominee for Hartford International Equity Fund, Italiandinghy
 &amp; Co., as nominee for Hartford Growth Opportunities HLS Fund, Italianflare &amp; Co., as nominee for Hadley Harbor Master Investors
(Cayman) L.P., Italianrope &amp; Co., as nominee for The Hartford Small Company Fund, Italiansilver &amp; Co., as nominee for The
Hartford Growth Opportunities Fund, Snailreef &amp; Co., as nominee for Mid Cap Stock Fund, Stormbeach &amp; Co., as nominee for
John Hancock Pension Plan, Tunaship &amp; Co., as nominee for Mid Cap Stock Trust, is 280 Congress St, Boston, MA 02210. The Selling
Securityholder is a party to the Stockholders Agreement.</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"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><SUP>(6) </SUP>Comprised of (i) 758,544
shares of Class A Common Stock and 4,649 shares of Class A Common Stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Accomplice Fund I, L.P., (ii) 277,403 shares of Class A Common Stock and 1,700
shares of Class A Common Stock issuable upon exercise of an equal number of private placement warrants that are exercisable within
30 days held by Accomplice Fund II, L.P., (iii) 118,378 shares of Class A Common Stock and 726 shares of Class A Common Stock issuable
upon exercise of an equal number of private placement warrants that are exercisable within 30 days held by Accomplice Management
Holdings, LLC, (iv) 9,198,251 shares of Class A Common Stock and 56,375 shares of Class A Common Stock issuable upon exercise of
an equal number of private placement warrants that are exercisable within 30 days held by Atlas Venture Fund VIII, L.P. and (v)
409,071 shares of Class A Common Stock held by Accomplice DK Investors. ACC Assoc I is the general partner of ACC I. ACC Assoc
II is the general partner of ACC II. Ryan Moore and Jeff Fagnan are Class A members of ACC Holdings. AVA VIII L.P. is the general
partner of AV VIII. AVA VIII Inc. is the general partner of AVA VIII L.P. The address of Accomplice Fund I, L.P., Accomplice Fund
II, L.P., Accomplice Management Holdings, LLC and Atlas Venture Fund VIII, L.P. is 25 First St, Suite 303, Cambridge, MA, 02141.
Ryan Moore is a director of DraftKings and a party to the Stockholders Agreement. Each of ACC I and ACC Assoc I disclaim beneficial
ownership of the shares and warrants except to the extent of its pecuniary interest therein. Each of ACC II and ACC Assoc I disclaim
beneficial ownership of the shares and warrants except to the extent of its pecuniary interest therein. Each of ACC Holdings, Mr.
Moore and Mr. Fagnan disclaim beneficial ownership of the shares and warrants except to the extent of their pecuniary interest.
Each of AV VIII, AVA VIII L.P. and AVA VIII Inc. disclaim beneficial owner of the shares and warrants except to the extent of their
pecuniary interest therein. Frank Castellucci is the General Counsel of Accomplice Fund I, L.P., Accomplice Fund II, L.P., Accomplice
Management Holdings, LLC, Atlas Venture Fund VIII, L.P. and Accomplice DK Investors. The address of Accomplice Fund I, L.P., Accomplice
Fund II, L.P., Accomplice Management Holdings, LLC, Atlas Venture Fund VIII, L.P. and Accomplice DK Investors is 25 First Street,
Suite 303, Cambridge, MA, 02141. Ryan Moore is a director of DraftKings. The Selling Securityholder is a party to the Stockholders
Agreement.</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"><SUP>(7)</SUP> Comprised of 10,493,462 shares
of Class A common stock and 64,313 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by SGTV Fund, L.P. Todd L. Boehly is the majority owner of SGTV Fund, L.P., and
Robert B. Ott is the manager of the general partner. The address of SGTV Fund, L.P. is c/o Eldridge Industries, LLC, 600 Steamboat
Rd, 2nd Fl, Greenwich, CT 06830. The Selling Securityholder is a party to the Stockholders Agreement.</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"><SUP>(8)</SUP> Comprised of 8,457,356 shares
of Class A common stock and 51,834 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by DK Investment Holdings L.P. Cole Van Nice is the managing partner of the general
partner of DK Investment Holdings L.P. The address of DK Investment Holdings L.P. is Attn: Dan Musker, 227 West Monroe St, Suite
5000, Chicago, IL 60606. The Selling Securityholder is a party to the Stockholders Agreement.</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"><SUP>(9)</SUP> Comprised of (i) 586,696
shares of Class A common stock and 3,610 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Jason Robins, (ii) 20,377 shares of Class A common stock and 125 shares of
Class A common stock issuable upon exercise of an equal number of private placement warrants that are exercisable within 30 days
held by the Robins Revocable Trust u/d/t January 8, 2014 and (iii) 707,256 shares of Class A common stock and 4,335 shares of Class
A common stock issuable upon exercise of an equal number of private placement warrants that are exercisable within 30 days held
by the Robins Family Trust LLC. &ldquo;Shares of Class A common stock Beneficially Owned&rdquo; includes 7,004,943 vested options
beneficially owned by the Selling Securityholder and 125,752 shares underlying unvested options that will vest within 60 days.
The address of Jason Robins, the Robins Revocable Trust u/d/t January 8, 2014 and the Robins Family Trust LLC is c/o DraftKings,
222 Berkeley St, 5<SUP>th</SUP> Floor, Boston, MA 02116. Jason Robins is the Chief Executive Officer and Chairman of the Board
of DraftKings and a party to the Stockholders Agreement.</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"><SUP>(10)</SUP> Comprised of 7,720,263 shares
of Class A common stock and 47,317 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Revolution Growth III, LP. The address of Revolution Growth III, LP is 1717
Rhode Island Avenue, 10th Fl., Washington, D.C., 20036. Steven Murray is the operating manager of the ultimate general partner
of Revolution Growth III, LP and a director of DraftKings. The Selling Securityholder is a party to the Stockholders Agreement.</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"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><SUP>(11)</SUP> Comprised of (i) 4,593 shares
of Class A common stock and 28 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by Apoletto Investments IV, L.P., (ii) 1,143,733 shares of Class A common stock and 7,010
shares of Class A common stock issuable upon exercise of an equal number of private placement warrants that are exercisable within
30 days held by Apoletto Limited and (iii) 6,175,932 shares of Class A common stock and 37,852 shares of Class A common stock issuable
upon exercise of an equal number of private placement warrants that are exercisable within 30 days held by DST Global IV, L.P.
The general partner of Apoletto Investments IV, L.P. is Apoletto Managers Limited. Despoina Zinonos is the president of the Apoletto
Managers Limited. The director of Apoletto Limited is AMA Management Limited. David Muir is the President of Apoletto Limited The
address of Apoletto Investments IV, L.P., Apoletto Limited and DST Global IV, L.P.is 4 Hill St, London, UK, W1J 5NE. The Selling
Securityholder is a party to the Stockholders Agreement.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><SUP>(12)</SUP> Comprised of 7,167,080 shares
of Class A common stock and 43,926 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by ACME SPV DK, LLC. The address of ACME SPV DK, LLC is 800 Market St, 8th Floor,
San Francisco, CA 94102. Hany Nada is a director of DraftKings. The Selling Securityholder is a party to the Stockholders Agreement.</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"><SUP>(13)</SUP> Comprised of (i) 463,216
shares of Class A common stock and 2,839 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by EGGER &amp; CO. FBO Franklin Templeton Investment Funds - Franklin Technology
Fund, (ii) 111,171 shares of Class A common stock and 681 shares of Class A common stock issuable upon exercise of an equal number
of private placement warrants that are exercisable within 30 days held by EGGER &amp; CO. FBO Franklin Templeton Investment Funds
- Franklin US Opportunities Fund, (iii) 3,502,928 shares of Class A common stock and 21,469 shares of Class A common stock issuable
upon exercise of an equal number of private placement warrants that are exercisable within 30 days held HARE AND CO FBO Franklin
Strategic Series - Franklin Small Cap Growth Fund, (iv) 2,820,020 shares of Class A common stock and 17,284 shares of Class A common
stock issuable upon exercise of an equal number of private placement warrants that are exercisable within 30 days held by HARE
AND CO FBO Franklin Strategic Series - Franklin Small-Mid Cap Growth Fund and (v) 259,401 shares of Class A common stock and 1,590
shares of Class A common stock issuable upon exercise of an equal number of private placement warrants that are exercisable within
30 days held by HARE AND CO FBO Franklin Templeton Variable Insurance Products Trust -Franklin Small-Mid Cap Growth VIP Fund. Michael
McCarthy is the control person for EGGER &amp; CO. FBO Franklin Templeton Investment Funds - Franklin Technology Fund. Franklin
Advisers, Inc. is the investment manager and Michael McCarthy is the Executive Vice President and portfolio manager for HARE AND
CO FBO Franklin Strategic Series - Franklin Small Cap Growth Fund and HARE AND CO FBO Franklin Strategic Series - Franklin Small-Mid
Cap Growth Fund. The address of EGGER &amp; CO. FBO Franklin Templeton Investment Funds - Franklin Technology Fund, EGGER &amp;
CO. FBO Franklin Templeton Investment Funds - Franklin US Opportunities Fund, EGGER &amp; CO. FBO Franklin Templeton Investment
Funds - Franklin US Small Mid Cap Growth Fund, HARE AND CO FBO Franklin Strategic Series - Franklin Small Cap Growth Fund, HARE
AND CO FBO Franklin Strategic Series - Franklin Small-Mid Cap Growth Fund and HARE AND CO FBO Franklin Templeton Variable Insurance
Products Trust -Franklin Small-Mid Cap Growth VIP Fund is c/o Franklin Advisers, Inc., Attn: Christopher Chen, One Franklin Parkway,
San Mateo, CA 94403. The Selling Securityholder is a party to the Stockholders Agreement.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><SUP>(14)</SUP> Comprised of (i) 45,052
shares of Class A common stock and 276 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days, held by Paul Liberman, (ii) 459,716 shares of Class A common stock and 2,818 shares
of Class A common stock issuable upon exercise of an equal number of private placement warrants that are exercisable within 30
days held by the Paul Liberman 2015 Revocable Trust and (iii) 603,364 shares of Class A common stock and 3,698 shares of Class
A common stock issuable upon exercise of an equal number of private placement warrants that are exercisable within 30 days held
by the Paul Liberman 2020 Trust. &ldquo;Shares of Class A Common Stock Beneficially Owned&rdquo; includes 3,504,821 vested options
beneficially owned by the Selling Securityholder and 42,020 shares underlying unvested options that will vest within 60 days. The
address of Paul Liberman, the Paul Liberman 2015 Revocable Trust and the Paul Liberman 2020 Trust is c/o DraftKings, 222 Berkeley
St, 5<SUP>th</SUP> Floor, Boston, MA 02116. Paul Liberman is President, Global Technology and a director of DraftKings and a party
to the Stockholders Agreement.</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"><SUP>(15)</SUP> Comprised of (i) 530,442
shares of Class A common stock and 3,251 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Matthew Kalish, (ii) 6,507 shares of Class A common stock and 40 shares of
Class A common stock issuable upon exercise of an equal number of private placement warrants that are exercisable within 30 days
held by the Kalish Family 2020 Irrevocable Trusts and (iii) 633,497 shares of Class A common stock and 3,883 shares of Class A
common stock issuable upon exercise of an equal number of private placement warrants that are exercisable within 30 days held by
the Matthew P. Kalish 2020 Trust. &ldquo;Shares of Class A Common Stock Beneficially Owned&rdquo; includes 2,797,926 vested options
beneficially owned by the Selling Securityholder and 42,020 shares underlying unvested options that will vest within 60 days. The
address of Matthew Kalish, the Kalish Family 2020 Irrevocable Trusts and the Matthew P. Kalish 2020 Trust is c/o DraftKings, 222
Berkeley St, 5<SUP>th</SUP> Floor, Boston, MA 02116. Matthew Kalish is President, DraftKings North America and a director of DraftKings
and a party to the Stockholders Agreement.</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"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><SUP>(16)</SUP> Comprised of (i) 535,240
shares of Class A common stock and 3,280 shares of Class A common stock underlying warrants beneficially owned by Moussefixe L.P.
over which Moussefixe L.P. and Charles Heilbronn have shared voting and dispositive power; (ii) 2,676,204 shares of Class A common
stock and 16,402 shares of Class A common stock underlying warrants beneficially owned by Mousserena, L.P. over which Mousserena,
L.P. and Charles Heilbronn have shared voting and dispositive power; and (iii) 356,827 shares of Class A common stock and 2,187
shares of Class A common stock underlying warrants beneficially owned by Moussescale over which Moussescale and Charles Heilbronn
have shared voting and dispositive power. The address of Moussefixe L.P., Mousserena, L.P. and Moussescale is Ugland House, 135
South Church Street, George Town, Grand Cayman KY1-1104 Cayman Islands. The address of Mr. Heilbronn is c/o Mousse Partners Limited,
9 West 57th St, New York, NY 10019.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><SUP>(17)</SUP> Comprised of 3,564,688 shares
of Class A common stock held by Randolph John Anderson. &ldquo;Shares of Class A Common Stock Offered&rdquo; includes 63,000 earnout
shares issued to the Selling Securityholder pursuant to the terms of the Earnout Escrow Agreement. The address of Randolph John
Anderson is Apt. 504, Royal Sunset, Royal Ocean Plaza, Ocean Village Ave, Gilbraltar. Randolph John Anderson is a party to the
Stockholders Agreement.</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"><SUP>(18)</SUP> Comprised of (i) 607,692
shares of Class A common stock and 3,724 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by DK Edgar LLC, (ii) 607,692 shares of Class A common stock and 3,724 shares
of Class A common stock issuable upon exercise of an equal number of private placement warrants that are exercisable within 30
days held by DK Winter LLC, (iii) 567,529 shares of Class A common stock, 20,186 shares of Class A common stock issuable upon the
exercise of the Old DK Warrants and 3,477 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held JAK II LLC, (iv) 713,803 shares of Class A common stock, 68,641 shares of Class
A common stock issuable upon the exercise of the Old DK Warrants and 4,375 shares of Class A common stock issuable upon exercise
of an equal number of private placement warrants that are exercisable within 30 days held by KPC Venture Capital LLC, (v) 443,015
shares of Class A common stock and 2,715 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Robert K. Kraft LLC and (vi) 451,796 shares of Class A common stock, 31,843
shares of Class A common stock issuable upon the exercise of the Old DK Warrants and 2,770 shares of Class A common stock issuable
upon exercise of an equal number of private placement warrants that are exercisable within 30 days held Two R LLC. Kraft has a
marketing agreement with an affiliate of DraftKings and DraftKings has a sponsorship relationship with Gillette Stadium and the
New England Patriots, pursuant to which DraftKings pays an annual fee to advertise and promote its brand and products at Gillette
Stadium and through certain marketing and medial channels associates with Gillette Stadium and the Patriots. Jonathan A. Kraft
is the managing member of DK Edgar LLC and JAK II LLC. Daniel A. Kraft is the managing member of DK Winter, LLC. Robert K. Kraft
is the sole director of the manager of KPC Venture Capital LLC and Robert K. Kraft LLC and the managing member of Two R LLC. The
address of DK Edgar LLC, DK Winter LLC, JAK II LLC, KPC Venture Capital LLC, Robert K. Kraft LLC and Two R LLC is One Patriot Place,
Foxborough, MA 02035. The Selling Securityholder is a party to the Stockholders Agreement.</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"><SUP>(19)</SUP> Comprised of (i) 3,121,618
shares of Class A common stock and 19,132 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Park West Investors Master Fund, Limited and (ii) 345,922 shares of Class
A common stock and 2,120 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by Park West Partners International, Limited. Peter S. Park is the sole member and manager
of Park West Asset Management, LLC, the investment manager of Park West Investors Master Fund, Limited and Park West Partners International,
Limited. The address of Park West Investors Master Fund, Limited and Park West Partners International, Limited is c/o Park West
Asset Management LLC, 900 Larkspur Landing Circle, Suite 165, Larkspur, CA 94939. The Selling Securityholder is a party to the
Stockholders Agreement.</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"><SUP>(20)</SUP> Comprised of (i) 901,560
shares of Class A common stock and 5,526 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by AP Investment Series, LLC, (ii) 624,157 shares of Class A common stock and
3,825 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants that are exercisable
within 30 days held by ArrowMark Fundamental Opportunity Fund, L.P., (iii) 973,486 shares of Class A common stock and 5,966 shares
of Class A common stock issuable upon exercise of an equal number of private placement warrants that are exercisable within 30
days held by Meridian Growth Fund and (iv) 868,244 shares of Class A common stock and 5,321 shares of Class A common stock issuable
upon exercise of an equal number of private placement warrants that are exercisable within 30 days held by Meridian Small Cap Growth
Fund. The address of AP Investment Series, LLC, ArrowMark Fundamental Opportunity Fund, L.P., Meridian Growth Fund and Meridian
Small Cap Growth Fund is c/o ArrowMark Partners, 100 Fillmore St, Suite 325, Denver, CO 80206. The Selling Securityholder is a
party to the Stockholders Agreement.</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"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><SUP>(21)</SUP> Comprised of (i) 847,490
shares of Class A common stock and 5,194 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Top Tier Venture Capital VIII Holdings and (ii) 2,064,844 shares of Class
A common stock and 12,655 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by Top Tier Venture Velocity Fund 2, LP. The address of Top Tier Venture Capital VIII
Holdings and Top Tier Venture Velocity Fund 2, LP is First Republic Bank, 111 Pine St, San Francisco, CA 94111. The Selling Securityholder
is a party to the Stockholders Agreement.</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"><SUP>(22)</SUP> Comprised of (i) 116,482
shares of Class A common stock and 714 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by JS Capital LLC and (ii) 2,702,636 shares of Class A common stock and 16,564
shares of Class A common stock issuable upon exercise of an equal number of private placement warrants that are exercisable within
30 days held by Quantum Partners LP. This statement relates to shares held for the account of Quantum Partners LP, a Cayman Islands
exempted limited partnership (&ldquo;Quantum&rdquo;). Soros Fund Management LLC (&ldquo;SFM LLC&rdquo;) serves as investment manager
to Quantum. As such, SFM LLC has been granted investment discretion over portfolio investments held for the account of Quantum.
As of the date hereof, George Soros is the Chairman of SFM LLC and has sole discretion to replace FPR Manager LLC, the manager
of SFM LLC. The address of JS Capital LLC and Quantum Partners LP is c/o Soros Fund Management LLC, 250 West 55th St, New York,
NY 10019. The Selling Securityholder is a party to the Stockholders Agreement.</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"><SUP>(23)</SUP> Comprised of (i) 132,710
shares of Class A common stock and 813 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by MVP All-Star Fund III LLC, (ii) 76,030 shares of Class A common stock and
466 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants that are exercisable
within 30 days held by MVP All-Star Fund IIIC LLC, (iii) 416,105 shares of Class A common stock and 2,550 shares of Class A common
stock issuable upon exercise of an equal number of private placement warrants that are exercisable within 30 days held by MVP All-Star
Master Fund LLC, (iv) 1,869,408 shares of Class A common stock and 11,457 shares of Class A common stock issuable upon exercise
of an equal number of private placement warrants that are exercisable within 30 days held by MVP Opportunity Fund V LLC, (v) 159,574
shares of Class A common stock and 978 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by MVP Opportunity Fund VI LLC, Series VI-D1 and (vi) 61,449 shares of Class
A common stock and 377 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants that
are exercisable within 30 days held by MVP Opportunity Fund VI LLC, Series V1-D4. Eric Branchfeld is the manager of MVP Manager
LLC, the manager of MVP All-Star Fund III LLC, MVP All-Star Fund IIIC LLC, MVP All-Star Master Fund LLC, MVP Opportunity Fund V
LLC, MVP Opportunity Fund VI LLC, Series VI-D and MVP Opportunity Fund VI LLC, Series V1-D4. The address of MVP All-Star Fund III
LLC, MVP All-Star Fund IIIC LLC, MVP All-Star Master Fund LLC, MVP Opportunity Fund V LLC, MVP Opportunity Fund VI LLC, Series
VI-D and MVP Opportunity Fund VI LLC, Series V1-D4 is c/o Manhattan Venture Partners, 152 Madison Avenue, 7th Floor, New York,
NY 10016. The Selling Securityholder is a party to the Stockholders Agreement.</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"><SUP>(24)</SUP> Comprised of 1,789,623 shares
of Class A common stock, and 929,100 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Eagle Equity Partners, LLC. &ldquo;Shares of Class A Common Stock Offered&rdquo;
includes 2,671,935 earnout shares issued to the Selling Securityholder pursuant to the terms of the Earnout Escrow Agreement. The
address of Eagle Equity Partners, LLC is 2121 Avenue of the Stars, Suite 2300, Los Angeles, CA 90067. Eagle Equity Partners, LLC
was the sponsor of DEAC and is a party to the Stockholders Agreement.</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"><SUP>(25)</SUP> Comprised of 1,789,618
shares of Class A common stock, 929,099 shares of Class A common stock issuable upon exercise of an equal number of private
placement warrants that are exercisable within 30 days held by Harry E. Sloan. &ldquo;Shares of Class A Common Stock
Offered&rdquo; includes 2,608,065 earnout shares issued to the Selling Securityholder pursuant to the terms of the Earnout
Escrow Agreement. The address of Harry E. Sloan is 2121 Avenue of the Stars, Suite 2300, Los Angeles, CA 90067. Harry E.
Sloan was one of the founders of DEAC, is the Vice Chairman of DraftKings and is a party to the Stockholders Agreement.</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"><SUP>(26)</SUP> Comprised of 2,546,206 shares
of Class A common stock held by J Gleek Properties Limited. &ldquo;Shares of Class A Common Stock Offered&rdquo; includes 45,000
earnout shares issued to the Selling Securityholder pursuant to the terms of the Earnout Escrow Agreement. Julian Gleek is the
sole director of the Selling Securityholder and is a party to the Stockholders Agreement. The address of J Gleek Properties Limited
is Richmond House, Avomouth Way, Avonmouth, Bristol, United Kingdom, BS11 8DE.</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"><SUP>(27)</SUP> Comprised of 2,149,874 shares
of Class A common stock and 13,176 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Schechter Private Capital Fund1, LLC - GTP Series J. Marc Rodney Schechter
is the President and Fund Manager of Schechter Private Capital Fund1, LLC - GTP Series J. The address of Schechter Private Capital
Fund1, LLC - GTP Series J is 251 Pierce St, Attn: Marc Schechter, Birmingham, MI 48009. The Selling Securityholder is a party to
the Stockholders Agreement.</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"></P>

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<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"><SUP>(28) </SUP>Comprised of 1,985,927 shares
of Class A common stock and 12,172 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by ClipperBay and Co (HG22) f/b/o SmallCap World Fund, Inc. The address of ClipperBay
and Co (HG22) f/b/o SmallCap World Fund, Inc. is 333 South Hope St, 50th Floor, Los Angeles, CA 90071. The Selling Securityholder
is a party to the Stockholders Agreement.</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"><SUP>(29)</SUP> Comprised of 1,696,072 shares
of Class A common stock and 10,395 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Carmenta Opportunities 2020, L.P. The Control Persons of Carmenta Opportunities
2020, L.P. are Kirk Dizon and Andrew Dipkin. The address of Carmenta Opportunities 2020, L.P. is 191 Knoll Pl, St. Helena, CA 94574.</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"><SUP>(30)</SUP> Comprised of 1,464,308 shares
of Class A common stock and 8,975 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Madison Square Garden Investments, LLC. Madison Square Garden Investments
is indirectly owned by Madison Square Garden Entertainment Corp., which is controlled by members of the Dolan family, including
trusts for members of the Dolan family. Each Control Person disclaims beneficial ownership of the shares of the Company held by
MSG Entertainment Corp. and its subsidiaries, except to the extent of any pecuniary interest therein, and this response should
not be deemed an admission that any of the Controlled Persons is a beneficial owner of such securities for purposes of Section
16 of the Securities Exchange Act of 1934, as amended, or for any other purpose. This Selling Securityholder was previously party
to a marketing partnership with DraftKings, which expired in 2019. The address of Madison Square Garden Investments, LLC is 2 Pennsylvania
Plaza, New York, NY 10121.</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"><SUP>(31)</SUP> Comprised of (i) 611,776
shares of Class A common stock and 3,750 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by UIT Growth Equity Series DK Limited Partnership and (ii) 635,193 shares of
Class A common stock and 3,893 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by UIT Growth Equity Series DK3 Limited Partnership. Patrick Robinson is the partner of
UIT Growth Equity Series DK Limited Partnership and UIT Growth Equity Series DK3 Limited Partnership. The address of UIT Growth
Equity Series DK Limited Partnership and UIT Growth Equity Series DK3 Limited Partnership is 999 Hastings St W, Vancouver, BC Canada
V6C 2W2. The Selling Securityholder is a party to the Stockholders Agreement.</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"><SUP>(32)</SUP> Comprised of 1,191,049 shares
of Class A common stock and 7,300 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held Boston Seed Capital II, L.P. Nicole M. Stata is the managing member of Boston
Seed Capital II, L.P. The address of Boston Seed Capital II, L.P. is PO Box 309, Westwood, MA 02090.</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"><SUP>(33)</SUP> Comprised of 1,043,865 shares
of Class A common stock and 6,398 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Carnegie GM Partners LLC. The managers of Carnegie GM Partners LLC are Andrew
C. Walter and Geraldine F. McMamus. The address of Carnegie GM Partners LLC is 17 State St, Ste 3220, New York, NY 10004.</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"><SUP>(34)</SUP> Comprised of (i) 200,659
shares of Class A common stock and 1,230 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by BDS Venture Fund II LLC and (ii) 661,029 shares of Class A common stock and
4,051 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants that are exercisable
within 30 days held by BDS Venture Fund LLC. Brian Rubinstein, a former board observer of Former DK, is the manager of the funds.
The address of BDS Venture Fund II, BDS Venture Fund and its manager is 31 Sherwood Ln, Roslyn Heights, NY 11577.</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"><SUP>(35)</SUP> Comprised of 858,710 shares
of Class A common stock and 5,263 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Wildcat Opportunistic DraftKings Fund, LP. Richard Travia is the managing
member of Wildcat Opportunistic DraftKings Fund, LP. The address of Wildcat Opportunistic DraftKings Fund, LP is 275 Woodbine Cir,
New Providence, NJ 07974.</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"><SUP>(36)</SUP> Comprised of 835,773 shares
of Class A common stock and 5,122 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Ashley Kalish. The address of Ashley Kalish is c/o DraftKings, 222 Berkeley
St, 5<SUP>th</SUP> Floor, Boston, MA 02116.</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"><SUP>(37)</SUP> Comprised of (i) 801,183
shares of Class A common stock and 4,910 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Title 19 DK. The manager of Title 19 DK is Michael S. Gordon. The address
of Title 19 DK is 126 Brookline Ave, 3rd Fl, Boston, MA 02215.</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"></P>

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<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"><SUP>(38)</SUP> Comprised of (i) 326,406
shares of Class A common stock and 2,001 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Schiller Partners, Inc., (ii) 69,351 shares of Class A common stock and 425
shares of Class A common stock issuable upon exercise of an equal number of private placement warrants that are exercisable within
30 days held by Schiller Revocable Trust #2, (iii) 257,055 shares of Class A common stock and 1,575 shares of Class A common stock
issuable upon exercise of an equal number of private placement warrants that are exercisable within 30 days held by Rio Vista Investments
LLC and (iv) 138,701 shares of Class A common stock and 850 shares of Class A common stock issuable upon exercise of an equal number
of private placement warrants that are exercisable within 30 days held by DRVS LLC. Jonathan Schiller is the President and Director
of Schiller Partners, Inc. and the trustee of Schiller Revocable Trust #2. Amy Habie is the manager of Rio Vista Investments LLC
and DRVS LLC. The address of Schiller Partners, Inc. and Schiller Revocable Trust #2 is c/o Boies Schiller Flexner LLP, 55 Hudson
Yards, 20th Fl, New York, NY 10001. The address of Rio Vista Investments LLC and DRVS LLC is 2200 Corporate Blvd NW, Ste 400, Boca
Raton, FL 33431.</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"><SUP>(39)</SUP> Comprised of 774,183 shares
of Class A common stock and 4,745 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by GGV Capital Select L.P. The general partner of GGV Capital Select L.P. is
GGV Capital Select L.L.C. The managing partners of GGV Capital Select L.L.C. are Jixun Foo, Yew Mei Green, Glenn Solomon, Jenny
Hong Wei Lee, Jeffrey Gordon Richards and Hans Tung. The address of GGV Capital Select L.P. is 3000 Sand Hill Rd, Suite 4-230,
Menlo Park, CA 94025. The Selling Securityholder is a party to the Stockholders Agreement.</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"><SUP>(40)</SUP> Comprised of 710,643 shares
of Class A common stock and 4,355 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Hub Angel Investment Group, Fund IV. The managing director of Hub Angel Investment
Group, Fund IV is Charles Cameron. The address of Hub Angel Investment Group, Fund IV is 131 Marlborough St, Unit 4, Boston, MA
02116.</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"><SUP>(41)</SUP> Comprised of 676,588 shares
of Class A common stock and 4,147 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Brandywine Private Equity Partners (2016), LP. The general partner of Brandywine
Private Equity Partners (2016), LP is Brandywine Managers, LLC. The authorized signers of Brandywine Managers, LLC are Richard
E. Carlson, John A. Ciccarone and William Scott Campbell. The address of Richard E. Carlson is 859 Old Public Rd, Hockessin, DE
19707. The address of John A. Ciccarone is 122 Round Hill Rd, Kennett Square, PA 19348. The address of William Scott Campbell is
395 Thornton Rd, Cheyney, PA 19319.</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"><SUP>(42)</SUP> Comprised of (i) 554,806
shares of Class A common stock and 3,400 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Veralda AB, (ii) 27,740 shares of Class A common stock and 170 shares of Class
A common stock issuable upon exercise of an equal number of private placement warrants that are exercisable within 30 days held
by Nunataq AB and (iii) 41,610 shares of Class A common stock and 255 shares of Class A common stock issuable upon exercise of
an equal number of private placement warrants that are exercisable within 30 days held by Kristian Nylen. Anderson Strom is the
director and owner of Veralda AB. Patrick Clase is the director and owner of Nunataq AB. The address of Veralda AB is 35 Carvile
St, London SW 3 GHA, United Kingdom. The address of Nuntaq AB is Korsovagen 19, 19249 Enebyberg, Sweden. The address of Kristian
Nylen is c/o DraftKings, 222 Berkeley St, 5<SUP>th</SUP> Floor, Boston, MA 02116.</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"><SUP>(43)</SUP> Comprised of 57,463
shares of Class A common stock and 352 shares of Class A common stock issuable upon exercise of an equal number of private
placement warrants that are exercisable within 30 days held by Jordan Mendell, an employee of DraftKings. &ldquo;Shares of
Class A common stock Beneficially Owned&rdquo; includes 552,299 vested options beneficially owned by the Selling
Securityholder and 1,879 shares underlying unvested options that will vest within 60 days. The address of Jordan Mendell is
c/o DraftKings, 222 Berkeley St, 5<SUP>th</SUP> Floor, Boston, MA 02116.</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"><SUP>(44)</SUP> Comprised of 578,383 shares
of Class A common stock and 3,545 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Kombo Growth Fund I, LLC. Kevin Gould is the President of KRG Entertainment,
LLC, the managing member of Kombo Growth Fund I, LLC. The address of Kombo Growth Fund I, LLC is 6600 Sunset Blvd, Ste 235, Los
Angeles, CA 90028.</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"><SUP>(45)</SUP> Comprised of 565,762 shares
of Class A common stock and 3,468 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by SP Investment Associates, L.P. Stephen G. Pagliuca and Anastasios Parafestas
are the managers of Roundview Partners, LLC, the general partner of SP Investment Associates, L.P. The address of SP Investment
Associates, L.P. is One Joy St, Boston, MA 02108.</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"></P>

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<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"><SUP>(46)</SUP> Comprised of (i) 43,651
shares of Class A common stock and 268 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by EquityZen Growth Technology Fund LLC - Series 212, (ii) 308,382 shares of
Class A common stock and 1,890 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by EquityZen Growth Technology Fund LLC - Series 265 and (iii) 194,495 shares of Class
A common stock and 1,192 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by EquityZen Growth Technology Fund LLC - Series 397. The manager representatives of
EquityZen Growth Technology Fund LLC - Series 212, EquityZen Growth Technology Fund LLC - Series 265 and EquityZen Growth Technology
Fund LLC - Series 397 are Philip Haslett and Atish Davda. The address of EquityZen Growth Technology Fund LLC - Series 212, EquityZen
Growth Technology Fund LLC - Series 265 and EquityZen Growth Technology Fund LLC - Series 397 is 45 West 27th St, Suite 200, New
York, NY 10001.</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"><SUP>(47)</SUP> Comprised of 484,201 shares
of Class A common stock and 2,968 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by NHL Enterprises, LP. Craig C. Harnett, Senior Executive Vice President &amp;
CFO of NHL Enterprises, LP. DraftKings was previously a sponsor and licensee of intellectual property from NHL Enterprises, LP.
The address of NHL Enterprises, LP is 1185 Ave of the Americas, New York, NY 10036.</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"><SUP>(48)</SUP> Comprised of 482,920 shares
of Class A common stock and 2,960 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by the MJE Personal Gift Trust A. The beneficiary of the MJE Personal Gift Trust
A is Michael J. Egan. The address of the MJE Personal Gift Trust A is 8 Queen Anne Ave, Hopkinton, MA 01748.</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"><SUP>(49)</SUP> Comprised of 451,059 shares
of Class A common stock and 2,764 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Las Olas Private Equity VII, LP. Justin Courtenay is the president of Las
Olas Private Equity VII, LP. The address of Las Olas Private Equity VII, LP is 401 E Las Olas Blvd, Ste 2200, Fort Lauderdale,
FL 33301.</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"><SUP>(50)</SUP> Comprised of (i) 276,183
shares of Class A common stock and 1,693 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Woodrow Levin, (ii) 44,204 shares of Class A common stock and 271 shares of
Class A common stock issuable upon exercise of an equal number of private placement warrants that are exercisable within 30 days
held by the Levin Family 2015 Irrevocable Trust and (iii) 3,093 shares of Class A common stock and 19 shares of Class A common
stock issuable upon exercise of an equal number of private placement warrants that are exercisable within 30 days held by OneSix
Red, LLC. &ldquo;Shares of Class A common stock Beneficially Owned&rdquo; includes 82,802 vested options beneficially owned by
the Selling Securityholder and 7,109 shares underlying unvested options that will vest within 60 days. The address of Woodrow Levin
and the Levin Family 2015 Irrevocable Trust is c/o DraftKings, 222 Berkeley St, 5<SUP>th</SUP> Floor, Boston, MA 02116. The address
of OneSix Red, LLC is 46 Wilmot St, San Francisco, CA 94115. Woodrow Levin is a director of DraftKings and a party to the Stockholders
Agreement.</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"><SUP>(51)</SUP> Comprised of 394,594 shares
of Class A common stock and 2,418 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Smash Ventures Tackle SPV LLC. Evan Richter is the general partner of Smash
Ventures Tackle SPV LLC. The address of Smash Ventures Tackle SPV LLC is 8902 Rangely Ave, W Hollywood, CA 90048.</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"><SUP>(52)</SUP> Comprised of 346,754 shares
of Class A common stock and 2,125 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by PBE Investments, Ltd. The control person of PBE Investments, Ltd is Paul B.
Edgerley. The address of PBE Investments, Ltd is 119 Hyslop Rd, Brookline, MA 02445.</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"><SUP>(53)</SUP> Comprised of 77,798 shares
of Class A common stock and 477 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by Gregory Brian Karamitis, an employee of DraftKings. &ldquo;Shares of Class A common
stock Beneficially Owned&rdquo; includes 263,792 vested options beneficially owned by the Selling Securityholder and 5,194 shares
underlying unvested options that will vest within 60 days. The address of Gregory Brian Karamitis is c/o DraftKings, 222 Berkeley
St, 5<SUP>th</SUP> Floor, Boston, MA 02116.</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"><SUP>(54)</SUP> Comprised of 9,346 shares
of Class A common stock and 57 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by Travis Dunn. &ldquo;Shares of Class A common stock Beneficially Owned&rdquo; includes
311,763 vested options beneficially owned by the Selling Securityholder and 11,604 shares underlying unvested options that will
vest within 60 days. The address of Travis Dunn is c/o DraftKings, 222 Berkeley St, 5<SUP>th</SUP> Floor, Boston, MA 02116. Travis
Dunn is the Chief Technology Officer of DraftKings and a party to the Stockholders Agreement.</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"><SUP>(55)</SUP> Comprised of 289,299 shares
of Class A common stock and 1,773 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held Brookwood Partners LP. Barry Rubenstein is the general partner of Brookwood Partners
LP. The address of Brookwood Partners LP is 68 Wheatley Rd, Brookville, NY 11545.</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"></P>

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<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"><SUP>(56)</SUP> Comprised of (i) 240,453
shares of Class A common stock and 1,474 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Data Point Capital II, L.P. and (ii) 36,950 shares of Class A common stock
and 226 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants that are exercisable
within 30 days held by Data Point Capital II-Q, L.P. Scott Savitz and Mike Majors are the managing members of Data Point Partners
II, LLC, the general partner of Data Point Capital II, LP and Data Point Capital II-Q, L.P. The address of Data Point Capital II,
L.P. and Data Point Capital II-Q, L.P. is One Marina Park Dr, 10th Fl, Boston, MA 02210.</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"><SUP>(57)</SUP> Comprised of 101,668 shares
of Class A common stock and 623 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by Stephanie Sherman, an employee of DraftKings. &ldquo;Shares of Class A common stock
Beneficially Owned&rdquo; includes 167,914 vested options beneficially owned by the Selling Securityholder and 6,630 shares underlying
unvested options that will vest within 60 days. The address of Stephanie Sherman is c/o DraftKings, 222 Berkeley St, 5<SUP>th</SUP>
Floor, Boston, MA 02116.</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"><SUP>(58)</SUP> Comprised of 262,390 shares
of Class A common stock and 1,608 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Benvolio Ventures LLC &ndash; Series Draft Kings. Ernest David Odinec, Samuel
Paul Frankfort and Lewis Joseph Frankfort are the managers of Benvolio Group LLC, the manager of Benvolio Ventures LLC - Series
Draft Kings. The address of Benvolio Ventures LLC &ndash; Series Draft Kings is 3 Columbus Cir, Ste 2120, New York, NY 10019.</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"><SUP>(59)</SUP> Comprised of 261,941 shares
of Class A common stock and 1,605 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by World Wrestling Entertainment, Inc. Frank Riddick is the interim Chief Financial
Officer of World Wrestling Entertainment, Inc. The address of World Wrestling Entertainment, Inc. is 1241 E Main St, Stamford,
CT 06902.</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"><SUP>(60)</SUP> Comprised of 243,476 shares
of Class A common stock and 1,492 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by AngelList-Dngs-Fund, a series of AngelList-FkKa-Funds, LLC. The address of
AngelList-Dngs-Fund, a series of AngelList-FkKa-Funds, LLC is c/o Belltower Fund Group, Ltd., PO Box 3217, Seattle, WA 98114.</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: justify"><SUP>(61)</SUP> Comprised of 8,487 shares
of Class A common stock and 52 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by Edward Zaleski, an employee of DraftKings. &ldquo;Shares of Class A common stock Beneficially
Owned&rdquo; includes 225,784 vested options beneficially owned by the Selling Securityholder and 331 shares underlying unvested
options that will vest within 60 days. The address of Edward Zaleski is c/o DraftKings, 222 Berkeley St, 5<SUP>th</SUP> Floor,
Boston, MA 02116.</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: left"><SUP>(62)</SUP> Comprised of 207,620 shares
of Class A common stock and 1,272 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Jeffrey Haas, an employee of DraftKings. &ldquo;Shares of Class A common stock
Beneficially Owned&rdquo; includes 11,024 vested options beneficially owned by the Selling Securityholder and 1,878 shares underlying
unvested options that will vest within 60 days. The address of Jeffrey Haas is c/o DraftKings, 222 Berkeley St, 5<SUP>th</SUP>
Floor, Boston, MA 02116.</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"><SUP>(63)</SUP> Comprised of 216,041 shares
of Class A common stock and 1,324 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by TPI DraftKings Investment I, LLC. Tracy Deforge is the managing member of
The Players&rsquo; Impact Ventures, LLC, which is the manager of TPI DraftKings Investment I, LLC. The address of TPI DraftKings
Investment I, LLC is 102 Union St, Franklin, MA 02038.</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"><SUP>(64)</SUP> Comprised of 193,680 shares
of Class A common stock and 1,187 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held Legends Hospitality, LLC. Legends Hospitality, LLC is wholly-owned by Legends
Hospitality Holding Company, LLC. The President and Chief Executive Officer of Legends Hospitality Holding Company, LLC is Shervin
Mirhashemi. The address of Legends Hospitality, LLC is 61 Broadway, Ste 2400, New York, NY 10006.</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"><SUP>(65)</SUP> Comprised of 193,174 shares
of Class A common stock and 1,184 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Janet Holian, a former officer of  Old DK and the CEO of DRIVE by
DraftKings. The address of Janet Holian is c/o DraftKings, 222 Berkeley St, 5<SUP>th</SUP> Floor, Boston, MA 02116.</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"></P>

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<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"><SUP>(66)</SUP> Comprised of 185,393 shares
of Class A common stock and 1,136 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Fort Point Fund DK, LLC. The manager of Fort Point Fund DK, LLC is Joseph
L. Kempf. The address of Fort Point Fund DK, LLC is 2780 SE 7th Dr, Pompano Beach, FL 33062.</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"><SUP>(67)</SUP> Comprised of 127,306 shares
of Class A common stock and 780 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by Jonathan Aguiar, an employee of DraftKings. &ldquo;Shares of Class A common stock Beneficially
Owned&rdquo; includes 55,694 vested options beneficially owned by the Selling Securityholder and 221 shares underlying unvested
options that will vest within 60 days. The address of Jonathan Aguiar is c/o DraftKings, 222 Berkeley St, 5<SUP>th</SUP> Floor,
Boston, MA 02116.</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"><SUP>(68)</SUP> Comprised of 164,015 shares
of Class A common stock and 1,005 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Agman Investments, LLC. Howard Scott Silverman is the manager of Agman Investments,
LLC. The address of Agman Investments, LLC is 10 E Ohio St, 2<SUP>nd</SUP> Floor, Chicago, IL 60611.</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"><SUP>(69)</SUP> Comprised of 20,000 shares
of Class A common stock and 133,333 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Joshua Kazam, a former director of DEAC and a party to the Stockholders Agreement.
The address of Joshua Kazam is 2121 Avenue of the Stars, Suite 2300, Los Angeles, CA 90067.</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"><SUP>(70)</SUP> Comprised of 20,000 shares
of Class A common stock and 133,333 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Frederic Rosen, a former director of DEAC and a party to the Stockholders
Agreement. The address of Frederic Rosen is 2121 Avenue of the Stars, Suite 2300, Los Angeles, CA 90067.</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"><SUP>(71)</SUP> Comprised of 18,898 shares
of Class A common stock and 116 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by Scott Salsbury, an employee of DraftKings. &ldquo;Shares of Class A common stock Beneficially
Owned&rdquo; includes 123,404 vested options beneficially owned by the Selling Securityholder and 1,105 shares underlying unvested
options that will vest within 60 days. The address of Scott Salsbury is c/o DraftKings, 222 Berkeley St, 5<SUP>th</SUP> Floor,
Boston, MA 02116.</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"><SUP>(72)</SUP> Comprised of 137,258 shares
of Class A common stock and 841 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by Benjamin F. Stein. The address of Benjamin F. Stein is c/o DraftKings, 222 Berkeley
St, 5<SUP>th</SUP> Floor, Boston, MA 02116.</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"><SUP>(73)</SUP> Comprised of 88,407 shares
of Class A common stock and 542 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by Edward Silva, an employee of DraftKings. &ldquo;Shares of Class A common stock Beneficially
Owned&rdquo; includes 44,192 vested options beneficially owned by the Selling Securityholder and 1,436 shares underlying unvested
options that will vest within 60 days. The address of Edward Silva is c/o DraftKings, 222 Berkeley St, 5<SUP>th</SUP> Floor, Boston,
MA 02116.</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"><SUP>(74)</SUP> Comprised of 131,212 shares
of Class A common stock and 804 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by the Timothy J. McSweeney 2006 Trust. The trustees of the Timothy J. McSweeney 2006
Trust are Timothy J. McSweeney and Debie A. McSweeney. The address of the Timothy J. McSweeney 2006 Trust is 9 Cliff Rd, Weston,
MA 02493.</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"><SUP>(75)</SUP> Comprised of (i) 88,407
shares of Class A common stock and 542 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Peter Vaccarella, (ii) 13,127 shares of Class A common stock and 80 shares
of Class A common stock issuable upon exercise of an equal number of private placement warrants that are exercisable within 30
days held by Vincent Vaccarella and (iii) 26,289 shares of Class A common stock and 161 shares of Class A common stock issuable
upon exercise of an equal number of private placement warrants that are exercisable within 30 days held by Frank Vaccarella. The
address of Peter Vaccarella, Vincent Vaccarella and Frank Vaccarella is c/o DraftKings, 222 Berkeley St, 5<SUP>th</SUP> Floor,
Boston, MA 02116.</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"><SUP>(76)</SUP> Comprised of 123,770 shares
of Class A common stock and 759 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by Disruptive Ventures, LLC. 7579 Holdings LLC is the managing member of Disruptive Ventures,
LLC. The address of Disruptive Ventures, LLC is 200 Vesey St, 24th Fl, New York, NY 10281.</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"><SUP>(77)</SUP> Comprised of 116,303 shares
of Class A common stock and 713 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by Angel Street Capital, LLC. Robert J. Maccini and Joseph V. Gallagher are the managing
members of Angel Street Capital, LLC. The address of Angel Street Capital, LLC is 34 Narragansett Ave, Ste 4, Jamestown, RI 02835.</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"></P>

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<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"><SUP>(78)</SUP> Comprised of 11,272 shares
of Class A common stock and 69 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by Timothy John Parilla, an employee of DraftKings. &ldquo;Shares of Class A common stock
Beneficially Owned&rdquo; includes 98,956 vested options beneficially owned by the Selling Securityholder and 4,475 shares underlying
unvested options that will vest within 60 days. The address of Timothy John Parilla is c/o DraftKings, 222 Berkeley St, 5<SUP>th</SUP>
Floor, Boston, MA 02116.</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"><SUP>(79)</SUP> Comprised of 113,108 shares
of Class A common stock and 693 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by SperWood, LLC. John Albert Elway and Jeffrey Michael Sperbeck are the managing partners
and beneficial owners of SperWood LLC. The address of SperWood LLC is 2200 S. Jackson St. Denver, CO 80211.</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"><SUP>(80)</SUP> Comprised of 111,815 shares
of Class A common stock and 685 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by Joshua Weiss. The address of Joshua Weiss is c/o DraftKings, 222 Berkeley St, 5<SUP>th</SUP>
Floor, Boston, MA 02116.</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"><SUP>(81)</SUP> Comprised of 101,706 shares
of Class A common stock and 623 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by JNI Investments, LLC. Jesse Izak is the member of JNI Investments, LLC. The address
of JNI Investments, LLC is 129 W 69th St, Apt 1, New York, NY 1002.</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"><SUP>(82)</SUP> Comprised of 99,804 shares
of Class A common stock and 612 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by ACP Venture Capital Fund II LLC. Anthony Simone and Anthony Gardini are co-managers
of ACP Venture Capital Fund II LLC. The address of ACP Venture Capital Fund II LLC is 205 Oser Ave, Hauppauge, NY 11788.</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"><SUP>(83)</SUP> Comprised of 64,537 shares
of Class A common stock and 396 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by Andrew W. Jonas, an employee of DraftKings. &ldquo;Shares of Class A common stock Beneficially
Owned&rdquo; includes 31,956 vested options beneficially owned by the Selling Securityholder and 2,983 shares underlying unvested
options that will vest within 60 days. The address of Andrew W. Jonas is c/o DraftKings, 222 Berkeley St, 5<SUP>th</SUP> Floor,
Boston, MA 02116.</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"><SUP>(84)</SUP> Comprised of 5,525 shares
of Class A common stock and 34 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by James M. Scarpellini, an employee of DraftKings. &ldquo;Shares of Class A common stock
Beneficially Owned&rdquo; includes 87,961 vested options beneficially owned by the Selling Securityholder and 1,990 shares underlying
unvested options that will vest within 60 days. The address of James M. Scarpellini is c/o DraftKings, 222 Berkeley St, 5<SUP>th</SUP>
Floor, Boston, MA 02116.</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"><SUP>(85)</SUP> Comprised of 17,792 shares
of Class A common stock and 109 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by Elaine Milardo, an employee of DraftKings. &ldquo;Shares of Class A common stock Beneficially
Owned&rdquo; includes 73,572 vested options beneficially owned by the Selling Securityholder and 2,984 shares underlying unvested
options that will vest within 60 days. The address of Elaine Milardo is c/o DraftKings, 222 Berkeley St, 5<SUP>th</SUP> Floor,
Boston, MA 02116.</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"><SUP>(86)</SUP> Comprised of 92,868 shares
of Class A common stock and 569 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by Stephen and Mary Ann Phillips. The address of Stephen and Mary Ann Phillips is c/o
DraftKings, 222 Berkeley St, 5<SUP>th</SUP> Floor, Boston, MA 02116.</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"><SUP>(87)</SUP> Comprised of 20,000 shares
of Class A common stock and 66,666 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Scott M. Delman, a former director of DEAC and a party to the Stockholders
Agreement. The address of Scott M. Delman is 2121 Avenue of the Stars, Suite 2300, Los Angeles, CA 90067.</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"><SUP>(88)</SUP> Comprised of 84,570 shares
of Class A common stock and 518 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by PPR Investors, LLC. Howard Glen Goldstein is the managing member of PPR Investors,
LLC. The address of PPR Investors, LLC is 8506 Salem Way, Bethesda, MD 20814.</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"><SUP>(89)</SUP> Comprised of 20,000 shares of Class A common stock held by Scott Ross, a former director of DEAC and a party to the Stockholders
Agreement. The address of Scott Ross is 2121 Avenue of the Stars, Suite 2300, Los Angeles, CA 90067.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><SUP>(90)</SUP> The disclosure with respect
to the remaining Selling Securityholders is being made on an aggregate basis, as opposed to an individual basis, because their
aggregate holdings are less than 1% of the outstanding shares of our Class A common stock. The address for these Selling Securityholders
is c/o DraftKings, 222 Berkeley St, 5<SUP>th</SUP> Floor, Boston, MA 02116</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Listing of Common Stock</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 Class A common stock and warrants
are currently listed on Nasdaq under the 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-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="a024"></A>CERTAIN RELATIONSHIPS AND RELATED PARTY
TRANSACTIONS</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>DEAC</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 March 28, 2019, the 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, the Sponsor transferred 4,930,625 founder shares to Harry E. Sloan for a purchase price of&thinsp;$12,250 (the
same per-share price initially paid by our 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 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&thinsp;$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, which, for the avoidance of doubt is May 23, 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 members of the DEAC Stockholder
Group have agreed not to transfer any shares of common stock beneficially owned or owned of record by such stockholder until the
earliest of (A) one year from the Closing, (B) the last consecutive trading day where the volume weighted average share price
equals or exceeds $15.00 per share for at least 20 out of 30 consecutive trading days, commencing not earlier than 180 days after
the Closing or (C) at the time DraftKings consummates a transaction after the transactions which results in the stockholders having
the right to exchange their shares of common stock for cash, securities or other property.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&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, DEAC sub-leased its executive offices at 2121 Avenue of the Stars, Suite 2300, Los Angeles, CA 90067 from Global
Eagle Acquisition LLC, an affiliate of DEAC&rsquo;s Sponsor. DEAC reimbursed Global Eagle Acquisition LLC for office space, secretarial
and administrative services provided to members of its management team in an amount not exceeding $15,000 per month. Upon completion
of the Business Combination, we ceased 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"><B>DraftKings</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: justify; text-indent: 0.5in"><B><I>Share Exchange
Agreement</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">On the Closing
Date, in connection with consummation of the Business Combination, Old DK, DEAC NV and Jason Robins entered into a Share Exchange
Agreement (the &ldquo;Exchange Agreement&rdquo;), pursuant to which, (i) Old DK issued 1,659,078 shares of its Class A common
stock and 393,013,951 shares of its Class B common stock in exchange for 1,659,078 shares of common stock of Old DK (the &ldquo;Share
Exchange&rdquo;) held by Jason Robins; (ii) DEAC NV and Old DK agreed to treat each of the Share Exchange and the Merger Share
Exchange (as defined in the Exchange Agreement) as a &ldquo;tax-free reorganization&rdquo;; and (iii) DEAC NV and Old DK agreed
to jointly and severally indemnify Jason Robins from and against any federal, state and local taxes resulting from the Share Exchange
itself with respect to, or as a result of, the receipt of such shares of Old DK Class B common stock or any income recognized
by Jason Robins with respect to such shares of Old DK Class B common stock received by him in connection with the Share Exchange
or the shares of DraftKings Class B common stock received by him in exchange for such shares of Old DK Class B common stock (including
interest and penalties, and costs and expenses incurred in connection with any audit, examination, inquiry or other action or
proceeding with respect to the foregoing (including the documented fees and disbursements of the CEO&rsquo;s counsel related thereto))
upon the Closing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">The foregoing description
of the Exchange Agreement does not purport to be complete and is qualified in its entirety by the terms and conditions of the
Exchange Agreement, which is attached as an exhibit to the registration statement of which the prospectus is a part.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Earnout Escrow
Agreement</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">On the Closing
Date, in connection with consummation of the Business Combination, DraftKings, Shalom Meckenzie, in his capacity as SBT Sellers&rsquo;
Representative, Eagle Equity Partners, LLC, Jeff Sagansky, Eli Baker, Harry Sloan, I.B.I. Trust Management, the trustee, and Computershare
Trust Company, N.A., as escrow agent, entered into an escrow agreement (the &ldquo;Earnout Escrow Agreement&rdquo;) pursuant to
which (i) 5,388,000 shares of DraftKings Class A common stock were delivered and deposited into a custodian account and (ii) 612,000
shares of DraftKings Class A common stock were delivered to the trustee, in each case, to be released pro-rata to the recipients
thereof only upon the occurrence of certain triggering events that relate to the achievement of certain stock price thresholds
based upon the volume weighted average share price of our Class&nbsp;A common stock ranging from $12.50 to $16.00 at any time
during a four-year period commencing on the Closing Date.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">The foregoing description
of the Earnout Escrow Agreement does not purport to be complete and is qualified in its entirety by the terms and conditions of
the Earnout Escrow Agreement, which is attached as an exhibit to the registration statement of which this prospectus is a part.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Stockholders
Agreement</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Corporate Governance</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: left; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection with the Business Combination,
the Company, the DEAC Stockholder Group, the DK Stockholder Group and the SBT Stockholder Group entered into the Stockholders
Agreement, which is filed as an exhibit to the registration of which this prospectus is a part, and which provides, among other
things, that, our Board will initially be as set forth below:&nbsp;&nbsp;</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-size: 10pt; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt"><I>DraftKings Directors</I>. Ten directors
    nominated by the DK Stockholder Group, which were the directors of Old DK, including the Chief Executive Officer and at least
    five directors who qualify as &ldquo;independent&rdquo; directors under The Nasdaq Stock Market listing rules.</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font-size: 10pt; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt"><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.</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font-size: 10pt; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt"><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). </FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font-size: 10pt; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">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 Board (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 our Class A common stock.</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font-size: 10pt; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">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.</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">Additionally, as of immediately following
the Company&rsquo;s 2021 annual meeting of stockholders (the &ldquo;2021 Annual Meeting&rdquo;), the total number of directors
constituting the Board will be reduced to eleven. The nominating and corporate governance committee of the Board will recommend
to the Board eleven candidates for election to the Board at the 2021 Annual Meeting, of which no more than eight will be any of
the ten directors initially nominated to serve on the Board by the DK Stockholder Group.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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>Lock-Ups</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">Pursuant to the Stockholders Agreement,
with certain limited exceptions, (i) no member of the DK Stockholder Group or the SBT Stockholder Group is permitted to transfer
any shares of common stock beneficially owned or owned of record by such stockholder for a period of 180 days from the Closing,
(ii) no member of the DEAC Stockholder Group is permitted to transfer any shares of common stock beneficially owned or owned of
record by such stockholder until the earliest of (A) one year from the Closing, (B) the last consecutive trading day where the
volume weighted average share price equals or exceeds $15.00 per share for at least 20 out of 30 consecutive trading days, commencing
not earlier than 180 days after the Closing or (C) at the time DraftKings consummates a transaction after the transactions which
results in the stockholders having the right to exchange their shares of common stock for cash, securities or other property;
and (iii) Mr. Robins is not permitted to transfer any shares of common stock beneficially owned or owned of record until two years
after the Closing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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>Permitted Transfers</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: 0.5in">At any time, any member of the Stockholder
Parties may transfer shares of DraftKings common stock:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Arial, Helvetica, Sans-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: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">pursuant
                                         to a merger, stock sale, consolidation or other business combination of DraftKings with
                                         a third party that results in a change in control of DraftKings;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Arial, Helvetica, Sans-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: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">so
                                         long as such member is an individual, (x)&nbsp;to such member&rsquo;s ancestors, descendants,
                                         siblings, cousins or spouse, (y)&nbsp;to trusts for the benefit of such member or such
                                         persons or (z)&nbsp;by way of bequest or inheritance upon death (provided that such transferee
                                         agrees in a writing to be bound by the terms of the Stockholders Agreement as a Stockholder
                                         Party); and</FONT></TD></tr></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Arial, Helvetica, Sans-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: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">to
                                         any wholly-owned affiliate of such Stockholder Party or to any person wholly owning such
                                         stockholder.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Following the expiration of the lock-up
periods, as applicable, the shares of DraftKings beneficially owned or owned of record by such stockholders may be sold without
restriction, other than the restriction to transfer in accordance with the Securities Act and other applicable federal or state
securities laws.</P>

<P STYLE="font: 10pt Times 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"><I>Registration Rights</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">The Stockholders Agreement provides
that within 30&nbsp;days of the Closing, DraftKings will file a shelf registration statement on Form S-1 with respect to resales
of all Registrable Securities (as defined in the Stockholders Agreement) held by members of the Stockholder Parties and will use
its commercially reasonable efforts to cause such shelf registration statement to be declared effective as soon as practicable
after the filing thereof, but no later than the earlier of&thinsp; (i)&nbsp;60&nbsp;days (or 120&nbsp;days if the SEC notifies
DraftKings that it will &ldquo;review&rdquo; such shelf registration statement) after the Closing and (ii) the tenth business
day after the date DraftKings is notified by the SEC that such shelf registration statement will not be &ldquo;reviewed&rdquo;
or will not be subject to further review.</P>

<P STYLE="font: 10pt Times 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 the period following the expiration
of the lock-up periods, if any member of the Stockholder Parties delivers notice to DraftKings stating that it intends to effect
an underwritten public offering of all or part of its Registrable Shares included on a shelf registration statement and reasonably
expects aggregate gross proceeds of not less than $75,000,000, DraftKings will enter into a customary underwriting agreement and
will take all such other reasonable actions as are requested by the managing underwriter or underwriters in order to expedite
or facilitate the disposition of such Registrable Securities; provided that DraftKings will have no obligation to facilitate or
participate in more than two underwritten offerings for each of the DK Stockholder Group, the SBT Stockholder Group and the DEAC
Stockholder Group and no more than six underwritten offerings in the aggregate.</P>

<P STYLE="font: 10pt Times 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">Whenever DraftKings proposes to publicly
sell or register for sale any of its securities in an underwritten offering pursuant to a registration statement other than on
Form S-8 or on Form S-4, DraftKings will give notice to the Stockholder Parties and will include all Registrable Shares that any
member of the Stockholder Parties requests for inclusion within five days of receiving notice from DraftKings, subject to any
cut-back deemed necessary by an underwriter.</P>

<P STYLE="font: 10pt Times 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 long as any member of the Stockholder
Parties owns Registrable Securities, DraftKings will, at all times while it remains a reporting company under the Exchange Act,
file timely (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed
by DraftKings after the Closing pursuant to Sections&nbsp;13(a) or 15(d) of the Exchange Act and to promptly furnish the members
of the Stockholder Parties with true and complete copies of all such filings.</P>

<P STYLE="font: 10pt Times 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"><I>Unsuitable Persons</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: 0.5in">Each member of the Stockholder Parties
acknowledges and agrees to the application of the provisions concerning unsuitability contained in the Charter, which is applicable
to all holders of common stock or other equity securities of DraftKings. Pursuant to such unsuitability provisions, common stock
or any other equity securities of DraftKings, or securities exchangeable or exercisable for, or convertible into, such other equity
securities of DraftKings, owned or controlled by any stockholder of DraftKings whom the 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 DraftKings board of directors, is an Unsuitable Person or
by an affiliate of an Unsuitable Person, will be subject to mandatory sale and transfer to either DraftKings or one or more third-party
transferees, in such number and class(es)/series as determined by the DraftKings board of directors, on the terms and conditions
set forth in the Charter. See &ldquo;<I>Description of Securities&thinsp;&mdash;&thinsp;Redemption Rights and Transfer Restrictions
with Respect to Capital Stock Held by Unsuitable Persons and Their Affiliates</I>&rdquo;.&nbsp;</P>

<P STYLE="font: 10pt Times 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 0.5in"><B><I>Private Placements of Securities</I></B></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; text-indent: 0.5in"><I>Series E-1 Preferred Stock Financing</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 March 2017 and April 2017, Old
DK 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>

<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 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"><FONT STYLE="font-size: 10pt"><B>Name </B></FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Number of</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>Shares </B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Purchase Price</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>($) </B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 73%"><FONT STYLE="font-size: 10pt">Revolution Growth III, LP(1)</FONT></TD>
    <TD STYLE="width: 2%; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-size: 10pt">2,269,718</FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 13%; text-align: center"><FONT STYLE="font-size: 10pt">4,999,998.10 </FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt">RPII DK LLC(2)</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1,361,830</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">2,999,997.10</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-size: 10pt">Entities affiliated with Accomplice, LLC(3)</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">453,943 </FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">999,998.30 </FONT></TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px">&nbsp;</TD>
    <TD STYLE="width: 36px"><FONT STYLE="font-size: 10pt">(1)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Steven J. Murray is a member of the DraftKings board of directors and is an affiliate
    of Revolution Growth III, LP.</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px">&nbsp;</TD>
    <TD STYLE="width: 36px"><FONT STYLE="font-size: 10pt">(2)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">John Salter is a member of the DraftKings board of directors 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.</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px">&nbsp;</TD>
    <TD STYLE="width: 36px"><FONT STYLE="font-size: 10pt">(3)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Consists of 453,943 shares purchased by Accomplice Fund I, L.P. Ryan Moore is a member
    of the DraftKings board of directors and is an affiliate of Accomplice Fund I, L.P.</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"><I>Series F Preferred Stock Financing</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 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&thinsp;$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 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"><FONT STYLE="font-size: 10pt"><B>Name</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Number of</B></FONT><BR>
    <FONT STYLE="font-size: 10pt"><B>Shares</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Purchase
    Price</B></FONT><BR>
    <FONT STYLE="font-size: 10pt"><B>($)</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 73%"><FONT STYLE="font-size: 10pt">Revolution Growth III, LP(1)</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-size: 10pt">3,922,245</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 12%; text-align: center"><FONT STYLE="font-size: 10pt">9,999,998.97</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-size: 10pt">Accomplice Fund II, L.P.(2)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">784,449</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">1,999,999.80</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-size: 10pt">Jason Robins Revocable Trust u/d/t January 8, 2014(3)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">39,222</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">99,998.85</FONT></TD>
    <TD>&nbsp;</TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px">&nbsp;</TD>
    <TD STYLE="width: 36px"><FONT STYLE="font-size: 10pt">(1)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Steven J. Murray is a member of the DraftKings board of directors and is an affiliate
    of Revolution Growth III, LP.</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px">&nbsp;</TD>
    <TD STYLE="width: 36px"><FONT STYLE="font-size: 10pt">(2)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Ryan Moore is a member of the DraftKings board of directors and is an affiliate of Accomplice
    Fund II, L.P.</FONT></TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px">&nbsp;</TD>
    <TD STYLE="width: 36px"><FONT STYLE="font-size: 10pt">(3)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Jason Robins, the trustee of Jason Robins Revocable Trust u/d/t January 8, 2014, is the
    Chief Executive Officer and Chairman of the board of directors of DraftKings.</FONT></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"><B><I>Raine 2019 Engagement Letter</I></B></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; 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. Under the terms of the engagement letter, DraftKings 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; <FONT STYLE="background-color: white">(ii)&nbsp;a
placement agent fee in connection with the Convertible Notes financing; </FONT>and (iii) 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: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B><I>DKFS</I></B></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; 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</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>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</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>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</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>Consideration ($) </B></FONT></TD>
    <TD STYLE="white-space: nowrap; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="white-space: nowrap; border-bottom: white 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="white-space: nowrap; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>In-Kind</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>Consideration ($)(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: 48%"><FONT STYLE="font-size: 10pt">DraftKings </FONT></TD>
    <TD STYLE="width: 1%; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 10pt">4,500,000</FONT></TD>
    <TD STYLE="width: 1%; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="width: 1%; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="width: 1%; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="width: 1%; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="width: 12%; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="width: 1%; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="width: 1%; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="width: 12%; text-align: right"><FONT STYLE="font-size: 10pt">3,000,000</FONT></TD>
    <TD STYLE="width: 1%; text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt">Accomplice Fund II, L.P.(3)</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1,500,000</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1,000,000</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-size: 10pt">Hany Nada(4)</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">375,000</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">250,000</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt">Jason Robins(5)</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">126,603</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="background-color: #CCEEFF"><FONT STYLE="font-size: 10pt">Jason Park(6)</FONT></TD>
    <TD STYLE="background-color: #CCEEFF; text-align: right">&nbsp;</TD>
    <TD STYLE="background-color: #CCEEFF; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="background-color: #CCEEFF; text-align: right">&nbsp;</TD>
    <TD STYLE="background-color: #CCEEFF; text-align: right">&nbsp;</TD>
    <TD STYLE="background-color: #CCEEFF; text-align: right"><FONT STYLE="font-size: 10pt">63,301</FONT></TD>
    <TD STYLE="background-color: #CCEEFF; text-align: right">&nbsp;</TD>
    <TD STYLE="background-color: #CCEEFF; text-align: right">&nbsp;</TD>
    <TD STYLE="background-color: #CCEEFF; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="background-color: #CCEEFF; text-align: right">&nbsp;</TD>
    <TD STYLE="background-color: #CCEEFF; text-align: right">&nbsp;</TD>
    <TD STYLE="background-color: #CCEEFF; text-align: right"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="text-align: right">&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">&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: 0px">&nbsp;</TD>
    <TD STYLE="width: 36px"><FONT STYLE="font-size: 10pt">(1)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">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.</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px">&nbsp;</TD>
    <TD STYLE="width: 36px"><FONT STYLE="font-size: 10pt">(2)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Consists of the contribution to DKFS, LLC of a license to use certain proprietary marks and logos owned by DraftKings.</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px">&nbsp;</TD>
    <TD STYLE="width: 36px"><FONT STYLE="font-size: 10pt">(3)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Ryan Moore is a director of DraftKings and an affiliate of Accomplice Fund II, L.P.</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px">&nbsp;</TD>
    <TD STYLE="width: 36px"><FONT STYLE="font-size: 10pt">(4)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Hany Nada is a director of DraftKings.</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px">&nbsp;</TD>
    <TD STYLE="width: 36px"><FONT STYLE="font-size: 10pt">(5)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Jason Robins is the Chairman and Chief Executive Officer of DraftKings.</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px">&nbsp;</TD>
    <TD STYLE="width: 36px"><FONT STYLE="font-size: 10pt">(6)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Jason Park is the Chief Financial Officer of DraftKings.</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 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: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B><I>Smack Transfer Transaction</I></B></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; 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: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><B><I>Fox Media Agreement</I></B></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; 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 0pt 0.5in"><B><I>Convertible Notes</I></B></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; 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 director of DraftKings
and is an affiliate of Accomplice Fund I, L.P. and Accomplice Management Holdings, LLC.</P>

<P STYLE="font: 10pt Times New 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>SBTech</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 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"></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">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&thinsp; &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 was 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: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Related Person Transaction Policy </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 Board has adopted 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 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 CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">any person who is, or at any time during the applicable period was, one of DraftKings&rsquo;
    executive officers or a member of the Board;</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">any person who is known by DraftKings to be the beneficial owner of more than five percent
    (5%) of our voting stock;</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">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</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">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.</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, we have in place 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 the audit committee charter, the audit committee has 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-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"><FONT STYLE="text-transform: uppercase"><B><A NAME="a025"></A>United
STATES FEDERAL INCOME TAX CONSIDERATIONS</B></FONT></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">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 CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">financial institutions or financial services entities;</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">broker-dealers;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">governments or agencies or instrumentalities thereof;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">regulated investment companies;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">real estate investment trusts;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">expatriates or former long-term residents of the U.S.;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">persons that actually or constructively own five percent or more of our voting shares;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">insurance companies;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">dealers or traders subject to a mark-to-market method of accounting with respect to the securities;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">persons holding the securities as part of a &ldquo;straddle,&rdquo; hedge, integrated transaction or similar transaction;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">persons that receive shares upon the exercise of employee
    stock options or otherwise as compensation;</FONT></TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">U.S. holders (as defined below) whose functional currency is not the U.S. dollar;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">partnerships or other pass-through entities for U.S. federal income tax purposes and any beneficial owners of such entities; and</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">tax-exempt entities.</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">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;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">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; 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"><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 CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">an individual who is a citizen or resident of the United States;</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">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</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">an estate the income of which is includible in gross income for U.S. federal income tax purposes regardless of its source; or</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">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.</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"><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"><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"></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>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;</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 &ldquo;<I>&mdash;Taxation of Distributions</I>&rdquo;
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 CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">a non-resident alien individual (other than certain former citizens and residents of the U.S. subject to U.S. tax as expatriates);</FONT></TD></TR>
</TABLE>
<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">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">a foreign corporation or</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">an estate or trust that is not a U.S. holder;</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">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. holder, 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;</P>

<P STYLE="text-align: left; 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="text-align: left; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: left; 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="text-align: left; 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%">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; width: 24px">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">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</FONT></TD></TR>
</TABLE>

<P STYLE="text-align: left; margin-top: 0; margin-bottom: 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="text-align: left; width: 24px">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">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.</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">We believe that we are not, and do not
anticipate becoming, a U.S. real property holding corporation; however, there can be no assurance that we will not become a U.S.
real property holding corporation 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; 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"></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>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; text-indent: 0.5in">&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"><FONT STYLE="text-transform: uppercase"><B><A NAME="a026"></A>PLAN
OF DISTRIBUTION</B></FONT></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"><FONT STYLE="background-color: white">We
are registering the issuance by us of (i) up to an aggregate of 19,666,655 shares of Class&nbsp;A common stock upon exercise of
the public warrants, the PIPE Warrants and the private placement warrants, (ii) up to an aggregate of 120,670 shares of up our
Class A common stock that may be issued upon the exercise of Old DK Warrants to purchase Class A common stock, (iii) up to an
aggregate of 6,000,000 shares of Class A common stock issuable upon the satisfaction of certain triggering events in connection
with the earnout shares (as defined below), (iv) up to an aggregate of 252,707 shares of Class A common stock issuable upon the
exercise of outstanding options granted under the 2017 Equity Incentive Plan and 2012 Equity Incentive Plan held by former employees or former consultants
of DraftKings Inc., a Delaware corporation, and (v) up to an aggregate of 1,386,034 shares of Class A common stock issuable upon
the exercise of outstanding options granted under the SBTech (Global) Limited 2011 Global Share Option Plan held by former employees
or former consultants of SBTech (Global) Limited. We are also registering the resale by the Selling Securityholders or their permitted
transferees of (i)&nbsp;up to 235,051,419&nbsp;shares of Class&nbsp;A common stock (including 3,299,603&nbsp;shares of Class&nbsp;A
common stock that may be issued upon exercise of the private placement warrants and 120,670 shares of Class A common stock that
may be issued upon exercise of the Old DK Warrants) and (ii)&nbsp;up to 3,299,603&nbsp;private placement warrants.</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">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>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 72px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="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">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="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">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="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>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 72px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">an over-the-counter distribution in accordance with the rules of The Nasdaq Stock Market;</FONT></TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 72px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="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>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

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<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="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">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="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">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 72px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">agreements with broker-dealers to sell a specified number of the securities at a stipulated price per share or warrant;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="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="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;&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: 72px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="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">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="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">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="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">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD><FONT STYLE="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 CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 72px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">the specific securities to be offered and sold;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 72px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">the names of the selling securityholders;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 72px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">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;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 72px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">settlement of short sales entered into after the date of this prospectus;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 72px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">the names of any participating agents, broker-dealers or underwriters; and</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 72px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">any applicable commissions, discounts, concessions and other items constituting compensation from the selling securityholders.</FONT></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">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; 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 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. Our shares
of Class A common stock and warrants are currently listed on Nasdaq under the 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">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"></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">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.&nbsp;&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; 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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Private Placement Warrants</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 private placement warrants may be
exercised commencing on May 23, 2020 and on or before the expiration date by delivering to the warrant agent, Computershare Trust
Company,&nbsp;N.A., a federally chartered trust company and Computershare Inc., a Delaware corporation (collectively, 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 warrants to be exercised, or, in the case of
a book-entry certificate (the &ldquo;Book-Entry Warrant Certificate&rdquo;) the 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 Class A common
stock pursuant to the exercise of a 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 warrant is exercised and any and all applicable taxes due in connection with the exercise of the warrant, the exchange of
the warrant for the shares of Class A common stock and the issuance of such 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">The private placement 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 warrants in which our Board has elected to require all holders of the warrants who exercise their warrants to do
so on a cashless basis. In such event, such holders of exercised warrants would pay the exercise price by surrendering their warrants
for that number of shares of our Class A common stock equal to the quotient obtained by dividing (x) the product of the number
of shares of our Class A common stock underlying the warrants, multiplied by the excess of the &ldquo;fair market value&rdquo;
of the shares of our 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 our 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 our
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; 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 will be issued
upon the exercise of the warrants. If, upon the exercise of such 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 Class A 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>Lock-up Agreements</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"><FONT STYLE="background-color: white">Certain
of our stockholders have entered into&nbsp;lock-up&nbsp;agreements. See &ldquo;<I>Securities Act Restrictions of Resale of&nbsp;Securities&mdash;Lock-up&nbsp;Agreements.</I>&rdquo;</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-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"><FONT STYLE="text-transform: uppercase"><B><A NAME="a027"></A>LEGAL
MATTERS</B></FONT></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">Greenberg Traurig, LLP has passed upon
the validity of the Class A common stock 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 Sullivan &amp; Cromwell 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: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="a028"></A>EXPERTS</B></FONT></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">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 (&ldquo;Withum&rdquo;), 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: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CHANGE IN AUDITOR</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: 0.5in">On April 23, 2020, the Audit Committee
of the Board approved the engagement of BDO USA, LLP (&ldquo;BDO&rdquo;) as the Company&rsquo;s independent registered public
accounting firm to audit the Company&rsquo;s consolidated financial statements for the year ended December 31, 2020. BDO served
as independent registered public accounting firm of Old DK prior to the Business Combination. Accordingly, WithumSmith+Brown,
PC (&ldquo;Withum&rdquo;), DEAC&rsquo;s independent registered public accounting firm prior to the Business Combination, was informed
that it would be replaced by BDO as the Company&rsquo;s independent registered public accounting firm following completion of
the Company&rsquo;s review of the quarter ended March 31, 2020, which consists only of the accounts of the pre-Business Combination
special purpose acquisition company, DEAC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The reports of Withum on DEAC&rsquo;s,
the Company&rsquo;s legal predecessor, consolidated balance sheet as of December 31, 2019 and the consolidated statements of operations,
changes in stockholders&rsquo; equity and cash flows for the period from March 27, 2019 (inception) to December 31, 2019, did
not contain an adverse opinion or a disclaimer of opinion, and were not qualified or modified as to uncertainties, audit scope
or accounting principles.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the period
from March 27, 2019 (inception) to December 31, 2019, there were no disagreements between the Company and Withum on any matter
of accounting principles or practices, financial disclosure or auditing scope or procedure, which disagreements, if not resolved
to the satisfaction of Withum, would have caused it to make reference to the subject matter of the disagreements in its reports
on the Company&rsquo;s financial statements for such period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">During the period from March 27, 2019
(inception) to December 31, 2019, there were no &ldquo;reportable events&rdquo; (as defined in Item 304(a)(1)(v) of Regulation
S-K under the Exchange Act).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Company provided Withum with a copy
of the foregoing disclosures and requested that Withum furnish the Company with a letter addressed to the SEC stating whether
it agrees with the statements made by the Company set forth above. A copy of Withum&rsquo;s letter, dated April 28, 2020, is filed
as&nbsp;an exhibit to the registration statement of which this prospectus is a part.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"><FONT STYLE="text-transform: uppercase"><B><A NAME="a029"></A>WHERE
YOU CAN FIND MORE INFORMATION</B></FONT></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">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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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 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="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="a030"></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>
    <!-- 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">&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="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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    <!-- 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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    <!-- 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>

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<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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    <!-- Field: /Page -->

<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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<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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<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></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&rsquo;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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    <!-- 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"><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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    <!-- 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="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>
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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; 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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    <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>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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<P STYLE="font: 10pt Times 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>

<!-- Field: Page; Sequence: 227; 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 -->42<!-- 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-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>
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<!-- 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"><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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    <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>&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>

<!-- Field: Page; Sequence: 249; 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 -->64<!-- 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; 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: 250; 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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    <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">&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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    <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)<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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<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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<!-- Field: Split-Segment; Name: a16 -->
<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>
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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; 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: 261; 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: 262; 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: 264; 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: 266; 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: 267; 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"><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="margin: 0">&nbsp;&nbsp;</P>

<P STYLE="margin: 0"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><IMG SRC="lg_draftkings-4c.jpg" ALT="" STYLE="height: 159px; width: 300px"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 14pt"><B>262,477,485
Shares of Class&nbsp;A Common Stock</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><FONT STYLE="font-size: 14pt">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><FONT STYLE="font-size: 14pt"><B>3,299,603
Warrants to Purchase Class&nbsp;A Common Stock</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">&nbsp;</P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><FONT STYLE="font-size: 12pt"><B>PROSPECTUS</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">&nbsp;</P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><B>May&nbsp;&nbsp;&nbsp;&nbsp;,
2020</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>You should rely only on the information
contained or incorporated by reference in this prospectus. We have not authorized anyone to provide you with different information.
You should not assume that the information contained or incorporated by reference in this prospectus is accurate as of any date
other than the date of this prospectus. We are not making an offer of these securities in any state where the offer is not permitted.</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>


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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>PART
II<BR>
<BR>
INFORMATION NOT REQUIRED IN PROSPECTUS</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 13. Other Expenses of Issuance and Distribution.</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 11pt 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: 11pt 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: 11pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 85%; text-align: left">Securities and Exchange Commission registration fee</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">635,527.36</TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Accounting fees and expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20,000</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Legal fees and expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100,000</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Financial printing and miscellaneous expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">30,000</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt">Total</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">785,527.36</TD>
    <TD STYLE="padding-bottom: 2.5pt; border-bottom: Black 2.5pt double">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 14. Indemnification of Directors and Officers.</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our articles of incorporation eliminate
the liability of our officers and directors to the fullest extent permitted by Nevada law. Nevada law provides that our directors
and officers will not be individually liable to us, our stockholders or our 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: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our amended and restated articles of
incorporation and bylaws also provide for indemnification for our directors and officers to the fullest extent permitted by Nevada
law. We have entered into indemnification agreements with each of our directors that are, in some cases, broader than the specific
indemnification provisions contained under Nevada law. The effect of these provisions is to restrict our rights and the rights
of our 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: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt 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: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We are also expressly authorized to
carry directors&rsquo; and officers&rsquo; insurance to protect our directors, officers, employees and agents against certain
liabilities.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The limitation of liability and indemnification
provisions under Nevada law and in our 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 us and our stockholders. However, these provisions do not limit or eliminate our 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, we pay the costs of settlement and
damage awards against directors and officers pursuant to these indemnification provisions.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 15. Recent Sales of Unregistered Securities.</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Private Placements in Connection
with IPO</I></B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt 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&thinsp;$12,250 (the
same per-share price initially paid by our Sponsor), resulting in the Sponsor holding 5,131,875 founder shares.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt 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&thinsp;$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. </P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="background-color: white">The
sales of the above securities were exempt from the registration requirements of the Securities Act in reliance on the exemptions
afforded by Section&nbsp;4(a)(2) of the Securities Act. Other than the IPO, no sales involved underwriters, underwriting discounts
or commissions or public offerings of securities of the registrant.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Transaction Consideration</I></B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection with the Business Combination,
at the Closing on April 23, 2020, DraftKings issued 186,335,592 shares of Class A common stock to the holders of common stock of
Old DK and 40,739,291 shares of Class A common stock to the holders of ordinary shares of SBTech. The Stock Consideration Shares
were issued pursuant to and in accordance with the exemption from registration under the Securities Act, under Section 4(a)(2)
and/or Regulation D promulgated under the Securities Act.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Private Placement
and Convertible Notes</I></B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In connection with
satisfying the Minimum Proceeds Condition (as defined in the Business Combination Agreement), DEAC entered into subscription agreements
(the &ldquo;Subscription Agreements&rdquo;), each dated as of December 22, 2019, with certain institutional investors (the &ldquo;PIPE
Investors&rdquo;), pursuant to which, among other things, DEAC agreed to issue and sell, in private placements, an aggregate of
30,471,352 shares of Class A common stock of DEAC for $10.00 per share and an aggregate of 3,000,000 warrants to purchase shares
of Class A common stock of DEAC (the &ldquo;Private Placement&rdquo;). The warrants have terms identical to the Company&rsquo;s
publicly traded warrants.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; 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 converted 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 Investors in the Private Placement, which resulted
in the issuance of 11,254,479 shares of DEAC Class A common stock on the Closing Date.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Private Placement
closed immediately prior to the Business Combination on the Closing Date. The shares of DEAC Class A common stock issued to the
PIPE Investors and upon conversion of the Convertible Notes, were converted into shares of DraftKings Class A common stock upon
consummation of the reincorporation and the Business Combination.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The shares issued
to the Investors in the Private Placement and to the holders of Convertible Notes on the Closing Date were issued pursuant to and
in accordance with the exemption from registration under the Securities Act, under Section 4(a)(2) and/or Regulation D promulgated
under the Securities Act.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Old DK Warrant
Exercise</I></B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Following the
Closing of the Business Combination, PacWest Bancorp exercised its option to convert former warrants issued by Old DK into
shares of Class A common stock. As a result of the exercise, DraftKings delivered 59,433 shares of Class A common stock to
PacWest Bancorp on May 4, 2020. The shares issued to PacWest Bancorp were issued pursuant to and in accordance with the
exemption from registration under the Securities Act, under Section 4(a)(2) and/or Regulation D promulgated under the
Securities Act.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;&nbsp;</P>


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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 16. Exhibits and Financial Statements.</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 11pt 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: 11pt 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 CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 7%; border-bottom: black 1pt solid"><FONT STYLE="font-size: 11pt"><B>Exhibit No.</B></FONT></TD>
    <TD STYLE="width: 1%; border-bottom: white 1pt solid"><B>&nbsp;</B></TD>
    <TD STYLE="width: 92%; border-bottom: black 1pt solid"><FONT STYLE="font-size: 11pt"><B>Description</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 11pt">1.1*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 11pt">Form of Underwriting Agreement</FONT></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"><FONT STYLE="font-size: 11pt">2.1&dagger;</FONT></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"><FONT STYLE="font-size: 11pt">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).</FONT></A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920046332/tv539096-s4a.htm#tANAI" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">2.2</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920046332/tv539096-s4a.htm#tANAI" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">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).</FONT></A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 11pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081-s4a.htm#tANNJ" STYLE="-sec-extract: exhibit">2.3</A></FONT></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081-s4a.htm#tANNJ" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">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).</FONT></A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920052633/tm2016937d1_ex3-1.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">3.1</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920052633/tm2016937d1_ex3-1.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">Amended
    and Restated Articles of Incorporation of DraftKings Inc. (incorporated by reference to Exhibit 3.1 of the Company&rsquo;s
    Current Report on Form 8-K, filed with the SEC on April 29, 2020)</FONT></A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920052633/tm2016937d1_ex3-2.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">3.2</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920052633/tm2016937d1_ex3-2.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">Amended
    and Restated Bylaws of DraftKings Inc. (incorporated by reference to Exhibit 3.2 of the Company&rsquo;s Current Report on
    Form 8-K, filed with the SEC on April 29, 2020).</FONT></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"><FONT STYLE="font-size: 11pt">4.1</FONT></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"><FONT STYLE="font-size: 11pt">Specimen
    Class A Common Stock Certificate of DraftKings </FONT>(incorporated by reference to Exhibit 4.1 of <FONT STYLE="font-size: 11pt">the
    Company&rsquo;s Current Report</FONT> on Form <FONT STYLE="font-size: 11pt">8-K,</FONT> filed with the SEC on April <FONT STYLE="font-size: 11pt">29</FONT>,
    2020).</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920052633/tm2016937d1_ex4-2.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">4.2</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920052633/tm2016937d1_ex4-2.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">Form
    of Warrant Certificate of DraftKings Inc. (incorporated by reference to Exhibit 4.2 of the Company&rsquo;s Current Report
    on Form 8-K, filed with the SEC on April 29, 2020).</FONT></A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 11pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000114420419025917/tv521448_ex4-1.htm" STYLE="-sec-extract: exhibit">4.3</A></FONT></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000114420419025917/tv521448_ex4-1.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">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).</FONT></A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920052633/tm2016937d1_ex4-4.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">4.4</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920052633/tm2016937d1_ex4-4.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">Assignment
    and Assumption Agreement, dated April 23, 2020, by and among DraftKings Inc., DEAC, Continental Stock Transfer &amp; Trust
    Company, Computershare Trust Company, N.A. and Computershare Inc. (incorporated by reference to Exhibit 4.4 of the Company&rsquo;s
    Current Report on Form 8-K, filed with the SEC on April 29, 2020).</FONT></A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="tm2018577d1_ex5-1.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">5.1</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="tm2018577d1_ex5-1.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">Opinion of Greenberg Traurig, LLP as to the validity of the common stock.</FONT></A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="tm2018577d1_ex5-2.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">5.2</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="tm2018577d1_ex5-2.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">Opinion of Sullivan &amp; Cromwell LLP as to the validity of the warrants.</FONT></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"><FONT STYLE="font-size: 11pt">10.1</FONT></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"><FONT STYLE="font-size: 11pt">DraftKings
    Inc. 2020 Incentive Award Plan (</FONT>incorporated by reference to Exhibit 10.1 of <FONT STYLE="font-size: 11pt">the Company&rsquo;s
    Current Report</FONT> on Form <FONT STYLE="font-size: 11pt">8-K,</FONT> filed with the SEC on April <FONT STYLE="font-size: 11pt">29</FONT>,
    2020<FONT STYLE="font-size: 11pt">).</FONT></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"><FONT STYLE="font-size: 11pt">10.2</FONT></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"><FONT STYLE="font-size: 11pt">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.</FONT></A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 11pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920052633/tm2016937d1_ex10-2.htm" STYLE="-sec-extract: exhibit">10.3</A></FONT></TD>
    <TD>&nbsp;</TD>
    <TD><P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920052633/tm2016937d1_ex10-2.htm" STYLE="-sec-extract: exhibit">Executive
        Employment Agreement, dated April 23, 2020, between DraftKings Inc. and Matt Kalish (incorporated by reference to Exhibit
        10.2 the Company&rsquo;s Current Report on Form 8-K, filed with the SEC on April 29, 2020).</A></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920052633/tm2016937d1_ex10-3.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">10.4</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920052633/tm2016937d1_ex10-3.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">Executive
    Employment Agreement, dated April 23, 2020, between DraftKings Inc. and Paul Liberman (incorporated by reference to Exhibit
    10.3 the Company&rsquo;s Current Report on Form 8-K, filed with the SEC on April 29, 2020).</FONT></A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920052633/tm2016937d1_ex10-4.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">10.5</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920052633/tm2016937d1_ex10-4.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">Executive
    Employment Agreement, dated April 23, 2020, between DraftKings Inc. and Jason Robins (incorporated by reference to Exhibit
    10.4 of the Company&rsquo;s Current Report on Form 8-K, filed with the SEC on April 29, 2020).</FONT></A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 11pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920020316/tv535895_ex10-3.htm" STYLE="-sec-extract: exhibit">10.6</A></FONT></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920020316/tv535895_ex10-3.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">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.</FONT></A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920052633/tm2016937d1_ex10-5.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">10.7</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920052633/tm2016937d1_ex10-5.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">DraftKings
    Inc. Employee Stock Purchase Plan (incorporated by reference to Exhibit 10.5 of the Company&rsquo;s Current Report on Form
    8-K, filed with the SEC on April 29, 2020).</FONT></A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920052633/tm2016937d1_ex10-7.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">10.8</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920052633/tm2016937d1_ex10-7.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">Form
    of Indemnification Agreement (incorporated by reference to Exhibit 10.7 of the Company&rsquo;s Current Report on Form 8-K,
    filed with the SEC on April 29, 2020).</FONT></A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920052633/tm2016937d1_ex10-8.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">10.9</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920052633/tm2016937d1_ex10-8.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">Earnout
    Escrow Agreement, dated April 23, 2020, by and among DraftKings Inc., Shalom Meckenzie, in his capacity as SBT Sellers&rsquo;
    Representative, Eagle Equity Partners LLC, Jeff Sagansky, Eli Baker, Harry Sloan, I.B.I. Trust Management, the trustee, and
    Computershare Trust Company, N.A., as escrow agent (incorporated by reference to Exhibit 10.8 of the Company&rsquo;s Current
    Report on Form 8-K, filed with the SEC on April 29, 2020).</FONT></A></TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 7%"><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920052633/tm2016937d1_ex10-9.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">10.10</FONT></A></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 92%"><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920052633/tm2016937d1_ex10-9.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">Stockholders
    Agreement, dated April 23, 2020, by and among DraftKings Inc., the DK Stockholder Group, the SBT Stockholder Group and the
    DEAC Stockholder Group (incorporated by reference to Exhibit 10.9 of the Company&rsquo;s Current Report on Form 8-K, filed
    with the SEC on April 29, 2020).</FONT></A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920052633/tm2016937d1_ex10-10.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">10.11</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920052633/tm2016937d1_ex10-10.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">Share
    Exchange Agreement, dated April 23, 2020, by and among DraftKings Inc., a Delaware corporation, Jason Robins and DEAC NV Merger
    Corp. (incorporated by reference to Exhibit 10.10 of the Company&rsquo;s Current Report on Form 8-K, filed with the SEC on
    April 29, 2020).</FONT></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"><FONT STYLE="font-size: 11pt">10.12&dagger;**</FONT></A></TD>
    <TD><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920039031/tv538896_ex10-5.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">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.&rsquo;s Registration
    Statement on Form S-4 (Reg. No. 333-235805), filed with the SEC on April 14, 2020).</FONT></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"><FONT STYLE="font-size: 11pt">10.13&dagger;**</FONT></A></TD>
    <TD><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920039031/tv538896_ex10-6.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">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.&rsquo;s Registration Statement on Form S-4 (Reg. No. 333-235805), filed with
    the SEC on April 14, 2020).</FONT></A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 11pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081_ex10-7.htm" STYLE="-sec-extract: exhibit">10.14</A></FONT></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081_ex10-7.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">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.&rsquo;s Registration Statement
    on Form S-4 (Reg. No. 333-235805), filed with the SEC on April 14, 2020).</FONT></A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 11pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081_ex10-8.htm" STYLE="-sec-extract: exhibit">10.15</A></FONT></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081_ex10-8.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">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.&rsquo;s Registration Statement on Form S-4 (Reg. No. 333-235805), filed with the SEC on
    April 14, 2020).</FONT></A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 11pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081_ex10-9.htm" STYLE="-sec-extract: exhibit">10.16</A></FONT></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081_ex10-9.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">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.&rsquo;s Registration Statement on Form S-4 (Reg. No. 333-235805), filed with the SEC on
    April 14, 2020).</FONT></A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 11pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081_ex10-10.htm" STYLE="-sec-extract: exhibit">10.17</A></FONT></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081_ex10-10.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">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.&rsquo;s Registration Statement on Form
    S-4 (Reg. No. 333-235805), filed with the SEC on April 14, 2020).</FONT></A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 11pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081_ex10-11.htm" STYLE="-sec-extract: exhibit">10.18</A></FONT></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081_ex10-11.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">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.&rsquo;s Registration Statement on Form S-4 (Reg.
    No. 333-235805), filed with the SEC on April 14, 2020).</FONT></A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 11pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081_ex10-12.htm" STYLE="-sec-extract: exhibit">10.19</A></FONT></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081_ex10-12.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">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.&rsquo;s Registration Statement on Form S-4 (Reg. No. 333-235805),
    filed with the SEC on April 14, 2020).</FONT></A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 11pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081_ex10-13.htm" STYLE="-sec-extract: exhibit">10.20</A></FONT></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920044514/tv539081_ex10-13.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">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.&rsquo;s Registration Statement on Form S-4 (Reg. No. 333-235805),
    filed with the SEC on April 14, 2020).</FONT></A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 7%"><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920052633/tm2016937d1_ex10-20.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">10.21</FONT></A></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 92%"><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920052633/tm2016937d1_ex10-20.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">Seventh
    Amendment to the LSA, dated April 23, 2020, by and among DraftKings Inc. (a Nevada corporation), DraftKings Inc. (a Delaware
    corporation), Crown Gaming Inc., Crown DFS Inc. and Pacific Western Bank (incorporated by reference to Exhibit 10.20 of the
    Company&rsquo;s Current Report on Form 8-K, filed with the SEC on April 29, 2020).</FONT></A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="tm2018577d1_ex10-22.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">10.22</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="tm2018577d1_ex10-22.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">DraftKings Inc. 2017
    Equity Incentive Plan, as amended from time to time.</FONT></A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="tm2018577d1_ex10-23.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">10.23</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="tm2018577d1_ex10-23.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">DraftKings Inc. 2012
    Stock Option &amp; Restricted Stock Incentive Plan, as amended from time to time.</FONT></A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="tm2018577d1_ex10-24.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">10.24</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="tm2018577d1_ex10-24.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">SBTech (Global) Limited
    2011 Global Share Option Plan.</FONT></A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920052633/tm2016937d1_ex16-1.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">16.1</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920052633/tm2016937d1_ex16-1.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">Letter
    from WithumSmith+Brown, PC to the SEC, dated April 28, 2020 (incorporated by reference to Exhibit 16.1 of the Company&rsquo;s
    Current Report on Form 8-K, filed with the SEC on April 29, 2020).</FONT></A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920052633/tm2016937d1_ex21-1.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">21.1</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1772757/000110465920052633/tm2016937d1_ex21-1.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">List
    of Subsidiaries (incorporated by reference to Exhibit 21.1 of the Company&rsquo;s Current Report on Form 8-K, filed with the
    SEC on April 29, 2020).</FONT></A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="tm2018577d1_ex23-1.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">23.1</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="tm2018577d1_ex23-1.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">Consent of WithumSmith+Brown, PC, independent registered public accounting firm of Diamond
    Eagle Acquisition Corp.</FONT></A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="tm2018577d1_ex23-2.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">23.2</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="tm2018577d1_ex23-2.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">Consent of BDO USA, LLP, independent registered public accounting firm of DraftKings
    Inc.</FONT></A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="tm2018577d1_ex23-3.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">23.3</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="tm2018577d1_ex23-3.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">Consent of Ziv Haft, CPA (Isr.), a BDO Member Firm, independent registered public accounting
    firm of SBTech (Global) Limited.</FONT></A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="tm2018577d1_ex5-1.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">23.4</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="tm2018577d1_ex5-1.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">Consent of Greenberg Traurig, LLP, (included as part of Exhibit 5.1).</FONT></A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="tm2018577d1_ex5-2.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">23.5</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="tm2018577d1_ex5-2.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">Consent of Sullivan &amp; Cromwell LLP (included as part of Exhibit 5.2).</FONT></A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><A HREF="tm2018577d1_ex24-1.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">24.1</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="tm2018577d1_ex24-1.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 11pt">Power of Attorney.</FONT></A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 11pt">101.INS</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 11pt">XBRL Instance Document</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 11pt">101.SCH</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 11pt">XBRL Taxonomy Extension Schema Document</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 11pt">101.CAL</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 11pt">XBRL Taxonomy Extension Calculation Linkbase Document</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 11pt">101.DEF</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 11pt">XBRL Taxonomy Extension Definition Linkbase Document</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 11pt">101.LAB+</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 11pt">XBRL Taxonomy Extension Label Linkbase Document</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 11pt">101.PRE+</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 11pt">XBRL Taxonomy Extension Presentation Linkbase Document</FONT></TD></TR>
</TABLE>


<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

<!-- Field: Page; Sequence: 279 -->
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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="margin: 0">&nbsp;&nbsp;&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0">* To be filed, <FONT STYLE="background-color: white">&nbsp;if
necessary, subsequent to the effectiveness of this registration statement by an amendment to this registration statement or incorporated
by reference pursuant to a Current Report on Form&nbsp;8-K&nbsp;in connection with the offering of securities.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0">&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: 11pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0">** 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: 11pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0">(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: 11pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 17. Undertakings.</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The undersigned registrant, hereby undertakes:</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 60px">&nbsp;</TD>
    <TD STYLE="width: 45px"><FONT STYLE="font-size: 11pt">(1)</FONT></TD>
    <TD><FONT STYLE="font-size: 11pt">To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 105px">&nbsp;</TD>
    <TD STYLE="width: 45px"><FONT STYLE="font-size: 11pt">i.</FONT></TD>
    <TD><FONT STYLE="font-size: 11pt">To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 105px">&nbsp;</TD>
    <TD STYLE="width: 45px"><FONT STYLE="font-size: 11pt">ii.</FONT></TD>
    <TD><FONT STYLE="font-size: 11pt">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;</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 105px">&nbsp;</TD>
    <TD STYLE="width: 45px"><FONT STYLE="font-size: 11pt">iii.</FONT></TD>
    <TD><FONT STYLE="font-size: 11pt">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.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 60px">&nbsp;</TD>
    <TD STYLE="width: 45px"><FONT STYLE="font-size: 11pt">(2)</FONT></TD>
    <TD><FONT STYLE="font-size: 11pt">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.</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 60px">&nbsp;</TD>
    <TD STYLE="width: 45px"><FONT STYLE="font-size: 11pt">(3)</FONT></TD>
    <TD><FONT STYLE="font-size: 11pt">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.</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 60px">&nbsp;</TD>
    <TD STYLE="width: 45px"><FONT STYLE="font-size: 11pt">(4)</FONT></TD>
    <TD><FONT STYLE="font-size: 11pt">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.</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 60px">&nbsp;</TD>
    <TD STYLE="width: 45px"><FONT STYLE="font-size: 11pt">(5)</FONT></TD>
    <TD><FONT STYLE="font-size: 11pt">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:</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 105px">&nbsp;</TD>
    <TD STYLE="width: 45px"><FONT STYLE="font-size: 11pt">i.</FONT></TD>
    <TD><FONT STYLE="font-size: 11pt">Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0"></P>

<!-- Field: Page; Sequence: 280 -->
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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 105px">&nbsp;</TD>
    <TD STYLE="width: 45px"><FONT STYLE="font-size: 11pt">ii.</FONT></TD>
    <TD><FONT STYLE="font-size: 11pt">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;</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 105px">&nbsp;</TD>
    <TD STYLE="width: 45px"><FONT STYLE="font-size: 11pt">iii.</FONT></TD>
    <TD><FONT STYLE="font-size: 11pt">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</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 105px">&nbsp;</TD>
    <TD STYLE="width: 45px"><FONT STYLE="font-size: 11pt">iv.</FONT></TD>
    <TD><FONT STYLE="font-size: 11pt">Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<P STYLE="font: 11pt 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: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;&nbsp;</P>


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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>SIGNATURES</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 11pt 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 on Form S-1 to be signed on its
behalf by the undersigned, thereunto duly authorized, in the City of Boston, State of Massachusetts, on the 6<SUP>th </SUP>day
of May, 2020.</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%">
<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="3"><P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0"><B>DraftKings Inc.</B></P></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR>
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 5%"><FONT STYLE="font-size: 11pt">By:</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 25%; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 11pt">/s/ R. Stanton
    Dodge</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 20%"></TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 11pt">Name:</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom"><FONT STYLE="font-size: 11pt">R. Stanton Dodge</FONT></TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 11pt">Title:</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom"><FONT STYLE="font-size: 11pt">Chief Legal Officer and Secretary</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Pursuant to the requirements of the
Securities Act of 1933, as amended, this Registration Statement on Form S-1 has been signed by the following persons in the capacities
indicated on the 6<SUP>th</SUP> day of May, 2020.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 25%; border-bottom: black 1pt solid"><FONT STYLE="font-size: 11pt"><B>Name</B>&nbsp;</FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 48%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 11pt"><B>Position</B>&nbsp;</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 24%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 11pt"><B>Date</B>&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 11pt">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 11pt">Chief Executive Officer and Chairman </FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 11pt">May 6, 2020</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 11pt">Jason D. Robins</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 11pt">(Principal Executive Officer) </FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 11pt">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 11pt">Chief Financial Officer </FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 11pt">May 6, 2020</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 11pt">Jason K. Park</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 11pt">(Principal Financial and Accounting Officer) </FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 11pt">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 11pt">Vice Chairman </FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 11pt">May 6, 2020</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 11pt">Harry Evans Sloan</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 11pt">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 11pt">Director</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 11pt">May 6, 2020</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 11pt">Michael Gavin Isaacs</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 11pt">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 11pt">Director</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 11pt">May 6, 2020</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 11pt">Matthew Kalish</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 11pt">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 11pt">Director</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 11pt">May 6, 2020</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 11pt">Woodrow H. Levin</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 11pt">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 11pt">Director</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 11pt">May 6, 2020</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 11pt">Paul Liberman</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 11pt">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 11pt">Director</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 11pt">May 6, 2020</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 11pt">Shalom Meckenzie</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

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    <!-- Field: /Page -->

<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid; text-align: center; width: 25%"><FONT STYLE="font-size: 11pt">*</FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 48%"><FONT STYLE="font-size: 11pt">Director</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: center; width: 24%"><FONT STYLE="font-size: 11pt">May 6, 2020</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 11pt">Ryan R. Moore</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 11pt">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 11pt">Director</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 11pt">May 6, 2020</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 11pt">Steven J. Murray</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 11pt">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 11pt">Director</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 11pt">May 6, 2020</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 11pt">Hany M. Nada</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 11pt">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 11pt">Director</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 11pt">May 6, 2020</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 11pt">Richard Rosenblatt</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 11pt">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 11pt">Director</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 11pt">May 6, 2020</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 11pt">John S. Salter</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 11pt">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 11pt">Director</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 11pt">May 6, 2020</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 11pt">Marni M. Walden</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 5%; text-align: left"><FONT STYLE="font-size: 11pt">* By:</FONT></TD>
    <TD STYLE="width: 22%; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 11pt">/s/ R. Stanton Dodge</FONT></TD>
    <TD STYLE="width: 73%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD><P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0">R. Stanton Dodge</P>
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0">As Attorney-in-Fact</P></TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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As filed with the Securities and
Exchange Commission on May 6, 2020
Registration No. 333-
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-1
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
DraftKings
Inc.
(Exact name of registrant as specified in
its charter)
Nevada
7990
84-4052441
(State or other jurisdiction
    of
incorporation or organization)
(Primary Standard Industrial
Classification Code Number)
(I.R.S. Employer
Identification No.)
222 Berkeley Street, 5
th
Floor
Boston, MA 02116
(617) 986-6744
(Address, including zip code, and telephone
number, including area code, of registrant's principal executive offices)
R. Stanton Dodge
DraftKings Inc.
222 Berkeley Street, 5th Floor
Boston, Massachusetts 02116
(617) 986-6744
(Name, address, including zip code,
and telephone number, including area code, of agent for service)
Copies to:
Scott D. Miller
Sullivan & Cromwell LLP
125 Broad Street
New York, New York 10004
Tel: (212) 558-4000
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:
☒
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
☒
Smaller reporting company
☒
Emerging growth company
☒
If an emerging growth company, indicate
by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial
accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act.
x
CALCULATION OF
    REGISTRATION FEE
Title of Each Class of Securities to be Registered
Amount
to be Registered
(1)
Proposed
Maximum
Offering
Price
Per Share
Proposed
Maximum
Aggregate
Offering Price
Amount
    of
Registration Fee
(2)
Class A common stock, par value $0.0001 per share
262,477,485
(3)
$
18.65
(4)
$
4,896,204,628.85
(4)
$
635,527.36
Private placement warrants to purchase Class A common stock
3,299,603
(5)
—
—
—
(6)
Totals
$
4,896,204,628.85
$
635,527.36
(1)
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.
(2)
Calculated by multiplying the proposed maximum aggregate offering price of securities
    to be registered by 0.0001298.
(3)
Consists of the following shares of Class A common stock issued by us: (i) 3,333,332 shares
    of Class A common stock issuable upon the exercise of the private placement warrants (as defined below), (ii) 16,333,323
    shares of Class A common stock issuable upon the exercise of the public warrants (as defined below), based on the number of
    public warrants outstanding on as of May 4, 2020, and the PIPE Warrants, (iii) 120,670 shares of Class A common stock
    issuable upon the exercise of the Old DK Warrants (as defined below), (iv) 6,000,000 shares of Class A common stock issuable
    upon the satisfaction of certain triggering events, (v) 252,707 shares of Class A common stock issuable upon the exercise of
    outstanding options granted under the DraftKings Inc. 2017 Equity Incentive Plan (the "2017 Equity Incentive
    Plan") and DraftKings Inc. 2012 Stock Option & Restricted Stock Incentive Plan (the "2012 Equity Incentive
    Plan") held by former employees or former consultants of DraftKings Inc., a Delaware corporation, and (vi) 1,386,034
    shares of Class A common stock issuable upon the exercise of outstanding options granted under the SBTech (Global) Limited
    2011 Global Share Option Plan held by former employees or former consultants of SBTech (Global) Limited (together with the
    2017 Equity Incentive Plan and the 2012 Equity Incentive Plan, the "Plans"). Also consists of 235,051,419 shares
    of Class A common stock registered for sale by the selling securityholders named in this registration statement, which
    includes (i) up to 3,659,241 shares of Class A common stock that were formerly founder shares held by the DEAC Stockholder
    Group (as defined below), (ii) 221,971,905 Stock Consideration Shares (as defined below), (iii) 6,000,000 earnout shares,
    (iv) 3,299,603 shares of Class A common stock issuable upon exercise of the private placement warrants and (v) 120,670 shares
    of Class A common stock issuable upon exercise of the Old DK Warrants.
(4)
Pursuant to Rule 457(c) and Rule 457(g) under the Securities Act, and solely for the
    purpose of calculating the registration fee, the proposed maximum offering price is (a) for shares of Class A common stock
    other than those issuable under the Plans or the warrants, $19.37, which is the average of the high and low prices of shares
    of the Class A common stock on April 30, 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) on The Nasdaq Global Select Market, (b) for shares
    issuable upon the exercise of outstanding options granted under the 2017 Equity Incentive Plan and 2012 Equity Incentive Plan
    is based on $2.56, which is the weighted-average exercise price of such outstanding options, (c) for shares issuable upon the
    exercise of outstanding options granted under the SBTech (Global) Limited 2011 Global Share Option Plan is based on $0.16,
    which is the weighted-average exercise price of such outstanding options, and (d) for shares underlying the DEAC warrants and
    the Old DK Warrants, based on the exercise price of the warrants ($11.50 and $0.0283, respectively).
(5)
Represents the resale of 3,299,603 warrants to purchase shares of Class A common stock
    that were issued in a private placement and, which, represent warrants to acquire shares of Class A common stock.
(6)
In accordance with Rule 457(i), the entire registration fee for the private placement
    warrants is allocated to the shares of common stock underlying the private placement warrants, and no separate fee is payable
    for the private placement warrants.
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.
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 MAY 6, 2020
PRELIMINARY PROSPECTUS
262,477,485
Shares of Class A
Common Stock
3,299,603 Warrants to Purchase Class A Common Stock
This prospectus relates to the issuance
by us of (i) 19,666,655 shares of our Class A common stock, par value $0.0001 per share ("Class A common stock"),
that may be issued upon exercise of warrants to purchase Class A common stock at an
exercise price of $11.50 per share of Class A common stock, including the public warrants, the PIPE Warrants and the private placement warrants
(each as defined below), (ii) 120,670 shares of our Class A common stock that may be issued upon the exercise of Old DK Warrants
(as defined below) to purchase Class A common stock at an exercise price of $0.0283 per share, (
iii) 6,000,000 shares
of Class A common stock issuable upon the satisfaction of certain triggering events (as described herein), (iv) 252,707 shares
of Class A common stock issuable upon the exercise of outstanding options granted under the DraftKings Inc. 2017 Equity Incentive
Plan (the "2017 Equity Incentive Plan") and DraftKings Inc. 2012 Stock Option & Restricted Stock Incentive Plan
(the "2012 Equity Incentive Plan") held by former employees or former consultants of DraftKings Inc., a Delaware corporation,
and (v) 1,386,034 shares of Class A common stock issuable upon the exercise of outstanding options granted under the SBTech (Global)
Limited 2011 Global Share Option Plan held by former employees or former consultants of SBTech (Global) Limited (together with
the 2017 Equity Incentive Plan and the 2012 Equity Incentive Plan, the "Plans")
.
The prospectus also relates to the offer and sale from time
to time by the selling securityholders named in this prospectus (the "Selling Securityholders"), or their permitted
transferees, of (i) up to 235,051,419 shares of our Class A common stock and (ii) up to 3,299,603 warrants. We will not receive
any proceeds from the sale of shares of Class A common stock or warrants by the Selling Securityholders pursuant to this prospectus,
except
with respect to amounts received by us upon exercise of the warrants to the extent such warrants are exercised for cash. However,
we will pay the expenses, other than
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
, associated with the sale of securities pursuant to this prospectus
.
Our registration of the securities covered
by this prospectus does not mean that either we or the Selling Securityholders will issue, offer or sell, as applicable, any of
the securities. The Selling Securityholders may offer and sell the securities covered by this prospectus in a number of different
ways and at varying prices. We provide more information about how the Selling Securityholders may sell the shares in the section
entitled "
Plan of Distribution
."
You
should read this prospectus and any prospectus supplement or amendment carefully before you invest in our securities.
Our Class A common stock and warrants
are listed on The Nasdaq Global Select Market under the symbols "DKNG" and "DKNGW,"
respectively. On May 4, 2020, the closing price of our Class A common stock was $20.99 per share and the closing price for our
warrants was $9.08.
We are an
"emerging
growth company," as that term is defined under the federal securities laws and, as such, are subject to certain reduced public
company reporting requirements.
Investing in our securities involves
risks that are described in the "Risk Factors" section beginning on page  12 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 May                   ,
2020.
TABLE
OF CONTENTS
ABOUT
THIS PROSPECTUS
ii
TRADEMARKS
ii
SELECTED DEFINITIONS
iii
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
vi
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
​
MARKET PRICE, TICKER SYMBOL AND DIVIDEND INFORMATION
11
RISK FACTORS
12
USE OF PROCEEDS
40
UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION
41
NOTES TO THE UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS
48
BUSINESS
56
DRAFTKINGS' INDUSTRY
80
DRAFTKINGS' MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
    CONDITION AND RESULTS OF OPERATIONS
84
SBT'S MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
    AND RESULTS OF OPERATIONS
101
MANAGEMENT
108
EXECUTIVE COMPENSATION
117
DESCRIPTION OF SECURITIES
127
SECURITIES ACT RESTRICTIONS ON RESALE OF SECURITIES
139
BENEFICIAL OWNERSHIP OF SECURITIES
141
SELLING SECURITYHOLDERS
143
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
158
UNITED STATES FEDERAL INCOME TAX CONSIDERATIONS
164
PLAN OF DISTRIBUTION
169
LEGAL MATTERS
174
EXPERTS
174
WHERE YOU CAN FIND MORE INFORMATION
175
INDEX TO FINANCIAL STATEMENTS
F-1
i
ABOUT
THIS PROSPECTUS
This
prospectus is part of a registration statement on Form S-1 that we filed with the Securities and Exchange Commission
(the "SEC") using a "shelf" registration process. Under this shelf registration process, we and the Selling
Securityholders may, from time to time, issue, offer and sell, as applicable, any combination of the securities described in this
prospectus in one or more offerings. We may use the shelf registration statement to issue (i) up to an aggregate of 19,666,655
shares of Class A common stock upon exercise of the public warrants, the PIPE Warrants and the private placement warrants,
(ii) up to an aggregate of 120,670 shares of our Class A common stock that may be issued upon the exercise of Old DK Warrants
to purchase Class A common stock, (iii) up to an aggregate of 6,000,000 shares of Class A common stock issuable upon the satisfaction
of certain triggering events (as described herein), (iv) up to an aggregate of 252,707 shares of Class A common stock issuable
upon the exercise of outstanding options granted under the 2017 Equity Incentive Plan and 2012 Equity Incentive Plan held by former employees or former consultants
of DraftKings Inc., a Delaware corporation, and (v) up to an aggregate of 1,386,034 shares of Class A common stock issuable upon
the exercise of outstanding options granted under the SBTech (Global) Limited 2011 Global Share Option Plan held by former employees
or former consultants of SBTech (Global) Limited. The Selling Securityholders may use the shelf registration statement to sell
up to an aggregate of 235,051,419 shares of Class A common stock and up to 3,299,603 warrants from time to time through any
means described in the section entitled "
Plan of Distribution
." More specific terms of any securities that
the Selling Securityholders offer and sell may be provided in a prospectus supplement that describes, among other things, the
specific amounts and prices of the Class A common stock and/or warrants being offered and the terms of the offering.
A prospectus
supplement may also add, update or change information included in this prospectus. Any statement contained in this prospectus
will be deemed to be modified or superseded for purposes of this prospectus to the extent that a statement contained in such prospectus
supplement modifies or supersedes such statement. Any statement so modified will be deemed to constitute a part of this prospectus
only as so modified, and any statement so superseded will be deemed not to constitute a part of this prospectus. You should rely
only on the information contained in this prospectus, any applicable prospectus supplement or any related free writing prospectus.
See "
Where You Can Find More Information.
"
Neither we
nor the Selling Securityholders have authorized anyone to provide any information or to make any representations other than those
contained in this prospectus, any accompanying prospectus supplement or any free writing prospectus we have prepared. We and the
Selling Securityholders take no responsibility for, and can provide no assurance as to the reliability of, any other information
that others may give you. This prospectus is an offer to sell only the securities offered hereby and only under circumstances
and in jurisdictions where it is lawful to do so. No dealer, salesperson or other person is authorized to give any information
or to represent anything not contained in this prospectus, any applicable prospectus supplement or any related free writing prospectus.
This prospectus is not an offer to sell securities, and it is not soliciting an offer to buy securities, in any jurisdiction where
the offer or sale is not permitted. You should assume that the information appearing in this prospectus or any prospectus supplement
is accurate only as of the date on the front of those documents only, regardless of the time of delivery of this prospectus or
any applicable prospectus supplement, or any sale of a security. Our business, financial condition, results of operations and
prospects may have changed since those dates.
This prospectus
contains summaries of certain provisions contained in some of the documents described herein, but reference is made to the actual
documents for complete information. All of the summaries are qualified in their entirety by the actual documents. Copies of some
of the documents referred to herein have been filed, will be filed or will be incorporated by reference as exhibits to the registration
statement of which this prospectus is a part, and you may obtain copies of those documents as described below under "
Where
You Can Find More Information
."
On April 23, 2020 (the "Closing
Date"), Diamond Eagle Acquisition Corp., our predecessor company ("DEAC"), consummated the previously announced
business combination (the "Business Combination") pursuant to the terms of: (i) the business combination agreement
(as amended by Amendment No. 1 thereto, dated April 7, 2020, the "Business Combination Agreement") with DraftKings
Inc., a Delaware corporation ("Old 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 ("SBTech"), the
shareholders of SBTech (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 DEAC ("DEAC NV") and DEAC Merger Sub Inc.,
a Delaware corporation and a wholly-owned subsidiary of DEAC ("Merger Sub") and (ii) the agreement and plan of merger,
dated as of March 12, 2020, by and among DEAC and DEAC NV. Immediately upon the completion of the Business Combination and the
other transactions contemplated by the Business Combination Agreement (the "Transactions", and such completion, the
 "Closing"), Old DK became a direct wholly-owned subsidiary of DEAC NV. In connection with the Transactions, DEAC NV
changed its name to DraftKings Inc.
Trademarks
This
document contains references to trademarks and service marks belonging to other entities. Solely for convenience, trademarks and
trade names referred to in this prospectus may appear without the​ ® or ™ symbols, but such references are not
intended to indicate, in any way, that the applicable licensor will not assert, to the fullest extent under applicable law, its
rights to these trademarks and trade names. We do not intend our use or display of other companies' trade names, trademarks
or service marks to imply a relationship with, or endorsement or sponsorship of us by, any other companies.
ii
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, Old DK, SBT, the SBT
    Sellers party thereto, the SBT Sellers' Representative, DEAC Nevada and Merger Sub.
●
"Board" or "board of directors" refers to our board of directors.
●
"Business Combination" refers to the transactions contemplated by the BCA.
●
"Charter" refers to our amended and restated articles of incorporation.
●
"Class A common stock" refers to the Class A common stock, par value $0.0001
    per share, of the Company.
●
"Class B common stock" refers to the Class B common stock, par value $0.0001 per share, of the Company.
●
"Closing" refers to the closing of the Business Combination.
●
"Closing Date" refers to April 23, 2020, the date on which the Closing occurred.
●
"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 Old DK 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 NV" refers to DEAC NV Merger Corp., a Nevada corporation, which was
    renamed DraftKings Inc. in connection with the Closing.
●
"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.
●
"DEAC warrants" refers to the public warrants, the private placement warrants
    and the PIPE Warrants, each of which was exercisable for one share of DEAC Class A common stock at an exercise price of $11.50
    per share, in accordance with its terms, and upon the Closing, became warrants to acquire shares of DraftKings Class A common
    stock on the same terms as DEAC's currently outstanding warrants.
●
"dollars" or "$" refers to U.S. dollars.
●
"DraftKings" refers to, prior to the Business Combination, DraftKings Inc.,
    a Delaware corporation, and following the Business Combination, DraftKings Inc., a Nevada corporation, and its consolidated
    subsidiaries.
●
"DraftKings Class A common stock" refers to the shares of Class A common
    stock, par value $0.0001 per share, of DraftKings.
●
"DraftKings Class B common stock" refers to the shares of Class B common
    stock, par value $0.0001 per share, of DraftKings.
●
"earnout shares" refers to the (i) 5,388,000 shares of DraftKings Class A
    common stock that were delivered and deposited into a custodian account and (ii) 612,000 shares of DraftKings Class A common
    stock that were delivered to I.B.I. Trust Management, the trustee, in each case, to be released pro-rata to the recipients
    thereof only upon the occurrence of certain triggering events that relate to the achievement of certain stock price thresholds
    based upon the volume weighted average share price of our Class A common stock ranging from $12.50 to $16.00 at any time during
    a four-year period commencing on the Closing Date.
●
"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 were issued upon the automatic conversion of those shares in connection with the Closing.
iii
●
"Merger Sub" refers to DEAC Merger Sub Inc., a Delaware corporation.
●
"Nasdaq" refers The Nasdaq Global Select Market.
●
"Old DK" refers to, prior to the Business Combination, DraftKings Inc., a
    Delaware corporation.
●
"Old DK Warrants" refers to the 180,103 warrants initially issued by Old
    DK to certain institutional investors and which were assumed by the Company and remain outstanding.
●
"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 upon the Closing, became warrants to acquire shares of 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 3,333,332 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 our Class A common stock at an exercise price of $11.50 per share,
    in accordance with its terms, and does not include the PIPE Warrants.
●
"Proxy Statement" refers to the definitive proxy statement/prospectus filed
    with the SEC by the Company 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 became shares of 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 was 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 upon the Closing, became warrants to acquire shares of Class
    A common stock on the same terms as DEAC's 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 NV, with
    DEAC NV 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 NV.
●
"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.
iv
●
"SBT shares" refers to the ordinary shares, par value $0.10 per share, of SBT.
●
"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.
●
"Stock Consideration Shares" refers to the shares of Class A common stock
    issued to the stockholders of Old DK and SBT as stock consideration pursuant to the transactions contemplated by the BCA.
●
"Subscription Agreements" refers to the subscription agreements, dated December
    22, 2019, between DEAC and the PIPE Investors, pursuant to which DEAC 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 were exchanged, on a one-for-one basis, for shares of DraftKings Class A common stock
    and all of DEAC's outstanding warrants became warrants to acquire shares of DraftKings Class A common stock on the same
    terms as DEAC's warrants.
v
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.
Forward-looking statements include statements relating to our 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:
●
our ability to maintain the listing of our shares of Class A common stock and warrants
    on Nasdaq;
●
our ability to raise financing in the future;
●
our success in retaining or recruiting officers, key employees or directors;
●
factors relating to our business, operations and financial performance, including:
●
our ability to effectively compete in the global entertainment and gaming industries;
●
our ability to successfully acquire and integrate new operations;
●
our ability to obtain and maintain licenses with gaming authorities;
●
our inability to recognize deferred tax assets and tax loss carryforwards;
●
market conditions and global and economic factors beyond our control, including the potential
    adverse effects of the ongoing global coronavirus (COVID-19) pandemic on capital markets, general economic conditions, unemployment
    and our liquidity, operations and personnel;
●
intense competition and competitive pressures from other companies worldwide in the industries
    in which we operate;
●
litigation and the ability to adequately protect our intellectual property rights; and
●
other factors detailed herein under the section entitled "
Risk Factors.
"
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,
and 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," "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," "Unaudited Pro Forma Condensed Combined Financial Statements" and the financial statements included
elsewhere in this prospectus.
The Company
We are a digital sports entertainment
and gaming company. We provide users with daily fantasy sports, sports betting and iGaming opportunities, and we are also involved
in the design and development of sports betting and casino gaming platform software for online and retail sportsbook and casino
gaming products.
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.
Background
DraftKings Inc., a Nevada corporation
(the "Company"), was originally known as DEAC NV Merger Corp. ("DEAC NV"), a wholly-owned subsidiary of
our predecessor Diamond Eagle Acquisition Corp. ("DEAC"), a special purpose acquisition company, which completed its
initial public offering in May 2019. DEAC was incorporated for the purpose of effecting a merger, share exchange, asset acquisition,
stock purchase, reorganization or similar business combination with one or more businesses, and, prior to the Business Combination,
the Company was a "shell company" as defined under the Securities Exchange Act of 1934, as amended (the "Exchange
Act"), because it had no operations and nominal assets consisting almost entirely of cash. On April 23, 2020, DEAC consummated
the Business Combination. In connection with the Closing of the Business Combination, (i) DEAC changed its jurisdiction of incorporation
to Nevada by merging with and into DEAC NV, with DEAC NV surviving the merger and changing its name to "DraftKings Inc.",
(ii) following the reincorporation, DEAC Merger Sub Inc., a wholly-owned subsidiary of DEAC, merged with and into Old DK, with
Old DK surviving the merger (the "DK Merger") and (iii) immediately following the DK Merger, the Company acquired
all of the issued and outstanding share capital of SBT (the "SBTech Acquisition"). Upon consummation of the foregoing
transactions, Old DK and SBT became wholly-owned subsidiaries of the Company. In connection with the Closing of the Business Combination, the issued and outstanding shares of DEAC's Class A common stock were exchanged, on a one-for-one basis, for shares of
DraftKings Class A common stock. Similarly, all of DEAC's outstanding warrants became warrants to acquire shares
of DraftKings Class A common stock on the same terms as DEAC's warrants.
Our Class A common stock and our warrants
are currently listed on Nasdaq under the symbols "DKNG" and "DKNGW", respectively.
The rights of holders of our Class A
common stock and warrants are governed by our Charter, our bylaws and the Nevada Revised Statutes, and in the case of the warrants,
the Warrant Agreement, dated May 10, 2019, by and between DEAC and Continental, as warrant agent (as assigned pursuant to the Assignment and Assumption Agreement, dated April 23, 2020, by and
among DraftKings Inc., DEAC, Continental, Computershare Trust Company, N.A. and Computershare
Inc.). See the sections entitled "
Description of Securities
" and "
Selling Securityholders
."
Emerging Growth Company
We
are an "emerging growth company," as defined in Section 2(a) of the Securities Act of 1933, as amended (the "Securities
Act"), as modified by the
Jumpstart Our Business Startups Act of 2012 (the "JOBS Act")
,
and we may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies
that are not emerging growth companies, including, but not limited to, not being required to comply with the auditor attestation
requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in
our periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive
compensation and stockholder approval of any golden parachute payments not previously approved.
1
Further,
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 registration statement under the Securities
Act 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 an election to opt out is irrevocable.
We have 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, we, 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 our 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.
We will remain an emerging growth company
until the earlier of: (1) the last day of the fiscal year (a) following the fifth anniversary of the closing of the Company's
initial public offering, (b) in which we have total annual revenue of at least $1.07 billion, or (c) in which we
are deemed to be a large accelerated filer, which means the market value of our common equity that is held by non-affiliates exceeds
$700 million as of the end of the prior fiscal year's second fiscal quarter; and (2) the date on which we have
issued more than $1.00 billion in non-convertible debt securities during the prior three-year period. References herein to
 "emerging growth company" have the meaning associated with it in the JOBS Act.
Risk Factors
Our
business is subject to numerous risks and uncertainties, including those highlighted in the section titled "
Risk Factors
",
that represent challenges that we face in connection with the successful implementation of our strategy and growth of our business
.
Corporate Information
Our principal executive offices are located
at 222 Berkeley Street, 5th Floor, Boston, MA 02116. Our telephone number is (617) 986-6744, and our website address is www.draftkings.com.
Information contained on our website or connected thereto is provided for textual reference only and does not constitute part of,
and is not incorporated by reference into, this prospectus or the registration statement of which it forms a part.
2
THE OFFERING
We are registering the issuance by us
of up to (i) 19,666,655 shares of our Class A common stock
that may be issued upon exercise
of warrants to purchase Class A common stock at an exercise price of $11.50 per share of Class A common stock, including
the public warrants, the PIPE Warrants and the private placement warrants, (ii) 120,670 shares of our Class A common stock that may be issued upon
the exercise of Old DK Warrants to purchase Class A common stock at an exercise price of $0.0283 per share of Class A common stock,
(i
ii)  6,000,000 shares of Class A common stock issuable upon the satisfaction of certain triggering events (as described
herein), (iv) 252,707 shares of Class A common stock issuable upon the exercise of outstanding options granted under the 2017 Equity Incentive Plan and 2012 Equity Incentive Plan held by former employees or former consultants of DraftKings
Inc., a Delaware corporation, and (v) 1,386,034 shares of Class A common stock issuable upon the exercise of outstanding options
granted under the SBTech (Global) Limited 2011 Global Share Option Plan held by former employees or former consultants of SBTech
(Global) Limited
.
We are also registering the resale by
the Selling Securityholders or their permitted transferees of (i) up to 235,051,419 shares of Class A common stock and (ii) up
to 3,299,603 warrants.
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 12 of this prospectus.
Issuance of Class A Common Stock
The following information is as of May 4, 2020 and does not
        give effect to issuances of our Class A common stock or warrants after such date, or the exercise of warrants after such date.
Shares of our Class A common stock to be issued upon exercise
        of all public warrants, PIPE Warrants, private placement warrants and Old DK Warrants
19,787,325 shares
Shares of our Class A common stock outstanding prior to exercise
        of all warrants
312,504,813
shares
(1)
Use of proceeds
We will receive up to an aggregate of approximately $226,166,532
        from the exercise of all DEAC warrants and $5,097 from the exercise of Old DK Warrants, assuming
        the exercise in full of all such warrants for cash.
We will receive up to an aggregate of approximately $646,037
        from the exercise of stock options under the 2017 Equity Incentive Plan and the 2012 Equity Incentive Plan, and $225,748 from the
        exercise of stock options under the SBTech (Global) Limited 2011 Global Share Option Plan.
We will not receive any proceeds from the issuance of the
        earnout shares.
Unless we inform you otherwise in a prospectus supplement
        or free writing prospectus, we intend to use the net proceeds from the exercise of such warrants and stock options for general
        corporate purposes which may include acquisitions or other strategic investments or repayment of outstanding indebtedness.
3
Resale of Class A common stock and warrants
Shares of Class A common stock offered by the Selling Securityholders
        (including 3,420,273 shares of Class A common stock that may be issued upon exercise of the private placement warrants and the Old DK Warrants)
235,051,419 shares
Warrants offered by the Selling Securityholders (representing
        the private placement warrants)
3,299,603 warrants
Exercise price
$11.50 per share, subject to adjustment as described herein
Redemption
The warrants are redeemable in certain circumstances. See
        "
Description of Securities—Warrants
" for further discussion.
Use of proceeds
We will not receive any proceeds from the sale of the Class
        A common stock and warrants to be offered by the Selling Holders. With respect to shares of Class A common stock underlying the
        warrants, we will not receive any proceeds from such shares except with respect to amounts received by us upon exercise of such
        warrants to the extent such warrants are exercised for cash.
Lock-up agreements
Certain of our stockholders are subject to certain restrictions
        on transfer until the termination of applicable lock-up periods. See "
Securities Act Restrictions on Resale of Securities
        —Lock-up Agreements
" for further discussion.
Ticker symbols
"DKNG" and "DKNGW" for the Class A common stock and warrants, respectively.
1
Represents the number of shares of Class A
common stock outstanding as of May 4, 2020. Excludes 6,000,000 earnout shares of
Class A common stock held in escrow, which may be released to the Sponsor and Harry E. Sloan, certain equityholders of Old DK
and the SBT Sellers, subject to the achievement of certain stock price targets. The number of issued and outstanding shares of
Class A Common Stock also does not include (i) the shares of Class A common stock reserved for issuance under the DraftKings Inc.
2020 Incentive Plan or (ii) the shares of Class A common stock reserved for issuance under the DraftKings Employee Stock Purchase
Plan ("ESPP").
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 contained elsewhere herein.
The historical results included below and elsewhere in this prospectus are not indicative of the future performance of the Company.
In connection with the Business Combination, DraftKings was determined to be the accounting acquirer.
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 our results
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
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.
6
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 our results 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 pursuant
to the Business Combination Agreement described in the section entitled "
Unaudited Pro Forma Condensed Combined Financial
Information.
" The merger between DraftKings and Merger Sub was 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 was treated
as the "acquired" company for financial reporting purposes. Accordingly, for accounting purposes, the reverse recapitalization
for which Old DK has been determined to be the accounting acquirer (the "Reverse Recapitalization") was treated as
the equivalent of Old DK issuing stock for the net assets of DEAC, accompanied by a recapitalization. The net assets of DEAC are
stated at historical cost, with no goodwill or other intangible assets recorded. Operations prior to the Reverse Recapitalization
are those of Old DK. The SBTech Acquisition was treated as a business combination under Financial Accounting Standards Board's
ASC 805, and was accounted for using the acquisition method of accounting. We recorded 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, Old DK 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.
Pro Forma
Combined
(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
Net loss per share - basic and diluted
$
(0.42
)
Weighted-average Class A shares outstanding - basic
    and diluted
335,917,094
Summary Unaudited Pro Forma Condensed
    Combined Balance Sheet Data as of December 31, 2019
​
Total assets
$
1,854,900
Total liabilities
363,770
Total equity
1,491,130
9
COMPARATIVE
HISTORICAL AND UNAUDITED PRO FORMA PER SHARE FINANCIAL INFORMATION
The following table sets forth historical
comparative share information for DEAC, Old DK and SBT and unaudited pro forma combined share information after giving effect
to the Business Combination.
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, Old DK, and SBT and related notes. The unaudited pro forma combined per share information
of DEAC, Old DK, 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
As of and for the Year ended December 31, 2019
​
​
Book Value per share
(1)
$
0.10
$
4.44
Weighted average shares outstanding of Class A common
    stock - basic and diluted
40,000,000
335,917,094
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
)
(1)       Book
value per share = (Total equity excluding preferred shares)/shares outstanding.
10
MARKET PRICE, TICKER SYMBOL AND DIVIDEND
INFORMATION
Market Price and Ticker Symbol
Our Class A common stock and warrants
are currently listed on Nasdaq under the symbols "DKNG," and "DKNGW," respectively.
The closing price of the Class A
common stock and warrants on May 4, 2020, was $20.99 and $9.08, respectively.
Holders
As of May 4, 2020,
there were 382 holders of record of our Class A common stock and 380 holders of record of our warrants. Such
numbers do not include beneficial owners holding our securities through nominee names. There is no public market for our
Class B Common Stock.
Dividend Policy
We have not paid any cash dividends on
our Class A common stock to date. The payment of cash dividends in the future will be dependent upon our revenues and earnings,
if any, capital requirements and general financial condition. The payment of any cash dividends will be within the discretion of
the Board at such time.
11
RISK
FACTORS
An
investment in our securities involves a high degree of risk. You should carefully consider the risks described below
as
well as the other information included in this prospectus, including "Cautionary Note Regarding Forward-Looking Statements,"
 "Selected Historical Financial Information of DEAC," "Selected Historical Financial Information of DraftKings,"
 "Selected Historical Financial Information of SBT," "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 consolidated financial statements and the related notes thereto included elsewhere
in this prospectus, before investing in our securities.
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 Our Business and Industry
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.
We
operate in the global entertainment and gaming industries within the broader entertainment industry with our business-to-consumer
offerings such as DFS, Sportsbook and iGaming, and our business-to-business offerings through the SBT platform. Our users 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 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 we 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 is 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.
12
Reductions
in discretionary consumer spending could have an adverse effect on our business, financial condition, results of operations and
prospects.
Our
business is 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, our
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.
Our
quarterly financial results have fluctuated in the past and we expect our 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.
Our
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 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 we have been
able to forecast revenues from our 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, we do not insure against random outcomes or jackpot wins.
13
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.
We
operate in rapidly changing and competitive industries and our projections are 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
have a new business model, which makes it difficult for us to forecast our financial results, creates uncertainty as to how investors
will evaluate our prospects, and increases 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. Following the consummation of the Business Combination, we 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, following the Business
Combination, we are 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' and SBT's past quarterly financial results
as indicators of our future financial performance, and our financial results and stock price may be negatively affected.
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
our 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. Our 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 or postponement 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 our financial performance.
14
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, we employ 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. We use 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.
We
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 is 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. We 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 us; 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, we 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.
15
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.
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
We
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
currently host our sports betting, iGaming and daily fantasy sports platforms and support our operations using Amazon Web Services
("AWS"), a third-party provider of cloud infrastructure services, along with other service providers previously 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. We have 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.
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.
17
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.
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.
18
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.
We
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. We have experienced, and 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.
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.
19
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.
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 "—
We 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.
20
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.
We
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 our 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 our
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.
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.
21
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.
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.
Our
business model depends upon the continued compatibility between our app and the major mobile operating systems and upon third-party
platforms for the distribution of our 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 our users access our DFS, Sportsbook and iGaming product offerings primarily on mobile devices, and we
believe that this will continue to be increasingly important to our long-term success. Our business model depends upon the continued
compatibility between our app and the major mobile operating systems. Third parties with whom we do 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, we rely upon third-party platforms for distribution of our 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 our app. As such, the promotion, distribution and operation of our 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.
22
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. We are 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,
our 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, our product offerings must work well with a range
of mobile technologies, systems, networks, regulations, and standards that we do 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.
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 we are 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 our business strategy, we have made, and we intend 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:
23
●
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 our 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.
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.
We
are 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.
In
the past we have been party to, and we 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 — 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.
Our
business is 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.
24
We
offer our DFS product offering in 22 states that have adopted legislation permitting online fantasy sports. In those states that
currently require a license or registration, we have either obtained the appropriate license or registration, have obtained a
provisional license, or are operating pursuant to a grandfathering clause that allows operation pending the availability of licensing
applications and subsequent grant of a license. We also have three foreign licenses and operates under those licenses in eight
countries.
We
operate 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 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 — 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.
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.
25
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.
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.
26
We
have been the subject of governmental investigations and inquiries with respect to the operation of our 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.
We
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 exposes 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.
Our
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. We have 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 we have 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.
Our
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,
we could be subject to covering significant liabilities.
We
follow 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 us 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. We believe 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.
27
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 our own, 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 our 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 may be greater than we anticipate.
We
became a public company following the Closing of the Business Combination, and as such (and particularly after we are no longer
an "emerging growth company"), have incurred, and will continue to incur, significant legal, accounting and other
expenses that DraftKings and SBT did not incur as private companies. We are subject to the reporting requirements of the Exchange
Act, and are 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
need to devote a substantial amount of time to these compliance initiatives. Moreover, these rules and regulations will increase
our 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 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.
As
private companies, DraftKings and SBT were not 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.
28
DraftKings
and SBT were not required to document and test their internal controls over financial reporting nor was their management required
to certify the effectiveness of their internal controls and their auditors were not required to opine on the effectiveness of
their internal control over financial reporting. Similarly, as an "emerging growth company," DEAC was exempt from
the SEC's internal control reporting requirements. We may lose our 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
we are deemed to be a large accelerated filer, which would occur once we are subject to Exchange Act reporting requirements for
12 months, have filed at least one SEC annual report and the market value of our common equity held by non-affiliates exceeds
$700 million as of the end of the prior fiscal year's second fiscal quarter. We will be subject to the SEC's
internal control reporting and attestation requirements with respect to our annual report on Form 10-K for the year ending December
31, 2021. Additionally, our independent registered public accounting firm will be required to formally attest to the effectiveness
of our internal controls over financial reporting commencing with our second annual report on Form 10-K (i.e. for the year ending
December 31, 2021). We may not be able to complete our evaluation, testing and any required remediation in a timely fashion.
In addition, our current controls and any new controls that we develop may become inadequate because of poor design and changes
in our 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 our independent registered
public accounting firm and their attestation reports.
If
we are unable to certify the effectiveness of our internal controls, or if our internal controls have a material weakness, we
may not detect errors timely, our consolidated financial statements could be misstated, we could be subject to regulatory scrutiny
and a loss of confidence by stakeholders, which could harm our business and adversely affect the market price of our common stock.
Continued
growth and success will depend on the performance of our current and future employees, 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
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 our current executive officers has been a critical element of
Old DK's 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 our 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. 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 our 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 equity securities.
29
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 — Government Regulation
."
In
addition, the Charter provides that any of our common stock or other equity securities owned or controlled by any stockholder
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 Board, is an unsuitable person,
will be subject to mandatory sale and transfer to either us 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 our present
activities or the past activities of DraftKings or SBT, or the past or present activities of their 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 our 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 to 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 our 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.
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.
30
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. We are 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 Old DK's 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 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, we 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
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.
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.
31
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
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 Integration of DraftKings' and SBTech's Businesses
While
we work to 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 our business, financial condition, results of operations and
prospects. In addition, uncertainty about the effect of the Business Combination on our systems, employees, customers, partners,
and other third parties, including regulators, may have an adverse effect on us. These uncertainties may impair our 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 our business, financial condition and results
of operations.
We
may incur successor liabilities due to conduct arising prior to the completion of the Business Combination.
We
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, we may also face intellectual property infringement, misappropriation, or invalidity/non-infringement claims
from third parties, and some of these claims may lead to litigation. We 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 us negatively.
We
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.
Although
we 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 involved the integration of two businesses that previously operated as independent businesses. We are devoting
management attention and resources to integrating the businesses. We may encounter potential difficulties in the integration process
including the following:
32
●
the inability to successfully integrate the
    two businesses, including operations, technologies, products and services, in a manner that permits us 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 us, 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 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
    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. The loss of talented
employees and skilled workers could adversely affect our ability to successfully conduct our businesses because of such employees'
experience and knowledge of the respective business. In addition, we 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 we 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 our business, results
of operations, financial condition or prospects during this transition period and for an undetermined period after completion
of the Business Combination.
Our
business now includes a B2B business model, primarily in international jurisdictions, which business depends on the underlying
financial performance of our 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 our
business.
SBT
historically offered its services directly to operators in Europe and uses a reseller model in Asia. SBT's historical financial
performance depended on the underlying financial performance of its direct operators and its resellers. In particular, SBT relied
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 our business.
Given
the increased number of jurisdictions in which we operate, 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 now operate, 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.
33
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
business, which included significant international operations, is likely to expose us 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 our profit and financial position.
SBT's
global operations are likely to expose us 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 historically was, and
we are expected to be, exposed to adverse movements in foreign currency exchange rates, which may adversely impact our financial
positions and results of operations.
Our
functional currency is the U.S. dollar, and as a result, we will be subject to foreign currency fluctuation due to SBT's
global presence and the fact that a significant majority of its revenues, operating expenses and assets and liabilities were non-U.S.
dollar denominated. 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 we 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 our operations outside of the United States
expand.
Our
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 was 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 historically
did not hedge its foreign currency transaction or translation exposure, though we 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 our financial position and results of operations, and may adversely impact the comparability of results between periods.
We
currently depend on the Kambi platform to operate our Sportsbook and 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.
We
currently depends on Kambi and their platform to operate our Sportsbook product offering; however, 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.
Risk
Factors Relating to Our Common Stock
Resales
of our securities may cause the market price of our securities to drop significantly, even if our business is doing well
.
With
certain limited exceptions, (i) no member of the DK Stockholder Group or the SBT Stockholder Group or any other Selling
Securityholder is permitted to transfer any shares of Class A common stock or warrants beneficially owned or owned of record
by such stockholder for a period of 180 days from the Closing, (ii) no member of the DEAC Stockholder Group is permitted to
transfer any shares of Class A common stock or warrants beneficially owned or owned of record by such stockholder until the
earliest of (A) one year from the Closing, (B) the last consecutive trading day where the volume weighted average share price
equals or exceeds $15.00 per share for at least 20 out of 30 consecutive trading days, commencing not earlier than 180 days
after the Closing or (C) at the time DraftKings consummates a transaction after the transactions which results in the
stockholders having the right to exchange their shares of common stock for cash, securities or other property; and (iii) Mr.
Robins is not permitted to transfer any shares of Class A common stock or warrants beneficially owned or owned of record
until two years after the Closing. All other Selling Securityholders are also prohibited from transferring any shares of
Class A common stock and warrants beneficially owned or owned of record by such stockholder for a period of 180 days from the
Closing.
34
We
also intend to register all shares of Class A common stock that we may issue under the Incentive Plan. Once we register these
shares, they can be freely sold in the public market upon issuance, subject to volume limitations applicable to affiliates.
The
shares of Class A common stock offered by the Selling Securityholders represent approximately 75% of our outstanding Class A
common stock, not including the shares of Class A common stock underlying the warrants. Additionally, 3,454,002 shares of our
Class A common stock will be issuable upon the exercise of our private placement warrants and Old DK Warrants. 3,420,273
shares of Class A common stock underlying our private placement warrants and Old DK Warrants have been registered for resale under
the Securities Act on the registration statement of which this prospectus is a part. As restrictions on resale end, the warrants
become exercisable and registration statements are available for use, the sale or possibility of sale of shares by the Selling
Securityholders could have the effect of increasing the volatility in our share price or the market price of our securities could
decline if the holders of currently restricted shares sell them or are perceived by the market as intending to sell them.
DEAC
warrants will become exercisable for 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.
Outstanding
DEAC warrants to purchase an aggregate approximately 19.7 million shares of our Class A common stock will become exercisable
in accordance with the terms of the warrant agreement. These warrants will become exercisable on May 23, 2020. The exercise price
of these warrants will be $11.50 per share.
To
the extent such warrants are exercised, additional shares of our Class A common stock will be issued, which will result in
dilution to the holders of our 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 our Class A common
stock.
We
may redeem unexpired warrants prior to their exercise at a time that is disadvantageous to you, thereby making your warrants worthless.
We
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 our 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 are redeemable by us so long as they are held by their initial purchasers or their permitted
transferees.
In
addition, we may redeem warrants after they become exercisable for a number of shares of our Class A common stock determined
based on the redemption date and the fair market value of our 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.
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 DEAC warrants is $11.50 per share of Class A common stock. There can be no assurance that
the DEAC warrants will be in the money following the time they become exercisable and prior to their expiration, and as such,
the DEAC warrants may expire worthless.
35
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.
We
may be forced to write-down or write-off assets, restructure our operations, or incur impairment or other charges that could result
in losses. Even though these charges may be non-cash items and not have an immediate impact on our liquidity, the fact that we
report charges of this nature could contribute to negative market perceptions about us or our securities. In addition, charges
of this nature may cause us to violate net worth or other covenants to which we may be subject. Accordingly, a stockholder could
suffer a reduction in the value of their shares.
The
trading price of our
Class A common stock and warrants may be volatile.
The
trading price of our securities 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.
Factors
affecting the trading price of our 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 DraftKings or the industries in which we operate in general;
●
operating and stock price performance of
    other companies that investors deem comparable to us;
●
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 us;
●
changes in our capital structure, such as
    future issuances of securities or the incurrence of additional debt;
●
the volume of shares of our Class A
    common stock available for public sale;
●
any major change in our board or management;
●
sales of substantial amounts of our 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 us 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.
36
The
coverage of our business or our securities by securities or industry analysts or the absence thereof could adversely affect our
securities and trading volume
.
The
trading market for our securities will be influenced in part by the research and other reports that industry or securities analysts
may publish about us or our business or industry from time to time. We do not control these analysts or the content and opinions
included in their reports. As a former shell company, we may be slow to attract equity research coverage, and the analysts who
publish information about our securities will have had relatively little experience with our company, which could affect their
ability to accurately forecast our results and make it more likely that we fail to meet their estimates. If no or few analysts
commence equity research coverage of us, the trading price and volume of our securities would likely be negatively impacted. If
analysts do cover us and one or more of them downgrade our securities, or if they issue other unfavorable commentary about us
or our industry or inaccurate research, our stock price would likely decline. Furthermore, if one or more of these analysts cease
coverage or fail to regularly publish reports on us, we could lose visibility in the financial markets. Any of the foregoing would
likely cause our stock price and trading volume to decline.
There
can be no assurance that we will be able to comply with the continued listing standards of The Nasdaq Stock Market.
Our
Class A common stock and warrants are currently listed on Nasdaq. If Nasdaq delists our Class A common stock from trading
on its exchange for any reason, we and our stockholders could face significant material adverse consequences including:
●
a limited availability of market quotations
    for our securities;
●
a determination that our Class A common
    stock is a "penny stock" which will require brokers trading in our 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 our 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
we are 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 DraftKings is held by an individual, a group or another
company, we will qualify as a "controlled company" under The Nasdaq Stock Market listing requirements. Mr. Robins
controls a majority of the voting power of our outstanding capital stock. As a result, we are a "controlled company"
under The Nasdaq Stock Market listing standards and are not 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 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. We would then be required to comply with those provisions of The Nasdaq Stock Market listing requirements.
Our
dual class structure has the effect of concentrating voting power with our Chief Executive Officer and Co-Founder, which limits
an investor's ability to influence the outcome of important transactions, including a change in control.
Shares
of our Class B common stock have 10 votes per share, while shares of our Class A common stock have one vote per share.
Mr. Robins, one of the founders of DraftKings, holds all of the issued and outstanding shares of our Class B common
stock. Accordingly, Mr. Robins holds approximately 90% of the voting power of our 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 DraftKings, could deprive our stockholders of an opportunity to receive a premium for their capital stock as part
of a sale of DraftKings, and might ultimately affect the market price of shares of our Class A common stock. For information
about our dual class structure, see the section titled "
Description of Securities.
"
37
We
cannot predict the impact our dual class structure may have on the stock price of our Class A common stock.
We
cannot predict whether our dual class structure will result in a lower or more volatile market price of our 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 our Class A common stock less attractive
to other investors. As a result, the market price of shares of our Class A common stock could be adversely affected.
Nevada
law and provisions our amended and restated articles of incorporation and bylaws could make a takeover proposal more difficult.
Our
organizational documents are governed by Nevada law. Certain provisions of Nevada law and of our 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 our stockholders. These provisions provide for, among
other things:
●
the ability of our Board 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 our capital stock;
●
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 our capital stock so long as Mr. Robins
    beneficially owns shares representing a majority of the voting power of our capital stock 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 our voting stock; and
●
a dual class common stock structure, which
    provides 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 our 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
DraftKings, even if the third party's offer may be considered beneficial by many of our stockholders. As a result, our stockholders
may be limited in their ability to obtain a premium for their shares. If prospective takeovers are not consummated for any reason,
we may experience negative reactions from the financial markets, including negative impacts on the price of our common stock.
These provisions could also discourage proxy contests and make it more difficult for our stockholders to elect directors of their
choosing and to cause us to take other corporate actions. See "
Description of Securities
."
38
Our
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 our stockholders, which could limit stockholders'
ability to obtain a favorable judicial forum for disputes with us or our directors, officers, employees or agents.
Our
amended and restated articles of incorporation require that, to the fullest extent permitted by law, and unless we otherwise consent
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 Nevada 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 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 DraftKings to DraftKings or its stockholders;
●
any action asserting a claim arising pursuant
    to any provision of NRS Chapters 78 or 92A, our amended and restated articles of incorporation or our bylaws;
●
any action to interpret, apply, enforce or
    determine the validity of our amended and restated articles of incorporation or our bylaws; or
●
any action asserting a claim governed by the
    internal affairs doctrine.
​
The
exclusive forum provision provides 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 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 our directors and officers.
39
USE
OF PROCEEDS
All
of the shares of Class A common stock and the 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 $226,166,532 from the exercise of the DEAC
warrants and $5,097 from the exercise of the Old DK Warrants, assuming the exercise in full of all such warrants for cash. We
will receive up to an aggregate of approximately $646,037 from the exercise of stock options under the 2017 Equity Incentive Plan
and the 2012 Equity Incentive Plan, and $225,748 from the exercise of stock options under the SBTech (Global) Limited 2011 Global
Share Option Plan. We will not receive any proceeds from the issuance of the earnout shares. 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.
40
UNAUDITED
PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION
Defined terms included below have
the same meaning as terms defined and included elsewhere in this prospectus. Unless the context otherwise requires, the "Company"
refers to DraftKings Inc. and its subsidiaries after the Closing, and DEAC prior to the Closing.
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 Inc., a Delaware corporation
                                         ("Old DK");
●
The
                                         SBTech Acquisition;
●
The
                                         Private Placement; and
●
The
                                         issuance of Convertible Notes, which converted 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:
●
Old
                                         DK was organized on December 29, 2011, as a Delaware corporation. It 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 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.
The historical financial information
of DEAC was derived from the audited consolidated financial statements of DEAC as of December 31, 2019
and for the period between March 27, 2019 and December 31, 2019, which are incorporated by reference. The historical financial information
of Old DK was derived from Old DK's audited consolidated financial statements for the year ended December 31, 2019, which
are incorporated by reference. The historical financial information of SBTech was derived from SBTech's audited consolidated
financial statements for the year ended December 31, 2019, which are incorporated by reference.
41
This information should be read together
with DEAC's, Old DK's, and SBTech's audited financial statements and related notes, as well as "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" contained in the Proxy, and other financial information,
each of which is incorporated by reference.
The Reverse Recapitalization was accounted
for as a reverse merger for which DraftKings was determined to be the accounting acquirer based on the following predominate factors:
●
Old
                                         DK has the largest voting interest in DraftKings;
●
The
                                         board of directors of DraftKings (the "Board") has 13 members, and DraftKings
                                         has nominated ten members of the Board;
●
Old
                                         DK's former management makes up the vast majority of the management of DraftKings;
●
Old
                                         DK is the largest entity by revenue and net income/loss;
●
DraftKings
                                         Class B common stock issued to one DraftKings stockholder allows for incremental voting
                                         rights;
●
The
                                         post-combination company assumed Old DK's name.
Other factors were considered but they
would not change the preponderance of factors indicating that Old DK was the accounting acquirer.
The merger between Old DK and Merger
Sub was 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 was treated as the "acquired" company for financial reporting purposes.
Accordingly, for accounting purposes, the Reverse Recapitalization was treated as the equivalent of Old DK issuing stock for the
net assets of DEAC, accompanied by a recapitalization. The net assets of DEAC are stated at historical cost, with no goodwill or
other intangible assets recorded. Operations prior to the Reverse Recapitalization are those of Old DK. The SBTech Acquisition
was treated as a business combination under Financial Accounting Standards Board's ASC 805, and was accounted for using
the acquisition method of accounting. DraftKings recorded the fair value of assets acquired and liabilities assumed from SBTech.
Description of the Business Combination
Pursuant to the Business Combination
Agreement, DEAC acquired all of the issued and outstanding equity interests of Old DK and SBTech in exchange for cash and equity.
The initial purchase price was based on a combined pre-money enterprise value of Old DK and SBTech, which consists of $195.9 million
of cash being transferred to SBTech shareholders (subject to adjustments as defined in the Business Combination Agreement), and
the remaining value was in the form of shares of DraftKings' Class A common stock, options, restricted stock units and warrants
of DraftKings and, in the case of Mr. Robins, shares of Class B common stock of DraftKings.
The following summarizes the consideration
issued at closing in the Reverse Recapitalization and SBTech Acquisition at a $17.53 share price (as of April 23, 2020):
Total Consideration (in 000s)
Amounts
Shares
Share consideration - DraftKings
(2)
$
3,620,939
206,557
Cash consideration - SBTech
(1)
195,948
—
Share consideration - SBTech
(2)
771,044
43,984
Total Merger Consideration
$
4,587,931
250,541
(1)
Amount is subject
                                         to adjustment for the Net Debt Amount and Working Capital Amount, 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 average EUR to USD rate for
                                         the seven consecutive business day period ending on the fifth day prior to the Closing
                                         as per the terms of the Business Combination Agreement.
42
(2)
Represents
                                         the estimated fair value of DraftKings common stock issued to Old DK/SBTech stockholders
                                         pursuant to the Business Combination Agreement. The estimate is based on shares that
                                         were outstanding and options and warrants that vested by the Closing. 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 are held in escrow, three million of which will be for
                                         the benefit of Old DK/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 DraftKings
at close is as follows (including shares issuable pursuant to vested options and warrants that rolled over at the Closing):
Total Capitalization (in 000s)
Shares
%
Old DK rollover equity - DraftKings Class A
206,557
61.5
SBTech rollover equity
43,984
13.1
DEAC public shareholders
39,991
11.9
DEAC Founders Shares
3,659
1.1
DEAC shares issued upon conversion of Convertible Notes
11,255
3.3
DEAC shares issued in PIPE Offering
30,471
9.1
Total Class A Shares
335,917
100.0
DraftKings Class B Shares*
393,014
​
*
DraftKings'
                                         Class B shares were issued to Jason Robins, such shares carry 10 votes per share and
                                         allow Jason Robins to have 90% of the voting power of the capital stock of 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, Old DK, 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.
43
Unaudited Pro Forma Condensed Combined Balance Sheet
as of December 31, 2019
(Amounts in thousands)
​
​
As
    of 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
(Note 4 - PF
)
​
​
​
Purchase
Accounting
Adjustments
(Note 4 - PPA)
​
Pro
Forma Combined
ASSETS
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
Current assets:
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
Cash and cash equivalents
​
$
76,533
​
​
$
491
​
​
$
9,143
​
​
$
-
​
​
$
403,961
​
​
A
​
$
(212,284)
​
A
$
592,187
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
(14,000)
​
​
B
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
(41,599)
​
​
C
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
40,042
​
​
D
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
304,714
​
​
E
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
(10,000)
​
​
L
​
​
​
​
(90)
K
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
(7,732)
​
​
M
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
(1,492)
​
​
N
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
44,500
​
​
O
​
​
​
​
Cash reserved for customers
​
​
144,000
​
​
​
-
​
​
​
-
​
​
​
-
​
​
​
-
​
​
​
​
​
-
​
​
​
144,000
​
Receivables reserved for customers
​
​
19,828
​
​
​
-
​
​
​
-
​
​
​
-
​
​
​
-
​
​
​
​
​
-
​
​
​
19,828
​
Trade receivables, net
​
​
-
​
​
​
-
​
​
​
27,781
​
​
​
-
​
​
​
-
​
​
​
​
​
-
​
​
​
27,781
​
Prepaid expenses
​
​
-
​
​
​
319
​
​
​
-
​
​
​
(319)
​
​
​
-
​
​
​
​
​
-
​
​
​
-
​
Prepaid expenses and other current assets
​
​
20,787
​
​
​
-
​
​
​
-
​
​
​
4,045
​
​
​
-
​
​
​
​
​
-
​
​
​
24,832
​
Other current
    assets
​
​
-
​
​
​
-
​
​
​
3,726
​
​
​
(3,726)
​
​
​
-
​
​
​
​
​
-
​
​
​
-
​
Total current
    assets
​
​
261,148
​
​
​
810
​
​
​
40,650
​
​
​
-
​
​
​
718,304
​
​
​
​
​
(212,284)
​
​
​
808,628
​
Cash and investments held in Trust Account
​
​
-
​
​
​
403,961
​
​
​
-
​
​
​
-
​
​
​
(403,961)
​
​
A
​
​
-
​
​
​
-
​
Property and equipment, net
​
​
25,945
​
​
​
-
​
​
​
11,148
​
​
​
209
​
​
​
-
​
​
​
​
​
-
​
​
​
37,302
​
Intangible assets, net
​
​
33,939
​
​
​
-
​
​
​
29,296
​
​
​
(209)
​
​
​
-
​
​
​
​
​
240,152
​
B
​
303,178
​
Goodwill
​
​
4,738
​
​
​
-
​
​
​
-
​
​
​
-
​
​
​
-
​
​
​
​
​
695,235
​
A
​
699,973
​
Equity method investment
​
​
2,521
​
​
​
-
​
​
​
-
​
​
​
-
​
​
​
-
​
​
​
​
​
-
​
​
​
2,521
​
Deposits
​
​
2,434
​
​
​
-
​
​
​
-
​
​
​
-
​
​
​
-
​
​
​
​
​
-
​
​
​
2,434
​
Deferred tax assets
​
​
-
​
​
​
-
​
​
​
520
​
​
​
(520)
​
​
​
-
​
​
​
​
​
-
​
​
​
-
​
Other non-current assets
​
​
-
​
​
​
-
​
​
​
344
​
​
​
520
​
​
​
-
​
​
​
​
​
-
​
​
​
864
​
Total Assets
​
​
330,725
​
​
​
404,771
​
​
​
81,958
​
​
​
-
​
​
​
314,343
​
​
​
​
​
723,103
​
​
​
1,854,900
​
44
​
​
As
    of 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
(Note 4 - PF)
​
​
​
Purchase
Accounting
Adjustments
(Note 4 - PPA)
​
​
Pro
    Forma Combined
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
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
(1,492)
​
N
​
​
​
Liabilities to customers
​
​
163,035
​
​
​
-
​
​
​
-
​
​
​
799
​
​
​
-
​
​
​
​
-
​
​
​
163,834
Term note, current portion
​
​
6,750
​
​
​
-
​
​
​
-
​
​
​
-
​
​
​
44,500
​
O
​
​
-
​
​
​
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
Deferred underwriting commissions
​
​
-
​
​
​
14,000
​
​
​
-
​
​
​
-
​
​
​
(14,000)
​
B
​
​
-
​
​
​
-
Other long-term liabilities
​
​
56,862
​
​
​
-
​
​
​
-
​
​
​
458
​
​
​
(11,000)
​
P
​
​
2,648
​
C
​
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
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
​
E
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
4
​
F
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
1
​
G
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
-
​
M
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
21
​
H
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
-
​
P
​
​
​
-
K
Class B common stock
​
​
-
​
​
​
1
​
​
​
-
​
​
​
-
​
​
​
(1)
​
G
​
​
-
​
​
​
39
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
-
​
H
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
39
​
Q
​
​
​
Common stock
​
​
390
​
​
​
-
​
​
​
-
​
​
​
-
​
​
​
(390)
​
H
​
​
-
​
​
​
-
Share capital
​
​
-
​
​
​
-
​
​
​
3
​
​
​
-
​
​
​
-
​
​
​
​
(3)
​
D
​
-
Actuarial reserve
​
​
-
​
​
​
-
​
​
​
(156)
​
​
​
-
​
​
​
-
​
​
​
​
156
​
D
​
-
45
​
​
As
    of 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
(Note 4 - PF)
​
​
​
Purchase
Accounting
Adjustments
(Note 4 - PPA)
​
​
Pro
    Forma Combined
Additional paid-in capital
690,443
2,689
-
-
(6,000
)
C
780,280
A
2,544,091
112,544
D
304,711
E
384,275
F
2,310
I
258,740
H
3,010
J
(90
)
K
(7,732
)
M
11,000
P
7,911
Q
Retained earnings
-
2,310
58,795
(61,105
)
-
-
-
Accumulated deficit
(998,784
)
-
-
61,105
(29,150
)
C
(58,795
)
D
(1,053,034
)
(4,140
)
D
(2,310
)
I
(3,010
)
J
(10,000
)
L
(7,950
)
Q
Total parent stockholders' equity
(307,951
)
5,000
58,642
-
1,013,797
721,642
1,491,130
Non-controlling interest
-
-
1,187
-
-
(1,187
)
D
-
Total stockholders' equity
(307,951
)
5,000
59,829
-
1,013,797
720,455
1,491,130
Total Liabilities and Stockholders' Equity
330,725
404,771
81,958
-
314,343
723,103
1,854,900
46
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
(Note 4 - PF)
​
​
​
Purchase
Accounting
Adjustments
(Note 4 - PPA)
​
​
Pro
    Forma
Combined
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
131,524
1,513
DD
500
EE
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
-
(8,405
)
104
400,852
(Loss) / Income from Operations
(146,545
)
(1,857
)
6,545
-
8,405
(14,796
)
(148,248
)
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
-
3,294
(14,796
)
(144,064
)
Income Tax Expense/(Benefit)
58
944
796
-
(2,002
)
CC
(4,084
)
CC
(4,288
)
Loss from equity method investment
479
-
-
-
-
-
479
Net (Loss)/Income
(142,734
)
2,310
5,585
-
5,296
(10,712
)
(140,255
)
Earnings per Share
Weighted average Class A shares outstanding
335,917,094
Loss per share (Basic and Diluted) attributable to Class A
common stockholders
$
(0.42
)
47
NOTES
TO THE UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS
Basis of Presentation
The merger between a subsidiary of DEAC
and Old DK was accounted for as a reverse recapitalization in accordance with U.S. GAAP. Under this method of accounting, DEAC
was treated as the "acquired" company for financial reporting purposes. Accordingly, for accounting purposes, the
Reverse Recapitalization was treated as the equivalent of Old DK issuing stock for the net assets of DEAC, accompanied by a recapitalization.
The net assets of DEAC are stated at historical cost, with no goodwill or other intangible assets recorded. Operations prior to
the Reverse Recapitalization are those of Old DK.
As Old DK was determined to be the accounting
acquirer in the SBTech Acquisition, the acquisition is considered a business combination under ASC 805, and was accounted
for using the acquisition method of accounting. DraftKings recorded 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 Old DK being the accounting acquirer.
The unaudited pro forma condensed combined
balance sheet as of December 31, 2019 and the unaudited pro forma condensed combined statement of operations for the year ended
December 31, 2019 have 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,
                                         which is incorporated by reference;
●
DraftKings' audited consolidated balance
                                         sheet as of December 31, 2019 and the related notes for the period ended December 31,
                                         2019, which is incorporated by reference; and
●
SBTech's audited consolidated balance sheet
                                         as of December 31, 2019 and the related notes for the period ended December 31, 2019,
                                         which is incorporated by reference.*
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:
●
DEAC's unaudited statement of operations for the period
between March 27, 2019 and December 31 2019 and the related notes, which is incorporated by reference;
●
DraftKings' audited statement of operations
                                         for the twelve months ended December 31, 2019 and the related notes, which is incorporated
                                         by reference; and
●
SBTech's audited statement of operations
                                         for the twelve months ended December 31, 2019 and the related notes, which is incorporated
                                         by reference.*
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 DraftKings 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.
48
Therefore, it is likely that the actual
adjustments will differ from the pro forma adjustments and it is possible the difference may be material. DraftKings 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, Old DK, 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, Old DK's and
SBTech's financial statement presentation. Management will perform a comprehensive review of DEAC's, Old DK's,
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 had 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 Old
DK. Refer to tables below for impacted line items and adjustment amounts in the pro forma condensed combined balance sheet and
statements of operations.
49
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
SHARHOLDERS' 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
50
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 Old DK, 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 DraftKings.
There were no intercompany balances or
transactions between DEAC, Old DK 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:
Pro Forma Adjustments (PF)
A.
Reflects the reclassification of $403.9 million of
                                         cash and cash equivalents held in the DEAC trust account that became available for transaction
                                         consideration, transaction expenses, redemption of public shares and the operating activities
                                         of DraftKings following the Business Combination. At Business Combination close, total amount
                                         in trust available for transaction consideration, net of cash used for redemptions, was
                                         $404.9.
B.
Reflects
                                         the settlement of $14.0 million of deferred underwriters' fees.
C.
Represents 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.
51
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
                                         was triggered, causing a conversion of the outstanding principal amount of these Notes
                                         and any unpaid accrued interest into equity securities at a specified price. The Convertible
                                         Notes were outstanding from December 2019 through April 2020. For purposes of this pro
                                         forma presentation, interest of $3.4 million 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.
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 converted into shares of DEAC Class A common stock.
H.
Represents recapitalization of Old DK equity and issuance
                                         of 206.6 million of DraftKings Class A common stock to Old DK Equity holders 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 redemptions of 8,928 DEAC public shares for
                                         $0.1 million at a redemption price of $10.10 per share based on a pro forma redemption
                                         date of December 31, 2019. As of the actual redemption date, the redemption price was
                                         $10.12 per share.
L.
Reflects the payment of $10.0 million in bonuses to
                                         management of Old DK upon closing of the transaction as redemptions were less than 10%
                                         of DEAC public shares.
M.
Reflects the cash amount paid to Old DK Stockholders
                                         that were deemed to be non-accredited by Old DK, 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 Old DK 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 $11.0 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 converted to Class A shares upon close
                                         of the business combination and have been reflected herein as such.
Q.
Reflects the issuance of 393.0 million shares of DraftKings Class B common stock to Jason Robins valued at $8.0 million.
                                                                 In connection with issuance of the Class B shares, DraftKings agreed to indemnify Mr. Robins for any personal tax liabilities
                                                                 that may arise, which would result in DraftKings incurring an additional liability and an incremental compensation charge.
                                                                 The Class B shares were valued using a market trading comparables approach.
52
Purchase Price Allocation Adjustments (PPA)
A.
The estimated consideration is as follows:
Estimated Consideration
Cash consideration
(1)
$
208,956
Share consideration
(2)
780,284
Other consideration
(3)
3,328
Total estimated consideration
992,568
(1)
Includes the cash consideration, as adjusted for estimated
                                         excess Net Debt Amount and Working Capital Amount of $13.0 million as of December 31,
                                         2019. At the Closing, the Net Debt Amount and Working Capital Amount represented a decrease
                                         in total consideration of $11.0 million, resulting in cash consideration of $184.9.
(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 100%,
                                         100%, and 75% probability of reaching the specified share price targets of $12.50, $14.00,
                                         and $16.00, respectively. 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 Old DK 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)
992,568
Estimated goodwill (b) - (a)
695,235
53
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.
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.
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.
54
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 Old DK.
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 to certain equity awards expected to continue vesting subsequent to the
                                         closing.
EE.
Reflects additional compensation expense recorded
                                         as a result of the execution of employment agreements with certain members of the management
                                         team.
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%.
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. For shares redeemed, this calculation is retroactively adjusted to eliminate such shares for the entire
periods.
For the Year ended December
    31, 2019
(in thousands except share and per share data)
Pro forma net loss
(140,255
)
Weighted average shares outstanding of Class A common stock
335,917,094
Net loss per share (Basic
    and Diluted) attributable to Class A common stockholders (1)
$
(0.42
)
(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 to 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, DraftKings' Class B shares
were issued to Jason Robins, such shares carry 10 votes per share and allow Jason Robins to have 90% of the voting power of the
capital stock of 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.
55
BUSINESS
The
following discussion reflects the business of DraftKings. "We," "us" and "our" generally refer
to DraftKings Inc., a Nevada corporation (together with its subsidiaries, "DraftKings"), in the present tense or Old
DK on a historical 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.
56
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 May 1, 2020, our Sportsbook app and website are available
in Colorado, 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.
We
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 our 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. Ultimately, we believe we are 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.
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.
57
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.
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.
58
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.
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 and Colorado and iGaming in Pennsylvania.
●
DraftKings completed its business combination
    with DEAC and SBTech and began trading on Nasdaq
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.
59
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 our 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.
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:
60
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.
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).
●
In 2020, we entered into an arrangement with
    Twin River Worldwide Holdings, Inc. ("Twin River"), for retail and online sportsbook services providing us access
    to the Colorado market. On May 1, 2020, we launched our online Sportsbook in Colorado.
Our
Resorts, del Lago, Wild Rose, Twin River 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.
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●
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.
●
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
. 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, 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. 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. We plan 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
Our
revenues are predominantly generated through our business-to- consumer ("B2C") offerings and business-to-business
("B2B") offerings. 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.
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.
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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
We
now supply B2B sports betting and iGaming services globally for various DFS and gaming operators and government-run lotteries.
Currently our 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.
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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.
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 Our
Business and Industry — 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."
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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.
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 Colorado and Iowa in the first half of 2020, and recently launched iGaming in Pennsylvania.
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.
Our
Technology and Product Development
At
a high level, DraftKings' 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.
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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.
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. Our product
and engineering workforce consists 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 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.
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While
most of the intellectual property we use is created by us, we have obtained rights to use intellectual property of third parties
through licenses and service agreements with those third parties. Although we 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
protect our intellectual property rights by relying on federal, state and common law rights, as well as contractual restrictions.
We 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 also engage in monitoring the activities of third
parties with respect to potential infringing uses of our intellectual property by third parties.
We
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 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.
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.
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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.
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 have DraftKings or FanDuel accounts (the "Family Member Plaintiffs")
and who assert claims under various state laws regarding gambling. On March 9, 2019, the DFS defendants moved to dismiss the Family
Member Plaintiffs' claims and the claims brought by the one (additional) remaining plaintiff who asserts claims against
the DFS defendants as a concerned citizen of the State of Florida (the "concerned citizen claim"). On April 7, 2020,
an opposition to the motion to dismiss the concerned citizen claim was filed. On April 20, 2020, the Family Member Plaintiffs
filed their opposition to the DFS defendants' motion to dismiss, and on April 29, 2020, the Family Member Plaintiffs filed
a motion for leave to amend the first amended class action complaint.
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.
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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.
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 April 13, 2020,
the parties filed an agreed motion to extend the scheduling order, setting the case for a non-jury trial on April 20, 2021.
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 March 20, 2020, the court denied CG's petition for
en banc
rehearing for the appeal related to the '818 Patent
. 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.
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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."
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;
74
●
maintain systems for reliable record keeping;
●
file periodic reports with gaming regulators;
●
establish programs to promote responsible gaming;
    and
●
enforce minimum age requirements.
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.
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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.
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, the Charter provides that any of our capital stock owned or controlled by an unsuitable
person or its affiliates will be transferred to either DraftKings or one or more third-party transferees, in such number and class(es)/series
as determined by the Board 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 Board.
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.
76
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 Colorado, 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 Colorado Limited Gaming Control Commission, 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 our Business
and Industry — 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 in Pennsylvania, pursuant to a license granted by the Pennsylvania Gaming Control Board. We are pursuing
a license in West 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.
77
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.
78
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.
79
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.
Old DK's total revenue grew 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.
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.
80
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 39% 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
State
% of U.S. Population
Legalized
(1)
Online
(2)
Online
    Live or
Pending Launch
(3)
Arkansas
0.9 %
✓
x
-
Colorado
1.7 %
✓
✓
✓
Delaware
0.3 %
✓
x
-
Illinois
3.9 %
✓
✓
✓
Indiana
2.0 %
✓
✓
✓
Iowa
1.0 %
✓
✓
✓
Michigan
3.1 %
✓
✓
✓
Mississippi
0.9 %
✓
x
-
Montana
0.3 %
✓
x
-
Nevada
0.9 %
✓
✓
✓
New Hampshire
0.4 %
✓
✓
✓
New Jersey
2.7 %
✓
✓
✓
New Mexico
(4)
0.6 %
✓
x
-
New York
6.0 %
✓
x
-
North Carolina
3.2 %
✓
x
-
Oregon
1.3 %
✓
✓
✓
Pennsylvania
3.9 %
✓
✓
✓
Rhode Island
0.3 %
✓
✓
✓
Tennessee
(5)
2.1 %
✓
✓
✓
Washington
(4)
2.3 %
✓
x
-
Washington, DC
0.2 %
✓
✓
✓
West Virginia
0.6 %
✓
✓
✓
% of U.S. Population
39
    %
24
    %
15
    %
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.
(3)
Green check indicates states with operational
    online sports betting, while yellow check indicates states that are still pending launch.
(4)
In New Mexico and Washington, sports betting
    is limited to provision by Native American tribes.
(5)
Tennessee is the only state without retail sportsbooks.
81
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.
(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.
82
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 our B2C and B2B businesses.
U.S.
iGaming
Of
the ten 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 — 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.
Competition
Given
that we operate 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 include Bet.Works, Gaming Innovation Group (GiG), GVC Holdings,
International Gaming Technology (IGT), Kambi, Playtech and Scientific Games. We compete on the quality and breadth of our technology
solutions and support services.
83
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. 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" 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. For the purposes of this section, "we,"
 "us," "our" and "DraftKings" refers to DraftKings Inc., a Delaware corporation, prior to the
Closing and DraftKings Inc., a Nevada corporation, following the Closing.
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.
"
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.
84
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 Colorado, Indiana, Iowa, New Hampshire,
Pennsylvania and West Virginia, and iGaming in Pennsylvania.
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 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 ours. The direct impact on the business of DraftKings
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.
85
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, we
are managing the variable portion of our cost structure 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, our liquidity outlook has 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.
Assuming
sports return this year (even without audiences), we do not expect a long-term financial impact on our financial condition and
results of operation. However, as noted in "
Risk Factors — Risk Factors Relating to Our Business and Industry —
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,
we 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.
86
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:
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.
87
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 merged with and into Old DK (the "DK Merger"), and Old DK survived the DK Merger
as a wholly-owned subsidiary of DraftKings. Concurrently with the DK Merger, DraftKings acquired all of the issued and outstanding
share capital of SBTech (the "SBTech Acquisition"). Immediately prior to the DK Merger and the SBTech Acquisition,
DEAC merged with and into DEAC NV Merger Corp., a Nevada corporation, and changed its name to DraftKings Inc. In consideration
for the DK Merger and the SBTech Acquisition, stockholders of Old DK received shares of common stock of DraftKings, and SBTech's
shareholders received a combination of cash and shares of common stock of DraftKings.
The
Business Combination
was
consummated on April 23, 2020. As the accounting acquirer of SBTech, we have preliminarily allocated the estimated purchase price
of approximately $993 million (reflecting certain estimated purchase price adjustments and seller costs to be borne by DraftKings
pursuant to the BCA) to SBTech's assets and liabilities in the pro forma balance sheet included elsewhere in this prospectus.
This results in, among other adjustments, pro forma increases of approximately $11 million in property, plant and equipment, $269
million in amortizable intangible assets and $695 million in goodwill, compared to Old DK's balance sheet as of December
31, 2019. The fair value measurement period for the SBTech Acquisition remains open for up to 12 months after 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. We plan to integrate SBTech's platform, services, assets and know-how with our
operations over time, which we expect to result in integration-related costs as well as 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
may not be comparable to Old DK's or SBTech's historical financial statements or the pro forma financial information
included elsewhere in this prospectus.
88
DraftKings
is the predecessor of the combined business, and, as the parent company of the combined business, has continued 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 was accounted for as a reverse recapitalization, with no goodwill or other intangible
assets recorded, in accordance with U.S. GAAP. SBTech was 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 Old DK's balance sheet at December 31, 2019) of $516 million.
This pro forma cash amounts is net of  (x) approximately $212 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 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 DraftKings)
and (z) other transaction-related costs (including bonuses, the payment of certain transaction-related and other payables of DEAC).
A portion of the transaction costs have been 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 second quarter of 2020 (i.e., merger-related
costs). The pro forma cash amounts include cash from (i) DEAC's trust account, (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 became the successor to an SEC-registered and Nasdaq-listed company. DraftKings
will need 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).
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
)
89
(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 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 Colorado, Indiana, Iowa, New Hampshire, Pennsylvania and West Virginia, and believe
we are the market leader in Indiana and West Virginia as of January 2020.
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
38.7% of the U.S population, have legalized sports betting in some form. Of these 22 legal jurisdictions, 14 have legalized online
sports betting, and make up 24.1% of the U.S. population. Ten of these 14 jurisdictions are live and four are pending launch.
DraftKings operates in eight of these ten jurisdictions. 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 allows
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 Our Business and Industry — 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.
"
90
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.
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.
91
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.
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."
92
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.
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.
93
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.
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.
94
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 traditionally
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 approximately $592 million at December 31, 2019. 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 obtained 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.
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. 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; however,
as noted below, in March 2020 we drew down $44.5 million under the revolving credit facility and repaid the outstanding amount
in April 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. In March 2020 we drew down $44.5 million under the 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. We repaid the drawn amount in full in April 2020 and $45.5 million was available under our revolving credit
facility at the date of this prospectus.
95
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. Following our Business Combination, Pacific Western
delivered a notice of exercise and we delivered 59,433 shares of our Class A common stock.
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 converted into new shares of our 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 accrued on the
outstanding amount of the Convertible Notes at a rate of 10% per annum on a capitalized, pay-in-kind basis and is added to the
outstanding principal amount of each Convertible Note on each anniversary of the date of its issuance or the earlier date of maturity
or conversion. The Convertible Notes may only be prepaid with the consent of the holders of a majority of the then-outstanding
principal amount.
The
Convertible Notes automatically converted 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, and subsequently converted into shares of our Class A common stock
on a one-for-one basis.
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.
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.
96
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 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 were required to pay a total of approximately $13.9 million in success
    fees to certain vendors. These success fees are classified as current obligations.
(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 converted into shares of DEAC Class A common stock (and then into Class A common stock
    of DraftKings). As discussed above, the ArrowMark Notes were canceled and exchanged into shares of our preferred stock in
    March 2020 and our Convertible Notes were converted into shares of our Class A common stock upon the consummation of the Business
    Combination, 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.
97
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.
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.
98
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. 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.
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 of directors 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 of directors included the following:
●
our
    financial performance, capital structure and stage of development;
●
our
    management team and business strategy;
99
●
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. Following the Business
Combination, the fair value of our Class A common stock is now determined based on the quoted market price on 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.
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. We expect to remain an emerging growth company at least through the end of the 2020 fiscal year and we expect to continue
to take advantage of the benefits of the extended transition period. This may make it difficult or impossible to compare our 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
."
100
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 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", 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. For the purposes of this section, "we," "us," "our" and "SBTech"
refer SBTech (Global) Limited prior to the Closing.
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.
As
a result of the Business Combination, DraftKings will be able to provide a vertically integrated Sportsbook offering and can 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 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 ours. The direct impact on our business 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.
101
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, we are managing the variable portion of our 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), we do not expect a long-term financial impact on their financial condition and
results of operation.
Finally,
we have business continuity programs in place to ensure that employees are safe and that the businesses continue to function while
employees are working remotely. We have been closely monitoring the new working environment for our employees and have not experienced
any adverse impact on its ability to continue to operate its business. We have established training and are 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 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.
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 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.
102
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.
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
%
103
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.
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.
104
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.
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. 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
" 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.
105
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.
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 addition, SBTech entered into an agreement with a legal advisor by which SBTech agreed to pay for fees based on
time involved in the engagement and internal time charges.
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.
106
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 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.
107
MANAGEMENT
Board
of Directors and Management
Board
of Directors
Our
business and affairs are managed by or under the direction of our Board. The Stockholders Agreement provides for the initial director
designation rights of DEAC, DraftKings and SBT. See "—
Stockholders Agreement
" for more information.
The
table below lists the persons who currently serve on our Board, along with each director's age as of the Closing of the
Business Combination, and any other position that such director holds with DraftKings.
Name
Position
Age
Jason
    D. Robins
Chief
    Executive Officer and
Chairman of the Board
39
Harry
    Evans Sloan
Vice
    Chairman of the Board
70
Michael
    Gavin Isaacs
Director
55
Matthew
    Kalish
President,
    DraftKings
North America, Director
38
Woodrow
    H. Levin
Director
41
Paul
    Liberman
President,
    Global Technology
and Product, Director
36
Shalom
    Meckenzie
Director
43
Ryan
    R. Moore
Director
46
Steven
    J. Murray
Director
51
Hany
    M. Nada
Director
51
Richard
    Rosenblatt
Director
51
John
    S. Salter
Director
42
Marni
    M. Walden
Director
53
The
following is a brief biography of each non-executive director of our Board.
Michael
Gavin (Gavin) Isaacs
is 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 as the non-executive Chairman of the board of directors, he assisted in SBTech'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.
108
We
believe Mr. Isaacs is qualified to serve on our Board 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 served as a member of the board of directors of Old DK (since December 2013) and currently
serves as a member of the board of directors 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 our Board due, among other things, to his extensive experience and knowledge as an
executive for technology companies, and his service as a member of Old DK's 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 our Board 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 served as a member of the board of directors for Old DK 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 our Board 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 Old DK 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 previously served as a member of the board of directors
of Old DK (since August 2016). Mr. Murray received his B.S. in Accounting from Boston College in 1990.
We
believe Mr. Murray is qualified to serve on our Board due, among other things, to his experience as a member of the board of directors
of both public and private companies, including Old DK, and expertise in fundraising, management of high-growth companies and
all levels of corporate governance.
109
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 previously served as a member of the board of directors of Old DK (since December 2013), and 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 our Board 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 Old DK's 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, as a member of the board of directors
of Imagine Films Entertainment LLC (since April 2016), a film and television production company, and previously served as a member
of the board of directors of Old DK (since January 2018). 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 our Board 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 Old DK's 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 served as a member
of the board of directors of Old DK (since August 2014). Mr. Salter received his B.A. from Stanford University.
We
believe Mr. Salter is qualified to serve on our Board 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 Old DK 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.
110
We
believe Mr. Sloan is qualified to serve on our Board 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 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 also served as a member of the board of directors
of Old DK (since October 2018). 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 our Board 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 Old DK and numerous other public and private companies.
Management
The
following persons serve as our executive officers:
Name
Position
Age
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 our executive officers.
Jason
D. Robins
is our Chief Executive Officer and Chairman of the Board. 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 our Board due, among other things, to the perspective and experience he brings as
our Chief Executive Officer and as a co-founder.
111
Matthew
Kalish
is our President, DraftKings North America, and a director. 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.
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 our Board due, among other things, to the perspective and experience he brings as
our President, DraftKings North America and as a co-founder.
Paul
Liberman
is our President, Global Technology and Product, and a director. 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 becoming 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.
We
believe Mr. Liberman is qualified to serve on our Board due, among other things, to the perspective and experience he brings as
our President, Global Technology and Product and as a co-founder.
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 Colorado 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 – Corporate Governance
On
the Closing Date, in connection with consummation of the Business Combination, DraftKings entered into a Stockholders Agreement
(the "Stockholders Agreement") with certain initial shareholders and independent directors of DEAC (the "DEAC
Stockholder Group"), certain stockholders of Old DK (the "DK Stockholder Group") and the SBT Sellers (the "SBT
Stockholder Group" and, together with the DEAC Stockholder Group and the DK Stockholder Group, the "Stockholder Parties"),
pursuant to which, among other things, that, our Board 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 DraftKings and at least five directors who qualify as "independent" directors
    under The Nasdaq Stock Market listing rules.
112
●
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).
●
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 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 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.
Additionally,
as of immediately following the Company's 2021 annual meeting of stockholders (the "2021 Annual Meeting"), the
total number of directors constituting the Board will be reduced to eleven. The nominating and corporate governance committee
of the board of directors will recommend to the Company's board of directors eleven candidates for election to the Company's
board of directors at the 2021 Annual Meeting, of which no more than eight will be any of the ten directors initially nominated
to serve on the board of directors by the DK Stockholder Group. See "
Certain Relationships and Related Party Transactions
 — DraftKings — Stockholders Agreement
" for additional information.
Board
Composition
Committees
of our Board of Directors
Our
Board has the following board committees:
●
audit
    committee;
●
compensation
    committee;
●
nominating
    and corporate governance committee; and
●
compliance
    committee.
Audit
Committee
The
audit committee oversees our corporate accounting and financial reporting process. Among other matters, the audit committee:
●
appoints
    our independent registered public accounting firm;
●
evaluates
    the independent registered public accounting firm's qualifications, independence and performance;
●
determines
    the engagement of the independent registered public accounting firm;
●
reviews
    and approves the scope of the annual audit and the audit fee;
●
discusses
    with management and the independent registered public accounting firm the results of the annual audit and the review of our
    quarterly financial statements;
●
approves
    the retention of the independent registered public accounting firm to perform any proposed permissible non-audit services;
●
monitors
    the rotation of partners of the independent registered public accounting firm on our engagement team in accordance with requirements
    established by the SEC;
●
is
    responsible for reviewing our financial statements and our management's discussion and analysis of financial condition
    and results of operations to be included in our annual and quarterly reports to be filed with the SEC;
113
●
review
    our critical accounting policies and estimates; and
●
review
    the audit committee charter and the committee's performance at least annually.
Our
audit committee consists of 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 are independent directors as defined under the applicable rules and regulations
of the SEC and The Nasdaq Stock Market with respect to audit committee membership. The Board has also determined 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 has adopted a written charter for the audit committee, which is available on our corporate website at www.draftkings.com.
The information on our website is not part of this prospectus.
Compensation
Committee
Our
compensation committee reviews and recommends policies relating to compensation and benefits of our officers and employees. Among
other matters, the compensation committee:
●
reviews
    and recommends corporate goals and objectives relevant to compensation of our chief executive officer and other executive
    officers;
●
determines
    the compensation of our chief executive officer and recommends the compensation of the other executive officers to the Board;
●
recommends
    to our board of directors the issuance of stock options and other awards under our stock plans; and
●
reviews
    and evaluates, at least annually, the performance of the compensation committee and its members, including compliance by the
    compensation committee with its charter.
The
compensation committee consists of 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, we are not required to have a compensation committee
composed entirely of independent directors; however, we have elected to comply with this requirement and each of the members of
our compensation committee is independent as defined in The Nasdaq Stock Market listing standards, and each is a "non-employee
director" as defined in Rule 16b-3 promulgated under the Exchange Act and an "outside director" as that term
is defined in Section 162(m) of the Code ("Section 162(m)"). Our Board has adopted a written charter for the compensation
committee, which is available on our corporate website at www.draftkings.com. The information on our website is not part of this
prospectus.
Nominating
and Corporate Governance Committee
The
nominating and corporate governance committee is responsible for making recommendations to our Board regarding candidates for
directorships and the size and composition of our Board. In addition, the nominating and corporate governance committee is responsible
for overseeing our corporate governance policies and reporting and making recommendations to our Board concerning governance matters.
The
nominating and corporate governance committee consists of 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, we are
not required to have a nominating and corporate governance committee composed entirely of independent directors; however, we have
elected to comply with this requirement and each of the members of the nominating and corporate governance committee is an independent
director as defined in The Nasdaq Stock Market listing standards. Our Board has adopted a written charter for the nominating and
corporate governance committee, which is available on our corporate website at www.draftkings.com. The information on our website
is not part of this prospectus.
Compliance
Committee
The
compliance committee oversees our non-financial compliance matters. Among other matters, the compliance committee:
●
identifies,
    reviews and analyzes laws and regulations applicable to us;
●
recommends
    to the Board, and monitors the implementation of, compliance programs, policies and procedures that comply with local, state
    and federal laws, regulations and guidelines;
114
●
reviews
    significant compliance risk areas identified by management;
●
discusses
    periodically with management the adequacy and effectiveness of policies and procedures to assess, monitor, and manage non-financial
    compliance business risk and compliance programs;
●
monitors
    compliance with, authorize waivers of, investigate alleged breaches of and enforce our non-financial compliance programs;
    and
●
reviews
    our procedures for the receipt, retention and treatment of complaints received regarding non-financial compliance matters.
The
compliance committee consists of Messrs. Isaacs, Liberman and Salter and Ms. Walden, with Mr. Salter serving as the chair of the
committee. Our Board has adopted a written charter for the compliance committee, which is available on our corporate website at
www.draftkings.com. The information on our website is not part of this prospectus.
Director
Independence; Controlled Company Exemption
Mr.
Robins is the beneficial owner of all the outstanding shares of our Class B common stock and controls the voting power of our
outstanding capital stock, as a result of which Mr. Robins has the power to elect a majority of our 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 are not 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.
Pursuant
to The Nasdaq Stock Market listing standards, as a controlled company, we are not 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.
Our
Board consists of 13 directors, of whom Messrs. Isaacs, Levin, Moore, Murray, Nada, Rosenblatt, Salter and Sloan and Ms. Walden
are "independent directors," as defined in The Nasdaq Stock Market listing standards and applicable SEC rules.
Compensation
Committee Interlocks and Insider Participation
The
compensation committee consists of Messrs. Levin, Moore, Nada and Rosenblatt. None of the members of the compensation committee
has at any time been an officer or employee of DraftKings. None of our executive officers currently serves, or in the past fiscal
year has served, as a member of the board of directors or compensation committee (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 our compensation committee or board of directors.
Code
of Business Conduct and Ethics
We
have adopted a code of business conduct and ethics that applies to all of our employees, officers and directors, including those
officers responsible for financial reporting. The code of business conduct and ethics is available on our website at www.draftkings.com.
To the extent required by law, we expect to disclose any amendments to the code, or any waivers of its requirements, on our website.
115
Limitation
on Liability and Indemnification Matters
Our
amended and restated articles of incorporation contain provisions that limit the liability of our directors for damages to the
fullest extent permitted by Nevada law. Consequently, none of our directors will be personally liable to us or our 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.
We
have entered into indemnification agreements with each of our directors and executive officers. Each indemnification agreement
provides for indemnification and advancements by DraftKings of certain expenses and costs relating to claims, suits or proceedings
arising from his or her service to DraftKings or, at our request, service to other entities, as officers or directors to the maximum
extent permitted by applicable law.
Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers or persons
controlling the registrant pursuant to the foregoing provisions, the registrant has been informed that in the opinion of the
Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is therefore
unenforceable.
116
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 DraftKings. 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:
●
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.
117
●
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
(1)
The amount in this column represents
    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.
118
(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.
119
(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.
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
In connection with the Business Combination,
DraftKings entered into an employment agreement with Jason Robins and Paul Liberman. The employment agreement with Mr. Robins provides
a base salary of $650,000, subject to annual review and increase from time to time, and an annual target bonus opportunity of 150%
of base salary. The employment agreement with Mr. Liberman provides for a base salary of $425,000, subject to annual review and
increase from time to time, and an annual target bonus of 125%. The executives will be eligible to participate in benefits programs
offered to employees and executives generally subject to satisfying eligibility requirements.
Each of Messrs. Robins and Liberman is
entitled to an annual equity incentive award, which will be granted within the first three months of each fiscal year (or the first
seven months for fiscal year 2020), with a minimum annual target value of $6,500,000 for Mr. Robins and $3,500,000 for Mr. Liberman.
Half of the equity incentive award granted each year will consist of time-based restricted stock units, with vesting not less favorable
than quarterly vesting over four years, and half will consist of performance-based restricted stock units, with a minimum vesting
period of two years and a maximum opportunity equal to at least 300% of target. Upon a termination of employment without "cause"
or for "good reason" (as those terms are defined in the employment agreements) within 18 months after, or three months
before, a "change in control" (as defined in the employment agreements), each executive will receive cash severance
equal to two times the sum of his salary and target bonus, payable 60 days after termination, and continued benefits for 24 months.
Additionally, equity awards will vest, with performance-based awards vesting at the target level.
Upon a termination of employment without
cause or for good reason that is not within 18 months after, and not three months before, a change in control, each executive will
receive cash severance equal to two times his salary, payable 60 days after termination, a pro rata bonus for the year of termination
based on actual performance and continued benefits for 24 months. Additionally, equity awards will vest pro rata, based on actual
performance for performance-based awards. Upon termination due to death or disability, equity awards will vest, based on actual
performance for performance-based awards, and options will be exercisable for 12 months. Severance and termination benefits payable
pursuant to the employment agreements generally are subject to the executive's execution of a release of claims and compliance
with post-closing covenants including non-competition and non-solicitation covenants that continue for 12 months following a termination
of employment other than, in the case of the noncompetition covenant, a termination without cause or layoff as set forth in the
Massachusetts Noncompetition Agreement Act.
120
The foregoing description of the employment
agreements with each of Messrs. Robins and Liberman does not purport to be complete and is qualified in its entirety by the terms
and conditions of the employment agreements, which are attached to the registration statement of which this prospectus is a part.
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 Business Combination,
DraftKings awarded transaction bonus opportunities to each of the Named Executive Officers, which are payable in cash shortly following
the completion of the Business Combination subject to continued employment. The amount of each transaction bonus was determined
based on the level of redemptions, with maximum bonus opportunities earned if redemptions were no greater than 10%. The maximum
bonus opportunity was achieved and as a result Mr. Robins is entitled to $3,000,000, Mr. Liberman is entitled to $1,500,000, and
Mr. Park is entitled to $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 were converted into restricted stock units
settled in shares of DraftKings Class A common stock subject to vesting.
Shares of Class B common stock were issued
to Mr. Robins in connection with the Business Combination, which carry 10 votes per share and allow Mr. Robins to have approximately
90% of the voting power of the capital stock of DraftKings on a fully-diluted basis. The terms of the shares of Class B common
Stock are described in more detail under "
Description of Securities —Common Stock — Class B Common Stock
".
Former Director Compensation Program
The board of directors of Old DK set
non-employee director compensation which were 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 Old DK was eligible to receive the following compensation:
●
A stock option award with a value of $400,000 (based on Old DK 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 Old DK 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
121
●
An annual stock option award with a value of $5,000 (based on Old DK fair-market
    value on the date of grant), for service on any committee of the board of directors subject to vesting as to 25% of the award
    on the 6-month anniversary of grant and the remaining 75% in equal monthly installments over the following 18 months.
DraftKings also pays reasonable travel and
accommodation expenses of the non-employee directors in connection with their participation in meetings of the board of directors.
Director Compensation Table
The following table provides information
concerning the compensation of each non-employee director who served on DraftKings' board of directors in 2019. DraftKings
employees did not receive compensation for serving as directors. Accordingly, Messrs. Robins and Liberman did not receive any compensation
for their service as directors.
Name
Fees Earned or
Paid in Cash
($)
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.
(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. 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.
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 provides 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 each of the nominating and corporate governance committee
    and the compliance committee;
●
An annual cash retainer of $10,000 for members of the audit committee, $7,500 for members
    of the compensation committee, $5,000 for members of the nominating and corporate governance committee and $5,000 for members
    of the compliance committee;
●
An equity retainer with a value of $200,000 payable in the form of stock options or restricted
    stock units, granted upon initial election to the Board and then each year at the 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.
122
All cash retainers will be payable quarterly
in arrears; provided that the retainers will be delivered in equity until DraftKings is profitable.
Incentive Award Plan
In connection with the Business Combination,
the Board approved and adopted the DraftKings Inc. 2020 Incentive Award Plan (the "Incentive Plan"), under which we
are 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 Incentive Plan is filed as an exhibit to the registration statement of which this
prospectus is a part.
Material Terms of the Incentive Plan
The material terms of the Incentive Plan
are summarized below.
Administration
. The compensation
committee of our board of directors administers the Incentive Plan. The compensation committee generally has 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 Incentive Plan and to adopt, alter and repeal rules, guidelines and practices relating
to the Incentive Plan. The compensation committee has full discretion to administer and interpret the Incentive Plan and to make
any other determination and take any other action that it deems necessary or desirable for the administration of the Incentive
Plan.
Eligibility
. Employees, directors,
officers, advisors or consultants and prospective employees, directors, officers, advisors or consultants of DraftKings or its
affiliates are eligible to participate in the Incentive Plan. Approximately 2,200 employees, consultants and service providers
and all of our eight non-executive officer directors are eligible to participate in the Incentive Plan.
Number of Shares Authorized
. The
Incentive Plan provides for an aggregate of 52,870,000 shares of 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 Incentive 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 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 Incentive 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 Class A common stock underlying awards under the Incentive
Plan that are forfeited, canceled, expire unexercised or are settled in cash will be available again for new awards under the Incentive
Plan. The Incentive Plan also permits the compensation committee to deliver an aggregate of 52,870,000 shares of Class B common
stock to employees, directors, consultants or advisors who are eligible to hold Class B common stock under the Charter; provided,
that the total number of shares of Class B common stock that will be reserved, and that may be issued, under the Incentive Plan
will automatically increase on the first trading day of each calendar year, beginning with calendar year 2021, by a number of shares
of Class B common stock equal to five percent (5%) of the total outstanding shares of 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 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 Class A common stock and Class B common stock reserved
for issuance under the Incentive Plan, the number of shares of Class A common stock and Class B common stock covered by awards
then outstanding under the Incentive Plan, the limitations on awards under the Incentive Plan, the exercise price of outstanding
options and such other equitable substitutions or adjustments as it may determine appropriate.
The Incentive Plan has a term of 10 years
from April 23, 2020, and no further awards may be granted under the Incentive 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.
123
Options
. The compensation committee
is authorized to grant options to purchase shares of 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 Incentive 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 Incentive Plan is 52,870,000 Common Shares. In general, the exercise price per share
of Class A common stock for each option granted under the Incentive 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 Incentive 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.
Stock Appreciation Rights
. The
compensation committee is authorized to award SARs under the Incentive 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 Class A common stock or any combination of cash and shares of 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 Incentive 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 is authorized to award restricted stock under the Incentive 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 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 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 is authorized to award restricted stock unit awards under the Incentive 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 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 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 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 is authorized to grant awards of unrestricted shares of Class A common stock, shares of Class B common stock or other
awards denominated in shares of Class A common stock or Class B common stock, either alone or in tandem with other awards, under
the Incentive Plan, on such terms and conditions as the compensation committee may determine.
124
Performance Compensation Awards
.
The compensation committee is authorized to grant any award, including in the form of cash, under the Incentive 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:
●
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 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;
125
●
timely completion of new product rollouts;
●
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 Incentive Plan at any time. However, shareholder approval to amend the Incentive
Plan may be necessary if the law or the Incentive 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 Incentive Plan), the compensation committee may adjust the number of shares
of Class A common stock or other securities of (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 our shareholders in connection with such Change in Control transaction.
Israeli Sub-Plan
DraftKings has adopted an Israeli Sub-Plan
to the Incentive Plan in order to enable the grant of awards to employees and directors of DraftKings' Israeli subsidiaries
and affiliates that are intended to qualify, subject to compliance with certain terms and conditions, for beneficial treatment
for Israeli tax purposes. DraftKings 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, DraftKings 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 Incentive 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 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 DraftKings, 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 DraftKings as required under the Israeli Ordinance.
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.
126
DESCRIPTION
OF SECURITIES
The following summary of the material
terms of our securities is not intended to be a complete summary of the rights and preferences of such securities. The full text
of our Charter and amended and restated bylaws are included as exhibits to the registration statement of which this prospectus
is a part. You are encouraged to read the applicable provisions of Nevada law, our Charter and amended and restated bylaws in their
entirety for a complete description of the rights and preferences of our securities. See "Where You Can Find More Information."
Authorized and Outstanding Capital Stock
The Charter authorizes the issuance of
2,100,000,000 shares, of which 900,000,000 shares are shares of Class A common stock, par value $0.0001 per share, 900,000,000
shares are shares of Class B common stock, par value $0.0001 per share, and 300,000,000 shares are shares of preferred stock, par
value $0.0001 per share.
As of May 4, 2020, our issued and outstanding
s
hare capital consisted of: (i) 312,504,813 shares
of Class A common stock, held of record by approximately 382 holders,
(ii) no shares of preferred stock and (iii) 19,846,758 warrants, consisting of
13,333,323 public warrants, 3,333,332 private placement warrants, 3,000,000 PIPE Warrants
and 180,103 Old DK Warrants, held of record by approximately 380 warrant holders.
Such numbers do not include DTC participants or beneficial owners holding shares through nominee names.
Common Stock
Class A Common Stock
Voting Rights
Holders of Class A common stock are entitled
to cast one vote per share of Class A common stock. Generally, holders of all classes of common stock vote together as a single
class, and an action is approved by 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 Class A common stock
will not be entitled to cumulate their votes in the election of directors.
Dividend Rights
Holders of 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 Board 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 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 DraftKings, each holder of Class A common stock will be entitled, pro rata on a per share basis, to
all assets of 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 DraftKings then outstanding.
Other Matters
No shares of 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 Class A common stock do not have subscription, redemption or conversion rights. All
the outstanding shares of Class A common stock are validly issued, fully paid and non-assessable.
127
Class B Common Stock
Issuance of Class B common stock with
Common Units
Shares of 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 Class B common stock are entitled
to cast 10 votes per share of Class B common stock. Generally, holders of all classes of common stock vote together as a single
class, and an action is approved by 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 Class B common stock
will not be entitled to cumulate their votes in the election of directors.
Dividend Rights
Holders of Class B common stock will
not participate in any dividend declared by the Board.
Liquidation Rights
On the liquidation, dissolution, distribution
of assets or winding up of DraftKings, holders of Class B common stock will not be entitled to receive any distribution of DraftKings
assets of whatever kind available until distribution has first been made to all holders of Class A common stock. Notwithstanding
this, due to the liquidation rights of holders of Class A common stock described above in which all assets of DraftKings of whatever
kind available will be distributed to holders of Class A common stock, no assets of DraftKings will be available for liquidating
distributions in respect of Class B common stock.
Transfers
Pursuant to the Charter, holders of 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 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 Charter) and (2) subject
to cancelation by 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 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 DraftKings and (b) either (i) Mr. Robins no longer
serves as a member of the board of directors of DraftKings or (ii) Mr. Robins' service to DraftKings is not his primary business
occupation. In the event that Mr. Robins is reinstated as the Chief Executive Officer of DraftKings or is reelected or reappointed
to serve as a member of the board of directors of 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.
Other Matters
No shares of Class B common stock are
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 Class B common stock do not have subscription, redemption or conversion rights. All outstanding
shares of Class B common stock are validly issued, fully paid and non-assessable.
Preferred Stock
Our amended and restated articles of
incorporation provide that the Board 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 our assets, which
rights may be greater than the rights of the holders of the common stock. There are no shares of preferred stock outstanding.
128
The purpose of authorizing the Board
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 our outstanding
voting stock. Additionally, the issuance of preferred stock may adversely affect the holders of 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 Class A common stock.
Unvested Stock Options
As of the Closing, Old DK had unvested
outstanding options and restricted stock units which converted to (i) 32,648,113 options to purchase shares of Class A Common Stock
and (ii) the right to receive earnout shares.
As of the Closing, SBTech had unvested
outstanding options which converted to 173,739 options to purchase shares of Class A Common Stock.
Warrants
Public Stockholders' Warrants
There are currently outstanding an aggregate
of 19,666,655 DEAC warrants, which entitle the holder to acquire Class A common stock. Each whole warrant will entitle the registered
holder to purchase one share of Class A common stock at a price of $11.50 per share, subject to adjustment as discussed
below, beginning 30 days after the Closing (which for the avoidance of doubt is May 23, 2020). A holder may exercise its warrants
only for a whole number of shares of 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 on April
23, 2025, at 5:00 p.m., New York City time, or earlier upon redemption or liquidation.
Redemption of Warrants for Cash
Once the warrants become exercisable,
we 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 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 we send the notice of redemption to the warrant
    holders.
If and when the warrants become redeemable
by DraftKings for cash, we may exercise our 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 we issue 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 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, we may redeem the outstanding DEAC warrants for shares of Class A common stock:
129
●
in whole and not in part (including public warrants, private placement warrants and PIPE
    Warrants);
●
at a price equal to a number of shares of the Class A common stock to be determined by
    reference to the table below, based on the redemption date and the "fair market value" of the 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 the 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 we send the notice of redemption to the warrant holders;
●
if, and only if, the private placement warrants and PIPE Warrants are also concurrently
    exchanged at the same price (equal to a number of shares of the 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
    the 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 the 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 the 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.
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 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
Class A common stock means the average last reported sale price of 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.
130
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 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 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, we 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 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,
we may choose to, pursuant to this redemption feature, redeem the warrants at a "redemption price" of 0.298 shares
of Class A common stock for each whole warrant. Finally, as reflected in the table above, we can redeem the warrants for no consideration
in the event that the warrants are "out of the money" (i.e., the trading price of Class A common stock is below the
exercise price of the warrants) and about to expire.
Any public warrants held by our 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 our
officers or directors being defined as the last reported sale price of the public warrants on such redemption date).
We can redeem the warrants when the shares
of 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 we choose to redeem the warrants when the shares of 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 Class A common stock than they would
have received if they had chosen to wait to exercise their warrants for shares of Class A common stock if and when such shares
of Class A common stock were trading at a price higher than the exercise price of $11.50.
No fractional shares of 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,
we will round down to the nearest whole number of the number of shares of Class A common stock to be issued to the holder.
Redemption Procedures and Cashless Exercise
If we call the DEAC warrants for redemption
as described above, 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 Class A common stock equal to the quotient obtained
by dividing (x) the product of the number of shares of Class A common stock underlying the warrants, multiplied by the excess of
the "fair market value" of the shares of 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 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 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 our 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 PIPE Warrants and their permitted
transferees would be entitled to exercise their private placement warrants or PIPE 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 DEAC warrant may notify
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 Class A common stock outstanding immediately after giving effect to such exercise.
If the number of outstanding shares of
Class A common stock is increased by a share capitalization payable in shares of 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 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 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 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 Class A common stock) and
(ii) the quotient of  (x) the price per share of 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 Class A common
stock, in determining the price payable for 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 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 Class A common stock trades on the applicable exchange or in the applicable market, regular way,
without the right to receive such rights.
131
In addition, if we, at any time while
the DEAC warrants are outstanding and unexpired, pay a dividend or makes a distribution in cash, securities or other assets to
the holders of Class A common stock on account of such 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
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 Class A common stock in respect of such event.
If the number of outstanding shares of
Class A common stock is decreased by a consolidation, combination, reverse share split or reclassification of 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 Class A common stock issuable on exercise of each DEAC warrant will be decreased in proportion
to such decrease in outstanding shares of Class A common stock.
Whenever the number of shares of Class
A common stock purchasable upon the exercise of the DEAC 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 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 Class A common stock so purchasable immediately thereafter.
In case of any reclassification or reorganization
of the outstanding Class A common stock (other than those described above or that solely affects the par value of such 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 DraftKings is the continuing corporation and that does not result in any reclassification or reorganization
of outstanding 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 DraftKings is dissolved, the holders
of the DEAC 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 Class A common stock immediately theretofore purchasable and receivable upon the exercise of
the rights represented thereby, the kind and amount of shares of 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 Class A common stock in such a transaction is
payable in the form of 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 DEAC warrants are issued in registered
form under a warrant agreement between Continental, as warrant agent, and DEAC, which was assigned pursuant to the Assignment and
Assumption Agreement, dated April 23, 2020, by and among DraftKings Inc., DEAC, Continental Stock Transfer & Trust Company,
Computershare Trust Company, N.A. and Computershare Inc. The warrant agreement provides that the terms of the DEAC 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 is filed as an exhibit to this registration statement
of which the prospectus is a part, for a complete description of the terms and conditions applicable to the DEAC warrants.
Exercise of DEAC Warrants
The DEAC 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 Class A common stock. After the issuance of 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 Class A
common stock.
132
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,
we will, upon exercise, round down to the nearest whole number the number of shares of Class A common stock to be issued to the
warrant holder.
Private Placement Warrants
The private placement warrants (including
the 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, which, for the avoidance of doubt is May 23, 2020, except in limited circumstances, and
they will not be redeemable by 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 the public warrants, including that they may be redeemed for shares of 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 DraftKings and exercisable by the holders on the same basis as the warrants included in the units
being sold in our initial public offering.
The private placement 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 warrants in which our Board has elected to require all holders of the warrants who exercise their warrants to do so on a cashless
basis. In such event, such holders of exercised warrants would pay the exercise price by surrendering their warrants for that number
of shares of our Class A common stock equal to the quotient obtained by dividing (x) the product of the number of shares of our
Class A common stock underlying the warrants, multiplied by the excess of the "fair market value" of the shares of
our 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 our 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 our Class A common stock to
be received upon exercise of the warrants, including the "fair market value" in such case.
Exclusive Forum
The Charter provides that, to the fullest
extent permitted by law, unless we otherwise consent 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 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 DraftKings
to DraftKings or its stockholders, any action asserting a claim arising pursuant to any provision of NRS Chapters 78 or 92A, our
amended and restated articles of incorporation or the bylaws, any action to interpret, apply, enforce or determine the validity
of our amended and restated articles of incorporation or 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 Amended and
Restated Articles of Incorporation, the Amended and Restated Bylaws and Applicable Law
Certain provisions of our amended and
restated articles of incorporation, amended and restated bylaws and laws of the State of Nevada, where 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 our common stock. We believe that the benefits of increased protection give
us the potential ability to negotiate with the proponent of an unsolicited proposal to acquire or restructure 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 common stock, Class 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 DraftKings
by means of a proxy contest, tender offer, merger or otherwise.
133
Dual Class Stock
As described above in "
—
DraftKings Common Stock — Class A Common Stock — Voting Rights
" and "
—
DraftKings Common Stock — Class B Common Stock — Voting Rights,
" our amended
and restated articles of incorporation provide for a dual class common stock structure, which provides 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 Class A common stock, including the election of directors and significant corporate transactions, such as
a merger or other sale of DraftKings or its assets.
Number of Directors
Our 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 Board or, from and after the time that Mr. Robins beneficially owns less than a majority of the voting power of our outstanding
capital stock, may be modified by the affirmative vote of at least two-thirds of the voting power of our outstanding capital stock.
The number of directors is currently fixed at 13.
Requirements for Advance Notification of Stockholder
Meetings, Nominations and Proposals
The bylaws 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 or a committee of the Board. In order for any matter to be "properly brought" before
a meeting, a stockholder has to comply with advance notice requirements and provide DraftKings with certain information. Generally,
to be timely, a stockholder's notice must be received at 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 bylaws
also specify requirements as to the form and content of a stockholder's notice. The bylaws 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.
Our amended and restated articles of incorporation provide 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 our capital stock. Once Mr. Robins
no longer beneficially owns a majority of the voting power of the then-outstanding shares of our capital stock, all stockholder
actions must be taken at a meeting of our 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. Our amended and restated
articles of incorporation provide that, except as otherwise provided by applicable law, amendments to the Charter must be approved
by (1) a majority of the combined voting power of all shares of our 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 our capital stock
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. Our amended and restated articles of incorporation and bylaws provide that the amended
and restated bylaws may be amended or repealed by either the affirmative vote of a majority of the Board or by the affirmative
vote of stockholders representing a majority of the voting power of all of the then-outstanding shares of our capital stock entitled
to vote, while Mr. Robins beneficially owns shares representing at least a majority of the voting power of our capital stock, or,
thereafter, by the affirmative vote of stockholders representing at least two-thirds or more of the voting power of our capital
stock.
134
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.
We have opted out of these provisions
in our amended and restated articles of incorporation until Mr. Robins ceases to beneficially own shares of our common stock representing
at least 15% of our outstanding voting stock.
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.
135
We have opted out of these provisions
in our amended and restated articles of incorporation until Mr. Robins ceases to beneficially own shares of our common stock representing
at least 15% of our outstanding voting stock. After such time, we may opt out of the "control share" statute by amending
our 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
Our amended and restated articles of
incorporation eliminate the liability of our officers and directors to the fullest extent permitted by Nevada law. Nevada law provides
that our directors and officers will not be individually liable to us, our stockholders or our 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.
Our amended and restated articles of
incorporation and bylaws also provide for indemnification for our directors and officers to the fullest extent permitted by Nevada
law. We have entered into indemnification agreements with each of our directors that are, in some cases, broader than the specific
indemnification provisions contained under Nevada law. The effect of these provisions is to restrict our rights and the rights
of our 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.
We are also expressly authorized to carry
directors' and officers' insurance to protect our directors, officers, employees and agents against certain liabilities.
The limitation of liability and indemnification
provisions under Nevada law and in our 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 DraftKings and our stockholders. However, these provisions do not limit or eliminate our 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, we the costs of settlement and
damage awards against directors and officers pursuant to these indemnification provisions.
The foregoing provisions of our 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 our board of directors and in the policies formulated by our 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 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 our shares
and, as a consequence, they also may inhibit fluctuations in the market price 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 our 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 we engage, our amended and restated articles of incorporation provide
for, to the fullest extent permitted under Nevada law, the renouncement by DraftKings of all interest and expectancy that 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 DraftKings (or any affiliate thereof),
other than an employee of DraftKings or any of its subsidiaries. Specifically, no holder of shares of common stock, nor any non-employee
director, of DraftKings has any duty to refrain from engaging in the same or similar business activities or lines of business that
DraftKings does or otherwise competing with DraftKings. In the event that any holder of shares of common stock of DraftKings or
any director that is not an employee of DraftKings or its subsidiaries acquires knowledge of a potential transaction or matter
which may be a corporate opportunity for itself and DraftKings, that person will not have any duty to communicate or offer such
corporate opportunity to DraftKings and may pursue or acquire such corporate opportunity for itself or direct such opportunity
to another person.
136
To the fullest extent permitted by Nevada
law, no potential transaction or business opportunity may be deemed to be a potential corporate opportunity of DraftKings or its
subsidiaries unless (a) DraftKings and its subsidiaries would be permitted to undertake such transaction or opportunity in accordance
with the DraftKings amended and restated articles of incorporation, (b) 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 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 Charter provides that any common
stock or any other equity securities of DraftKings, or securities exchangeable or exercisable for, or convertible into, such other
equity securities of 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 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 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 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 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, 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 DraftKings or any affiliated company or 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 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 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 Charter to either DraftKings or one
or more third-party transferees (as described in the Charter) and in such number and class(es)/series as determined by the Board.
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 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 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 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 DraftKings or any affiliated
company, or 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 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 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 Charter.
Following (x) the determination of unsuitability
by the Board and (y) if applicable, an arbitrator determining that such determinations were made in good faith by the Board, 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 Board for the purchase
price set forth in the transfer notice, which will be determined in accordance with the 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 Board 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").
137
At the closing of a sale and transfer
other than an Alternate Private Transaction, (i) 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 DraftKings, or a combination of both in the
case of 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 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 DraftKings (and to the minimum extent required pursuant
to such subordination arrangement).
The Charter provides that, in the case
of a sale and transfer to 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.
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, 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 Charter promptly following any such determination.
Stockholders' Derivative Actions
Under Nevada law, any of our stockholders
may bring an action in our name to procure a judgment in our favor, also known as a derivative action, provided that the stockholder
bringing the action was a holder of our 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 our capital stock
and warrants is Computershare Trust Company, N.A.
138
SECURITIES ACT RESTRICTIONS ON RESALE
OF SECURITIES
Rule 144
Pursuant to Rule 144 under the Securities
Act ("Rule 144"), a person who has beneficially owned restricted shares of our common stock or our warrants for at
least six months would be entitled to sell their securities provided that (1) such person is not deemed to have been an affiliate
of us at the time of, or at any time during the three months preceding, a sale and (2) we are subject to the Exchange Act
periodic reporting requirements for at least three months before the sale and have filed all required reports under Section 13
or 15(d) of the Exchange Act during the 12 months (or such shorter period as we were required to file reports) preceding the sale.
Persons who have beneficially owned
restricted shares of our common stock or our warrants for at least six months but who are affiliates of us at the time of, or
at any time during the three months preceding, a sale, would be subject to additional restrictions, by which such person would
be entitled to sell within any three-month period only a number of securities that does not exceed the greater of:
•
1% of the total number
of shares of our common stock then outstanding; or
•
the average weekly reported
trading volume of our common stock during the four calendar weeks preceding the filing of a notice on Form 144 with respect to
the sale.
Sales by our affiliates under Rule
144 are also limited by manner of sale provisions and notice requirements and to the availability of current public information
about us.
Restrictions on the Use of Rule 144 by Shell Companies
or Former Shell Companies
Rule 144 is generally not available
for the resale of securities initially issued by shell companies or issuers that have been at any time previously a shell company.
However, Rule 144 also includes an important exception to this prohibition if the following conditions are met:
•
the issuer of the securities
that was formerly a shell company has ceased to be a shell company;
•
the issuer of the securities
is subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act;
•
the issuer of the securities
has filed all Exchange Act reports and material required to be filed, as applicable, during the preceding 12 months (or such shorter
period that the issuer was required to file such reports and materials), other than Form 8-K reports; and
•
at least one year has
elapsed from the time that the issuer filed current Form 10 type information with the SEC reflecting its status as an entity that
is not a shell company.
As of May 4, 2020, we had 312,504,813
shares of Class A common stock outstanding. Of these shares, 40,000,000 shares sold in our initial public offering and
41,725,831 shares registered for resale by the PIPE Investors and former holders of the Convertible Notes, are freely
tradable without restriction or further registration under the Securities Act. All of the 3,659,241 shares of Class A
common stock owned by the DEAC Stockholder Group are restricted securities under Rule 144, in that they were issued in
private transactions not involving a public offering. All of the 227,069,236 shares of Class A common stock we issued to
stockholders of Old DK and the SBT Stockholder Group as part of the merger consideration pursuant to the BCA are also
restricted securities for purposes of Rule 144. The registration statement of which this prospectus is a part registers for
resale the Stock Consideration Shares and shares held by the DEAC Stockholder Group for the identified Selling Securityholders,
and we are obligated to maintain the effectiveness of such registration statement in accordance with the terms and conditions
of the Stockholders Agreement.
As of the date of this registration
statement, there are approximately 19,846,758 warrants outstanding, consisting of (i) 13,333,323 public warrants originally
sold as part of the units issued in DEAC's initial public offering, (ii) 3,333,332 private placement warrants that
were sold by DEAC to the Sponsor in a private sale prior to the initial public offering, (iii) 3,000,000 PIPE Warrants and (iv)
180,103 Old DK Warrants. Each DEAC warrant is exercisable for one share of our Class A common stock, in accordance with the
terms of the warrant agreement governing the DEAC warrants. Each Old DK Warrant represents the rights to acquire shares of our
Class A common stock that the holder would have received in the DK Merger if such warrantholder had exercised it rights immediately
prior to the DK Merger. The public warrants and the PIPE Warrants are freely tradable. In addition, we have filed the registration
statement of which this prospectus is a part under the Securities Act covering the 3,420,273 shares of our Class A common
stock that may be issued upon exercise of the private placement warrants and Old DK Warrants and resales by the Selling Securityholders
of the private placement warrants and the Old DK Warrants, and we are obligated to maintain the effectiveness of such registration
statement in accordance with the terms and conditions of the Stockholders Agreement.
139
While we were formed as a shell company,
since the completion of the Business Combination we are no longer a shell company, and so, once the conditions set forth in the
exceptions listed above are satisfied, Rule 144 will become available for the resale of the above noted restricted securities.
Lock-up Agreements
With certain limited exceptions, (i)
no member of the DK Stockholder Group or the SBT Stockholder Group or any other Selling Securityholder is permitted to transfer
any shares of common stock beneficially owned or owned of record by such stockholder for a period of 180 days from the Closing;
(ii) no member of the DEAC Stockholder Group is permitted to transfer any shares of common stock beneficially owned or owned of
record by such stockholder until the earliest of (A) one year from the Closing, (B) the last consecutive trading day where the
volume weighted average share price equals or exceeds $15.00 per share for at least 20 out of 30 consecutive trading days, commencing
not earlier than 180 days after the Closing or (C) at the time DraftKings consummates a transaction after the transactions which
results in the stockholders having the right to exchange their shares of common stock for cash, securities or other property;
and (iii) Mr. Robins is not permitted to transfer any shares of common stock beneficially owned or owned of record until two years
after the Closing.
Pursuant to the BCA, to secure his
indemnification obligations, 3,496,056 of Mr. Meckenzie's shares of Class A common stock ("Lockup Shares") and
1,553,803 of Mr. Meckenzie's shares of Class A common stock ("Supplemental Lockup Shares") may not, without
our consent, be directly or indirectly offered, sold, hedged, pledged or otherwise transferred or disposed of, or included in
any swap or other transaction that transfers, in whole or in part, directly or indirectly, the economic consequence of ownership
of any Lockup Shares or Supplemental Lockup Shares, subject to certain exceptions as set forth in the BCA, until the date that
is five years following the Closing Date for the Lockup Shares or two years following the Closing Date for the Supplemental Lockup
Shares, unless such shares are earlier released in accordance with the provisions of the BCA.
Form S-8 Registration Statement
We intend to file one or more registration
statements on Form S-8 under the Securities Act to register the shares of Class A common stock issued or issuable under
our Incentive Plan and our ESPP. Any such Form S-8 registration statement will become effective automatically upon filing.
We expect that the initial registration statement on Form S-8 will cover shares of Class A common stock underlying the
ESPP and the Incentive Plan. Once these shares are registered, they can be sold in the public market upon issuance, subject to
Rule 144 limitations applicable to affiliates and vesting restrictions.
140
BENEFICIAL
OWNERSHIP OF SECURITIES
The following table
sets forth information known to the Company regarding the beneficial ownership of Company common stock as of the Closing Date
by:
●
each person known to the Company to be the beneficial owner
    of more than 5% of outstanding Company common stock;
●
each of the Company's executive officers and directors;
    and
●
all executive officers and directors of the Company as a
    group.
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. Company stock issuable upon exercise of options and warrants currently exercisable
within 60 days are deemed outstanding solely for purposes of calculating the percentage of total voting power of the beneficial
owner thereof.
The beneficial
ownership of Company common stock is based on 312,445,380 shares of Class A common stock and 393,013,951 shares of Class B common
stock issued and outstanding as of the Closing and does not include the 6,000,000 earnout shares.
Unless otherwise
indicated, the Company believes that each person named in the table below has sole voting and investment power with respect to
all shares of Company common stock beneficially owned by them.
Name and Address of Beneficial Owner
Number of Shares
    of Class A Common Stock
%
Number of Shares
    of Class B Common Stock
%
%
    of Total Voting Power
Current Directors
    and Executive Officers
Jason Robins (1)(2)(3)
8,453,094
2.6
%
393,013,951
100
%
92.7
%
Matthew Kalish (1)(3)(4)
4,017,566
1.3
%
—
—
*
Paul Liberman (1)(3)(5)
4,661,765
1.5
%
—
—
*
M. Gavin Isaacs (6)(7)
479,285
*
—
—
*
Woodrow Levin (1)(3)(8)
415,374
*
—
—
*
Shalom Meckenzie
    (6)
34,628,397
11.1
%
—
—
*
Ryan R. Moore (1)(3)(9)
10,825,097
3.5
%
—
—
*
Steven J. Murray
    (1)(3)(10)
7,767,580
2.5
%
—
—
*
Hany M. Nada (1)(3)(11)
7,211,006
2.3
%
—
—
*
Richard Rosenblatt
    (1)(12)
224,428
*
—
—
*
John S. Salter (1)(3)(13)
24,983,757
8.0
%
—
—
*
Harry E. Sloan (14)
2,718,717
*
—
—
*
Marni M. Walden (1)(15)
89,878
*
—
—
*
R. Stanton Dodge
    (1)(16)
1,734,232
*
—
—
*
Jason Park (1)(17)
253,151
*
—
—
*
All Directors
    and Executive Officers as a Group (15 Individuals)
108,463,325
32.9
%
393,013,951
100
%
94.8
%
Five Percent
    Holders
Shalom Meckenzie
    (6)
34,628,397
11.1
%
—
—
*
RPII DK LLC (3)(18)
24,983,757
8.0
%
—
—
*
TFCF Sports Enterprises,
    LLC (19)
18,546,667
5.9
%
—
—
*
*
Less than one percent.
(1)
The
                                         business address of each of these shareholders is 222 Berkeley Street, 5
th
Floor, Boston, MA 02116.
(2)
Includes
                                         1,314,329 shares of Class A common stock and 7,004,943 vested options exercisable for
                                         shares of Class A common stock beneficially owned by Mr. Robins, Jason Robins Revocable
                                         Trust u/d/t January 8, 2014, Robins Family Trust, Jason Robins 2020 Trust and/or Robins
                                         Grantor Retained Annuity Trust of 2020, for which Mr. Robins has sole investment and
                                         voting power. Also includes 125,752 shares underlying unvested options to purchase shares
                                         of Class A common stock that will vest within 60 days of the Closing Date.
141
(3)
Includes
                                         such holder's pro rata portion of Class A common stock underlying the private placement
                                         warrants transferred from Eagle Equity Partners and Harry Sloan to equityholders of Old
                                         DK that will become exercisable on May 23, 2020 as follows: 8,070 shares to Mr. Robins
                                         and entities affiliated with him; 7,174 shares to Mr. Kalish and entities affiliated
                                         with him; 6,792 shares to Mr. Liberman and entities affiliated with him; 1,983 shares
                                         to Mr. Levin and entities affiliated with him; 63,450 shares to Mr. Moore through entities
                                         affiliated with him; 47,317 to Mr. Murray through an entity affiliated with him; 43,926
                                         shares to Mr. Nada through an entity affiliated with him; 152,190 shares to RPII DK LLC,
                                         for which Mr. Salter shares investment and voting power; and 112,978 shares to TFCF Sports
                                         Enterprises, LLC.
(4)
Includes
                                         1,170,446 shares of Class A common stock and 2,797,926 vested options exercisable for
                                         shares of Class A common stock beneficially owned by Mr. Kalish, Kalish Family 2020 Irrevocable
                                         Trusts and Matthew P. Kalish 2020 Trust, for which Mr. Kalish has sole investment and
                                         voting power. Also includes 42,020 shares underlying unvested options to purchase shares
                                         of Class A common stock that will vest within 60 days of the Closing Date.
(5)
Includes
                                         1,108,132 shares of Class A common stock and 3,504,821 vested options exercisable for
                                         shares of Class A common stock beneficially owned by Mr. Liberman, Paul Liberman 2015
                                         Revocable Trust dated May 12, 2015, Paul Liberman 2020 Trust and Liberman Grantor Retained
                                         Annuity Trust of 2020, for which Mr. Liberman has sole investment and voting power. Also
                                         includes 42,020 shares underlying unvested options to purchase shares of Class A common
                                         stock that will vest within 60 days of the Closing Date.
(6)
The
                                         business address of Messrs. Isaacs and Meckenzie is c/o Herzog Fox & Neeman, Asia
                                         House, 4 Weizman St. Tel Aviv 6423904, Israel.
(7)
Represents
                                         vested options exercisable for shares of Class A common stock.
(8)
Includes
                                         323,480 shares of Class A common stock and 82,802 vested options exercisable for shares
                                         of Class A common stock beneficially owned by Mr. Levin, Levin Family 2015 Irrevocable
                                         Trust and OneSixRed LLC, for which Mr. Levin has sole investment and voting power. Also
                                         includes 7,109 shares underlying unvested options to purchase shares of Class A common
                                         stock that will vest within 60 days of the Closing Date.
(9)
Represents
                                         shares of Class A common stock held by Accomplice Fund I, L.P., Accomplice Fund II, L.P.,
                                         Accomplice Management Holdings, LLC, Accomplice DK Investors, LLC, Atlas Venture Fund
                                         VIII, L.P. and Accomplice DK Investors, for which Mr. Moore shares investment and voting
                                         control. Mr. Moore disclaims beneficial ownership of all shares except to the extent
                                         of his pecuniary interest, if any, therein.
(10)
Represents
                                         shares of Class A common stock held by Revolution Growth III, LP. Mr. Murray is the operating
                                         manager of the ultimate general partner of Revolution Growth III, LP and may be deemed
                                         to have voting and dispositive power with respect to the securities held by Revolution
                                         Growth III, LP. Mr. Murray disclaims beneficial ownership of such securities except to
                                         the extent of his pecuniary interest therein.
(11)
Represents
                                         shares of Class A common stock held by ACME SPV DK, LLC, for which Mr. Nada shares investment
                                         and voting control.
(12)
Represents
                                         220,610 vested options exercisable for shares of Class A common stock and 3,816 shares
                                         underlying unvested options to purchase shares of Class A common stock that will vest
                                         within 60 days of the Closing Date.
(13)
Represents
                                         shares of Class A common stock held by RPII DK LLC, for which Mr. Salter shares investment
                                         and voting control.
(14)
Mr. Sloan's business address is 2121 Avenue of the Stars, Suite 2300, Los Angeles, CA
                                                                                                      90067. Amount includes 1,789,618 shares of Class A common stock and 929,099 shares underlying private placement warrants and
                                                                                                      excludes 2,608,065 earnout shares which were placed in escrow at the Closing pursuant to the terms of the Earnout Escrow
                                                                                                      Agreement.
(15)
Represents
                                         81,001 vested options exercisable for shares of Class A common stock and 8,877 shares
                                         underlying unvested options to purchase Class A common stock that will vest within 60
                                         days of the Closing Date.
(16)
Includes
                                         1,609,781 vested options exercisable for shares of Class A common stock and 124,451 shares
                                         underlying unvested options to purchase Class A common stock that will vest within 60
                                         days of the Closing Date.
(17)
Includes
                                         108,329 vested options exercisable for shares of Class A common stock and 144,822 shares
                                         underlying unvested options to purchase Class A common stock that will vest within 60
                                         days of the Closing Date.
(18)
The
                                         business address of RPII DK LLC is 65 East 55th Street, 24th Floor, New York, NY 10022.
(19)
The
                                         business address of TFCF Sports Enterprises, LLC is 1211 Avenue of the Americas, New
                                         York, NY 10036.
142
SELLING
SECURITYHOLDERS
This prospectus relates to the resale
by the Selling Securityholders from time to time of up to 235,051,419 shares of Class A common stock (including 3,299,603 shares of Class A common stock that may
be issued upon exercise of the private placement warrants and 120,670 shares of Class A common stock that may be issued upon exercise
of the Old DK Warrants) and 3,299,603 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 beneficially owned, 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. We have based percentage ownership on 312,504,813 shares of
Class A common stock outstanding as of May 4, 2020.
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.
We cannot advise you as to whether the Selling Securityholders
will in fact sell any or all of such Class A common stock or warrants. In addition, the Selling Securityholders may sell, transfer
or otherwise dispose of, at any time and from time to time, the Class A common stock and warrants in transactions exempt from the
registration requirements of the Securities Act after the date of this prospectus. For purposes of this table, we have assumed
that the Selling Securityholders will have sold all of the securities covered by this prospectus upon the completion of the offering.
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.
"
143
Selling Securityholders
Selling Securityholder
Shares of Class A Common
Stock Beneficially Owned
Prior to Offering
Private Placement Warrants Beneficially Owned Prior to Offering
Shares of Class A Common Stock Offered
Private Placement Warrants Offered
Shares of Class A Common Stock Beneficially Owned After the Offered Shares are Sold
%
Private Placement Warrants Beneficially Owned After the Offered Private Placement Warrants are Sold
%
Shalom Meckenzie
(1)
34,628,397
—
35,240,397
—
—
—
—
—
RPII DK LLC
(2)
24,983,757
152,190
24,983,757
152,190
—
—
—
—
TFCF Sports Enterprises, LLC
(3)
18,546,667
112,978
18,546,667
112,978
—
—
—
—
Certain funds and accounts of Redpoint
(4)
12,159,464
74,070
12,159,464
74,070
—
—
—
—
Certain funds and accounts of Wellington
(5)
12,068,248
73,516
12,068,248
73,516
—
—
—
—
Certain funds and accounts of Atlas
(6)
10,825,097
63,450
10,825,097
63,450
—
—
—
—
Certain funds and accounts of Eldridge
(7)
10,557,775
64,313
10,557,775
64,313
—
—
—
—
DK Investment Holdings L.P.
(8)
8,509,190
51,834
8,509,190
51,834
—
—
—
—
Jason Robins
(9)
8,453,094
8,070
1,322,399
8,070
7,130,695
2.2
%
—
—
Revolution Growth III, LP
(10)
7,767,580
47,317
7,767,580
47,317
—
—
—
—
Certain funds and accounts of DST/Apoletto
(11)
7,369,148
44,890
7,369,148
44,890
—
—
—
—
ACME SPV DK, LLC
(12)
7,211,006
43,926
7,211,006
43,926
—
—
—
—
Certain funds and accounts of Franklin Advisers, Inc.
(13)
7,200,599
43,863
7,200,599
43,863
—
—
—
—
Paul Liberman
(14)
4,661,765
6,792
1,114,924
6,792
3,546,841
1.1
%
—
—
Matthew Kalish
(15)
4,017,566
7,174
1,177,620
7,174
2,839,946
*
—
—
Certain funds and accounts of Moussefixe L.P.
(16)
3,590,140
21,869
3,590,140
21,869
—
—
—
—
Randolph John Anderson
(17)
3,564,688
—
3,627,688
—
—
—
—
—
Certain funds and accounts of Kraft
(18)
3,532,953
20,785
3,532,953
20,785
—
—
—
—
Certain funds and accounts of Park West
(19)
3,488,792
21,252
3,488,792
21,252
—
—
—
—
Certain funds and accounts of ArrowMark
(20)
3,388,085
20,638
3,388,085
20,638
—
—
—
—
Certain funds and accounts of Top Tier
(21)
2,930,183
17,849
2,930,183
17,849
—
—
—
—
Certain funds and accounts of Quantum
(22)
2,836,396
17,278
2,836,396
17,278
—
—
—
—
Certain funds and accounts of MVP
(23)
2,731,917
16,641
2,731,917
16,641
—
—
—
—
Eagle Equity Partners, LLC
(24)
2,718,723
929,100
5,390,658
929,100
—
—
—
—
144
Harry E. Sloan
(25)
2,718,717
929,099
5,326,782
929,099
—
—
—
—
J. Gleek Properties Ltd.
(26)
2,546,206
—
2,591,206
—
—
—
—
—
Schechter Private Capital Fund1, LLC - GTP Series J
(27)
2,163,050
13,176
2,163,050
13,176
—
—
—
—
Certain funds and accounts of ClipperBay and Co (HG22) f/b/o SmallCap World Fund, Inc.
(28)
1,998,099
12,172
1,998,099
12,172
—
—
—
—
Carmenta Opportunities 2020, L.P.
(29)
1,706,467
10,395
1,706,467
10,395
—
—
—
—
Madison Square Garden Investments, LLC
(30)
1,473,283
8,975
1,473,283
8,975
—
—
—
—
Certain funds and accounts of UIT
(31)
1,254,612
7,643
1,254,612
7,643
—
—
—
—
Boston Seed Capital II, L.P.
(32)
1,198,349
7,300
1,198,349
7,300
—
—
—
—
Carnegie GM Partners LLC
(33)
1,050,263
6,398
1,050,263
6,398
—
—
—
—
BDS Venture Fund
(34)
866,969
5,281
866,969
5,281
—
—
—
—
Wildcat Opportunistic DraftKings Fund, LP
(35)
863,973
5,263
863,973
5,263
—
—
—
—
Ashley Kalish
(36)
840,895
5,122
840,895
5,122
—
—
—
—
Title 19 DK
(37)
806,093
4,910
806,093
4,910
—
—
—
—
Certain funds and accounts of Boies Schiller Flexner LLP
(38)
796,364
4,851
796,364
4,851
—
—
—
—
GGV Capital Select L.P.
(39)
778,928
4,745
778,928
4,745
—
—
—
—
Hub Angel Investment Group, Fund IV
(40)
714,998
4,355
714,998
4,355
—
—
—
—
Brandywine Private Equity Partners (2016), LP
(41)
680,735
4,147
680,735
4,147
—
—
—
—
Veralda
(42)
627,981
3,825
627,981
3,825
—
—
—
—
Jordan
    Mendell
(43)
611,993
352
57,815
352
554,178
*
—
—
Kombo Growth Fund I, LLC
(44)
581,928
3,545
581,928
3,545
—
—
—
—
SP Investment Associates, L.P.
(45)
569,230
3,468
569,230
3,468
—
—
—
—
EquityZen
(46)
549,878
3,350
549,878
3,350
—
—
—
—
NHL Enterprises, LP
(47)
487,169
2,968
487,169
2,968
—
—
—
—
MJE Personal Gift Trust A
(48)
485,880
2,960
485,880
2,960
—
—
—
—
Las Olas Private Equity VII, LP
(49)
453,823
2,764
453,823
2,764
—
—
—
—
Woodrow H. Levin
(50)
415,374
1,983
325,463
1,983
89,911
*
—
—
Smash Ventures Tackle SPV LLC
(51)
397,012
2,418
397,012
2,418
—
—
—
—
PBE Investments, Ltd
(52)
348,879
2,125
348,879
2,125
—
—
—
—
Gregory Brian Karamitis
(53)
347,261
477
78,275
477
268,986
*
—
—
Travis Dunn
(54)
332,770
57
9,403
57
323,367
*
—
—
Brookwood Partners L.P.
(55)
291,072
1,773
291,072
1,773
—
—
—
—
Data Point Capital L.P.
(56)
279,103
1,700
279,103
1,700
—
—
—
—
Stephanie Sherman
(57)
276,835
623
102,291
623
174,544
*
—
—
Benvolio Ventures LLC – Series Draft Kings
(58)
263,998
1,608
263,998
1,608
—
—
—
—
145
World Wrestling Entertainment, Inc.
(59)
263,546
1,605
263,546
1,605
—
—
—
—
AngelList-Dngs-Fund
(60)
244,968
1,492
244,968
1,492
—
—
—
—
Edward
    Zaleski
(61)
234,654
52
8,539
52
226,115
*
—
—
Jeffrey Haas
(62)
221,794
1,272
208,892
1,272
12,902
*
—
—
TPI DraftKings Investment I, LLC
(63)
217,365
1,324
217,365
1,324
—
—
—
—
Legends Hospitality, LLC
(64)
194,867
1,187
194,867
1,187
—
—
—
—
Janet Holian
(65)
194,358
1,184
194,358
1,184
—
—
—
—
Fort Point Fund DK, LLC
(66)
186,529
1,136
186,529
1,136
—
—
—
—
Jonathan Aguiar
(67)
184,001
780
128,086
780
55,915
*
—
—
Agman Investments LLC
(68)
165,020
1,005
165,020
1,005
—
—
—
—
Joshua Kazam
(69)
153,333
133,333
153,333
133,333
—
—
—
—
Fredric Rosen
(70)
153,333
133,333
153,333
133,333
—
—
—
—
Scott Salsbury
(71)
143,523
116
19,014
116
124,509
*
—
—
Benjamin F. Stein
(72)
138,099
841
138,099
841
—
—
—
—
Edward Silva
(73)
134,577
542
88,949
542
45,628
*
—
—
Timothy J. McSweeney 2006 Trust
(74)
132,016
804
132,016
804
—
—
—
—
Vaccarella
(75)
128,606
783
128,606
783
—
—
—
—
Disruptive Ventures, LLC
(76)
124,529
759
124,529
759
—
—
—
—
Angel Street Capital, LLC
(77)
117,016
713
117,016
713
—
—
—
—
Timothy John Parilla
(78)
114,772
69
11,341
69
103,431
*
—
—
SperWood, LLC
(79)
113,801
693
113,801
693
—
—
—
—
Joshua Weiss
(80)
112,500
685
112,500
685
—
—
—
—
JNI Investments, LLC
(81)
102,329
623
102,329
623
—
—
—
—
ACP Venture Capital Fund II LLC
(82)
100,416
612
100,416
612
—
—
—
—
Andrew W. Jonas
(83)
99,872
396
64,933
396
34,939
*
—
—
James M. Scarpellini
(84)
95,510
34
5,559
34
89,951
*
—
—
Elaine Milardo
(85)
94,457
109
17,901
109
76,556
*
—
—
Stephen & Mary Ann Phillips
(86)
93,437
569
93,437
569
—
—
—
—
Scott M. Delman
(87)
86,666
66,666
86,666
66,666
—
—
—
—
PPR Investors, LLC
(88)
85,088
518
85,088
518
—
—
—
—
Scott Ross
(89)
20,000
—
20,000
—
—
—
—
—
Additional Selling Securityholders
(90)
3,036,529
16,745
2,779,434
16,745
257,092
*
—
—
* Less than one percent.
(1)
Comprised of 34,628,397
shares of Class A common stock held by Shalom Meckenzie, of which 3,496,056 shares are Lockup Shares and 1,553,803 shares are
Supplemental Lockup Shares, all such terms as defined in the Business Combination Agreement and subject to the provisions set
forth in the Business Combination Agreement and relating thereto. "Shares of Class A Common Stock Offered" includes
612,000 earnout shares issued to the Selling Securityholder pursuant to the terms of the Earnout Escrow Agreement. The address
of Shalom Meckenzie is 27 Hagderot St, Savion 5652627, Israel. Shalom Meckenzie is a director of DraftKings and a party to the
Stockholders Agreement.
(2)
Comprised of 24,831,567 shares
of Class A common stock and 152,190 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by RPII DK LLC. John S. Salter, Jeffrey A. Sine, Joseph Ravitch, Brandon Gardner
and Deborah Mei, members of the Investment Committee of Raine Partners II LP, the managing member of RP II DK LLC, are considered
beneficial owners of the securities of the Selling Securityholder. Each Control Person wishes to disclaim beneficial ownership
except to the extent of his or her pecuniary interest therein. The address of RPII DK LLC is c/o Raine Capital LLC, 65 East 55th
St, 24th Floor, New York, NY 10022. John Salter is a director of DraftKings and Raine Securities LLC has served as a financial
advisor and placement agent to Old DK. The Selling Securityholder is a party to the Stockholders Agreement.
146
(3)
Comprised of 18,433,689 shares
of Class A common stock and 112,978 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by TFCF Sports Enterprises, LLC. Michael Heimbach is the manager of TFCF Sports
Enterprises, LLC. The address of TFCF Sports Enterprises, LLC is 575 Birch St., Floor 1, Office 188, Bristol, CT 06010. The Selling
Securityholder is a party to the Stockholders Agreement.
(4)
Comprised of (i) 362,560
shares of Class A common stock and 2,222 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Redpoint Omega Associates II, LLC and (ii) 11,722,834 shares of Class A common
stock and 71,848 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants that are
exercisable within 30 days held by Redpoint Omega II, L.P. The shares held directly by Redpoint Omega Associates II LLC ("Redpoint
Omega Associates II") are controlled by the managers of Redpoint Omega Associates II. W. Allen Beasley, Jeffrey D. Brody,
Satish Dharmaraj, R. Thomas Dyal, Timothy M. Haley, Christopher B. Moore, Scott C. Raney, John L. Walecka and Geoffrey Y. Yang
are the managers of Redpoint Omega Associates II and have voting rights and dispositive rights with respect to the shares held
directly by Redpoint Omega Associates II. Each of these individuals disclaims beneficial ownership of the shares held by Redpoint
Omega Associates II except to the extent of their respective individual pecuniary interest therein. The shares held directly by
Redpoint Omega II, L.P. ("Redpoint Omega II") are indirectly held by Redpoint Omega II, LLC, the general partner of
Redpoint Omega II. W. Allen Beasley, Jeffrey D. Brody, Satish Dharmaraj, R. Thomas Dyal, Timothy M. Haley, Christopher B. Moore,
Scott C. Raney, John L. Walecka and Geoffrey Y. Yang are the managing directors of Redpoint Omega II, LLC and hold the voting rights
and dispositive rights with respect to the shares held directly by Redpoint Omega II. Each of these individuals disclaims beneficial
ownership of the shares held by Redpoint Omega II except to the extent of their respective individual pecuniary interest therein.
The address of Redpoint Omega Associates II, LLC and Redpoint Omega II, L.P. is 3000 Sand Hill Rd, Building 4, Suite 230, Menlo
Park, CA 94025. The Selling Securityholder is a party to the Stockholders Agreement.
(5)
Comprised of (i) 99,631 shares
of Class A Common Stock and 611 shares of Class A Common Stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by Aurora & Co., as nominee for MassMutual Select Small Cap Growth Equity Fund, (ii)
27,903 shares of Class A Common Stock and 171 shares of Class A Common Stock issuable upon exercise of an equal number of private
placement warrants that are exercisable within 30 days held by Aurora & Co., as nominee for MML Small Cap Growth Equity Fund,
(iii) 115,670 shares of Class A Common Stock and 709 shares of Class A Common Stock issuable upon exercise of an equal number of
private placement warrants that are exercisable within 30 days held by Beachcraft & Co., as nominee for John Hancock Variable
Insurance Trust Small Cap Stock Trust, (iv) 19,185 shares of Class A Common Stock and 118 shares of Class A Common Stock issuable
upon exercise of an equal number of private placement warrants that are exercisable within 30 days held by Hare & Co LLC, as
nominee for Eversource Retirement Plan Master Trust, (v) 19,194 shares of Class A Common Stock and 118 shares of Class A Common
Stock issuable upon exercise of an equal number of private placement warrants that are exercisable within 30 days held by Hare
 & Co., as nominee for Global Multi-Strategy Fund, (vi) 321,716 shares of Class A Common Stock and 1,972 shares of Class A Common
Stock issuable upon exercise of an equal number of private placement warrants that are exercisable within 30 days held by Italianbitt
 & Co., as nominee for Hartford Small Company HLS Fund, (vii) 181,918 shares of Class A Common Stock and 1,115 shares of Class
A Common Stock issuable upon exercise of an equal number of private placement warrants that are exercisable within 30 days held
by Italianboat & Co., as nominee for Hartford Capital Appreciation HLS Fund, (viii) 1,999,613 shares of Class A Common Stock
and 12,255 shares of Class A Common Stock issuable upon exercise of an equal number of private placement warrants that are exercisable
within 30 days held by Italianbridge & Co., as nominee for The Hartford Capital Appreciation Fund, (ix) 71,454 shares of Class
A Common Stock and 438 shares of Class A Common Stock issuable upon exercise of an equal number of private placement warrants that
are exercisable within 30 days held by Italiancoal & Co., as nominee for Hartford International Equity Fund, (x) 550,456 shares
of Class A Common Stock and 3,374 shares of Class A Common Stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Italiandinghy & Co., as nominee for Hartford Growth Opportunities HLS
Fund, (xi) 5,465,308 shares of Class A Common Stock and 33,496 shares of Class A Common Stock issuable upon exercise of an equal
number of private placement warrants that are exercisable within 30 days held by Italianflare & Co., as nominee for Hadley
Harbor Master Investors (Cayman) L.P., (xii) 205,205 shares of Class A Common Stock and 1,258 shares of Class A Common Stock issuable
upon exercise of an equal number of private placement warrants that are exercisable within 30 days held by Italianrope & Co.,
as nominee for The Hartford Small Company Fund, (xiii) 1,718,014 shares of Class A Common Stock and 10,530 shares of Class A Common
Stock issuable upon exercise of an equal number of private placement warrants that are exercisable within 30 days held by Italiansilver
 & Co., as nominee for The Hartford Growth Opportunities Fund, (xiv) 811,475 shares of Class A Common Stock and 4,973 shares
of Class A Common Stock issuable upon exercise of an equal number of private placement warrants that are exercisable within 30
days held by Snailreef & Co., as nominee for Mid Cap Stock Fund, (xv) 13,680 shares of Class A Common Stock and 84 shares of
Class A Common Stock issuable upon exercise of an equal number of private placement warrants that are exercisable within 30 days
held by Stormbeach & Co., as nominee for John Hancock Pension Plan and (xvi) 374,310 shares of Class A Common Stock and 2,294
shares of Class A Common Stock issuable upon exercise of an equal number of private placement warrants that are exercisable within
30 days held by Tunaship & Co., as nominee for Mid Cap Stock Trust. The address of Aurora & Co., as nominee for MassMutual
Select Small Cap Growth Equity Fund, Aurora & Co., as nominee for MML Small Cap Growth Equity Fund, Beachcraft & Co., as
nominee for John Hancock Variable Insurance Trust Small Cap Stock Trust, Hare & Co LLC, as nominee for Eversource Retirement
Plan Master Trust, Hare & Co., as nominee for Global Multi-Strategy Fund, Italianbitt & Co., as nominee for Hartford Small
Company HLS Fund, Italianboat & Co., as nominee for Hartford Capital Appreciation HLS Fund, Italianbridge & Co., as nominee
for The Hartford Capital Appreciation Fund, Italiancoal & Co., as nominee for Hartford International Equity Fund, Italiandinghy
 & Co., as nominee for Hartford Growth Opportunities HLS Fund, Italianflare & Co., as nominee for Hadley Harbor Master Investors
(Cayman) L.P., Italianrope & Co., as nominee for The Hartford Small Company Fund, Italiansilver & Co., as nominee for The
Hartford Growth Opportunities Fund, Snailreef & Co., as nominee for Mid Cap Stock Fund, Stormbeach & Co., as nominee for
John Hancock Pension Plan, Tunaship & Co., as nominee for Mid Cap Stock Trust, is 280 Congress St, Boston, MA 02210. The Selling
Securityholder is a party to the Stockholders Agreement.
147
(6)
Comprised of (i) 758,544
shares of Class A Common Stock and 4,649 shares of Class A Common Stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Accomplice Fund I, L.P., (ii) 277,403 shares of Class A Common Stock and 1,700
shares of Class A Common Stock issuable upon exercise of an equal number of private placement warrants that are exercisable within
30 days held by Accomplice Fund II, L.P., (iii) 118,378 shares of Class A Common Stock and 726 shares of Class A Common Stock issuable
upon exercise of an equal number of private placement warrants that are exercisable within 30 days held by Accomplice Management
Holdings, LLC, (iv) 9,198,251 shares of Class A Common Stock and 56,375 shares of Class A Common Stock issuable upon exercise of
an equal number of private placement warrants that are exercisable within 30 days held by Atlas Venture Fund VIII, L.P. and (v)
409,071 shares of Class A Common Stock held by Accomplice DK Investors. ACC Assoc I is the general partner of ACC I. ACC Assoc
II is the general partner of ACC II. Ryan Moore and Jeff Fagnan are Class A members of ACC Holdings. AVA VIII L.P. is the general
partner of AV VIII. AVA VIII Inc. is the general partner of AVA VIII L.P. The address of Accomplice Fund I, L.P., Accomplice Fund
II, L.P., Accomplice Management Holdings, LLC and Atlas Venture Fund VIII, L.P. is 25 First St, Suite 303, Cambridge, MA, 02141.
Ryan Moore is a director of DraftKings and a party to the Stockholders Agreement. Each of ACC I and ACC Assoc I disclaim beneficial
ownership of the shares and warrants except to the extent of its pecuniary interest therein. Each of ACC II and ACC Assoc I disclaim
beneficial ownership of the shares and warrants except to the extent of its pecuniary interest therein. Each of ACC Holdings, Mr.
Moore and Mr. Fagnan disclaim beneficial ownership of the shares and warrants except to the extent of their pecuniary interest.
Each of AV VIII, AVA VIII L.P. and AVA VIII Inc. disclaim beneficial owner of the shares and warrants except to the extent of their
pecuniary interest therein. Frank Castellucci is the General Counsel of Accomplice Fund I, L.P., Accomplice Fund II, L.P., Accomplice
Management Holdings, LLC, Atlas Venture Fund VIII, L.P. and Accomplice DK Investors. The address of Accomplice Fund I, L.P., Accomplice
Fund II, L.P., Accomplice Management Holdings, LLC, Atlas Venture Fund VIII, L.P. and Accomplice DK Investors is 25 First Street,
Suite 303, Cambridge, MA, 02141. Ryan Moore is a director of DraftKings. The Selling Securityholder is a party to the Stockholders
Agreement.
(7)
Comprised of 10,493,462 shares
of Class A common stock and 64,313 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by SGTV Fund, L.P. Todd L. Boehly is the majority owner of SGTV Fund, L.P., and
Robert B. Ott is the manager of the general partner. The address of SGTV Fund, L.P. is c/o Eldridge Industries, LLC, 600 Steamboat
Rd, 2nd Fl, Greenwich, CT 06830. The Selling Securityholder is a party to the Stockholders Agreement.
(8)
Comprised of 8,457,356 shares
of Class A common stock and 51,834 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by DK Investment Holdings L.P. Cole Van Nice is the managing partner of the general
partner of DK Investment Holdings L.P. The address of DK Investment Holdings L.P. is Attn: Dan Musker, 227 West Monroe St, Suite
5000, Chicago, IL 60606. The Selling Securityholder is a party to the Stockholders Agreement.
(9)
Comprised of (i) 586,696
shares of Class A common stock and 3,610 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Jason Robins, (ii) 20,377 shares of Class A common stock and 125 shares of
Class A common stock issuable upon exercise of an equal number of private placement warrants that are exercisable within 30 days
held by the Robins Revocable Trust u/d/t January 8, 2014 and (iii) 707,256 shares of Class A common stock and 4,335 shares of Class
A common stock issuable upon exercise of an equal number of private placement warrants that are exercisable within 30 days held
by the Robins Family Trust LLC. "Shares of Class A common stock Beneficially Owned" includes 7,004,943 vested options
beneficially owned by the Selling Securityholder and 125,752 shares underlying unvested options that will vest within 60 days.
The address of Jason Robins, the Robins Revocable Trust u/d/t January 8, 2014 and the Robins Family Trust LLC is c/o DraftKings,
222 Berkeley St, 5
th
Floor, Boston, MA 02116. Jason Robins is the Chief Executive Officer and Chairman of the Board
of DraftKings and a party to the Stockholders Agreement.
(10)
Comprised of 7,720,263 shares
of Class A common stock and 47,317 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Revolution Growth III, LP. The address of Revolution Growth III, LP is 1717
Rhode Island Avenue, 10th Fl., Washington, D.C., 20036. Steven Murray is the operating manager of the ultimate general partner
of Revolution Growth III, LP and a director of DraftKings. The Selling Securityholder is a party to the Stockholders Agreement.
148
(11)
Comprised of (i) 4,593 shares
of Class A common stock and 28 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by Apoletto Investments IV, L.P., (ii) 1,143,733 shares of Class A common stock and 7,010
shares of Class A common stock issuable upon exercise of an equal number of private placement warrants that are exercisable within
30 days held by Apoletto Limited and (iii) 6,175,932 shares of Class A common stock and 37,852 shares of Class A common stock issuable
upon exercise of an equal number of private placement warrants that are exercisable within 30 days held by DST Global IV, L.P.
The general partner of Apoletto Investments IV, L.P. is Apoletto Managers Limited. Despoina Zinonos is the president of the Apoletto
Managers Limited. The director of Apoletto Limited is AMA Management Limited. David Muir is the President of Apoletto Limited The
address of Apoletto Investments IV, L.P., Apoletto Limited and DST Global IV, L.P.is 4 Hill St, London, UK, W1J 5NE. The Selling
Securityholder is a party to the Stockholders Agreement.
(12)
Comprised of 7,167,080 shares
of Class A common stock and 43,926 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by ACME SPV DK, LLC. The address of ACME SPV DK, LLC is 800 Market St, 8th Floor,
San Francisco, CA 94102. Hany Nada is a director of DraftKings. The Selling Securityholder is a party to the Stockholders Agreement.
(13)
Comprised of (i) 463,216
shares of Class A common stock and 2,839 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by EGGER & CO. FBO Franklin Templeton Investment Funds - Franklin Technology
Fund, (ii) 111,171 shares of Class A common stock and 681 shares of Class A common stock issuable upon exercise of an equal number
of private placement warrants that are exercisable within 30 days held by EGGER & CO. FBO Franklin Templeton Investment Funds
- Franklin US Opportunities Fund, (iii) 3,502,928 shares of Class A common stock and 21,469 shares of Class A common stock issuable
upon exercise of an equal number of private placement warrants that are exercisable within 30 days held HARE AND CO FBO Franklin
Strategic Series - Franklin Small Cap Growth Fund, (iv) 2,820,020 shares of Class A common stock and 17,284 shares of Class A common
stock issuable upon exercise of an equal number of private placement warrants that are exercisable within 30 days held by HARE
AND CO FBO Franklin Strategic Series - Franklin Small-Mid Cap Growth Fund and (v) 259,401 shares of Class A common stock and 1,590
shares of Class A common stock issuable upon exercise of an equal number of private placement warrants that are exercisable within
30 days held by HARE AND CO FBO Franklin Templeton Variable Insurance Products Trust -Franklin Small-Mid Cap Growth VIP Fund. Michael
McCarthy is the control person for EGGER & CO. FBO Franklin Templeton Investment Funds - Franklin Technology Fund. Franklin
Advisers, Inc. is the investment manager and Michael McCarthy is the Executive Vice President and portfolio manager for HARE AND
CO FBO Franklin Strategic Series - Franklin Small Cap Growth Fund and HARE AND CO FBO Franklin Strategic Series - Franklin Small-Mid
Cap Growth Fund. The address of EGGER & CO. FBO Franklin Templeton Investment Funds - Franklin Technology Fund, EGGER &
CO. FBO Franklin Templeton Investment Funds - Franklin US Opportunities Fund, EGGER & CO. FBO Franklin Templeton Investment
Funds - Franklin US Small Mid Cap Growth Fund, HARE AND CO FBO Franklin Strategic Series - Franklin Small Cap Growth Fund, HARE
AND CO FBO Franklin Strategic Series - Franklin Small-Mid Cap Growth Fund and HARE AND CO FBO Franklin Templeton Variable Insurance
Products Trust -Franklin Small-Mid Cap Growth VIP Fund is c/o Franklin Advisers, Inc., Attn: Christopher Chen, One Franklin Parkway,
San Mateo, CA 94403. The Selling Securityholder is a party to the Stockholders Agreement.
(14)
Comprised of (i) 45,052
shares of Class A common stock and 276 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days, held by Paul Liberman, (ii) 459,716 shares of Class A common stock and 2,818 shares
of Class A common stock issuable upon exercise of an equal number of private placement warrants that are exercisable within 30
days held by the Paul Liberman 2015 Revocable Trust and (iii) 603,364 shares of Class A common stock and 3,698 shares of Class
A common stock issuable upon exercise of an equal number of private placement warrants that are exercisable within 30 days held
by the Paul Liberman 2020 Trust. "Shares of Class A Common Stock Beneficially Owned" includes 3,504,821 vested options
beneficially owned by the Selling Securityholder and 42,020 shares underlying unvested options that will vest within 60 days. The
address of Paul Liberman, the Paul Liberman 2015 Revocable Trust and the Paul Liberman 2020 Trust is c/o DraftKings, 222 Berkeley
St, 5
th
Floor, Boston, MA 02116. Paul Liberman is President, Global Technology and a director of DraftKings and a party
to the Stockholders Agreement.
(15)
Comprised of (i) 530,442
shares of Class A common stock and 3,251 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Matthew Kalish, (ii) 6,507 shares of Class A common stock and 40 shares of
Class A common stock issuable upon exercise of an equal number of private placement warrants that are exercisable within 30 days
held by the Kalish Family 2020 Irrevocable Trusts and (iii) 633,497 shares of Class A common stock and 3,883 shares of Class A
common stock issuable upon exercise of an equal number of private placement warrants that are exercisable within 30 days held by
the Matthew P. Kalish 2020 Trust. "Shares of Class A Common Stock Beneficially Owned" includes 2,797,926 vested options
beneficially owned by the Selling Securityholder and 42,020 shares underlying unvested options that will vest within 60 days. The
address of Matthew Kalish, the Kalish Family 2020 Irrevocable Trusts and the Matthew P. Kalish 2020 Trust is c/o DraftKings, 222
Berkeley St, 5
th
Floor, Boston, MA 02116. Matthew Kalish is President, DraftKings North America and a director of DraftKings
and a party to the Stockholders Agreement.
149
(16)
Comprised of (i) 535,240
shares of Class A common stock and 3,280 shares of Class A common stock underlying warrants beneficially owned by Moussefixe L.P.
over which Moussefixe L.P. and Charles Heilbronn have shared voting and dispositive power; (ii) 2,676,204 shares of Class A common
stock and 16,402 shares of Class A common stock underlying warrants beneficially owned by Mousserena, L.P. over which Mousserena,
L.P. and Charles Heilbronn have shared voting and dispositive power; and (iii) 356,827 shares of Class A common stock and 2,187
shares of Class A common stock underlying warrants beneficially owned by Moussescale over which Moussescale and Charles Heilbronn
have shared voting and dispositive power. The address of Moussefixe L.P., Mousserena, L.P. and Moussescale is Ugland House, 135
South Church Street, George Town, Grand Cayman KY1-1104 Cayman Islands. The address of Mr. Heilbronn is c/o Mousse Partners Limited,
9 West 57th St, New York, NY 10019.
(17)
Comprised of 3,564,688 shares
of Class A common stock held by Randolph John Anderson. "Shares of Class A Common Stock Offered" includes 63,000 earnout
shares issued to the Selling Securityholder pursuant to the terms of the Earnout Escrow Agreement. The address of Randolph John
Anderson is Apt. 504, Royal Sunset, Royal Ocean Plaza, Ocean Village Ave, Gilbraltar. Randolph John Anderson is a party to the
Stockholders Agreement.
(18)
Comprised of (i) 607,692
shares of Class A common stock and 3,724 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by DK Edgar LLC, (ii) 607,692 shares of Class A common stock and 3,724 shares
of Class A common stock issuable upon exercise of an equal number of private placement warrants that are exercisable within 30
days held by DK Winter LLC, (iii) 567,529 shares of Class A common stock, 20,186 shares of Class A common stock issuable upon the
exercise of the Old DK Warrants and 3,477 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held JAK II LLC, (iv) 713,803 shares of Class A common stock, 68,641 shares of Class
A common stock issuable upon the exercise of the Old DK Warrants and 4,375 shares of Class A common stock issuable upon exercise
of an equal number of private placement warrants that are exercisable within 30 days held by KPC Venture Capital LLC, (v) 443,015
shares of Class A common stock and 2,715 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Robert K. Kraft LLC and (vi) 451,796 shares of Class A common stock, 31,843
shares of Class A common stock issuable upon the exercise of the Old DK Warrants and 2,770 shares of Class A common stock issuable
upon exercise of an equal number of private placement warrants that are exercisable within 30 days held Two R LLC. Kraft has a
marketing agreement with an affiliate of DraftKings and DraftKings has a sponsorship relationship with Gillette Stadium and the
New England Patriots, pursuant to which DraftKings pays an annual fee to advertise and promote its brand and products at Gillette
Stadium and through certain marketing and medial channels associates with Gillette Stadium and the Patriots. Jonathan A. Kraft
is the managing member of DK Edgar LLC and JAK II LLC. Daniel A. Kraft is the managing member of DK Winter, LLC. Robert K. Kraft
is the sole director of the manager of KPC Venture Capital LLC and Robert K. Kraft LLC and the managing member of Two R LLC. The
address of DK Edgar LLC, DK Winter LLC, JAK II LLC, KPC Venture Capital LLC, Robert K. Kraft LLC and Two R LLC is One Patriot Place,
Foxborough, MA 02035. The Selling Securityholder is a party to the Stockholders Agreement.
(19)
Comprised of (i) 3,121,618
shares of Class A common stock and 19,132 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Park West Investors Master Fund, Limited and (ii) 345,922 shares of Class
A common stock and 2,120 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by Park West Partners International, Limited. Peter S. Park is the sole member and manager
of Park West Asset Management, LLC, the investment manager of Park West Investors Master Fund, Limited and Park West Partners International,
Limited. The address of Park West Investors Master Fund, Limited and Park West Partners International, Limited is c/o Park West
Asset Management LLC, 900 Larkspur Landing Circle, Suite 165, Larkspur, CA 94939. The Selling Securityholder is a party to the
Stockholders Agreement.
(20)
Comprised of (i) 901,560
shares of Class A common stock and 5,526 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by AP Investment Series, LLC, (ii) 624,157 shares of Class A common stock and
3,825 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants that are exercisable
within 30 days held by ArrowMark Fundamental Opportunity Fund, L.P., (iii) 973,486 shares of Class A common stock and 5,966 shares
of Class A common stock issuable upon exercise of an equal number of private placement warrants that are exercisable within 30
days held by Meridian Growth Fund and (iv) 868,244 shares of Class A common stock and 5,321 shares of Class A common stock issuable
upon exercise of an equal number of private placement warrants that are exercisable within 30 days held by Meridian Small Cap Growth
Fund. The address of AP Investment Series, LLC, ArrowMark Fundamental Opportunity Fund, L.P., Meridian Growth Fund and Meridian
Small Cap Growth Fund is c/o ArrowMark Partners, 100 Fillmore St, Suite 325, Denver, CO 80206. The Selling Securityholder is a
party to the Stockholders Agreement.
150
(21)
Comprised of (i) 847,490
shares of Class A common stock and 5,194 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Top Tier Venture Capital VIII Holdings and (ii) 2,064,844 shares of Class
A common stock and 12,655 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by Top Tier Venture Velocity Fund 2, LP. The address of Top Tier Venture Capital VIII
Holdings and Top Tier Venture Velocity Fund 2, LP is First Republic Bank, 111 Pine St, San Francisco, CA 94111. The Selling Securityholder
is a party to the Stockholders Agreement.
(22)
Comprised of (i) 116,482
shares of Class A common stock and 714 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by JS Capital LLC and (ii) 2,702,636 shares of Class A common stock and 16,564
shares of Class A common stock issuable upon exercise of an equal number of private placement warrants that are exercisable within
30 days held by Quantum Partners LP. This statement relates to shares held for the account of Quantum Partners LP, a Cayman Islands
exempted limited partnership ("Quantum"). Soros Fund Management LLC ("SFM LLC") serves as investment manager
to Quantum. As such, SFM LLC has been granted investment discretion over portfolio investments held for the account of Quantum.
As of the date hereof, George Soros is the Chairman of SFM LLC and has sole discretion to replace FPR Manager LLC, the manager
of SFM LLC. The address of JS Capital LLC and Quantum Partners LP is c/o Soros Fund Management LLC, 250 West 55th St, New York,
NY 10019. The Selling Securityholder is a party to the Stockholders Agreement.
(23)
Comprised of (i) 132,710
shares of Class A common stock and 813 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by MVP All-Star Fund III LLC, (ii) 76,030 shares of Class A common stock and
466 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants that are exercisable
within 30 days held by MVP All-Star Fund IIIC LLC, (iii) 416,105 shares of Class A common stock and 2,550 shares of Class A common
stock issuable upon exercise of an equal number of private placement warrants that are exercisable within 30 days held by MVP All-Star
Master Fund LLC, (iv) 1,869,408 shares of Class A common stock and 11,457 shares of Class A common stock issuable upon exercise
of an equal number of private placement warrants that are exercisable within 30 days held by MVP Opportunity Fund V LLC, (v) 159,574
shares of Class A common stock and 978 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by MVP Opportunity Fund VI LLC, Series VI-D1 and (vi) 61,449 shares of Class
A common stock and 377 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants that
are exercisable within 30 days held by MVP Opportunity Fund VI LLC, Series V1-D4. Eric Branchfeld is the manager of MVP Manager
LLC, the manager of MVP All-Star Fund III LLC, MVP All-Star Fund IIIC LLC, MVP All-Star Master Fund LLC, MVP Opportunity Fund V
LLC, MVP Opportunity Fund VI LLC, Series VI-D and MVP Opportunity Fund VI LLC, Series V1-D4. The address of MVP All-Star Fund III
LLC, MVP All-Star Fund IIIC LLC, MVP All-Star Master Fund LLC, MVP Opportunity Fund V LLC, MVP Opportunity Fund VI LLC, Series
VI-D and MVP Opportunity Fund VI LLC, Series V1-D4 is c/o Manhattan Venture Partners, 152 Madison Avenue, 7th Floor, New York,
NY 10016. The Selling Securityholder is a party to the Stockholders Agreement.
(24)
Comprised of 1,789,623 shares
of Class A common stock, and 929,100 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Eagle Equity Partners, LLC. "Shares of Class A Common Stock Offered"
includes 2,671,935 earnout shares issued to the Selling Securityholder pursuant to the terms of the Earnout Escrow Agreement. The
address of Eagle Equity Partners, LLC is 2121 Avenue of the Stars, Suite 2300, Los Angeles, CA 90067. Eagle Equity Partners, LLC
was the sponsor of DEAC and is a party to the Stockholders Agreement.
(25)
Comprised of 1,789,618
shares of Class A common stock, 929,099 shares of Class A common stock issuable upon exercise of an equal number of private
placement warrants that are exercisable within 30 days held by Harry E. Sloan. "Shares of Class A Common Stock
Offered" includes 2,608,065 earnout shares issued to the Selling Securityholder pursuant to the terms of the Earnout
Escrow Agreement. The address of Harry E. Sloan is 2121 Avenue of the Stars, Suite 2300, Los Angeles, CA 90067. Harry E.
Sloan was one of the founders of DEAC, is the Vice Chairman of DraftKings and is a party to the Stockholders Agreement.
(26)
Comprised of 2,546,206 shares
of Class A common stock held by J Gleek Properties Limited. "Shares of Class A Common Stock Offered" includes 45,000
earnout shares issued to the Selling Securityholder pursuant to the terms of the Earnout Escrow Agreement. Julian Gleek is the
sole director of the Selling Securityholder and is a party to the Stockholders Agreement. The address of J Gleek Properties Limited
is Richmond House, Avomouth Way, Avonmouth, Bristol, United Kingdom, BS11 8DE.
(27)
Comprised of 2,149,874 shares
of Class A common stock and 13,176 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Schechter Private Capital Fund1, LLC - GTP Series J. Marc Rodney Schechter
is the President and Fund Manager of Schechter Private Capital Fund1, LLC - GTP Series J. The address of Schechter Private Capital
Fund1, LLC - GTP Series J is 251 Pierce St, Attn: Marc Schechter, Birmingham, MI 48009. The Selling Securityholder is a party to
the Stockholders Agreement.
151
(28)
Comprised of 1,985,927 shares
of Class A common stock and 12,172 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by ClipperBay and Co (HG22) f/b/o SmallCap World Fund, Inc. The address of ClipperBay
and Co (HG22) f/b/o SmallCap World Fund, Inc. is 333 South Hope St, 50th Floor, Los Angeles, CA 90071. The Selling Securityholder
is a party to the Stockholders Agreement.
(29)
Comprised of 1,696,072 shares
of Class A common stock and 10,395 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Carmenta Opportunities 2020, L.P. The Control Persons of Carmenta Opportunities
2020, L.P. are Kirk Dizon and Andrew Dipkin. The address of Carmenta Opportunities 2020, L.P. is 191 Knoll Pl, St. Helena, CA 94574.
(30)
Comprised of 1,464,308 shares
of Class A common stock and 8,975 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Madison Square Garden Investments, LLC. Madison Square Garden Investments
is indirectly owned by Madison Square Garden Entertainment Corp., which is controlled by members of the Dolan family, including
trusts for members of the Dolan family. Each Control Person disclaims beneficial ownership of the shares of the Company held by
MSG Entertainment Corp. and its subsidiaries, except to the extent of any pecuniary interest therein, and this response should
not be deemed an admission that any of the Controlled Persons is a beneficial owner of such securities for purposes of Section
16 of the Securities Exchange Act of 1934, as amended, or for any other purpose. This Selling Securityholder was previously party
to a marketing partnership with DraftKings, which expired in 2019. The address of Madison Square Garden Investments, LLC is 2 Pennsylvania
Plaza, New York, NY 10121.
(31)
Comprised of (i) 611,776
shares of Class A common stock and 3,750 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by UIT Growth Equity Series DK Limited Partnership and (ii) 635,193 shares of
Class A common stock and 3,893 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by UIT Growth Equity Series DK3 Limited Partnership. Patrick Robinson is the partner of
UIT Growth Equity Series DK Limited Partnership and UIT Growth Equity Series DK3 Limited Partnership. The address of UIT Growth
Equity Series DK Limited Partnership and UIT Growth Equity Series DK3 Limited Partnership is 999 Hastings St W, Vancouver, BC Canada
V6C 2W2. The Selling Securityholder is a party to the Stockholders Agreement.
(32)
Comprised of 1,191,049 shares
of Class A common stock and 7,300 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held Boston Seed Capital II, L.P. Nicole M. Stata is the managing member of Boston
Seed Capital II, L.P. The address of Boston Seed Capital II, L.P. is PO Box 309, Westwood, MA 02090.
(33)
Comprised of 1,043,865 shares
of Class A common stock and 6,398 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Carnegie GM Partners LLC. The managers of Carnegie GM Partners LLC are Andrew
C. Walter and Geraldine F. McMamus. The address of Carnegie GM Partners LLC is 17 State St, Ste 3220, New York, NY 10004.
(34)
Comprised of (i) 200,659
shares of Class A common stock and 1,230 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by BDS Venture Fund II LLC and (ii) 661,029 shares of Class A common stock and
4,051 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants that are exercisable
within 30 days held by BDS Venture Fund LLC. Brian Rubinstein, a former board observer of Former DK, is the manager of the funds.
The address of BDS Venture Fund II, BDS Venture Fund and its manager is 31 Sherwood Ln, Roslyn Heights, NY 11577.
(35)
Comprised of 858,710 shares
of Class A common stock and 5,263 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Wildcat Opportunistic DraftKings Fund, LP. Richard Travia is the managing
member of Wildcat Opportunistic DraftKings Fund, LP. The address of Wildcat Opportunistic DraftKings Fund, LP is 275 Woodbine Cir,
New Providence, NJ 07974.
(36)
Comprised of 835,773 shares
of Class A common stock and 5,122 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Ashley Kalish. The address of Ashley Kalish is c/o DraftKings, 222 Berkeley
St, 5
th
Floor, Boston, MA 02116.
(37)
Comprised of (i) 801,183
shares of Class A common stock and 4,910 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Title 19 DK. The manager of Title 19 DK is Michael S. Gordon. The address
of Title 19 DK is 126 Brookline Ave, 3rd Fl, Boston, MA 02215.
152
(38)
Comprised of (i) 326,406
shares of Class A common stock and 2,001 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Schiller Partners, Inc., (ii) 69,351 shares of Class A common stock and 425
shares of Class A common stock issuable upon exercise of an equal number of private placement warrants that are exercisable within
30 days held by Schiller Revocable Trust #2, (iii) 257,055 shares of Class A common stock and 1,575 shares of Class A common stock
issuable upon exercise of an equal number of private placement warrants that are exercisable within 30 days held by Rio Vista Investments
LLC and (iv) 138,701 shares of Class A common stock and 850 shares of Class A common stock issuable upon exercise of an equal number
of private placement warrants that are exercisable within 30 days held by DRVS LLC. Jonathan Schiller is the President and Director
of Schiller Partners, Inc. and the trustee of Schiller Revocable Trust #2. Amy Habie is the manager of Rio Vista Investments LLC
and DRVS LLC. The address of Schiller Partners, Inc. and Schiller Revocable Trust #2 is c/o Boies Schiller Flexner LLP, 55 Hudson
Yards, 20th Fl, New York, NY 10001. The address of Rio Vista Investments LLC and DRVS LLC is 2200 Corporate Blvd NW, Ste 400, Boca
Raton, FL 33431.
(39)
Comprised of 774,183 shares
of Class A common stock and 4,745 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by GGV Capital Select L.P. The general partner of GGV Capital Select L.P. is
GGV Capital Select L.L.C. The managing partners of GGV Capital Select L.L.C. are Jixun Foo, Yew Mei Green, Glenn Solomon, Jenny
Hong Wei Lee, Jeffrey Gordon Richards and Hans Tung. The address of GGV Capital Select L.P. is 3000 Sand Hill Rd, Suite 4-230,
Menlo Park, CA 94025. The Selling Securityholder is a party to the Stockholders Agreement.
(40)
Comprised of 710,643 shares
of Class A common stock and 4,355 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Hub Angel Investment Group, Fund IV. The managing director of Hub Angel Investment
Group, Fund IV is Charles Cameron. The address of Hub Angel Investment Group, Fund IV is 131 Marlborough St, Unit 4, Boston, MA
02116.
(41)
Comprised of 676,588 shares
of Class A common stock and 4,147 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Brandywine Private Equity Partners (2016), LP. The general partner of Brandywine
Private Equity Partners (2016), LP is Brandywine Managers, LLC. The authorized signers of Brandywine Managers, LLC are Richard
E. Carlson, John A. Ciccarone and William Scott Campbell. The address of Richard E. Carlson is 859 Old Public Rd, Hockessin, DE
19707. The address of John A. Ciccarone is 122 Round Hill Rd, Kennett Square, PA 19348. The address of William Scott Campbell is
395 Thornton Rd, Cheyney, PA 19319.
(42)
Comprised of (i) 554,806
shares of Class A common stock and 3,400 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Veralda AB, (ii) 27,740 shares of Class A common stock and 170 shares of Class
A common stock issuable upon exercise of an equal number of private placement warrants that are exercisable within 30 days held
by Nunataq AB and (iii) 41,610 shares of Class A common stock and 255 shares of Class A common stock issuable upon exercise of
an equal number of private placement warrants that are exercisable within 30 days held by Kristian Nylen. Anderson Strom is the
director and owner of Veralda AB. Patrick Clase is the director and owner of Nunataq AB. The address of Veralda AB is 35 Carvile
St, London SW 3 GHA, United Kingdom. The address of Nuntaq AB is Korsovagen 19, 19249 Enebyberg, Sweden. The address of Kristian
Nylen is c/o DraftKings, 222 Berkeley St, 5
th
Floor, Boston, MA 02116.
(43)
Comprised of 57,463
shares of Class A common stock and 352 shares of Class A common stock issuable upon exercise of an equal number of private
placement warrants that are exercisable within 30 days held by Jordan Mendell, an employee of DraftKings. "Shares of
Class A common stock Beneficially Owned" includes 552,299 vested options beneficially owned by the Selling
Securityholder and 1,879 shares underlying unvested options that will vest within 60 days. The address of Jordan Mendell is
c/o DraftKings, 222 Berkeley St, 5
th
Floor, Boston, MA 02116.
(44)
Comprised of 578,383 shares
of Class A common stock and 3,545 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Kombo Growth Fund I, LLC. Kevin Gould is the President of KRG Entertainment,
LLC, the managing member of Kombo Growth Fund I, LLC. The address of Kombo Growth Fund I, LLC is 6600 Sunset Blvd, Ste 235, Los
Angeles, CA 90028.
(45)
Comprised of 565,762 shares
of Class A common stock and 3,468 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by SP Investment Associates, L.P. Stephen G. Pagliuca and Anastasios Parafestas
are the managers of Roundview Partners, LLC, the general partner of SP Investment Associates, L.P. The address of SP Investment
Associates, L.P. is One Joy St, Boston, MA 02108.
153
(46)
Comprised of (i) 43,651
shares of Class A common stock and 268 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by EquityZen Growth Technology Fund LLC - Series 212, (ii) 308,382 shares of
Class A common stock and 1,890 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by EquityZen Growth Technology Fund LLC - Series 265 and (iii) 194,495 shares of Class
A common stock and 1,192 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by EquityZen Growth Technology Fund LLC - Series 397. The manager representatives of
EquityZen Growth Technology Fund LLC - Series 212, EquityZen Growth Technology Fund LLC - Series 265 and EquityZen Growth Technology
Fund LLC - Series 397 are Philip Haslett and Atish Davda. The address of EquityZen Growth Technology Fund LLC - Series 212, EquityZen
Growth Technology Fund LLC - Series 265 and EquityZen Growth Technology Fund LLC - Series 397 is 45 West 27th St, Suite 200, New
York, NY 10001.
(47)
Comprised of 484,201 shares
of Class A common stock and 2,968 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by NHL Enterprises, LP. Craig C. Harnett, Senior Executive Vice President &
CFO of NHL Enterprises, LP. DraftKings was previously a sponsor and licensee of intellectual property from NHL Enterprises, LP.
The address of NHL Enterprises, LP is 1185 Ave of the Americas, New York, NY 10036.
(48)
Comprised of 482,920 shares
of Class A common stock and 2,960 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by the MJE Personal Gift Trust A. The beneficiary of the MJE Personal Gift Trust
A is Michael J. Egan. The address of the MJE Personal Gift Trust A is 8 Queen Anne Ave, Hopkinton, MA 01748.
(49)
Comprised of 451,059 shares
of Class A common stock and 2,764 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Las Olas Private Equity VII, LP. Justin Courtenay is the president of Las
Olas Private Equity VII, LP. The address of Las Olas Private Equity VII, LP is 401 E Las Olas Blvd, Ste 2200, Fort Lauderdale,
FL 33301.
(50)
Comprised of (i) 276,183
shares of Class A common stock and 1,693 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Woodrow Levin, (ii) 44,204 shares of Class A common stock and 271 shares of
Class A common stock issuable upon exercise of an equal number of private placement warrants that are exercisable within 30 days
held by the Levin Family 2015 Irrevocable Trust and (iii) 3,093 shares of Class A common stock and 19 shares of Class A common
stock issuable upon exercise of an equal number of private placement warrants that are exercisable within 30 days held by OneSix
Red, LLC. "Shares of Class A common stock Beneficially Owned" includes 82,802 vested options beneficially owned by
the Selling Securityholder and 7,109 shares underlying unvested options that will vest within 60 days. The address of Woodrow Levin
and the Levin Family 2015 Irrevocable Trust is c/o DraftKings, 222 Berkeley St, 5
th
Floor, Boston, MA 02116. The address
of OneSix Red, LLC is 46 Wilmot St, San Francisco, CA 94115. Woodrow Levin is a director of DraftKings and a party to the Stockholders
Agreement.
(51)
Comprised of 394,594 shares
of Class A common stock and 2,418 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Smash Ventures Tackle SPV LLC. Evan Richter is the general partner of Smash
Ventures Tackle SPV LLC. The address of Smash Ventures Tackle SPV LLC is 8902 Rangely Ave, W Hollywood, CA 90048.
(52)
Comprised of 346,754 shares
of Class A common stock and 2,125 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by PBE Investments, Ltd. The control person of PBE Investments, Ltd is Paul B.
Edgerley. The address of PBE Investments, Ltd is 119 Hyslop Rd, Brookline, MA 02445.
(53)
Comprised of 77,798 shares
of Class A common stock and 477 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by Gregory Brian Karamitis, an employee of DraftKings. "Shares of Class A common
stock Beneficially Owned" includes 263,792 vested options beneficially owned by the Selling Securityholder and 5,194 shares
underlying unvested options that will vest within 60 days. The address of Gregory Brian Karamitis is c/o DraftKings, 222 Berkeley
St, 5
th
Floor, Boston, MA 02116.
(54)
Comprised of 9,346 shares
of Class A common stock and 57 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by Travis Dunn. "Shares of Class A common stock Beneficially Owned" includes
311,763 vested options beneficially owned by the Selling Securityholder and 11,604 shares underlying unvested options that will
vest within 60 days. The address of Travis Dunn is c/o DraftKings, 222 Berkeley St, 5
th
Floor, Boston, MA 02116. Travis
Dunn is the Chief Technology Officer of DraftKings and a party to the Stockholders Agreement.
(55)
Comprised of 289,299 shares
of Class A common stock and 1,773 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held Brookwood Partners LP. Barry Rubenstein is the general partner of Brookwood Partners
LP. The address of Brookwood Partners LP is 68 Wheatley Rd, Brookville, NY 11545.
154
(56)
Comprised of (i) 240,453
shares of Class A common stock and 1,474 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Data Point Capital II, L.P. and (ii) 36,950 shares of Class A common stock
and 226 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants that are exercisable
within 30 days held by Data Point Capital II-Q, L.P. Scott Savitz and Mike Majors are the managing members of Data Point Partners
II, LLC, the general partner of Data Point Capital II, LP and Data Point Capital II-Q, L.P. The address of Data Point Capital II,
L.P. and Data Point Capital II-Q, L.P. is One Marina Park Dr, 10th Fl, Boston, MA 02210.
(57)
Comprised of 101,668 shares
of Class A common stock and 623 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by Stephanie Sherman, an employee of DraftKings. "Shares of Class A common stock
Beneficially Owned" includes 167,914 vested options beneficially owned by the Selling Securityholder and 6,630 shares underlying
unvested options that will vest within 60 days. The address of Stephanie Sherman is c/o DraftKings, 222 Berkeley St, 5
th
Floor, Boston, MA 02116.
(58)
Comprised of 262,390 shares
of Class A common stock and 1,608 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Benvolio Ventures LLC – Series Draft Kings. Ernest David Odinec, Samuel
Paul Frankfort and Lewis Joseph Frankfort are the managers of Benvolio Group LLC, the manager of Benvolio Ventures LLC - Series
Draft Kings. The address of Benvolio Ventures LLC – Series Draft Kings is 3 Columbus Cir, Ste 2120, New York, NY 10019.
(59)
Comprised of 261,941 shares
of Class A common stock and 1,605 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by World Wrestling Entertainment, Inc. Frank Riddick is the interim Chief Financial
Officer of World Wrestling Entertainment, Inc. The address of World Wrestling Entertainment, Inc. is 1241 E Main St, Stamford,
CT 06902.
(60)
Comprised of 243,476 shares
of Class A common stock and 1,492 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by AngelList-Dngs-Fund, a series of AngelList-FkKa-Funds, LLC. The address of
AngelList-Dngs-Fund, a series of AngelList-FkKa-Funds, LLC is c/o Belltower Fund Group, Ltd., PO Box 3217, Seattle, WA 98114.
(61)
Comprised of 8,487 shares
of Class A common stock and 52 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by Edward Zaleski, an employee of DraftKings. "Shares of Class A common stock Beneficially
Owned" includes 225,784 vested options beneficially owned by the Selling Securityholder and 331 shares underlying unvested
options that will vest within 60 days. The address of Edward Zaleski is c/o DraftKings, 222 Berkeley St, 5
th
Floor,
Boston, MA 02116.
(62)
Comprised of 207,620 shares
of Class A common stock and 1,272 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Jeffrey Haas, an employee of DraftKings. "Shares of Class A common stock
Beneficially Owned" includes 11,024 vested options beneficially owned by the Selling Securityholder and 1,878 shares underlying
unvested options that will vest within 60 days. The address of Jeffrey Haas is c/o DraftKings, 222 Berkeley St, 5
th
Floor, Boston, MA 02116.
(63)
Comprised of 216,041 shares
of Class A common stock and 1,324 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by TPI DraftKings Investment I, LLC. Tracy Deforge is the managing member of
The Players' Impact Ventures, LLC, which is the manager of TPI DraftKings Investment I, LLC. The address of TPI DraftKings
Investment I, LLC is 102 Union St, Franklin, MA 02038.
(64)
Comprised of 193,680 shares
of Class A common stock and 1,187 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held Legends Hospitality, LLC. Legends Hospitality, LLC is wholly-owned by Legends
Hospitality Holding Company, LLC. The President and Chief Executive Officer of Legends Hospitality Holding Company, LLC is Shervin
Mirhashemi. The address of Legends Hospitality, LLC is 61 Broadway, Ste 2400, New York, NY 10006.
(65)
Comprised of 193,174 shares
of Class A common stock and 1,184 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Janet Holian, a former officer of  Old DK and the CEO of DRIVE by
DraftKings. The address of Janet Holian is c/o DraftKings, 222 Berkeley St, 5
th
Floor, Boston, MA 02116.
155
(66)
Comprised of 185,393 shares
of Class A common stock and 1,136 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Fort Point Fund DK, LLC. The manager of Fort Point Fund DK, LLC is Joseph
L. Kempf. The address of Fort Point Fund DK, LLC is 2780 SE 7th Dr, Pompano Beach, FL 33062.
(67)
Comprised of 127,306 shares
of Class A common stock and 780 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by Jonathan Aguiar, an employee of DraftKings. "Shares of Class A common stock Beneficially
Owned" includes 55,694 vested options beneficially owned by the Selling Securityholder and 221 shares underlying unvested
options that will vest within 60 days. The address of Jonathan Aguiar is c/o DraftKings, 222 Berkeley St, 5
th
Floor,
Boston, MA 02116.
(68)
Comprised of 164,015 shares
of Class A common stock and 1,005 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Agman Investments, LLC. Howard Scott Silverman is the manager of Agman Investments,
LLC. The address of Agman Investments, LLC is 10 E Ohio St, 2
nd
Floor, Chicago, IL 60611.
(69)
Comprised of 20,000 shares
of Class A common stock and 133,333 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Joshua Kazam, a former director of DEAC and a party to the Stockholders Agreement.
The address of Joshua Kazam is 2121 Avenue of the Stars, Suite 2300, Los Angeles, CA 90067.
(70)
Comprised of 20,000 shares
of Class A common stock and 133,333 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Frederic Rosen, a former director of DEAC and a party to the Stockholders
Agreement. The address of Frederic Rosen is 2121 Avenue of the Stars, Suite 2300, Los Angeles, CA 90067.
(71)
Comprised of 18,898 shares
of Class A common stock and 116 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by Scott Salsbury, an employee of DraftKings. "Shares of Class A common stock Beneficially
Owned" includes 123,404 vested options beneficially owned by the Selling Securityholder and 1,105 shares underlying unvested
options that will vest within 60 days. The address of Scott Salsbury is c/o DraftKings, 222 Berkeley St, 5
th
Floor,
Boston, MA 02116.
(72)
Comprised of 137,258 shares
of Class A common stock and 841 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by Benjamin F. Stein. The address of Benjamin F. Stein is c/o DraftKings, 222 Berkeley
St, 5
th
Floor, Boston, MA 02116.
(73)
Comprised of 88,407 shares
of Class A common stock and 542 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by Edward Silva, an employee of DraftKings. "Shares of Class A common stock Beneficially
Owned" includes 44,192 vested options beneficially owned by the Selling Securityholder and 1,436 shares underlying unvested
options that will vest within 60 days. The address of Edward Silva is c/o DraftKings, 222 Berkeley St, 5
th
Floor, Boston,
MA 02116.
(74)
Comprised of 131,212 shares
of Class A common stock and 804 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by the Timothy J. McSweeney 2006 Trust. The trustees of the Timothy J. McSweeney 2006
Trust are Timothy J. McSweeney and Debie A. McSweeney. The address of the Timothy J. McSweeney 2006 Trust is 9 Cliff Rd, Weston,
MA 02493.
(75)
Comprised of (i) 88,407
shares of Class A common stock and 542 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Peter Vaccarella, (ii) 13,127 shares of Class A common stock and 80 shares
of Class A common stock issuable upon exercise of an equal number of private placement warrants that are exercisable within 30
days held by Vincent Vaccarella and (iii) 26,289 shares of Class A common stock and 161 shares of Class A common stock issuable
upon exercise of an equal number of private placement warrants that are exercisable within 30 days held by Frank Vaccarella. The
address of Peter Vaccarella, Vincent Vaccarella and Frank Vaccarella is c/o DraftKings, 222 Berkeley St, 5
th
Floor,
Boston, MA 02116.
(76)
Comprised of 123,770 shares
of Class A common stock and 759 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by Disruptive Ventures, LLC. 7579 Holdings LLC is the managing member of Disruptive Ventures,
LLC. The address of Disruptive Ventures, LLC is 200 Vesey St, 24th Fl, New York, NY 10281.
(77)
Comprised of 116,303 shares
of Class A common stock and 713 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by Angel Street Capital, LLC. Robert J. Maccini and Joseph V. Gallagher are the managing
members of Angel Street Capital, LLC. The address of Angel Street Capital, LLC is 34 Narragansett Ave, Ste 4, Jamestown, RI 02835.
156
(78)
Comprised of 11,272 shares
of Class A common stock and 69 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by Timothy John Parilla, an employee of DraftKings. "Shares of Class A common stock
Beneficially Owned" includes 98,956 vested options beneficially owned by the Selling Securityholder and 4,475 shares underlying
unvested options that will vest within 60 days. The address of Timothy John Parilla is c/o DraftKings, 222 Berkeley St, 5
th
Floor, Boston, MA 02116.
(79)
Comprised of 113,108 shares
of Class A common stock and 693 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by SperWood, LLC. John Albert Elway and Jeffrey Michael Sperbeck are the managing partners
and beneficial owners of SperWood LLC. The address of SperWood LLC is 2200 S. Jackson St. Denver, CO 80211.
(80)
Comprised of 111,815 shares
of Class A common stock and 685 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by Joshua Weiss. The address of Joshua Weiss is c/o DraftKings, 222 Berkeley St, 5
th
Floor, Boston, MA 02116.
(81)
Comprised of 101,706 shares
of Class A common stock and 623 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by JNI Investments, LLC. Jesse Izak is the member of JNI Investments, LLC. The address
of JNI Investments, LLC is 129 W 69th St, Apt 1, New York, NY 1002.
(82)
Comprised of 99,804 shares
of Class A common stock and 612 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by ACP Venture Capital Fund II LLC. Anthony Simone and Anthony Gardini are co-managers
of ACP Venture Capital Fund II LLC. The address of ACP Venture Capital Fund II LLC is 205 Oser Ave, Hauppauge, NY 11788.
(83)
Comprised of 64,537 shares
of Class A common stock and 396 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by Andrew W. Jonas, an employee of DraftKings. "Shares of Class A common stock Beneficially
Owned" includes 31,956 vested options beneficially owned by the Selling Securityholder and 2,983 shares underlying unvested
options that will vest within 60 days. The address of Andrew W. Jonas is c/o DraftKings, 222 Berkeley St, 5
th
Floor,
Boston, MA 02116.
(84)
Comprised of 5,525 shares
of Class A common stock and 34 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by James M. Scarpellini, an employee of DraftKings. "Shares of Class A common stock
Beneficially Owned" includes 87,961 vested options beneficially owned by the Selling Securityholder and 1,990 shares underlying
unvested options that will vest within 60 days. The address of James M. Scarpellini is c/o DraftKings, 222 Berkeley St, 5
th
Floor, Boston, MA 02116.
(85)
Comprised of 17,792 shares
of Class A common stock and 109 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by Elaine Milardo, an employee of DraftKings. "Shares of Class A common stock Beneficially
Owned" includes 73,572 vested options beneficially owned by the Selling Securityholder and 2,984 shares underlying unvested
options that will vest within 60 days. The address of Elaine Milardo is c/o DraftKings, 222 Berkeley St, 5
th
Floor,
Boston, MA 02116.
(86)
Comprised of 92,868 shares
of Class A common stock and 569 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by Stephen and Mary Ann Phillips. The address of Stephen and Mary Ann Phillips is c/o
DraftKings, 222 Berkeley St, 5
th
Floor, Boston, MA 02116.
(87)
Comprised of 20,000 shares
of Class A common stock and 66,666 shares of Class A common stock issuable upon exercise of an equal number of private placement
warrants that are exercisable within 30 days held by Scott M. Delman, a former director of DEAC and a party to the Stockholders
Agreement. The address of Scott M. Delman is 2121 Avenue of the Stars, Suite 2300, Los Angeles, CA 90067.
(88)
Comprised of 84,570 shares
of Class A common stock and 518 shares of Class A common stock issuable upon exercise of an equal number of private placement warrants
that are exercisable within 30 days held by PPR Investors, LLC. Howard Glen Goldstein is the managing member of PPR Investors,
LLC. The address of PPR Investors, LLC is 8506 Salem Way, Bethesda, MD 20814.
(89)
Comprised of 20,000 shares of Class A common stock held by Scott Ross, a former director of DEAC and a party to the Stockholders
Agreement. The address of Scott Ross is 2121 Avenue of the Stars, Suite 2300, Los Angeles, CA 90067.
(90)
The disclosure with respect
to the remaining Selling Securityholders is being made on an aggregate basis, as opposed to an individual basis, because their
aggregate holdings are less than 1% of the outstanding shares of our Class A common stock. The address for these Selling Securityholders
is c/o DraftKings, 222 Berkeley St, 5
th
Floor, Boston, MA 02116
Listing of Common Stock
Our Class A common stock and warrants
are currently listed on Nasdaq under the symbols "DKNG" and "DKNGW", respectively.
157
CERTAIN RELATIONSHIPS AND RELATED PARTY
TRANSACTIONS
DEAC
On March 28, 2019, the 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, the 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 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 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, which, for the avoidance of doubt is May 23, 2020.
The members of the DEAC Stockholder
Group have agreed not to transfer any shares of common stock beneficially owned or owned of record by such stockholder until the
earliest of (A) one year from the Closing, (B) the last consecutive trading day where the volume weighted average share price
equals or exceeds $15.00 per share for at least 20 out of 30 consecutive trading days, commencing not earlier than 180 days after
the Closing or (C) at the time DraftKings consummates a transaction after the transactions which results in the stockholders having
the right to exchange their shares of common stock for cash, securities or other property.
Prior to the consummation of the Business
Combination, DEAC sub-leased its executive offices at 2121 Avenue of the Stars, Suite 2300, Los Angeles, CA 90067 from Global
Eagle Acquisition LLC, an affiliate of DEAC's Sponsor. DEAC reimbursed Global Eagle Acquisition LLC for office space, secretarial
and administrative services provided to members of its management team in an amount not exceeding $15,000 per month. Upon completion
of the Business Combination, we ceased paying these monthly fees.
DraftKings
Share Exchange
Agreement
On the Closing
Date, in connection with consummation of the Business Combination, Old DK, DEAC NV and Jason Robins entered into a Share Exchange
Agreement (the "Exchange Agreement"), pursuant to which, (i) Old DK issued 1,659,078 shares of its Class A common
stock and 393,013,951 shares of its Class B common stock in exchange for 1,659,078 shares of common stock of Old DK (the "Share
Exchange") held by Jason Robins; (ii) DEAC NV and Old DK agreed to treat each of the Share Exchange and the Merger Share
Exchange (as defined in the Exchange Agreement) as a "tax-free reorganization"; and (iii) DEAC NV and Old DK agreed
to jointly and severally indemnify Jason Robins from and against any federal, state and local taxes resulting from the Share Exchange
itself with respect to, or as a result of, the receipt of such shares of Old DK Class B common stock or any income recognized
by Jason Robins with respect to such shares of Old DK Class B common stock received by him in connection with the Share Exchange
or the shares of DraftKings Class B common stock received by him in exchange for such shares of Old DK Class B common stock (including
interest and penalties, and costs and expenses incurred in connection with any audit, examination, inquiry or other action or
proceeding with respect to the foregoing (including the documented fees and disbursements of the CEO's counsel related thereto))
upon the Closing.
The foregoing description
of the Exchange Agreement does not purport to be complete and is qualified in its entirety by the terms and conditions of the
Exchange Agreement, which is attached as an exhibit to the registration statement of which the prospectus is a part.
Earnout Escrow
Agreement
On the Closing
Date, in connection with consummation of the Business Combination, DraftKings, Shalom Meckenzie, in his capacity as SBT Sellers'
Representative, Eagle Equity Partners, LLC, Jeff Sagansky, Eli Baker, Harry Sloan, I.B.I. Trust Management, the trustee, and Computershare
Trust Company, N.A., as escrow agent, entered into an escrow agreement (the "Earnout Escrow Agreement") pursuant to
which (i) 5,388,000 shares of DraftKings Class A common stock were delivered and deposited into a custodian account and (ii) 612,000
shares of DraftKings Class A common stock were delivered to the trustee, in each case, to be released pro-rata to the recipients
thereof only upon the occurrence of certain triggering events that relate to the achievement of certain stock price thresholds
based upon the volume weighted average share price of our Class A common stock ranging from $12.50 to $16.00 at any time
during a four-year period commencing on the Closing Date.
158
The foregoing description
of the Earnout Escrow Agreement does not purport to be complete and is qualified in its entirety by the terms and conditions of
the Earnout Escrow Agreement, which is attached as an exhibit to the registration statement of which this prospectus is a part.
Stockholders
Agreement
Corporate Governance
In connection with the Business Combination,
the Company, the DEAC Stockholder Group, the DK Stockholder Group and the SBT Stockholder Group entered into the Stockholders
Agreement, which is filed as an exhibit to the registration of which this prospectus is a part, and which provides, among other
things, that, our Board will initially be as set forth below:
●
DraftKings Directors
. Ten directors
    nominated by the DK Stockholder Group, which were the directors of Old DK, including the Chief Executive Officer 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).
●
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 Board (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 our 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.
Additionally, as of immediately following
the Company's 2021 annual meeting of stockholders (the "2021 Annual Meeting"), the total number of directors
constituting the Board will be reduced to eleven. The nominating and corporate governance committee of the Board will recommend
to the Board eleven candidates for election to the Board at the 2021 Annual Meeting, of which no more than eight will be any of
the ten directors initially nominated to serve on the Board by the DK Stockholder Group.
Lock-Ups
Pursuant to the Stockholders Agreement,
with certain limited exceptions, (i) no member of the DK Stockholder Group or the SBT Stockholder Group is permitted to transfer
any shares of common stock beneficially owned or owned of record by such stockholder for a period of 180 days from the Closing,
(ii) no member of the DEAC Stockholder Group is permitted to transfer any shares of common stock beneficially owned or owned of
record by such stockholder until the earliest of (A) one year from the Closing, (B) the last consecutive trading day where the
volume weighted average share price equals or exceeds $15.00 per share for at least 20 out of 30 consecutive trading days, commencing
not earlier than 180 days after the Closing or (C) at the time DraftKings consummates a transaction after the transactions which
results in the stockholders having the right to exchange their shares of common stock for cash, securities or other property;
and (iii) Mr. Robins is not permitted to transfer any shares of common stock beneficially owned or owned of record until two years
after the Closing.
Permitted Transfers
At any time, any member of the Stockholder
Parties may transfer shares of DraftKings common stock:
●
pursuant
                                         to a merger, stock sale, consolidation or other business combination of DraftKings with
                                         a third party that results in a change in control of DraftKings;
●
so
                                         long as such member is an individual, (x) to such member's ancestors, descendants,
                                         siblings, cousins or spouse, (y) to trusts for the benefit of such member or such
                                         persons or (z) by way of bequest or inheritance upon death (provided that such transferee
                                         agrees in a writing to be bound by the terms of the Stockholders Agreement as a Stockholder
                                         Party); and
159
●
to
                                         any wholly-owned affiliate of such Stockholder Party or to any person wholly owning such
                                         stockholder.
Following the expiration of the lock-up
periods, as applicable, the shares of DraftKings beneficially owned or owned of record by such stockholders may be sold without
restriction, other than the restriction to transfer in accordance with the Securities Act and other applicable federal or state
securities laws.
Registration Rights
The Stockholders Agreement provides
that within 30 days of the Closing, DraftKings will file a shelf registration statement on Form S-1 with respect to resales
of all Registrable Securities (as defined in the Stockholders Agreement) held by members of the Stockholder Parties and will use
its commercially reasonable efforts to cause such shelf registration statement to be declared effective as soon as practicable
after the filing thereof, but no later than the earlier of  (i) 60 days (or 120 days if the SEC notifies
DraftKings that it will "review" such shelf registration statement) after the Closing and (ii) the tenth business
day after the date DraftKings is notified by the SEC that such shelf registration statement will not be "reviewed"
or will not be subject to further review.
In the period following the expiration
of the lock-up periods, if any member of the Stockholder Parties delivers notice to DraftKings stating that it intends to effect
an underwritten public offering of all or part of its Registrable Shares included on a shelf registration statement and reasonably
expects aggregate gross proceeds of not less than $75,000,000, DraftKings will enter into a customary underwriting agreement and
will take all such other reasonable actions as are requested by the managing underwriter or underwriters in order to expedite
or facilitate the disposition of such Registrable Securities; provided that DraftKings will have no obligation to facilitate or
participate in more than two underwritten offerings for each of the DK Stockholder Group, the SBT Stockholder Group and the DEAC
Stockholder Group and no more than six underwritten offerings in the aggregate.
Whenever DraftKings proposes to publicly
sell or register for sale any of its securities in an underwritten offering pursuant to a registration statement other than on
Form S-8 or on Form S-4, DraftKings will give notice to the Stockholder Parties and will include all Registrable Shares that any
member of the Stockholder Parties requests for inclusion within five days of receiving notice from DraftKings, subject to any
cut-back deemed necessary by an underwriter.
As long as any member of the Stockholder
Parties owns Registrable Securities, DraftKings will, at all times while it remains a reporting company under the Exchange Act,
file timely (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed
by DraftKings after the Closing pursuant to Sections 13(a) or 15(d) of the Exchange Act and to promptly furnish the members
of the Stockholder Parties with true and complete copies of all such filings.
Unsuitable Persons
Each member of the Stockholder Parties
acknowledges and agrees to the application of the provisions concerning unsuitability contained in the Charter, which is applicable
to all holders of common stock or other equity securities of DraftKings. Pursuant to such unsuitability provisions, common stock
or any other equity securities of DraftKings, or securities exchangeable or exercisable for, or convertible into, such other equity
securities of DraftKings, owned or controlled by any stockholder of DraftKings whom the 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 DraftKings board of directors, is an Unsuitable Person or
by an affiliate of an Unsuitable Person, will be subject to mandatory sale and transfer to either DraftKings or one or more third-party
transferees, in such number and class(es)/series as determined by the DraftKings board of directors, on the terms and conditions
set forth in the Charter. See "
Description of Securities — Redemption Rights and Transfer Restrictions
with Respect to Capital Stock Held by Unsuitable Persons and Their Affiliates
".
Private Placements of Securities
Series E-1 Preferred Stock Financing
Between March 2017 and April 2017, Old
DK 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 $120.9 million. Certain related persons participated in the financing
round through investment funds in which they participate in management and/or have a financial interest. The following table summarizes
purchases of DraftKings' Series E-1 preferred stock by related persons:
160
Name
​
Number of
Shares
Purchase Price
($)
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
(1)
Steven J. Murray is a member of the DraftKings board of directors and is an affiliate
    of Revolution Growth III, LP.
(2)
John Salter is a member of the DraftKings board of directors 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 and is an affiliate of Accomplice Fund I, L.P.
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
Accomplice Fund II, L.P.(2)
784,449
1,999,999.80
Jason Robins Revocable Trust u/d/t January 8, 2014(3)
39,222
99,998.85
(1)
Steven J. Murray is a member of the DraftKings board of directors and is an affiliate
    of Revolution Growth III, LP.
(2)
Ryan Moore is a member of the DraftKings board of directors and is an affiliate of Accomplice
    Fund II, L.P.
(3)
Jason Robins, the trustee of Jason Robins Revocable Trust u/d/t January 8, 2014, is the
    Chief Executive Officer and Chairman of the board of directors of DraftKings.
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. Under the terms of the engagement letter, DraftKings 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;
(ii) a
placement agent fee in connection with the Convertible Notes financing;
and (iii) 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
-
-
161
(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)
Ryan Moore is a director of DraftKings and an affiliate of Accomplice Fund II, L.P.
(4)
Hany Nada is a director of DraftKings.
(5)
Jason Robins is the Chairman and Chief Executive Officer of 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 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.
Convertible Notes
As part of DraftKings' issuance
of Convertible Notes, Accomplice DK Investors, LLC invested an aggregate of $4 million. Ryan Moore is a director of DraftKings
and is an affiliate of Accomplice Fund I, L.P. and Accomplice Management Holdings, LLC.
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.
162
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 was repaid at the Closing of the Business Combination.
Related Person Transaction Policy
The Board has adopted 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 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 DraftKings'
    executive officers or a member of the Board;
●
any person who is known by 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.
In addition, we have in place 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 the audit committee charter, the audit committee has the responsibility to review related person
transactions.
163
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;
●
persons that receive shares upon the exercise of employee
    stock options or otherwise as compensation;
●
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.
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.
164
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.
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.
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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.
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 "
—Taxation of Distributions
"
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);
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●
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. holder, 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).
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.
We believe that we are not, and do not
anticipate becoming, a U.S. real property holding corporation; however, there can be no assurance that we will not become a U.S.
real property holding corporation in the future.
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.
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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.
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PLAN
OF DISTRIBUTION
We
are registering the issuance by us of (i) up to an aggregate of 19,666,655 shares of Class A common stock upon exercise of
the public warrants, the PIPE Warrants and the private placement warrants, (ii) up to an aggregate of 120,670 shares of up our
Class A common stock that may be issued upon the exercise of Old DK Warrants to purchase Class A common stock, (iii) up to an
aggregate of 6,000,000 shares of Class A common stock issuable upon the satisfaction of certain triggering events in connection
with the earnout shares (as defined below), (iv) up to an aggregate of 252,707 shares of Class A common stock issuable upon the
exercise of outstanding options granted under the 2017 Equity Incentive Plan and 2012 Equity Incentive Plan held by former employees or former consultants
of DraftKings Inc., a Delaware corporation, and (v) up to an aggregate of 1,386,034 shares of Class A common stock issuable upon
the exercise of outstanding options granted under the SBTech (Global) Limited 2011 Global Share Option Plan held by former employees
or former consultants of SBTech (Global) Limited. We are also registering the resale by the Selling Securityholders or their permitted
transferees of (i) up to 235,051,419 shares of Class A common stock (including 3,299,603 shares of Class A
common stock that may be issued upon exercise of the private placement warrants and 120,670 shares of Class A common stock that
may be issued upon exercise of the Old DK Warrants) and (ii) up to 3,299,603 private placement warrants.
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 Stock Market;
●
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;
169
●
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;
●
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.
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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).
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. Our shares
of Class A common stock and warrants are currently listed on Nasdaq under the symbols "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.
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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.
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.
Private Placement Warrants
The private placement warrants may be
exercised commencing on May 23, 2020 and on or before the expiration date by delivering to the warrant agent, Computershare Trust
Company, N.A., a federally chartered trust company and Computershare Inc., a Delaware corporation (collectively, 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 warrants to be exercised, or, in the case of
a book-entry certificate (the "Book-Entry Warrant Certificate") the 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 Class A common
stock pursuant to the exercise of a 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 warrant is exercised and any and all applicable taxes due in connection with the exercise of the warrant, the exchange of
the warrant for the shares of Class A common stock and the issuance of such Class A common stock.
172
The private placement 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 warrants in which our Board has elected to require all holders of the warrants who exercise their warrants to do
so on a cashless basis. In such event, such holders of exercised warrants would pay the exercise price by surrendering their warrants
for that number of shares of our Class A common stock equal to the quotient obtained by dividing (x) the product of the number
of shares of our Class A common stock underlying the warrants, multiplied by the excess of the "fair market value"
of the shares of our 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 our 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 our
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 warrants. If, upon the exercise of such 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 Class A common stock to be
issued to such holder.
Lock-up Agreements
Certain
of our stockholders have entered into lock-up agreements. See "
Securities Act Restrictions of Resale of Securities—Lock-up Agreements.
"
173
LEGAL
MATTERS
Greenberg Traurig, LLP has passed upon
the validity of the Class A common stock 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 Sullivan & Cromwell 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 ("Withum"), 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.
CHANGE IN AUDITOR
On April 23, 2020, the Audit Committee
of the Board approved the engagement of BDO USA, LLP ("BDO") as the Company's independent registered public
accounting firm to audit the Company's consolidated financial statements for the year ended December 31, 2020. BDO served
as independent registered public accounting firm of Old DK prior to the Business Combination. Accordingly, WithumSmith+Brown,
PC ("Withum"), DEAC's independent registered public accounting firm prior to the Business Combination, was informed
that it would be replaced by BDO as the Company's independent registered public accounting firm following completion of
the Company's review of the quarter ended March 31, 2020, which consists only of the accounts of the pre-Business Combination
special purpose acquisition company, DEAC.
The reports of Withum on DEAC's,
the Company's legal predecessor, consolidated balance sheet as of December 31, 2019 and the consolidated statements of operations,
changes in stockholders' equity and cash flows for the period from March 27, 2019 (inception) to December 31, 2019, did
not contain an adverse opinion or a disclaimer of opinion, and were not qualified or modified as to uncertainties, audit scope
or accounting principles.
During the period
from March 27, 2019 (inception) to December 31, 2019, there were no disagreements between the Company and Withum on any matter
of accounting principles or practices, financial disclosure or auditing scope or procedure, which disagreements, if not resolved
to the satisfaction of Withum, would have caused it to make reference to the subject matter of the disagreements in its reports
on the Company's financial statements for such period.
During the period from March 27, 2019
(inception) to December 31, 2019, there were no "reportable events" (as defined in Item 304(a)(1)(v) of Regulation
S-K under the Exchange Act).
The Company provided Withum with a copy
of the foregoing disclosures and requested that Withum furnish the Company with a letter addressed to the SEC stating whether
it agrees with the statements made by the Company set forth above. A copy of Withum's letter, dated April 28, 2020, is filed
as an exhibit to the registration statement of which this prospectus is a part.
174
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.
We 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.
175
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."
F-
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.
F-
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.
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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.
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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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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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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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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
%
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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.
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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.
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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.
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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.
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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.
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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-
68
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-
69
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-
70
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
F-
71
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
F-
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
262,477,485
Shares of Class A Common Stock
3,299,603
Warrants to Purchase Class A Common Stock
PROSPECTUS
May    ,
2020
You should rely only on the information
contained or incorporated by reference in this prospectus. We have not authorized anyone to provide you with different information.
You should not assume that the information contained or incorporated by reference in this prospectus is accurate as of any date
other than the date of this prospectus. We are not making an offer of these securities in any state where the offer is not permitted.
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
$
635,527.36
Accounting fees and expenses
20,000
Legal fees and expenses
100,000
Financial printing and miscellaneous expenses
30,000
Total
$
785,527.36
Item 14. Indemnification of Directors and Officers.
Our articles of incorporation eliminate
the liability of our officers and directors to the fullest extent permitted by Nevada law. Nevada law provides that our directors
and officers will not be individually liable to us, our stockholders or our 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.
Our amended and restated articles of
incorporation and bylaws also provide for indemnification for our directors and officers to the fullest extent permitted by Nevada
law. We have entered into indemnification agreements with each of our directors that are, in some cases, broader than the specific
indemnification provisions contained under Nevada law. The effect of these provisions is to restrict our rights and the rights
of our 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.
We are also expressly authorized to
carry directors' and officers' insurance to protect our directors, officers, employees and agents against certain
liabilities.
The limitation of liability and indemnification
provisions under Nevada law and in our 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 us and our stockholders. However, these provisions do not limit or eliminate our 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, we pay the costs of settlement and
damage awards against directors and officers pursuant to these indemnification provisions.
II-
1
Item 15. Recent Sales of Unregistered Securities.
Private Placements in Connection
with IPO
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 the Sponsor holding 5,131,875 founder shares.
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
sales of the above securities were exempt from the registration requirements of the Securities Act in reliance on the exemptions
afforded by Section 4(a)(2) of the Securities Act. Other than the IPO, no sales involved underwriters, underwriting discounts
or commissions or public offerings of securities of the registrant.
Transaction Consideration
In connection with the Business Combination,
at the Closing on April 23, 2020, DraftKings issued 186,335,592 shares of Class A common stock to the holders of common stock of
Old DK and 40,739,291 shares of Class A common stock to the holders of ordinary shares of SBTech. The Stock Consideration Shares
were issued pursuant to and in accordance with the exemption from registration under the Securities Act, under Section 4(a)(2)
and/or Regulation D promulgated under the Securities Act.
Private Placement
and Convertible Notes
In connection with
satisfying the Minimum Proceeds Condition (as defined in the Business Combination Agreement), DEAC entered into subscription agreements
(the "Subscription Agreements"), each dated as of December 22, 2019, with certain institutional investors (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 Class A common stock of DEAC for $10.00 per share and an aggregate of 3,000,000 warrants to purchase shares
of Class A common stock of DEAC (the "Private Placement"). The warrants have terms identical to the Company's
publicly traded warrants.
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 converted 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 Investors in the Private Placement, which resulted
in the issuance of 11,254,479 shares of DEAC Class A common stock on the Closing Date.
The Private Placement
closed immediately prior to the Business Combination on the Closing Date. The shares of DEAC Class A common stock issued to the
PIPE Investors and upon conversion of the Convertible Notes, were converted into shares of DraftKings Class A common stock upon
consummation of the reincorporation and the Business Combination.
The shares issued
to the Investors in the Private Placement and to the holders of Convertible Notes on the Closing Date were issued pursuant to and
in accordance with the exemption from registration under the Securities Act, under Section 4(a)(2) and/or Regulation D promulgated
under the Securities Act.
Old DK Warrant
Exercise
Following the
Closing of the Business Combination, PacWest Bancorp exercised its option to convert former warrants issued by Old DK into
shares of Class A common stock. As a result of the exercise, DraftKings delivered 59,433 shares of Class A common stock to
PacWest Bancorp on May 4, 2020. The shares issued to PacWest Bancorp were issued pursuant to and in accordance with the
exemption from registration under the Securities Act, under Section 4(a)(2) and/or Regulation D promulgated under the
Securities Act.
II-
2
Item 16. Exhibits and Financial Statements.
(a)
Exhibits
.        The
following exhibits are being followed herewith:
Exhibit No.
Description
1.1*
Form of Underwriting Agreement
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
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).
2.3
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
Amended
    and Restated Articles of Incorporation of DraftKings Inc. (incorporated by reference to Exhibit 3.1 of the Company's
    Current Report on Form 8-K, filed with the SEC on April 29, 2020)
3.2
Amended
    and Restated Bylaws of DraftKings Inc. (incorporated by reference to Exhibit 3.2 of the Company's Current Report on
    Form 8-K, filed with the SEC on April 29, 2020).
4.1
Specimen
    Class A Common Stock Certificate of DraftKings
(incorporated by reference to Exhibit 4.1 of
the
    Company's Current Report
on Form
8-K,
filed with the SEC on April
29
,
    2020).
4.2
Form
    of Warrant Certificate of DraftKings Inc. (incorporated by reference to Exhibit 4.2 of the Company's Current Report
    on Form 8-K, filed with the SEC on April 29, 2020).
4.3
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).
4.4
Assignment
    and Assumption Agreement, dated April 23, 2020, by and among DraftKings Inc., DEAC, Continental Stock Transfer & Trust
    Company, Computershare Trust Company, N.A. and Computershare Inc. (incorporated by reference to Exhibit 4.4 of the Company's
    Current Report on Form 8-K, filed with the SEC on April 29, 2020).
5.1
Opinion of Greenberg Traurig, LLP as to the validity of the common stock.
5.2
Opinion of Sullivan & Cromwell LLP as to the validity of the warrants.
10.1
DraftKings
    Inc. 2020 Incentive Award Plan (
incorporated by reference to Exhibit 10.1 of
the Company's
    Current Report
on Form
8-K,
filed with the SEC on April
29
,
    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 April 23, 2020, between DraftKings Inc. and Matt Kalish (incorporated by reference to Exhibit
        10.2 the Company's Current Report on Form 8-K, filed with the SEC on April 29, 2020).
10.4
Executive
    Employment Agreement, dated April 23, 2020, between DraftKings Inc. and Paul Liberman (incorporated by reference to Exhibit
    10.3 the Company's Current Report on Form 8-K, filed with the SEC on April 29, 2020).
10.5
Executive
    Employment Agreement, dated April 23, 2020, between DraftKings Inc. and Jason Robins (incorporated by reference to Exhibit
    10.4 of the Company's Current Report on Form 8-K, filed with the SEC on April 29, 2020).
10.6
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.
10.7
DraftKings
    Inc. Employee Stock Purchase Plan (incorporated by reference to Exhibit 10.5 of the Company's Current Report on Form
    8-K, filed with the SEC on April 29, 2020).
10.8
Form
    of Indemnification Agreement (incorporated by reference to Exhibit 10.7 of the Company's Current Report on Form 8-K,
    filed with the SEC on April 29, 2020).
10.9
Earnout
    Escrow Agreement, dated April 23, 2020, by and among DraftKings Inc., Shalom Meckenzie, in his capacity as SBT Sellers'
    Representative, Eagle Equity Partners LLC, Jeff Sagansky, Eli Baker, Harry Sloan, I.B.I. Trust Management, the trustee, and
    Computershare Trust Company, N.A., as escrow agent (incorporated by reference to Exhibit 10.8 of the Company's Current
    Report on Form 8-K, filed with the SEC on April 29, 2020).
10.10
Stockholders
    Agreement, dated April 23, 2020, by and among DraftKings Inc., the DK Stockholder Group, the SBT Stockholder Group and the
    DEAC Stockholder Group (incorporated by reference to Exhibit 10.9 of the Company's Current Report on Form 8-K, filed
    with the SEC on April 29, 2020).
10.11
Share
    Exchange Agreement, dated April 23, 2020, by and among DraftKings Inc., a Delaware corporation, Jason Robins and DEAC NV Merger
    Corp. (incorporated by reference to Exhibit 10.10 of the Company's Current Report on Form 8-K, filed with the SEC on
    April 29, 2020).
10.12†**
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).
10.13†**
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).
10.14
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).
10.15
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).
10.16
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).
10.17
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).
10.18
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).
10.19
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).
10.20
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).
10.21
Seventh
    Amendment to the LSA, dated April 23, 2020, by and among DraftKings Inc. (a Nevada corporation), DraftKings Inc. (a Delaware
    corporation), Crown Gaming Inc., Crown DFS Inc. and Pacific Western Bank (incorporated by reference to Exhibit 10.20 of the
    Company's Current Report on Form 8-K, filed with the SEC on April 29, 2020).
10.22
DraftKings Inc. 2017
    Equity Incentive Plan, as amended from time to time.
10.23
DraftKings Inc. 2012
    Stock Option & Restricted Stock Incentive Plan, as amended from time to time.
10.24
SBTech (Global) Limited
    2011 Global Share Option Plan.
16.1
Letter
    from WithumSmith+Brown, PC to the SEC, dated April 28, 2020 (incorporated by reference to Exhibit 16.1 of the Company's
    Current Report on Form 8-K, filed with the SEC on April 29, 2020).
21.1
List
    of Subsidiaries (incorporated by reference to Exhibit 21.1 of the Company's Current Report on Form 8-K, filed with the
    SEC on April 29, 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 Sullivan & Cromwell LLP (included as part of Exhibit 5.2).
24.1
Power of Attorney.
101.INS
XBRL Instance Document
101.SCH
XBRL Taxonomy Extension Schema Document
101.CAL
XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF
XBRL Taxonomy Extension Definition Linkbase Document
101.LAB+
XBRL Taxonomy Extension Label Linkbase Document
101.PRE+
XBRL Taxonomy Extension Presentation Linkbase Document
* To be filed,
if
necessary, subsequent to the effectiveness of this registration statement by an amendment to this registration statement or incorporated
by reference pursuant to a Current Report on Form 8-K in connection with the offering of securities.
† 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.
(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.
II-
7
SIGNATURES
Pursuant to the requirements of the
Securities Act of 1933, as amended, the registrant has duly caused this Registration Statement on Form S-1 to be signed on its
behalf by the undersigned, thereunto duly authorized, in the City of Boston, State of Massachusetts, on the 6
th
day
of May, 2020.
DraftKings Inc.
By:
/s/ R. Stanton
    Dodge
Name:
R. Stanton Dodge
Title:
Chief Legal Officer and Secretary
Pursuant to the requirements of the
Securities Act of 1933, as amended, this Registration Statement on Form S-1 has been signed by the following persons in the capacities
indicated on the 6
th
day of May, 2020.
Name
Position
Date
*
Chief Executive Officer and Chairman
May 6, 2020
Jason D. Robins
(Principal Executive Officer)
*
Chief Financial Officer
May 6, 2020
Jason K. Park
(Principal Financial and Accounting Officer)
*
Vice Chairman
May 6, 2020
Harry Evans Sloan
*
Director
May 6, 2020
Michael Gavin Isaacs
*
Director
May 6, 2020
Matthew Kalish
*
Director
May 6, 2020
Woodrow H. Levin
*
Director
May 6, 2020
Paul Liberman
*
Director
May 6, 2020
Shalom Meckenzie
*
Director
May 6, 2020
Ryan R. Moore
*
Director
May 6, 2020
Steven J. Murray
*
Director
May 6, 2020
Hany M. Nada
*
Director
May 6, 2020
Richard Rosenblatt
*
Director
May 6, 2020
John S. Salter
*
Director
May 6, 2020
Marni M. Walden
* By:
/s/ R. Stanton Dodge
R. Stanton Dodge
As Attorney-in-Fact
II-
9